Warning of Double Dip?

Let's see what does the news media have to say about unemployment now and the economy? Oh yeah, they are stating that unemployment will rise even though the stimulus created a lot more jobs than what was believed.

What, unemployment is still high? Why is unemployment expected to rise? According to different money news and economic news experts on various news stations, many businesses and companies are cutting back to hold on to their money, since they are unable to get those loans and credit from the Banks and Credit Financial loan companies which was suppose to stimulate the economy with the help of that stimulus.

What? Didn't they get their stimulus money, the same stimulus money they suppose to use to stimulate the economy? And didn't they pay it all back with interest after getting totally out of the RED?

Of course they did. But it is an election year.

The Democrats did dare to pass that Financial Reform Bill earlier this summer. And since it is an election year, the Banks and Credit Financial Loan Companies are mad as heck at the Democrats for passing that Financial Reform bill. So as a form of protest the Banks, Credit Finanical Loan Companies along with Wall Street Companies and Insurance Corporations have all backed the Republican 'Just-Say-Hell-NO-Party' in hoping that the Republicans will go in and Reverse that Financial Reform Bill. They are angry and are funding the Republican's message which has duped so many Americans into believing that Reversing the Financial Reform Bill is good for them.

So in their form of protest, the Banks and Credit Financial Loan companies, have held back those loans and credits for most businesses, thus helping to EXTEND the unemployment situation while creating more unemployment to get voters behind the Republicans. Yep those Banks, Credit Financial Loan Companies, Wall Street and Republicans are teaching the average Middle Class American a lesson in economics alright.

They are teaching us that we, the Average Middle Class American, need not apply for the right to expect them, the Banks - Credit Financial Loan Companies - Wall Street, to play by the rules and regulations in any Financial Reform Bill, because with the help of Republicans, they the Banks - Credit Financial Loan companies - Wall Street, will always have their way.

So go ahead and vote Republican in November and just watch how the Republicans get the Banks, Credit Financial Loan Companies, Wall Street off the hook for what they did in the pass while Republicans allow them to do as they please again so they can go back to destroying our economy.

While the Republicans controlled the Senate and Congress their decisions have always favored with the Banks, Financial companies and Wall Street Companies. In 1999 Republican Senate and Republican Congress passed the Gramm-Leach-Bliley Act which allowed for the first time since 1933 the commercial Banks, Investment Banks, Securities Firms, and Insurance Companies to consolidate.

Well the Act was passed in 1999. But in 1998 Citibank and Smith Barney and Primerica and Travelers had already consolidated before that bill was passed making their merger a violation of both the Glass-Steagall Act of 1933 and the Bank Holding Company Act of 1956. So the Republican Senate and Republican Congress Bill of the Gramm-Leach-Bliley Act had a notation of back tracking the bill one year to make the Consolidation of the bank company, securities company, and the insurance company merger forming the Citicorp Corporation of 1998 legal thus protecting Citibank and Smith Barney and Primerica and Travelers from being prosecuted for any violations. Because of the Republican 1999 Act that allowed the merger from the previous year the Republican's Gramm-Leach-Bliley Act became known as the Financial Services Industry bill.

The Banks, Credit companies, Loan Companies, Insurance companies and Wall Street can always count on Republicans to sell their souls to the highest bidder. And you can bet that the Banks, credit companies, loan companies, insurance companies and wall street companies are all happy that the Republicans are very good at convincing the Average Middle Class American Citizens that it is the unemployed and the Police Officers and the Fire Departments and the Teachers in our country who should be considered the Special Interests Groups.

So will you be duped into voting for Republicans who work tirelessly against the Average Middle Class American Workers and their families? If you dare vote Republican, you definitely have been duped!

As The Political World Turns

Nine months into the new presidency, a lot has changed. Yet the attitudes and push for what does not make sense remains the same.

