Sunday, November 22, 2009
Obama Economic Policies Hinder Recovery
Pbamanomics - the economic policies of Dear Leader His Excellency Barack Hussein Pbama Junior - Marxists policies created and intended to purposefully ruin the U.S. Economy - are preventing the rebound of the U.S. Economy. al-Reuters:
...with banks reluctant to lend and consumers afraid of borrowing, chances of a strong and quick economic recovery are slim, bankers and investors said at the Reuters Global Finance Summit this week.
"It will take at least a couple of years to come out of this recession," said Denis Salamone, chief operating officer of Hudson City Bancorp (HCBK.O), the biggest U.S. thrift.
CONSUMERS PULLING BACK
The U.S. economy grew at an annual rate of 3.5 percent in the third quarter, its first growth in more than a year. But the main impetus was government subsidies on cars and housing.
"We have to be cautious here because unemployment is still a big uncertainty, is forecast to continue to rise, and so we have to take a cautious outlook, even though things are notably better than they were a year ago," American Express Co (AXP.N) Chief Financial Officer Dan Henry said.
Unemployment rose to a 26-year high of 10.2 percent in October and is expected to be a drag on the economy for some time.
"Companies are not yet confident that we will be out of this. And some are concerned about a second dip coming out of this recession and, therefore, they are not hiring," Salamone said.
"People's consumption attitude is going to be different over a period of time, and I think that will lead them to not be the whole engine of the world economy," said Takeo Sumino, chief operating officer of Nomura Holding America, a unit of Japanese brokerage Nomura Holdings
Mortgage delinquency rates and the percentage of loans in foreclosure jumped to record highs in the third quarter, according to the Mortgage Bankers Association. It forecast the trend will continue into 2010.
Credit card losses are seen peaking next year, and commercial real estate losses will likely become a big headache for more lenders.
"If you think chargeoffs are bad now, wait until this unemployment rate sticks at 10 percent for over a 12-month time period," he said. "Everybody tries to live their lifestyle, and people only begin to change their lifestyle when they lose their job. Then reality sets in."
accordance and compliance with Fair Use Section 107 U.S. Copyright Code.
All other images and content © 2005-2009 David Drake.
Not responsible for content contained at linked sites.
Policy on commenting:
- Anonymous comments have little chance of being published.
- Comments made on posts 60 days old or older have little chance of being published.
- Published comments do not necessarily reflect the views of this blog author.
- Discretion of publishing or rejecting submitted comments rests solely with the owner and creator of this blog.
- Comments that egregiously "plug" (i.e. advertise or promote) another site or blog will be rejected. This doesn't mean you cannot include a link to your story, blog or to another site, but don't go overboard.
- Profanity is not a disqualifying factor, but profane rants solely for purposes of profanity are unlikely to be published.
- The owner and creator of this blog is not liable or responsible for the opinions of those who comment.