Category Archives: Mortgage crisis

2014 How Housing Matters Survey, Over half US adults difficulty paying mortgage or rent, MacArthur Foundation report, Renters and owners paying more than 30% of their income on housing

2014 How Housing Matters Survey, Over half US adults difficulty paying mortgage or rent, MacArthur Foundation report, Renters and owners paying more than 30% of their income on housing

“For now, the absence of young adults from the housing market continues to put a dent in the homeownership rate, which dropped to 64.8% in the first quarter, compared with 65.2% in the fourth quarter of 2013, according to U.S. Census statistics. The rate was as high as 69.2% in the fourth quarter of 2004. For those younger than 35, the rate has fallen noticeably faster. It slipped to 36.2% in the first quarter, from 36.8% in the fourth. The homeownership rate for this group was as high as 43.6% in the second quarter of 2004.”…Market Watch May 12, 2014

“Nearly half of U.S. companies are reluctant to hire full-time employees because of the ACA. One in five firms indicates they are likely to hire fewer employees, and another one in 10 may lay off current employees in response to the law.

Other firms will shift toward part-time workers. More than 40 percent of CFOs say their companies will consider switching some jobs to less than 30 hours per week or targeting part-time workers for future employment.”…Duke University Fuqua School of Business December 11, 2013

“Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.”…George Orwell, “1984″

 

 

 

From the MacArthur Foundation June 3, 2014.

“Housing Challenges Real For Many Americans, Finds 2014 How Housing Matters Survey”

“During the past three years, over half of all U.S. adults (52%) have had to make at least one sacrifice in order to cover their rent or mortgage, according to a new survey of housing attitudes released today by MacArthur. Such sacrifices included getting an additional job, deferring saving for retirement, cutting back on health care and healthy foods, running up credit card debt, or moving to a less safe neighborhood or one with worse schools.

The How Housing Matters Survey, the second annual national survey conducted by Hart Research Associates, found that while there are some indicators that the American public’s views about the housing crisis are shifting toward the positive, large proportions of the public are not feeling the relief: seven in 10 (70%) believe we are still in the middle of the crisis or that the worst is yet to come.”

“Renters and owners paying more than 30% of their income on housing – an established benchmark of financial distress — have had to make many of these sacrifices at even higher rates. Some 62% of distressed owners and 3 in 4 distressed renters (74%) have made at least one of these tradeoffs in the past three years. Among those indicating distress in paying their rent or mortgage, 27% have stopped saving for retirement, 23% have cut back on health care, and 23% have accumulated credit card debt.

While economists and housing experts say the housing crisis is behind us, large proportions of the American people are not feeling the relief. Very high proportions of the public (70%) continue to believe that we are still in the midst of the housing crisis (51%) or that the worst is yet to come (19%). Only 25% believe “the housing crisis is pretty much over.” The public in 2014 is only slightly more optimistic than it was one year ago, when 77% believed we were still in the middle of the crisis or that the worst was yet to come. More than two in five adults (42%) believe the housing market today continues to be a serious problem.”

Read more:

http://www.macfound.org/press/press-releases/housing-challenges-real-many-americans-finds-2014-how-housing-matters-survey/

 

FHA bailout, $1.7 billion to stabilize its long term finances, First taxpayer bailout in 79 years, FHA commisioner Carol J. Galante Obama appointee

FHA bailout, $1.7 billion to stabilize its long term finances, First taxpayer bailout in 79 years, FHA commisioner Carol J. Galante Obama appointee

“What do you think a stimulus is? It’s spending – that’s the whole point! Seriously.”…Barack Obama

“…and Socialist governments traditionally do make a financial mess. They [socialists] always run out of other people’s money. It’s quite a characteristic of them.”…Margaret Thatcher

“Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.”…George Orwell, “1984″

 

 

From the LA Times September 27, 2013.