In a television political commercial a woman claims that in these hard times moms are struggling to feed their families. The young actress hired to play a mom in that commercial also states that she is opposed to the tax on SODA, because as she puts it - that tax on soda will make it hard for her to feed her family.
I am a housewife, a mother, and a grandmother. I may not be a career actress getting paid good money to appear in commercials, but even I know that *SODA is a carbohydrate and that carbohydrates turn into pure sugar in the human body. And that one 12oz can of SODA is equivalent to one full cup and a half of sugar.
Why would a mom want to feed her children that?

Just wandering.

Oil Price Hike With Lower Supply

In reading 'Oil Crosses $129.00 For The First Time,...' on the ABC news, the associated press writers, Hogue and Jahn report on the oil price surge and the excuses offered by the OPEC representatives.

It appears that I was right in my belief that the price of oil would hit over $125 dollars per barrel just before this summer. Of course the rest of the country is complaining of the national average of $3.79 per gallon, yet they have no clue just how lucky they are. Here in Southern California we have been stuck at over $4.00 per gallon for weeks now.

Some of those in the Oil industry have blamed the higher prices on:
1) Stronger demand for diesel fuel in Asia.
2) The weakening of the American dollar against the Euro, making oil prices cheaper for foreign investors.
3) Recent earthquake has the regions in China relying heavily on generators for power.
4) China is also ramping up diesel fuel in preparation of the Olympics driving up the costs.

But Energy Minister Khelil stated that OPEC wont increase it's output this summer driving season, thus less supply during the heaviest use of gasoline consumption. I guess we can just expect higher prices at the oil pump. Heating oil prices and natural gas costs have increased and may also rise just before summers' end in time for the cooler months.

Stimulating Whose Economy?

If those writing history pay attention to the time line, then the history of our current economic tax rebate will prove that shortly after Bush announced his Stimulating Economy Rebate 'it was the oil companies' who quickly schemed to raise their prices at the pumps forcing the American Citizen to spend their rebate money to stimulate Foreign Oil Countries instead.

Contrary to what the Bush administration claims, the evidence is there that the members of the Bush administration who are still on Halliburtons' payroll in one way or another will be benefiting from the foreign oil companies countries boost in their economy from the average American two car family whose tax rebate of over a quarter percent will be boosting the foreign oil. In a worse position are those small businesses that rely on many driving hours during most of their working hours. Even many of the home run businesses that exists now-a-days have the business owners and or partners doing many hours of driving/delivering of products or services. Stuck are the small businesses who are forced to raise their prices more, causing many American consumers to cut back from spending even further, thus putting many of the small companies out of business.

Did our current Bush Administration think this out? Or did they count on it?

Foreclosures And The Middle Class

I just read a news article from USA Today where two of the writers, Brad Heath and Charisse Jones, have put the blame of the foreclosure crisis on the homeowners for getting homes they could not afford. But they are not the only economic writers who have fallen into that trap. It seems that every economic writer has concentrated the blame on the homeowners for not being able to afford the homes they bought. Since most of the apartment vacancy rate has dropped very rapidly and the costs are beginning to soar as well most of the homeowners who have fallen into foreclosure in Denver Colorado are having to move in with family. Of course the economic writers are blaming the homeowners who did fall into foreclosures for the rising cost and lack of apartments as well. Even though there has been an increase of States whose government officials were admitting that there has been an increase of homelessness in their states, it seems that very little if any is being said about it. Still many of the foreclosed homeowners are moving in with family in Denver and other parts of Colorado. Yet Colorado is not the only state hit by foreclosures and homeowners doubling up with family in single family homes. In Kalamazoo Michigan many people are doubling up and there were over 1,000 foreclosures of homes last year. Still every writer speaks of subprime rate loans, the aggressive lenders and the fault of the homeowner.

