Unemployment jumps to 9.7%

posted at 9:30 am on September 4, 2009 by Ed Morrissey

Consider this a part of Barack Obama’s August horribilis.  The White House desperately needed good news on the employment front after spending the last five weeks getting hammered by angry constituents in almost every Congressional district in the US, and especially after Joe Biden spent yesterday bragging about the economic policies of the administration.  Instead, unemployment hit a new high in August:

U.S. employers cut a fewer-than-expected 216,000 jobs in August, while the unemployment rate rose to a 26-year high, the government said on Friday in a report showing a still fragile labor market.

The Labor Department said the unemployment rate rose to 9.7 percent after dipping to 9.4 percent in July and the decline in payrolls was the smallest in a year. The department revised job losses for June and July to show 49,000 more jobs lost than previously reported.

ADP found more than 80,000 more job losses in its report yesterday, based on private-sector payrolls.  Maybe the government is hiring?  That seems to have stopped, too:

Manufacturing employment fell by 63,000, with a total of 2 million factory jobs lost since the start of the recession. Payrolls in construction industries dropped 65,000 after falling 73,000 in July.

The service-providing sector purged 80,000 workers in August, while the goods-producing industries shed 136,000 positions.

Education and health services continued to add jobs, with payrolls increasing 52,000 in August after rising 21,000 in July. Government employment fell 18,000 after slipping 28,000 in July.

The US still bleeds jobs across all sectors, and now unemployment has hit a new high.  July and June numbers also got adjusted upwards after the Obama administration used them to argue that they had turned the corner on the recession.  Retail numbers continue to drop, which means that hiring won’t commence for several months out yet.

Recall the argument made by Obama and his economic advisers when they demanded a $787 billion slush fund to “stimulate” the economy?  Recall this curve?

Now we’re here:

We’re still cresting, only far above what Christine Romer and Barack Obama used as a scare tactic to get the cash, and much farther above what they promised from their top-down economic policies.  It’s not getting better at all, despite Joe Biden’s blathering.  The problem is getting worse, and it will continue to worsen as government eats up capital that could have gone to job creation.

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

Comment pages: 1 2 3

What hiring future?

GM signs away light truck manufacturing to China. Chrysler sales dropped 17% during Cash-for-Clunkers. Retailers are already planning on heavy discounting for the Christmas season and that won’t save them. All that newly printed money is going to start showing up soon as expensive bread.
Barry gives Brazil billions to drill offshore while our oil workers stand around idle. Insurance industry threatened with price controls.

Job recovery? A Democraps acid trip.

Limerick on September 4, 2009 at 10:04 AM

Nice job! Now, is there anybody out there that does not understand that Obama does not want to help the U.S. economy but wants to destroy it?

HoustonRight on September 4, 2009 at 10:10 AM

Well Barry is working on a pretty impressive streak of his own. Just in the opposite direction.

Doughboy on September 4, 2009 at 10:07 AM

Nice to know that Hussein has no chance of equaling the economic success Bush had. He only has 41 months left to serve. Gonna be tough coming up with 52 consecutive months of growth.

fogw on September 4, 2009 at 10:11 AM

So, Ed, when will you finally admit that this is a depression?

corona on September 4, 2009 at 10:06 AM

Maybe a man-caused depression.

faraway on September 4, 2009 at 10:11 AM

We’re still cresting

No! Cresting implies being near the maximum. We will be in double digits for more than a year, maybe more than several years.

burt on September 4, 2009 at 10:11 AM

NickelAndDime on September 4, 2009 at 10:08 AM

Yep. My wife received a 20% cut in hours. That is a pretty big bite out of our food/shelter budget.

Limerick on September 4, 2009 at 10:11 AM

I hate the fact the White House and the MSM only uses the U3. The REAL number is 16.8. That is the U6. If you wanted leave of the underemployed/temp workers then that would be U4 which is 10.1.

Trust the government not to tell you the truth. Or at least the MSM to report it.. the numbers came from the Bureau of Labor Statistics. To be honest I am surprised they released the numbers this early in the day. I was expecting a 4:59pm release.

Wolftech on September 4, 2009 at 10:11 AM

The curve analysis is telling. It shows simply what they told us with, and without the stimulus package–then far above it are the actual ground truth. We need to have a tick counter on how many months/days we have spent above their promised 8% magic number–call it the “underwater factor”

ted c on September 4, 2009 at 10:11 AM

Yep. My wife received a 20% cut in hours. That is a pretty big bite out of our food/shelter budget.