“Federal Housing Administration needs $1.7-billion bailout”

“The Federal Housing Administration, whose role in the real estate market expanded dramatically in recent years, on Friday said it would need approximately $1.7 billion to stabilize its long-term finances.

It marks the first time the 79-year-old agency will require a taxpayer bailout, which it has the authorization to receive without congressional approval.

The FHA, which insures more than $1 trillion in mortgages, is funded by premiums charged to homeowners. But the actions it took to stabilize the housing market after the subprime housing bubble burst left it backing billions of dollars in bad loans.”

“In a letter to lawmakers Friday, FHA Commissioner Carol Galante said the agency would need about $1.7 billion on Monday, the last day of the fiscal year, to ensure it has sufficient reserves to cover anticipated losses on the loans it backs.

A bailout has been expected since April, when the Obama administration’s proposed 2014 budget projected the FHA would need $943 million by Sept. 30.

But the size of the bailout nearly doubled because the number of mortgages the agency has backed declined in the last few months as mortgage rates have risen, Galante said.”

“Many Republicans have been critical of the FHA’s expanded role in the housing market, warning that it put taxpayers on the hook for losses. House Republicans are pushing legislation that would scale back the FHA’s role.”

Read more:

http://www.latimes.com/business/money/la-fi-mo-federal-housing-administration-fha-bailout-20130927,0,6044953.story

Carol J. Galante is an Obama appointee.

“The Federal Housing Administration (FHA) of the Department of Housing and Urban Development, which provides a variety of insurance options for qualified loans on existing homes, home construction and repair, and is also responsible for regulation of the Real Estate Settlement Procedures Act and the manufactured housing industry, has been without a permanent leader since April 2011. Carol J. Galante, who currently serves as Acting Assistant Secretary for Housing-FHA Commissioner, was nominated by President Obama on October 20, 2011, to lead the federal agency on a permanent basis. Although the Senate Banking Committee voted to send her nomination to the Senate floor, some conservative Republicans, charging that the Obama administration has not faced the probability of an FHA bailout, may attempt to prevent her confirmation.”

http://www.allgov.com/news/appointments-and-resignations/assistant-secretary-for-housing-federal-housing-commissioner-who-is-carol-galante?news=843880

 

Obama bank failure policies, ACORN, Penny Pritzker, Cellini trial witness Rosenberg dredges up old memories, Capri Capital, Where is House Judiciary Committee?

Obama bank failure policies, ACORN, Penny Pritzker, Cellini trial witness Rosenberg dredges up old memories, Capri Capital, Where is House Judiciary Committee?

“During its 15 years in New York City, ACORN has helped squatters claim derelict city-owned property, forced bankers to invest in low-income communities, and organized a war against the city’s workfare program.

It’s also developed a reputation for no-holds-barred tactics—getting results through adversarial campaigns against bankers, politicians and bureaucrats using confrontation and concession rather than consensus.”…ACORN document, February 1999

“There is enough corruption in Illinois so that all it takes is someone who is serious about finding it to uncover it. If a U.S. attorney is not finding corruption in Illinois, they’re not seriously looking for it.”…Northwestern Law Professor James Lindgren

I was doing some research on Obama’s ties to Capri Capital and Tom Rosenberg, the subject of the Cellini Indictment, when I came across an old article about Obama’s past. I am not finished with Obama’s involvement in the IL Teachers Retirement System, TRS, corruption, but since the Occupy Wall Street, et al folks are focusing their energy on Bankers and such instead of the real culprits, Obama et al, it is appropriate  to do so.

From The Common Conservative October 1, 2008.

“Obama’s Links to Real Estate Scandals, Bank Failures, and Rezko Far Deeper”

“If there is one thing Obama has been very good at, it’s been covering
his tracks. This time, I believe I have made a link that is undeniable
to his knowledge and possible participation in the real estate
dealings and the corruption in Chicago. His links to not so savory
individuals and friends have supported almost every attempt for
political office he has ever made. It is amazing how someone who came
from nowhere has risen to the position of power in such a short time.
He stands to lose much, if Tony Rezko actually tells all he knows as
his Federal sentence is about to be imposed. Possibly he is playing
“lets make a deal” in exchange for bringing down the house on Chicago
real estate ventures at public expense. Everywhere you turn, the major
players are tied directly to Sen. Obama.