However, no one has ever tried to find out about the jobs. Has any of the 23,000 jobs lost in January, or the 63,000 jobs lost in February have anything to do with it? How about the OutSourcing of jobs with Bush and his administration giving Government Financial Incentives to Corporations to take jobs away from Americans and give the same jobs to workers in other countries? After all, my husband's job was outsourced in Jan 2002 and we have barely been able to hold on with temporary High Tech contract jobs that are becoming so few and far in between. When we first bought our home, it was a 30 year fixed FHA. My husband's job of 12 years with Rocketdyne was permanent and secure, his retirement was set, our medical insurance covered. Everything had been wonderful for his 20 years of experience and employment in his field, Until his job was OutSourced. Then it began. The ability to obtain another permanent secured job was becoming a thing of the past. Yet no one wrote about that. Since 2002, every year the jobs in his high tech field were fewer, farther in-between, and for a lot less length of time, which did pose a serious threat to our ability to hold on to our humble abode. My husband had taken those temporary high tech jobs OUT OF STATE and had to pay for living expenses in both locations, just so we can hold on to our home. We have even had to obtain one of those subprime loans just to stay afloat so we would NOT loose our home when the length in-between jobs was more than expected. Yet no one ever wrote about that. Recently, we even got a second refinance loan when it looked like we may be headed down the road to loss of ownership. Yet no one ever wrote about that.

No! It seems our problem is not that we bought a house we could not afford. No! What is our problem? If our home were to go into foreclosure, what would be the cause? Our plight would be that my husbands job was OutSource. It would be that the Secured Permanent jobs in the Hight Tech field are a thing of the past. It would be that the Bush Administration and the Republicans took my husband's job, send the job overseas, and gave his job to a foreign worker. In short, Bush and the Republicans have pulled the safety rug of security from under our feet and threw it to the wind.

Yet no one will write about that!

50 Something Year Old Moves In With Parents

I read an article today on ABC news, written by Emily Fredrix, of a woman who moved into her parents home at 52 due to the poor economy and the loss of her job. The Associated Press business writer tells us the woman lost her job, sent her daughter to live with her husband since she could no longer support her daughter, then in Dec 2007 moved in with her parents, was able to get another job with the Experimental Aircraft Association, is living close to her ex-husband to be close to her daughter, does not pay rent or barely contributes for food because her parents let her.

Yet since the woman is not spending anything to help her parents who are on a fixed income, she says she could have her 5% down payment to buy herself a home by June this summer.

OK, now back up a minute. If she is getting paid enough to be able to save for a 5% down payment to buy herself a home by June, why doesn't she just get herself an apartment. If I was able to save that much from the time of December 2007 to the time of June 2008 and have that much as a down payment on a home, then I know that I could rent and pay my own bills in a small one bedroom apartment and just wait longer to buy a home. Yes, it might take a full year, or it could take two years. But if she down scales, she could do it.

The thought of burdening my parents with them providing for me especially if I could save that much in 6 months is shameful since my parents are on a fixed income, as most seniors are. In this economy seniors are getting hit as well. It's OK to except help from our parents when we are struggling. I and my husband have been struggling since 2002 when my husbands secured permanent HIGH TECH job was OutSourced to India and our Medical Insurance and his retirement fund disappeared. But to move in with my parents so they can support us when one of us had a job and pay nothing while saving to buy a new home because we did not want to rent an apartment when we were able to do so, just sounds wrong to me.

Yes, I do know what it is like to struggle. My husband's jobs have been temporary contracts, too far in-between, and too few. We are even close to foreclosure every time he is between jobs. But I will not live with my parents unless we loose our home and have no income of any kind coming in which would cause us to be turned down to rent an apartment.

The Economic RollerCoaster

While yesterday's news was filled with the Interest Rate cut again by Bernanke and the Fed for the for the fifth time since August 2007, plus the government freeing up millions of dollars for Fannie Mae and Freddie Mae, and yesterday's news gave a glimmer of hope with the up swing in the Dow stocks with the rise in gold, it appears that today, March 20 2008, puts us right back on that roller coaster ride I keep talking about.

Yep, the gold had fell sharply according to the money news of abcnews.go.com. Also on that news article by the AP Business news writer, Tim Paradis, "The Dow Jones at times gave up more than 200 points." Although things are looking up for Morgan Stanley, the sight is more on a downward angle for Lehman and Goldman.

On the upbeat are the Mae's, Fannie and Freddie. It could mean some help to turn around the sweep of foreclosures, but when we put our economy on roller coasters, sometimes it is hard to predict. And since the largest credit card company, Visa, is not a lender, it appears that it has a good chance of surviving as it staged one of it's largest sell offs in history.