Limerick on September 4, 2009 at 10:11 AM

haha, Obama takes a bite out of jobs.

faraway on September 4, 2009 at 10:12 AM

Trust the government not to tell you the truth. Or at least the MSM to report it.. the numbers came from the Bureau of Labor Statistics. To be honest I am surprised they released the numbers this early in the day. I was expecting a 4:59pm release.

Wolftech on September 4, 2009 at 10:11 AM

they usually post them at 0830 EST. The bad news that the White House controls gets outed during the “black hole” from 2:55-4:59 pm EST. If I were in the media, I’d ramp up during that time.

ted c on September 4, 2009 at 10:13 AM

Where are the JOBS?

Where is President Obama?

GONE FISHING.

While unemployment climbs to 9.7%, the president will take time for TWO back-to-back vacations, after spending only eight months on the job.

TN Mom on September 4, 2009 at 10:14 AM

RT @zerohedge: New post: Real Unemployment Rate Hits 16.8% http://tinyurl.com/n5urdp ||At what level is social unrest?

JiangxiDad on September 4, 2009 at 10:14 AM

Anyone have a list of actions taken by Obama or is he a one-trick pony phony.

CBP on September 4, 2009 at 10:06 AM

Forgot the H

dhunter on September 4, 2009 at 10:14 AM

That’s almost as bad as spending $1 Trillion and not finding the WMDs! Almost…

simple343 on September 4, 2009 at 9:52 AM

“I will be voting to give the President of the United States the authority to use force — if necessary — to disarm Saddam Hussein because I believe that a deadly arsenal of weapons of mass destruction in his hands is a real and grave threat to our security.”

– Sen. Jeanne-Claude Kerri, (D, MA), Oct. 9, 2002

Del Dolemonte on September 4, 2009 at 10:14 AM

To be honest I am surprised they released the numbers this early in the day. I was expecting a 4:59pm release.

Wolftech on September 4, 2009 at 10:11 AM

No doubt. That has been the MO of Barry’s Transparent administration of Fiscal Responsibility and Change You Can Believe In. Maybe the labor department had an AM/PM mixup right before the long weekend.

NickelAndDime on September 4, 2009 at 10:15 AM

At what level is social unrest?

JiangxiDad on September 4, 2009 at 10:14 AM

16.81% ;)

Limerick on September 4, 2009 at 10:15 AM

I don’t think this satisfies the definition of a depression. All depressons are man-caused. We certainly have the crew to bring it on.

burt on September 4, 2009 at 10:16 AM

RT @zerohedge: New post: Real Unemployment Rate Hits 16.8% http://tinyurl.com/n5urdp ||At what level is social unrest?

JiangxiDad on September 4, 2009 at 10:14 AM

Don’t know about social unrest but I’m not sleeping to good these days.

HoustonRight on September 4, 2009 at 10:17 AM

At what level is social unrest?

JiangxiDad on September 4, 2009 at 10:14 AM

As soon as they add Van Jones to the unemployment roles.

thomasaur on September 4, 2009 at 10:17 AM

Everything Teh Won touches turns to crap!
Esmerelda on September 4, 2009 at 9:59 AM

True – Proof – Michelle.

PappaMac on September 4, 2009 at 10:18 AM

You cannot help the poor by destroying the rich.
You cannot strengthen the weak by weakening the strong.
You cannot bring about prosperity by discouraging thrift.
You cannot lift the wage earner up by pulling the wage payer down.
You cannot further the brotherhood of man by inciting class hatred.
You cannot build character and courage by taking away people’s initiative and independence.
You cannot help people permanently by doing for them, what they could and should do for themselves.

……Abraham Lincoln

riverrat10k on September 4, 2009 at 10:18 AM

Last night the Detroit Lions lost by a score of 34-3. However, in a sign of improvement, this is the best score the Lions have had in 7 weeks and much better than the 45-0 loss they suffered last week.

–Wow. That IS an improvement from last year.

Jimbo3 on September 4, 2009 at 10:18 AM

16.81% ;)

Limerick on September 4, 2009 at 10:15 AM

Well yes. That was my point.

JiangxiDad on September 4, 2009 at 10:18 AM

During the Katie Couric interview with Michelle Obama (spring 08) Ms Obama stated quite clearly that the reason people around the world hate America is because of poverty.

Looks like her hubby is testing that theory at home.

Limerick on September 4, 2009 at 10:19 AM

one-trick phony.

dhunter on September 4, 2009 at 10:14 AM

Sweet

faraway on September 4, 2009 at 10:19 AM

At what level is social unrest?

JiangxiDad on September 4, 2009 at 10:14 AM

When the unemployment funds run dry.