First, let’s start with the Superior Bank in Chicago. That bank failed
directly under the control of Penny Pritzker. She is Obama’s Campaign
Finance Chairman and has been instrumental in raising millions for his
campaign. The regulators closed Superior Bank in 2001 because of a
vast number of sub-prime mortgage loans. She took over a failed
savings and loan in 1988 and it was renamed Superior Bank.

During the years of that Obama was actively in Chicago as a community
organizer, one interesting person comes into the picture. Stanley
Kurts reports this in his N.Y. Post article:

ONE key pioneer of ACORN’s subprime-loan shakedown racket was Madeline
Talbott – an activist with extensive ties to Barack Obama. She was
also in on the ground floor of the disastrous turn in Fannie Mae’s
mortgage policies.

Long the director of Chicago ACORN, Talbott is a specialist in “direct
action” – organizers’ term for their militant tactics of intimidation
and disruption. Perhaps her most famous stunt was leading a group of
ACORN protesters breaking into a meeting of the Chicago City Council
to push for a “living wage” law, shouting in defiance as she was
arrested for mob action and disorderly conduct. But her real legacy
may be her drive to push banks into making risky mortgage loans.

In February 1990, Illinois regulators held what was believed to be the
first-ever state hearing to consider blocking a thrift merger for lack
of compliance with CRA. The challenge was filed by ACORN, led by
Talbott. Officials of Bell Federal Savings and Loan Association, her
target, complained that ACORN pressure was undermining its ability to
meet strict financial requirements it was obligated to uphold and
protested being boxed into an “affirmative-action lending policy.” The
following years saw Talbott featured in dozens of news stories about
pressuring banks into higher-risk minority loans.

IN April 1992, Talbott filed an other precedent-setting com plaint
using the “community support requirements” of the 1989
savings-and-loan bailout, this time against Avondale Federal Bank for
Savings. Within a month, Chicago ACORN had organized its first “bank
fair” at Malcolm X College and found 16 Chicago-area financial
institutions willing to participate.

Two months later, aided by ACORN organizer Sandra Maxwell, Talbott
announced plans to conduct demonstrations in the lobbies of area banks
that refused to attend an ACORN-sponsored national bank “summit” in
New York. She insisted that banks show a commitment to minority
lending by lowering their standards on downpayments and underwriting –
for example, by overlooking bad credit histories.

By September 1992, The Chicago Tribune was describing Talbott’s
program as “affirma- tive-action lending” and ACORN was issuing fact
sheets bragging about relaxations of credit standards that it had won
on behalf of minorities.

And Talbott continued her effort to, as she put it, drag banks
“kicking and screaming” into high-risk loans. A September 1993 story
in The Chicago Sun-Times presents her as the leader of an initiative
in which five area financial institutions (including two of her former
targets, now plainly cowed – Bell Federal Savings and Avondale Federal
Savings) were “participating in a $55 million national pilot program
with affordable-housing group ACORN to make mortgages for low- and
moderate-income people with troubled credit histories.”

What made this program different from others, the paper added, was the
participation of Fannie Mae – which had agreed to buy up the loans.
“If this pilot program works,” crowed Talbott, “it will send a message
to the lending community that it’s OK to make these kind of loans.”

This was exactly the time frame Superior Bank was very active in the
sub-prime lending and no doubt, Obama knew exactly who Penny Pritzker
was and her involvement in the ACORN sponsored lending practices.
Another direct link early on to Obama is with another foundation that
Pritzker in involved in. Pritzker is very much involved in the reform
of Chicago’s public education system. Currently she is vice chair of
the Chicago Public Education Fund, the successor organization to the
Chicago Annenberg Challenge, which is the same Board Sen. Obama served
with William Ayers.