The thought is that the economy may gain solid footing, but how does that work when the whole trade and sell stock market is a continuous wheeled roller coaster ride?

Britain's FTSE 100, Germany's DAX and France's CAC-40 had a fell, with the up swing of Japan's Nikkei stock and Hong Kong's Hang Seng.

Now, not mentioned is the Euro, the British pound which have in recent past fallen. Of course, the world market did attribute the fallen currency in other parts of the world to the fault of the shrinking American dollar.

Today's Interest Rate Cut

On abcnews.com I read an interesting money article written by Scott Mayerwoitz, of ABC news business unit, regarding Bernanke and the good old interest rate. Guess what it is?

Bernanke and the Feds have cut the interest rate again today, by 3/4 of a percentage point. Yep, they did! This supposedly the five time since August 2007 that they have done this while trying to repair the broken USA economy.
According to the money news, the last time the Interest rate was this low way in February 2005 when Greenspan and the Feds cut the rate trying to correct the recession at that time. Strange that Bush even admitted in a speech on 2004 that we were in a recession during his speech. However since that time no one in the Bush administration, including Bush, will utter the word recession since.

Scott Mayerwoitz goes on in his article reporting on what the Fed said in a statement: "Recent information indicates that the outlook for economic activity has weakened further. Growth in consumer spending has slowed and labor markets have softened. Financial markets remain under considerable stress, and the tightening of credit conditions and the deepening of the housing contraction are likely to weigh on economic growth over the next few quarters."

With the way the Dow has gone up today because of the move by the Feds, it appears as it Wall Street might be healing. But then this is the sort of thing that has been going on back and forth, up and down like a RollerCoaster Ride since Bush and the Republicans began their Government Financial Incentives for Businesses to send American jobs overseas, calling it OutSourcing. Infact, if people would take the time to thoroughly investigate the Nixon and Ford Administrations from Nixon's trip to China to the changes the Republicans made to the USA Foreign Trade Agreement they would have seen a pattern of slowly sending American jobs to other countries that eventually destroyed economy.

What troubles me is that even Lou Dobbs does not credit the Nixon and Ford Administrations for destroying the economy of the 70s. Nope! Just like all the other present and past Republicans, Lou Dobbs blames Jimmy Carter who actually inherited it.

Well here we are in the first quarter of the year 2008. Out economy has been going down hill since Bush took office and began his OutSourcing of American jobs to Foreign countries to Foreign workers and NO ONE sees the pattern.

What pattern am I talking about? Why do I keep connecting jobs with the economy? What could I possibly know that no one has even spoken about?

I am talking of the pattern, the connection of jobs with the economic rule: "FOR THE WORKING ECONOMY TO WORK, YOU HAVE TO HAVE THE PEOPLE IN THAT ECONOMY WORKING!"

Taking jobs away from American workers only destroys the American economy.

Banks Get Bailed Out

JP Morgan Chase and the Federal Reserve Bank of New York bailed out the Bear Sterns investment after the bank suffered a run today. The 85 year old firm has 28 days to fix it's finances or sell out. As Bear Sterns stocks fell 47 percent, there was fear that more banks may suffer the same fate as Bear Sterns credit crisis.

The Federal Reserve found it necessary to bail out Bear Sterns investment bank since it is a major player on Wall Street of borrowing and lending billions, fueling the everyday business of capitalism. A sudden collapse would shake the entire system and bring the markets to a screeching halt.

Lehman Brothers, another Wall Street firm secured loans from other banks to insure that it will not suffer a great lost after it's stocks fell 15 percent.