TXUS on September 4, 2009 at 10:20 AM

Jimbo3 on September 4, 2009 at 10:18 AM

Geither’s intended Treasury undersecretary’s nomination is in trouble due to some $10 million dollars he owes to two hedge funds(not illegally, just due to potential conflict of interest). I suspect there’ll be an opening. You interested?

JiangxiDad on September 4, 2009 at 10:20 AM

Democrats Bite!

farright on September 4, 2009 at 10:20 AM

GONE FISHING.

While unemployment climbs to 9.7%, the president will take time for TWO back-to-back vacations, after spending only eight months on the job.

TN Mom on September 4, 2009 at 10:14 AM

Come on. I’ll modify it a bit but haven’t you heard the phrase:

A bad day of Obama fishing is better than a good day of Obama working.

shick on September 4, 2009 at 10:23 AM

Last night the Detroit Lions lost by a score of 34-3. However, in a sign of improvement, this is the best score the Lions have had in 7 weeks and much better than the 45-0 loss they suffered last week.

–Wow. That IS an improvement from last year.

Jimbo3 on September 4, 2009 at 10:18 AM

Obviously Joe Biden’s pick for Super Bowl Champ.

fogw on September 4, 2009 at 10:25 AM

The birth/death adjustment added 118,000 phantom jobs. The real job loss number is in excess of 330,000 (216 =118 = 334k).

BLS

voiceofreason on September 4, 2009 at 10:26 AM

When the unemployment funds run dry.

TXUS on September 4, 2009 at 10:20 AM

That will never happen while we have printing presses.

sonofdy on September 4, 2009 at 10:26 AM

When the unemployment funds run dry.

TXUS on September 4, 2009 at 10:20 AM

All the individual pots are empty, SS, Medicare, FDIC, Unemp. etc. There’s only one single pot left, and that’s filled mostly by borrowing from foreigners, and printing money out of thin air. We’re one huge Ponzi scheme. Get your’s while the getting is good, because there are only two ways out, default and debt repudiatation, or Zimbabwe-like prices and currency.

Someone ( I think maybe karl denninger) said not to worry about burdening our kids with this debt, because they won’t be so stupid as to reduce their lifestyles voluntarily to pay back our debts, as we certainly weren’t. I think his point is that the US is likely to default on its debt in the future. Serious stuff that.

JiangxiDad on September 4, 2009 at 10:27 AM

Last night the Detroit Lions lost by a score of 34-3. However, in a sign of improvement, this is the best score the Lions have had in 7 weeks and much better than the 45-0 loss they suffered last week.

–Wow. That IS an improvement from last year.

Jimbo3 on September 4, 2009 at 10:18 AM

PERFECT analogy!

UltimateBob on September 4, 2009 at 10:28 AM

riverrat10k on September 4, 2009 at 10:18 AM

While those are good quotes, they do not belong to Lincoln, but rather William J. H. Boetcker.

Wiki source.
State of Illinois.

WashJeff on September 4, 2009 at 10:30 AM

I can fix the economy. We need another World War! After all, that’s what pulled us out of the last depression. We would have been out of it sooner if not for the socialist New Deal… oh wait, 0bama wants more of the same…. crap, we are screwed.

Wolftech on September 4, 2009 at 10:31 AM

10% by Christmas
a slight dip to 9% by summer 2010,
then the commercial real estate bubble hits
11% by fall 2010
12% by election day 2010
13% by 2011 summer. no real change until the eleciton.

FOR REAL. it’s POSSIBLE, if obama keeps his activist economy, it’s *possible* we could get to 15% in 2012. FTW!

battleoflepanto1571 on September 4, 2009 at 9:41 AM

Wait until interest rates start going through the roof.

Meanwhile the New York Times editors are living in a dream world AND are calling for tax increases to manage ballooning deficits:

“So far, the Obama administration’s plan for dealing with the budget deficit — an estimated $9 trillion over a decade — is to not dig the hole any deeper. That’s an important first step. President Obama deserves credit for proposing ways to pay for his two big initiatives to date: health care reform and energy legislation. Reducing the growth in health care costs, in particular, is vital to curbing future deficits.
As for the hundreds of billions of dollars in economic stimulus, their impact on long-term deficits is marginal because the spending is temporary. More important, deficit spending is warranted in a recession because it eases the downturn and in so doing, averts even worse damage to the economy and the budget.

But, sooner than he may prefer, Mr. Obama will have to face up to what he has so far avoided: the need to raise taxes broadly to rein in deficits.” LINK

Of course reductions in entitlements never crossed these idiot’s pee brains.