Obama no doubt needed the financial backing of the Pritzker’s. They
are the owners of the Hyatt Hotel chain and Obama had inside
connections.  David Mendell recalled in his 2007 book Obama: From
Promise To Power:
“Obama was confident that he was destined for more than a day job
running a foundation or practicing law or languishing in the minority
party in the Illinois senate…He invited a group of African-American
professionals to the house of Marty Nesbitt, who had served as finance
chairman of his congressional campaign. Nesbitt is…vice-president of
the Pritzker Realty Group, part of the Pritzker family empire…Nesbitt
arranged a weekend gathering to help Obama reach inside the deepest
pockets he knew—those of the Pritzker family…

“…Nesbitt knew that if Obama could sell himself to Penny Pritzker, her
support would not only reap huge immediate financial dividends but
also be a crucial step in the foundation of a fund-raising network.

“So in late summer 2002, Obama, Michelle [Robinson-Obama] and their
two daughters drove to Penny Pritzker’s weekend cottage along the
lakefront in Michigan about forty-five minutes from Chicago…”

Also notice this report from WNBC in New York:

On Feb. 10, 2007, Senator Barack Obama launched his bid for the White
House in Springfield, setting himself on a course that has become one
for the history books. But Obama might not have made it even to the
Old State Capitol Building that frigid day if not for a private
meeting he had with friends and advisers in late 2002 as he was
mulling a run for the U.S. Senate. In a South Side high-rise
overlooking the lake, the junior state senator vetted his lofty
political ambitions with a group of Chicago’s African American
business elite that included Frank M. Clark Jr., Valerie B. Jarrett,
Quintin E. Primo III, James Reynolds Jr., and John W. Rogers Jr.

Remember the name Quintin E. Primo III, as he is CEO of Capri Capital
in Chicago. Capri Capital will reemerge later in this article as they
have direct ties to Obama, Pritzker, and also direct ties to Rezko.

Also during the time frame that Fannie Mae and Freddie Mac were buying
sub-prime mortgages, Franklin Raines was CEO of this institution from
1998- 2004. It was during this time, Superior Bank was in real trouble
and under scrutiny from regulators. Pritzker assured regulators there
was nothing wrong, and no doubt, she had to have known Franklin
Raines. Her bank was using Fannie Mae funds since the largest book of
their business was in sub-prime lending. Finally, in December 2004,
Mr. Raines was forced to resign because the Office of Federal Housing
Enterprise Oversight (OFHEO), the regulating body of Fannie Mae, of
abetting widespread accounting errors, which included the shifting of
losses so senior executives, such as himself, could earn large
bonuses.

Another interesting connection to Pritzker is from the Chicago
Community Loan Fund published in 2006:

 Bank is financing partner
CCLf had the resources to make a $1 million loan for the first time in
its history in 2005, thanks in large part to a $3 million loan pool
investment from Charter One Bank. Charter One’s investment in CCLF was
part of a record-setting infusion of new investment capital in 2005.

In fact, CCLF’s partnership with Charter One and the Historic
Pacesetter Limited Partnership is now multi-faceted: the bank plans to
provide a portion of the financing for the project’s construction.

Then we take a look at Sen. Obama’s request for earmark requests for
2005 and we find a very interesting request:

Obama Requested $2.5 Million (And An Additional $ 5 Million Over Two
Years) For A Pacesetter Redevelopment Program In The Village Of
Riverdale.  I2 2005, Obama requested $2.5 million for the Village of
Riverdale and their Pacesetter Redevelopment Program.  The
redevelopment of the Pacesetter neighborhood is essential to the
successful industrial development in Riverdale. The Pacesetter
neighborhood is adjacent to Riverdale’s industrial redevelopment area.
The poor quality of housing, crime and image that the neighborhood
portrays must be changed in order to make the Village’s overall
efforts a success.  Pacesetter Redevelopment, Phase I, would be
comprised of approximately 100 units and cost approximately $22
million. It is proposed that all of the units in this first phase be
rehabilitated. The development team would acquire these properties
from individual landowners. The plan is to control all properties
along Lowe Avenue by the end of 2005. By location and number, these
properties would create the critical mass required for economic
feasibility, while providing a development of sufficient size to make
a visible impact.  The Village is seeking an initial investment in the
project of $5 million over a period of two federal fiscal years.
[Obama Request Letter to the Senate Appropriations Subcommittee on
Transportation, Treasury, the Judiciary, HUD & Related Agencies,
11/6/05]

The Pacesetter funding by Charter One Bank and the Obama earmark
request are not so coincidental. Charter Bank is the same bank that
took over the Superior Bank assets in 2001. From the FDIC:

FDIC APPROVES SALE OF
SUPERIOR FEDERAL BANK, FSB, HINSDALE, ILLINOIS

FOR IMMEDIATE RELEASE
PR-78-2001 (10-31-2001)  Media Contact:
David Barr (202) 898-6992

The Board of Directors of the Federal Deposit Insurance Corporation
(FDIC) approved the sale of the branches and deposits of Superior
Federal Bank, FSB. The winning bidder is Charter One Bank, FSB,
Cleveland, Ohio.

Superior Federal Bank, FSB is the conservatorship established by the
FDIC after the Office of Thrift Supervision closed Superior Bank, FSB
on July 27, 2001. Charter One has agreed to pay the FDIC a premium of
$52.4 million to assume the 17 locations and the $1.1 billion of
deposits held in conservatorship.

In addition to assuming all the deposits, Charter One is acquiring
approximately $45 million of Superior’s assets. These assets consist
mainly of home equity lines of credit, overdrafts assigned to each
branch location, cash and cash equivalents.

Now one has to wonder exactly how Sen. Obama’s request, which was
apparently denied or died on a Bill, was then funded by Charter One
Bank. Penny Pritzker was Obama’s big money and fundraiser for his
Senate campaign and also was directly responsible for Superior Banks
failure. This is no coincidence, or if it is, it surely raises red
flags to the possibility of influence peddling by the Obama camp or
even Sen. Obama directly. Read the FDIC press release. There were $45
million of home loans, and most were sub-prime loans. Questions need
to be asked regarding if Sen. Obama was able to pull a few strings
with Fannie Mae to get these loans spread to other sources of funding
in exchange to lending the project funds.

Once we look into the Rezko trial, we find something very interesting
once again. Rezko was convicted of of six counts of mail fraud, six
counts of wire fraud, two counts of money laundering and two counts of
abetting bribery. He was acquitted on eight counts, including a charge
he tried to extort as much as $2 million from Lakeshore Entertainment
Group founder and former Capri Capital principal Thomas Rosenberg, who
testified against him at trial.

Once again we find Penny Pritzker having ties to Capri Capital as they
both serve on the Boards of The Real Estate Roundtable with Ms.
Pritzker as it’s Treasurer as late as March, 2008. Much of there
efforts have been to lobby for many changes in real estate and real
estate funding laws. One letter was directly to Sen. Chris Dodd
requesting changes in allowing the Federal Reserve to purchase loans
and asset-backed securities, identically the type of securities being
sold by Fannie Mae/Freddie Mac to Wall Street. Bear in mind that Ms.
Pritzker is President of Pritzker Reality Group L.P.

Another place we find Capri Capital is in the CCLF (above). In their
2006-2007 Annual Report, we find that Capri is listed as one of the
Sponsors. Also we find that CCLF was also funded by Fannie Mae as
well. All of these funds are directed primary at the
Riverdale/Pacesetter project.