Bankers Telling Appraisers The Value Of Homes

Bush and the Republicans and the Financial institutions are blaming the current economic crisis on the people who got loans they could not afford. Well I just read an article by an appraiser who gives a first hand account on just what was really going on. After reading the news article I felt the only way to tell the story was to print the story in it's entirety just as it was written on the CBS news web site by their own correspondent Sharyl Attkission:

*(CBS) Home appraisers Pam Crowley and Joyce Potts knew the roof was caving in on the housing industry four years ago, CBS News correspondent Sharyl Attkisson reports. That's when they noticed their profession being turned on its head. Instead of letting them do their job and figure what a home was worth ... bankers and realtors started telling them what dollar number to hit. "The appraiser is not to accept any orders where it's pre-determined what the value should be," said Crowley, a Florida certified real estate appraiser. Most everyone wants a high appraisal: buyers pay less cash down; banks make more money on bigger sales. It's the appraiser who's supposed to be fiercely independent to keep things honest. But more and more, appraisers have been told that, to get hired, they have to guarantee a high appraisal - sight unseen. One lender emails appraisers, "I need at least $210,000." Another writes: "I want to know if we can hit a value of 280K." Some lenders even send out blatant mass e-mails putting appraisers in a bidding war. To 77 appraisers for a home in Arizona: "whoever can provide the highest [appraisal] will receive the deal." "We were blackmailed," Crowley said. Those who don't play ball lose work. Whoever can provide the highest will receive the deal. Those that are honest will get run out of business. We didn't have to look far to see the fallout. Joyce Potts had just been called by a mortgage broker who wanted a high appraisal to refinance this tiny house in disrepair. The owners don't want to be identified. Attkisson asked Potts: "What was the number they wanted you to appraise this house at?" "Well, it started at $210, then he says, 'what about $175.' Then, 'how about $150. can you get $150?'" she said. Potts turned down the job. But while we were there, another appraiser came by. He decided not to look at the house with CBS News cameras there. Records are confidential, so CBS News doesn't know if he ended up appraising the property. So many appraisers have felt pressured to give inflated home values, 10,000 of them signed a petition hoping to get federal regulators to act. Now under scrutiny, bankers and lenders are starting to adopt new rules to ensure independent, reliable appraisals. "It's not in the lenders' best interest to have an inflated appraisal, to the extent to that was taking place, lenders want to see that corrected," said Steve O'Connor of the Mortgage Bankers Association. The changes are too late for many, including Crowley who's lost her business, and the couple struggling to make inflated payments on a house that's not worth what they owe.*

Bush And The Economy

Bush spoke to the Economic Club today. The Economic club is not filled with people like you and me. No. It is filled with the extremely well off people who never suffer any ill effects when the Economy in our country is failing.

Bush told them that the Economy will fix itself. Yeah, Right! Does anyone want to by a bridge in the middle of the Pacific? It seems that Bush and the Republican party still believe that there is no recession. Bush probably still believes that the $4.00 a gallon of Diesel fuel is just every truck driver's imagination. I wish I knew what Bush was smoking. It must really be wonderful for Bush to breeze through the day with his head in the clouds of ignorance while ignoring the world around him as it comes crashing down.

Bush warned of over compensating for the failing Economy, or someone will find themselves in a ditch. But isn't that what Bush, Bernhardt, and the Republicans have been doing. And before Bernhardt, isn't that what Bush, Greenspan, and the Republicans have been doing during Bush's 2 terms in the White House.

Seems like Bush and his friends already drove this country into that ditch a long time ago.

Keeping Track Of Economic News

William Maclean wrote "Oil prices will stay at current high levels for the rest of this year due to speculation and geopolitical tensions, Algerian state media on Monday reported OPEC President Chakib Khelil as saying."

To say that the money financial news reporters are the historians of our time would be a fair assumption. For the past seven years of GW Bush, I have read many articles from news websites: abcnews.go.com, CNN.com, MSNBC.com, cbsnews.com on different stories on the economy yet there always seemed to be a glimmer of hope. I have even read news reports of associated press and Reuters news service from websites like yahoo, msn, google. Each time there were signs in the articles that the economy was not doing well, but there was always a statement added that it could turn around for the better.

However with the current stories of our economy continuing on the decline with our shrinking green money I can't help but notice that in this new found world economy created by the most wealthiest in the world just how much the value of a single worker or human being has also declined as well. Big business and employers don't even bat an eye when they lay off and fire workers to balance the companies budget. It seems the more experienced and skilled knowledge the workers have, they end up being the first to go. I even heard on CNN a money news reporter suggest that the manager of manufacturing may find it necessary to retrain for the High Tech jobs.

