Congress sends economic aid plan to Bush

NF Reporter · 02-07-2008, 08:30 PM

AP - Congress, facing the prospect of an election-year recession, passed an emergency plan Thursday that rushes rebates of $600 to $1,200 to most taxpayers and $300 checks to disabled veterans, the elderly and other low-income people. President Bush indicated he would sign the measure.

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waltky · 02-12-2008, 08:07 PM

Consumer Confidence Already in Recession...

Economic Anguish: Consumers Run for Cover
Feb. 12, 2008 - Americans Seem to Have Lost Faith in the Economy, and That Usually Signals Recession

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Foreclosures are up. Job growth has flatlined. And the stock market has taken investors on a wild roller roaster ride. So are we going through a rough patch or has a recession arrived? Economists are split on the issue, but it appears that everyday Americans are clearly feeling the pinch and have lost confidence in the economy.

A weekly consumer confidence poll by ABC News showed the second-steepest fall in its 22-year record. The only other time the index fell this far, this fast was in October 1990 as the 1990-1991 recession gathered steam. Consumer confidence surveys such as the one by ABC News are seen by several economists as an accurate predictor of a recession. The catch is nobody agrees on when exactly that recession starts, if at all. Most economists are still split on whether recent, discouraging economic data necessarily mean a recession is unfolding.

"The difference between a weak economy and a recession is a loss of confidence," said Mark Zandi, chief economist and co-founder of Moody's Economy.com Inc. "When consumers lose faith in the economy they pull back on their spending, inducing businesses to cut back on jobs, which further undermines confidence. It's a self-reaffirming negative cycle that characterizes a recession."

Zandi said that generally when there is a sharp decline in confidence, it signals recession. So are we in a recession now? "I think the economy is contracting," Zandi said. "I think all the dynamics suggest it will continue to contract and there will be a recession, but that is still a forecast."

More ABC News: Consumer Confidence Already in Recession

waltky · 05-14-2008, 06:23 PM

Foreclosures remain a problem...

US Foreclosures Up 65% in April
Wednesday, May. 14, 2008 — More U.S. homeowners fell behind on mortgage payments last month, driving the number of homes facing foreclosure up 65 percent versus the same month last year and contributing to a deepening slide in home values, a research company said Tuesday.

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Nationwide, 243,353 homes received at least one foreclosure-related filing in April, up 65 percent from 147,708 in the same month last year and up 4 percent since March, RealtyTrac Inc. said. Nevada, Arizona, California and Florida were among the hardest hit states, with metropolitan areas in California and Florida accounting for nine of the top 10 areas with the highest rate of foreclosure, the company said.

Irvine, Calif.-based RealtyTrac monitors default notices, auction sale notices and bank repossessions. One in every 519 U.S. households received a foreclosure filing in April. Foreclosure filings increased from a year earlier in all but eight states.

The combination of weak housing sales, falling home values, tighter mortgage lending criteria and a slowing U.S. economy has left financially strapped homeowners with fewer options to avoid foreclosure. Many can't find buyers or owe more than their home is worth and can't get refinanced into an affordable loan. Efforts by government and the mortgage industry to stem the tide of foreclosures aren't keeping up with the rising number of troubled homeowners.

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FBI warns of rise in mortgage scams
Wednesday 14th May, 2008 - Mortgage scams in the US last year netted criminals hundreds of millions of dollars.

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The FBI has reported it received 46,717 suspicious activity reports related to mortgage fraud last year, compared to 35,617 in 2006. The crisis in the subprime mortgage market played a key role in fuelling the spike in the scams.

The most common perpetrators were people in finance-related occupations, including accountants, mortgage brokers, and lenders. Victims were often borrowers and residents of distressed neighbourhoods.

Mortgage fraud is defined in the report as the intentional misstatement, misrepresentation, or omission by an applicant to provide funding for, to purchase, or to insure a mortgage loan.

FBI warns of rise in mortgage scams

waltky · 07-29-2008, 12:57 AM

Economy hard on the seniors...

Economy hitting the elderly especially hard
Mon., July. 28, 2008 - Bankruptcies soar as retirees, agencies struggle to keep up with rising costs

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Bob Emily put in an honest day’s labor every day of his life. “I worked for the railroad, for the town marshal, security, bars, Sealy down here, UPS,” said Emily, 82, of Commerce City, Colo. “Worked hard all my life until I got sick.” Then the bills started piling up. “Hospital bills built up,” said Emily, who didn’t have health insurance. “I had to get loans to take care of my bills. Then I was getting behind on the loans.”

Every day, more calls and letters would come in from creditors and collectors. “I just got tired of it,” Emily said, so three months ago, he filed for bankruptcy. That could take some of the pressure off. Then again, it might not. Food prices and medical costs are still rising, tarnishing what are supposed to be the golden years for the elderly, perhaps the hardest-hit victims of the slumping economy.

Elderly Americans are filing for bankruptcy in record numbers, according to a study by AARP, formerly the American Association of Retired Persons. At the same time, support is drying up from meal, transportation and other home assistance agencies that can’t pay their own bills. There's no question that the downturn in the economy is dramatically impacting those at the doorstep of retirement and those that have already decided to retire,” said Mark Kitchens, a senior vice president of AARP.

Soaring bankruptcy among the elderly