The Rezko/Pritzker connection goes deep and finding the link hasn’t
been easy. On October 1, 2006, Daley appointed Martin Nesbitt
chairperson of the Chicago Housing Authority. The CHA was created for
“the purposes of engaging in the development, acquisition, leasing,
operation, and administration of a Low Rent Housing Program and other
federally assisted programs,” according to the agency’s 2005 annual
financial report.”

Read more:

 http://thecommonconservative.com/?p=161

Where is the House Judiciary Committee?

US economy slowdown, Economy cooling, Financial markets, Corporate forecasts, Soft retail sales, Rise in jobless claims

US economy slowdown, Economy cooling, Financial markets, Corporate forecasts

From Daily Finance May 22, 2010.

“Forget Europe: Signs of a Slowdown in the U.S.”
“Financial markets around the world are fixated on Europe as it grapples with its debt woes. Though probably overdone, investor paranoia is understandable. The fallout for the global economy would be massive if things spiraled out of control, unlikely as that may seem for the moment.

While potentially catastrophic developments overseas may be captivating, investors would do well to stay focused on more subtle developments in the U.S. Much of Wall Street remains bullish on the prospects of an economic recovery, but some signs suggest that a slowdown may be materializing nonetheless.

Watch Corporate Guidance and Economic Indicators

Hosted software provider Salesforce.com (CRM) is the latest company to report strong results for the first quarter but provide a forecast that couldn’t live up to Wall Street’s expectations. On Thursday, the company said it expected earnings per share of between $1.13 and $1.15 for the full year. That was well below the $1.28 analysts had forecast, and shares tumbled in trading after hours.

The results from Salesforce.com mirror those of networking giant Cisco (CSCO) last week. While Cisco delivered a strong first quarter, shares were initially hammered based on a lackluster outlook for the rest of the year. Hardware giant Dell (DELL) also came under fire as concerns about its ability to maintain profits grew despite solid results for the first quarter.

A slew of retailers including Lowe’s (LOW), Home Depot (HD) and Wal-Mart (WMT) have also provided skimpy guidance for the rest of the year. And while companies may well be trying to game Wall Street by setting the bar low only to dazzle later, recent economic data suggests that the economy could also be slowing after a sharp rebound in demand from depressed lows.

A set of closely watched indicators released Thursday by the Conference Board showed that the economy may be cooling as it heads into the second half of the year. Those findings echo leading indicators monitored by the Economic Cycle Research Institute, which noted that “the pace of improvement in the overall economy is set to slacken in the months ahead” as measures fell to a 40-week low.

Soft retail sales and a sudden rise in jobless claims have contributed to the darkening picture.”

Read more:

http://www.dailyfinance.com/story/investing/forget-europe-signs-of-a-slowdown-in-the-u-s/19487132/

Budget deficit widens, Largest April deficit ever, $82.7 billion shortfall, Record 19th straight monthly shortfall, Risk of higher interest rates

Budget deficit widens, Largest April deficit ever, $82.7 billion shortfall

From Bloomberg, May 12, 2010.

“Budget Deficit in U.S. Widened to $82.7 Billion in April”

“The U.S. reported a budget deficit for April, the second such shortfall since 1983 for the month that typically sees an increase in income tax payments.

The excess of spending over revenue rose to $82.7 billion last month compared with a $20.9 billion gap in April 2009, the Treasury Department said today in Washington. It was the largest April deficit ever and exceeded the median forecast in a Bloomberg News survey.

April marked a record 19th straight monthly shortfall, highlighting the challenges facing the Obama administration. Deterioration in the government’s balance sheet in coming years raises the risk of higher interest rates even as an improving economy helps generate taxable income.

“We’re not going to see the deficit come down until economy gets healthier,” Gary Thayer, chief macro strategist at Wells Fargo Advisors LLC in St. Louis, said before the report. “We still have some important problems with the economy. There’s still a tendency by policy makers and lawmakers to address the problem with additional spending.”

The government’s April budget deficit compares with a median forecast of $57.9 billion, according to a Bloomberg survey of 30 economists. Projections ranged from deficits of $20 billion to $90 billion.”