Only retraining to go into the High Tech jobs would end up being a mistake. That CNN news reporter must have been asleep when a lot of the High Tech jobs were being Out Sourced to India, leaving a lot of highly skilled, educated with degrees, experienced and knowledgeable in the field unemployed and constantly scrambling to get temporary contract jobs in that field like my husband. Only those jobs are becoming more far in-between and shorter term. I guess that CNN money expert who was giving advice on TV was no expert on the fact that many of the jobs which did remain are only temporary short term jobs with NO job security at all, and are lower in hourly pay since those jobs do NOT have any of the benefits which used to come from having a permanent position with a company. And after paying your own taxes and paying your own medical insurance, dental insurance, and coverage for seeing an eye doctor and glasses you end up with a lot less money than what used to be paid with secured jobs plus benefits. But then my husband at 52 in 2002 was laid off when his job was Out Sourced.

Holding on is just not easy any more.

CEOs questions of hitting JP during Foreclosures

"There seem to be two different economic realities operating in our country today. And the rules of compensation in one world are completely different from those in the other," said Rep. Henry Waxman, D-Calif., chairman of the House Committee on Oversight and Government Reform. "Most Americans live in a world where economic security is precarious and there are real economic consequences for failure. But our nation's top executives seem to live by a different set of rules."

Scott Mayerowitz ABC news reported on the web about the Democratic Congress getting right to the point in a hearing where the CEOs of three mortgage companies that collapsed with the subprime mortgage market. The CEOs made millions while thousands of Americans lost their homes and investors lost billions of dollars.

Mayerowitz continues in his report: "I think there's merit to pay for performance," Waxman said. "But it seems like CEOs hit the lottery even when their companies collapse."

Of course the economy news reported by Scott wouldn't have the flavor of politics without someone present to take advantage of the situation and declare in his own partisan way that he was not in favor of the investigation. In the news article Mayerowitz writes: But the Republican ranking member on the committee warned that he would not let the hearing turn into a witch-hunt. Rep. Tom Davis, R-Va., said it is not the job of Congress to second-guess investor decisions or to help plaintiffs gather evidence for their lawsuits. He said it is fair to question compensation packages but warned that the debate should not turn into a "sanctimonious search for scapegoats."

It doesn't take a rocket scientist to understand that the whole foreclosure and dropping home values was instigated by the wealthy and powerful Republicans and their filthy rich friends. I just hope that people in America wake up before it is too late.

Labor Department's February 2008 Report

Browsing ABCNews I came across a news article about the crises. No, it was not the war. No, it was not oil. No, it was not foreclosures. No, it was not dropping home values. No, it was not any of those things that are mostly written about.

This time Jeannine Aversa wrote about the rate of job loss climb. Yep, someone is finally talking. It appears that the February Labor Department's report on job loss came out, and it is the highest job loss rate in five years. In fact Aversa even wrote about the job loss rate that was reported in January.

The January jobless rate report was wrong. The report has the rate at 17,000 for the month. But in fact the rate was really 22,000 of jobs loss for the month of January. But February's report is much higher at three times the amount.

The February's job loss report for the month is at 63,000.

The economy will only get worse now. The Republicans never learned that one true law of economics. That law has been around for a very long time. It was true in every great civilization during it's peak when the economy was best. That law is as true today, as it was decades or even centuries ago.

"A Working Economy Only Works, When The People In That Economy Are Working!"

Other Currencies May Follow The U.S. Dollar

I came across a news article on abcnews.com about the shrinking currencies around the world. Matt Moore wrote the article which was published on line. It sounds as if the different world currencies may share the same fate as our U.S. dollar. Of course the American dollar is not doing well. In fact our American dollar should have it's name change to the 'Shrinking Green'.

Moore spoke of the euro European trade closed with a drop at 1.5262. It was even stated in Matt's report by the European Trade Union Confederation that the "excessively expensive euro will cost European jobs..." This morning before the drop it did show a short lived promise at 1.5370. But like the American dollar, it too is showing signs of weakening. The pound dropped to 2.0027 after trading just slightly higher at 2.0057 and the Japanese yen dropped from 103.87 to 103.11.