Rovin on September 4, 2009 at 10:31 AM

A bad day of Obama fishing is better than a good day of Obama working.

shick on September 4, 2009 at 10:23 AM

Something is very fishy; why would a president take back-to-back vacations in the middle of a flu crisis (reported by his WH staff to affect 1/2 of the country), a crisis of unemployment (higest in 26 years), auto dealers not being paid for clunkers, a heated national debate on healthcare reform…

Ready to Lead?

TN Mom on September 4, 2009 at 10:34 AM

National bankruptcy is assured once cap and trade and healthcare are passed.

sonofdy on September 4, 2009 at 10:35 AM

From MSNBC…”Jobless rate reaches 9.7 percent, as employers eliminate 216,000 jobs in August, fewer than expected.” Sheesh…if the president had an “R” next to their name…it would be all doom and gloom.

SPGuy on September 4, 2009 at 10:35 AM

In other good news, Oregon managed to land one good punch on Boise State.

corona on September 4, 2009 at 10:36 AM

In other good news, Oregon managed to land one good punch on Boise State.

corona on September 4, 2009 at 10:36 AM

lol I’m so out of touch. I didn’t know the SEIU had infiltrated college football.

HoustonRight on September 4, 2009 at 10:40 AM

Thank you for keeping America safe since 9/11 President Bush.

simplesimon on September 4, 2009 at 9:52 AM

BadgerHawk on September 4, 2009 at 10:42 AM

In other good news, Oregon managed to land one good punch on Boise State.

corona on September 4, 2009 at 10:36 AM

And a “suckerpunch” at that. Talk about poor losers.

Rovin on September 4, 2009 at 10:43 AM

While unemployment climbs to 9.7%, the president will take time for TWO back-to-back vacations, after spending only eight months on the job.

TN Mom on September 4, 2009 at 10:14 AM

He won. He is the most important and powerful man in the world. Do you really expect him to work? He has people that do the work. He is a figurehead the travels the world and creates good will. He is the organizer and the brains behind the plan.

Simply put, he doesn’t have to work.

RagTag on September 4, 2009 at 10:44 AM

Where are the JOBS?

Where is President Obama?

GONE FISHING.

While unemployment climbs to 9.7%, the president will take time for TWO back-to-back vacations, after spending only eight months on the job.

TN Mom on September 4, 2009 at 10:14 AM

I think now would be an appropriate time to remind libs and dems that they used to make fun of Bush when he commented about governing being “hard work”.
Now, it seems to me that someone can’t stand the heat in the kitchen. Aw, poor baby. Biden is stepping up though – so that will be fun!

JeffinOrlando on September 4, 2009 at 10:44 AM

Last night the Detroit Lions lost by a score of 34-3. However, in a sign of improvement, this is the best score the Lions have had in 7 weeks and much better than the 45-0 loss they suffered last week.

–Wow. That IS an improvement from last year.

Jimbo3 on September 4, 2009 at 10:18 AM

Nice analogy.

BadgerHawk on September 4, 2009 at 10:45 AM

Another casualty report from Obama’s War on Prosperity™

daesleeper on September 4, 2009 at 10:45 AM

Liberal trolls say: This is good! unemployment is a lagging indicator. It means things will be better next month.

lorien1973 on September 4, 2009 at 10:45 AM

Funny, I remember in years past that the Democrats were so concerned about the unemployed whose benefits were about to run out. There was quite a bit of talk about extending the benefits for X number of months. Have we lost our compassion for the unemployed, or is it just not close enough to Christmas?

CBP on September 4, 2009 at 10:46 AM

Nice post Ed….nailed him good.

sven10077 on September 4, 2009 at 10:46 AM

Something is very fishy; why would a president take back-to-back vacations in the middle of a flu crisis (reported by his WH staff to affect 1/2 of the country), a crisis of unemployment (higest in 26 years), auto dealers not being paid for clunkers, a heated national debate on healthcare reform…

Ready to Lead?

TN Mom on September 4, 2009 at 10:34 AM

I agree but I wonder if you got my point. Normally I don’t like slackers but think of it this way. If Obama has no plans of fixing the economy correctly, wouldn’t you prefer he slack off than go to work and “fix” it some more?

shick on September 4, 2009 at 10:48 AM

If there are any economists out there, what is the current full-employment unemployment rate?

Wine_N_Dine on September 4, 2009 at 10:49 AM

What’s happening is that his socialist revolution is faltering because the workers just aren’t with him. The workers see government as the cause of discontent, not the cure.

PattyJ on September 4, 2009 at 10:49 AM

Ready to Lead?