“Revenue Declines

Revenue and other income fell 7.9 percent to $245.3 billion in April from $266.2 billion the same month last year, the Treasury said.”

“Spending for the entire government for April jumped 14.2 percent from the same month a year earlier to $328 billion.”
“The Obama administration forecasts a $1.6 trillion budget deficit in the current fiscal year that began Oct. 1. President Barack Obama’s debt commission met April 27, the first of a series of meetings aimed at producing a plan to reduce the deficit.

Administration officials and Democrats in Congress are looking to the commission for recommendations on reducing the federal debt, which is currently projected to reach 90 percent of the economy by 2020. Interest payments are forecast to quadruple to more than $900 billion annually by that year.”

Read more:

http://www.bloomberg.com/apps/news?pid=20601087&sid=agqhhoO8_cS0&pos=3

Jobless claims jump to 496,000, February 25, 2010, new claims for unemployment benefits, four week average rose, 8.4 million jobs lost, 4.6 million continuing claims, North Carolina had biggest increase

Jobless claims jump to 496,000, February 25, 2010

From Fox News,  February 25, 2010.

“New Jobless Claims Jumped to 496,000 as Heavy Snow Caused Rise in Layoffs”

“The number of new claims for unemployment benefits jumped unexpectedly last week as heavy snows caused layoffs to rise.”

“The department said Thursday that first-time claims for unemployment insurance rose by 22,000 to a seasonally adjusted 496,000. Wall Street analysts polled by Thomson Reuters expected a drop to 455,000.”

“The four-week average has risen by about 30,000 in the past month, raising concerns that job cuts are continuing. Initial claims had fallen sharply over the summer and fall but the improvement has stalled since the year began.

The economy has grown for six months but is not yet spurring new hiring. Many economists point out that the current recovery is weak compared to the aftermath of previous deep recessions.

The Labor Department said earlier this month that while the unemployment rate fell to 9.7 percent from 10 percent, employers still cut 20,000 jobs. The economy has lost 8.4 million jobs since the recession began.”

“Among the states, North Carolina had biggest increase in claims, with 5,897, which it attributed to layoffs in the construction, furniture and mining industries. Pennsylvania and Kentucky also reported large increases. The state data lags initial claims by one week.”

Read more:

http://www.foxnews.com/politics/2010/02/25/new-jobless-claims-rise-unexpectedly/

February 18 2010, Jobless Claims rise, Inflation jumps, Economy Wobbles, New applications unemployment insurance surged last week, unemployment benefits increased 31,000, producer prices increased sharply in January

February 18 2010, Jobless Claims rise

From CNBC.com, february 18, 2010.

“Jobless Claims, Inflation Jump as Economy Wobbles”

“The number of U.S. workers filing new applications for unemployment insurance unexpectedly surged last week, while producer prices increased sharply in January, raising potential hurdles for the economic recovery.

Initial claims for state unemployment benefits increased 31,000 to 473,000, the Labor Department said on Thursday. That compared to market expectations for 430,000.
Another report from the department showed prices paid at the farm and factory gate rose a faster than expected 1.4 percent from December after a 0.4 percent gain in December, as higher gasoline prices and unusually cold temperatures helped boost energy costs.
“When you have PPI moving up and still no progress in the jobs situation, that doesn’t bode well for continued improvement in equity prices,” said Alan Lancz, president at Alan B. Lancz & Associates in Toledo, Ohio.”

“Another report from the department showed prices paid at the farm and factory gate rose a faster than expected 1.4 percent from December after a 0.4 percent gain in December, as higher gasoline prices and unusually cold temperatures helped boost energy costs.
“When you have PPI moving up and still no progress in the jobs situation, that doesn’t bode well for continued improvement in equity prices,” said Alan Lancz, president at Alan B. Lancz & Associates in Toledo, Ohio.”

Read more:

http://www.cnbc.com/id/35457298