Matt Moore wrote, "European Union businesses said they were starting to feel the pinch, too, notably from U.S.-based buyers who pay for goods from Europe."

"We said when the euro was above $1.40 that we feel the pain. When the euro is above $1.50, it is alarming," Mr Moore quoted Ernest-Antoine Sillier, president of the EU employers' group BusinessEurope in this report.

"On Wednesday, reports showed that U.S. factories saw demand for their products drop sharply in January, while the country's service sector contracted last month. That provided new evidence of weakness in an economy hit by housing and credit crises — weakness that has raised expectations that the Fed is not done with its interest rate campaign." Matt in his news report continues his observation. "Speculation has mounted that the Fed might cut rates by as much as three-fourths of a percentage point this month. Lower interest rates can jump-start a nation's economy. But they can also weaken its currency as traders transfer funds to countries where they can earn higher returns."

Foreclosures Are Worse Than First Reported

The Associated Press writer, Jeannine Aversa's article today covers the last quarter in the rise in foreclosures of American homes. It seems as if companies are in a hurry to kick families out of their homes, because they have started procedures as early when the home owners are just 30 days behind in their mortgage before considering them delinquent. They companies are not even working with the home owners as earlier thought. One thing no one has even mentioned is how companies are selling the mortgages to other companies before the homeowner even shows signs of a problem.

I am not sure exactly how or why, but our mortgage company did that to us. We had one of those adjustable rate loans which is not due to be adjusted until 2009 in February. Yet the mortgage company, Nova Star, for no reason at all sold our mortgage to Saxon during the month of Nov 2007. Our first payment was in Dec 2007. My guess is that Nova Star some how got a hold of my husband's work information that he had been unemployed for a few months, even though we were able to keep up our mortgage payments. They probably saw us as a risk since my husband has short term contract jobs.

Since Jan 2002, when my husband's job was being Out Sourced to India, and the Boeing Company was sending some of the IT Department of Rocketdyne to India since late 2001, Allen, my husband, has only been able to get temporary jobs of contracts with various companies here in California and four other states. Each time the jobs were only for 6 months to a year. But because he would finish the assignment sooner than expected, and better than expected, the contract would be over. There were even jobs where, they would have him train someone with a green card from India, then the company would have that person replace my husband. That is what the American high tech workers call -- Insourcing --.

Thanks to the Republican Out Sourcing Government Incentive Financial Program as well as the new Insourcing of jobs, the jobs my husband gets are too few and far between. If Americans do not have the high tech knowlegde needed for the work, and if only the Green Card Indian from India have the high tech knowlegde then why does my husband have to train them. Something is wrong with the scenario the Bush Administration have been dishing out with those speeches of Bush claiming that the Americans not having the skills or knowledge for the high tech world. I wonder if anyone is really paying attention to what the Republicans have been doing for the last 7+ years to the American Work force or if they just do not care.

Bernanke Pleads: Lower The Principle

It is March 4 2008 and Bernanke, my favorite Federal Reserve Chairman, is back in the news at a meeting in Orlando Florida. With the interest rate expected to be reduced on March 18 2008, today Bernanke urged the Bankers to do more for the homeowner to prevent an increase in foreclosures. Bernanke suggested the financial institutions to reduce the principle on what is owed, allowing the struggling home owner to hold on to their home a little longer and wade out the storm of the troubling economy. "Principal reductions that restore some equity for the homeowner may be a relatively more effective means of avoiding delinquency and foreclosure," Bernanke explained as he spoke of the home owners inability to remain in their homes with little or no equity. "They say that if they were to write down the principal and house prices were to fall further, they could feel pressured to write down principal again," Bernanke said about the lenders. Still he was talking of a more permanent solution instead of the limited temporary one that would just have more foreclosures down the line.

