Thursday, June 11, 2009
The Fed's Beige Book findings out yesterday suggested the recession was loosening. Are we closer to recovery now? Steve Chiotakis explores whether the job market is stabilizing with economics correspondent Chris Farrell.
Economics editor Chris Farrell (American Public Media)
More on Chris Farrell's Q & A, America's Financial Crisis
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You recently reported on a student loan option that was being offered as part of the government stimulus package, which is based on a person's income.... I was wondering if you could please let me know where to find this information. Thanks. Ethan, Minneapolis, MN Read Chris Farrell's answer »
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From Hollywood, FL, 06/11/2009
It is my firm belief that the signes of recessional easing are soley predicated on either the recent dose of government pablum or the actions of the Federal Reserve and foreign investors picking up of American real estate, at pricing that is as far from the description of the word value as anything can get. I believe that the real estate boom masked the damaged to the country done by outsourcing, and that the quashing of the real estate boom by the Federal Reserve and the media follow up of Greenspan's edict that the boom was doomed,in 2005, created the perfect economic storm, which is in the process of causing a complete unravelling of the US economy and therefore the world economy. It is too late to brin the jobs back. I am a Republcan that agrees with the trickle down theory; however, both the trickle down and trickle up theories are predicated on a wheel in motion that just needs a push from the top or bottom. Unemployment is at rates much higher than reported, because they do not take into acccount lost 1099 and K1 employment from independant contractors and small business owners; therefore, the government's ability to continue to feed us the government diet of pablum will not be viable. I predict 30% unemployment worldwide within three years. The Federal Reserve is responsible soley for the economic distruction of America. They saw the REIT collapse coming and baked a cake to get rid of the REIT mortage backed securities beginning in 2005, when they tinkered with the Appraisal Foundation Board's standards, requesting and receiving a new rule, tying duress sales and foreclosures, illegally, from the stand point of of the Foundation's neutrality mandate, by tying the new appraisal's Scope of Work Rule to the banks' risk management. The incredibly large and quick (eight months),fall in real estate vaules is wholly attributable to this machination by the Federal Reserve and the resulting reduction in American property values has unfairly hurt American's trying to sell their omes for true value. There were no short sales during the Savings and Loan REO debacle and their was a government body set up to legally sell them with proper authorization. Most importantly it has weaken America's ability to defend itself both economically and yes militarily also. Never has a private, non government special interest done such harm to America's security and shortly the truism of my statement will become self evident. The same is to be said about America's image as a country of integrity. The Federal Reserve asked for and received from the Bush Administration, a change in the Fair Debt Collection Practices Act to exempt a legal pleading such as a foreclosure suit from the definition of a communication. The FDCPA dictates that the collector has five days from first communication to tell the debtor who owns the debt. This change was needed because the banks foreclosing on Americas do not own the loans; the REITs they were sold to do, and this is dictated by law. Clear IRS laws and rules to be precise. (Rule 836 and 856) The IRS rule makes the short sale that set up the banks'ability, through the Appraisal Foundation's changed rules, to reduce property value in America . . . illegal. The IRS prohibits the sale of property that is collateral for MBS, unless if it is actually foreclosed. I have a friend that have agreed to short sales, only to get a satisfaction labled "unsecured," meaning not secured by a note and a letter from a REIT saying they owned the property not the bank she negotiated with, and that she had no right to sell for less than the mortgage. Foreign RIETS that have come to foreclose on their properties have been kicked out of court for no proof of ownership, despite the fact the IRS laws governing REITS also say the must be owned and transferable by the REIT. Fannie Mae and Freddie Mac failed to transfer ownership, despite the laws that said they must This has all resulted in wink, wink, wink justice for homeowners and REIT investors in this country. The New York Times called us the profligate. Well if we are the profligate then the Federal Reserve, and all those that helped them along the way to pull off this economic fiasco, to their sole benefit, are just plain old fashioned crooks and are media have become flabby exuses for jounalists who are only interested in their prestige and government access, to the sole excluson of a shred of investigative journalism, for which there is no excuse; everything I have told you can be found from an armchair surfing the net.
From Bellingham, WA, 06/11/2009
I have to agree strongly with Billy from Dallas as to whether a "jobless recovery" can really be considered an economic recovery at all. The fact that the term "jobless recovery" even had to be invented shines light on some of the flaws of economics as usual. I mean in a speculative economy rooted in the confidence of consumers the cheerleading never stops and often it is forced into quite creative and contorted forms. Rememeber, for it to work everybody (or something less than everbody) has to believe its working.
From Dallas, TX, 06/11/2009
I just heard Chris Farrell claim that the recovery is near, but it will be a jobless recovery.
With consumer spending providing the bulk of the GDP, there is no such thing as a jobless recovery.
The jobless recovery we had early in the decade is now showing its true colors, and any future jobless recovery will eventually show itself to not be a recovery at all.
From Dallas, TX, 06/11/2009
I just heard Chris Farrell claim that the recovery is near, but it will be a jobless recovery.
With consumer spending providing the bulk of the GDP, there is no such thing as a jobless recovery.
The jobless recovery we had early in the decade is now showing its true colors, and any future jobless recovery will eventually show itself to not be a recovery at all.
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