High unemployment in US sets foreclosures record

Source: Press TV
http://www.presstv.ir/detail/162341.html

As unemployment lines grew to staggering lengths in the US, so grew the number of foreclosure signs peppering the lawns of American homes throughout the country.

Foreclosures reached record high numbers in 2010. Realty Trac, says high unemployment drove up foreclosures 72 %in more than 200 major metropolitan areas.

The US housing crisis is far from over. Many of the leading metropolitan areas not hit as hard by the initial waves of foreclosure are being pounded now.

Las Vegas posted the nation's highest metropolitan foreclosure rate.

One out of every nine homes is in foreclosure.

Nationwide, it is 1 in 45 homes. In all, nearly 3 million U.S. homes are being taken back by mortgage lenders.

Americans living in Idaho, Colorado and Atlanta are now experiencing a surge in foreclosures. The Atlanta region posted a 21 % jump in filings last year. Dave Kuhn has been selling real estate near Atlanta for 24 years.

Despite some dips in hard-hit areas, foreclosure levels remain five to 10 times higher than in normal times. And U.S. foreclosures have not yet peaked. Last fall, major mortgage servicers, including Bank of America, delayed foreclosure activity following revelations that foreclosure documents may have been improperly prepared.

Meanwhile, the number of people applying for unemployment benefits rose sharply last week. Applications surged to 454,000, the highest level since late October, according to the Labor Department.

9.4 million people are receiving unemployment benefits. On YouTube, President Obama answered questions about the economy. The Great Recession has been brutal. And at least for now and for millions, the American Dream to have a steady job and own a home has been put on hold.

US budget deficit to hit historic high

A financial professional looks up at a screen on floor of the New York Stock Exchange

Source: Press TV
http://www.presstv.ir/detail/162163.html

The US budget deficit will hit a record-breaking 1.5 trillion this year due in part to a recent tax cut deal, the Congressional Budget Office says.

The daunting numbers released on Wednesday mean that the US government will have to borrow 40 cents for every dollar it spends, according to the AFP.

The analysis predicted that joblessness in the country will remain above nine percent this year. The nonpartisan agency also estimated a nationwide unemployment rate of 8.2 percent on Election Day in 2012.

The deficit is on track to beat the record of $1.4 trillion set in 2009.

"The fiscal challenge confronting us is enormous. We can't continue to put this off. We need to reach an agreement this year," said Budget Committee Chairman Kent Conrad.

"We need to have both sides, Democrats and Republicans, willing to move off their fixed positions and find common ground," he stressed.

The chilling figures come the morning after US President Barack Obama called for a five-year freeze on domestic agency budgets passed by Congress each year.

Those nondefense programs make up just 18 percent of the budget, which means any upcoming deficit reduction package will require politically dangerous curbs to popular benefit programs, including social security, the Medicare social insurance program for senior citizens, the Medicaid health care program for the poor and disabled, and food stamps.

Neither Obama nor his Republican rivals in Congress have yet come forward with any specific proposals for cutting benefit programs.

EU's weak economies 'to be sanctioned'

German Finance Minister Wolfgang Schaeuble (L) with his French counterpart Christine Lagarde

Source: Press TV
http://www.presstv.ir/detail.aspx?id=135732&sectionid=351020605

France and Germany have signed a joint declaration on tightening punitive measures against European Union countries that fail to curb their soaring budget deficits.

The two countries sent their joint proposals to the EU on Wednesday, calling on the 27-member bloc to speed up the process it deems necessary for the establishment of economic convergence.

According to AFP, the declaration also called for the imposition of sanctions on countries that undermine the stability within the EU's financial regulatory system.

The declaration was issued as French daily Le Monde reported on Wednesday that President Nicolas Sarkozy made an appeal for the convergence of fiscal systems in France and Germany. The proposal comes at a time when the majority of EU member states including Spain, Italy, Portugal, and Greece are undergoing a period of financial meltdown.

The EU countries' budget deficits are exceeding the standard level defined by the European Union, forcing numerous heads of states to introduce unpopular fiscal austerity measures in their respective countries.

Meanwhile, German Finance Minister Wolfgang Schaeuble expressed confidence that the stiffening of rules and regulations and conducting EU-wide "stress tests" on banks would revive confidence in the euro currency.

The move comes as critics of the plan argue that the "stress tests" are not strict and efficient enough to stave off the economic turmoil that has hit the European countries.

German Chancellor Angela Merkel has brushed off criticism against the tests, describing the measure as "very realistic."

The tests are aimed at determining how well the banks would cope while faced with further shocks such as weak economic growth or a European country defaulting on its debt.