"When the mortgage is `under water' a reduction in principal may increase the expected payoff by reducing the risk of default and foreclosure." Bernanke goes on to say "Measures that lead to a sustainable outcome are to be preferred to temporary palliatives, which may only put off foreclosure and perhaps increase its ultimate costs."

Bernanke also warns that the Bush Administration Bush administration's promoted rate freezes only "reduce the impact somewhat, but interest rate resets will nevertheless impose stress on many households," Bernanke said.

Bernanke Warned Of Sluggish Growth

Today I was reading an article by Jeannine Aversa AP Economics Writer. The money news article was again about Bernanke adressing Congress that the Business Growth of the US will be sluggish. "The economic situation has become distinctly less favorable," Bernanke warns pointing out some causes like the deteriorating job market, the slump in home sales, and credit problems that have increased. Bernanke contintued his warning, adding that the Feds need to watch the price increase in energy which could further dampen the economic growth. Bernanke is talking about another cut to the key interest rate, as an insurance to prevent down swing risks.

Jeannine also states in her written news report: The central bank, which started lowering a key interest rate in September, has since become more aggressive. Over just eight days in January, it slashed rates by 1.25 percentage points -- the biggest one-month reduction in a quarter century. Economists and Wall Street investors predict the Fed will cut rates again at its next meeting on March 18. There are dangers that the economy will weaken even further. "The risks include the possibilities that the housing market or labor market may deteriorate more than is currently anticipated and that credit conditions may tighten substantially further," Bernanke cautioned.

To Call It Recession Or Not

It was reported today that oil had reached 100.88 a barrel by the news on line. The president of Excel Futures Inc stated: "The weak dollar seems to be the biggest catalyst for this boost." Yet I do not recall any mention of it by the, so called political experts today on the television news. Nope, not one single word was mentioned on CNN or MSNBC about the price of oil barrel jumped. Nor did anyone say anything about the weak American dollar being the biggest catalyst, as if it were the cause.

While browsing the Internet news I found more information on the home sales declining even as the price of homes have dramatically dropped. In fact it was mentioned that across the nation home prices did drop significantly in most metro areas. J.W. ELPHINSTONE AP Business Writer wrote in her article: "A government report Tuesday said U.S. home prices posted their first annual decline in 16 years."

ABC on line money news: NEW YORK (Reuters) - U.S. home foreclosures for January increased 57 percent from a year earlier, ... "January's foreclosure numbers demonstrate that foreclosure activity is continuing on its upward trend, substantially increasing from a year ago in many states," James J. Saccacio, chief executive officer of RealtyTrac, said in a statement.

Also in the news stores like Home Depot are reporting a decline in their profits with a drop in their annual sales. While stores that are not usually effected since the people who shop there are better well off like Nordstrom had to admit that their profit drops and sales declined at the year end of 2007. Nordstrom is expected to brace for a tough 2008 sales report as people are now holding back on spending.

David J. Lynch of Waterloo, Ontario wrote an article of how the slump in the American Housing is starting to effect Canada. Since we are not buying as much lumber as we normally do from the Canadians, they are starting to experience the cold chill of the economic slow down reality. "More than three-quarters of Canada's exports — including oil, minerals, lumber and passenger vehicles — are sold to Americans. The U.S. housing collapse already has slashed sales of Canadian lumber."

So after seven years of Bush and Republican policies with drops in profits and sales with Up and down swings in the Stock Market can we say this is a recession, or are we still waiting?

Economic Recession

Today while browsing through the ABC news site I came across several different stories regarding our economy. Usually we get one or two at the most that reflect how badly the economy is doing, however today there were up to four different stories.

While one story stress that the Housing Industry is in a deeper slump than what was reported, proving that we are already in a Recession, another story was quoting on some economists who are only now ready to believe that we may be headed for a recession by the autumn of this year. Yet in still a third story Lowe's is reporting that there has been a tremendous lost in sales due to the Housing Industry slump. And then there is the fourth story. A top CEO of Sprint, the telecommunications and telephone company, is announcing that the company has to cut 4,0000 jobs.

Yes, there are still those who refuse to admit that we are in a recession. But what puzzles me, is that this discussion of whether we are in a recession has been going on for quite a few years already.