Friday, October 15, 2010

Our economy and the banks

If you haven't heard, all 50 states now have stopped ALL foreclosure proceedings. It turns out that hundreds of thousands of foreclosures may have not been done right. This action by some the biggest banks could spell the end of a few if investigators discover it was done intentionally. The foreclosure crises is getting bigger, with 102,000 just last month and on target for over a million by years end.

In an insult to this country, Wall Street is on target to pay 144 BILLION dollars in compensation to it's employees for 2010, up from 132 BILLION in 2009. The best line in an article for the WSJ was a quote, Many firms say if they don't adequately compensate employees, they risk losing top talent".

A recent UMASS study suggests that our economy is doing better than most in this country, "the recovery is fragile and uneven", but recognizes there are still to many people who cannot find work. Three hundred thousand in this Sate are still unemployed.The State has added 60,000 new jobs in the last 6 months and cut the unploymernt rate by a point, but it's clear to me, we will have high unemplyment in this Sate for years to come.

And today, Federal Reserve Chairman Ben Bernanke gave the clearest signal yet that the Fed is about to act to further spur the sluggish U.S. economy, stating that "there would be a case for further action."

The Fed chairman, in a speech in Boston Friday morning, said persistently high unemployment poses too great a threat to the economy, and that the central bank needs to weigh the risk of weak prices, rather than focus on its traditional concerns about inflation. He suggested the battle against inflation has largely been won by the Fed.

I say: Look for another stimulus program similar to the "New Deal", were billions are spent on infrastructure rebuilding roads and bridges. We can't just wait until things turn around, we must act.


Post a Comment

Subscribe to Post Comments [Atom]

<< Home