TN Mom on September 4, 2009 at 10:34 AM Obama runs the government, but there is no leader. Someone, some few, some polls, obviously lead obama, but as a nation, we’re leaderless. That’s what we’re waiting for.

JiangxiDad on September 4, 2009 at 10:51 AM

Thank you for keeping America safe since 9/11 President Bush.

simplesimon on September 4, 2009 at 9:52 AM

BadgerHawk on September 4, 2009 at 10:42 AM

Confused, that wasn’t her quote.

CBP on September 4, 2009 at 10:51 AM

Confused, that wasn’t her quote.

CBP on September 4, 2009 at 10:51 AM

I don’t think you get what I was doing there.

BadgerHawk on September 4, 2009 at 10:53 AM

OT: but related.

There’s a buzz about Wells Fargo being the next WaMu or Citi. here, for ex.

JiangxiDad on September 4, 2009 at 10:57 AM

Yep, this is truly change you can believe in.

That is, if you believe that the one change that is seriously needed right now is a change in Administration, House Of Representatives, U.S. Senate, etc.etc.etc.

pilamaye on September 4, 2009 at 11:01 AM

People become strange over issues such as birther questions and even stranger over events like 9/11.

They become very nasty over unemployment and violent when they are hungry. So, for the sake of us all, I hope things don’t get too much worse.

IlikedAUH2O on September 4, 2009 at 11:02 AM

I don’t think you get what I was doing there.

BadgerHawk on September 4, 2009 at 10:53 AM

I think I understand what point you were trying to make. Just a protocol of mine not to change someone’s quote. A “FIFY” might be better. I’ll stop “policing” now. :)

CBP on September 4, 2009 at 11:02 AM

He wants green jobs. Fine.Whatever. At least to do that you would need someone with a knowledge and RESPECT for free market capitalism. That is what creates jobs.

Instead this moron appoints a communist. A freaken COMMUNIST!

It’s like putting a vegan in charge of organizing a BBQ cookoff.

Face it libs. The president is a dim bulb.

kurtzz3 on September 4, 2009 at 11:05 AM

OT: but related.

There’s a buzz about Wells Fargo being the next WaMu or Citi. here, for ex.

JiangxiDad on September 4, 2009 at 10:57 AM

I have money there…thanks.

IlikedAUH2O on September 4, 2009 at 11:05 AM

Why isn’t this graph on the front page of every paper and the lead story on every effing news cast in the nation?

Alden Pyle on September 4, 2009 at 11:08 AM

Final Post of week. Many poeple read these as you probably know. Some of my friends read but don’t post. Well one wrote to me and said I looked racist.

I am not going to bore everyone but:

I thought the Idi Amin post was funny and Lettermen would make such comments if he had any fairness about him. And the comment about enjoying riding around with Jones in my custom Caddy while drinking Jack was true. This is the Old Dominion and we are strange in some parts around here. Not usually evil though. Not trying to impress either. Caddy depreciated so fast that two might get you one new Toyota.

IlikedAUH2O on September 4, 2009 at 11:12 AM

I have had money there…thanks.

IlikedAUH2O on September 4, 2009 at 11:05 AM

Your post for tomorrow.

WashJeff on September 4, 2009 at 11:13 AM

Except for July the Stimulus is working better than anyone in the administration thought it would.

jukin on September 4, 2009 at 11:14 AM

Take if from Bob (Obama): “Federal Trade Commission Launches Investigation Into Accuracy of ‘Economic Enhancement’ Claims” http://optoons.blogspot.com/2009/08/federal-trade-commission-launches.html

Mervis Winter on September 4, 2009 at 11:14 AM

Why isn’t this graph on the front page of every paper and the lead story on every effing news cast in the nation?

Alden Pyle on September 4, 2009 at 11:08 AM

because it’s not a puppy…?

ted c on September 4, 2009 at 11:16 AM

Well, I still have a job. Praise be to 0bama – I must be one of the “saved”!

/sarc

Logic on September 4, 2009 at 11:18 AM

We haven’t even hit bottom yet, much less turned the corner.

Vashta.Nerada on September 4, 2009 at 11:18 AM

It’s going to be interesting to watch Barry’s approval numbers over the weekend.

Even when he’s on vacation, the bad news keeps rolling in.

MarkTheGreat on September 4, 2009 at 11:20 AM

Which begs the question, just how bad did they think this was all going to turn out?

myrenovations on September 4, 2009 at 9:33 AM

According to Barry, without the porkulus, unemployment might get all the way up to 8%.

MarkTheGreat on September 4, 2009 at 11:22 AM

I have money there…thanks.

IlikedAUH2O on September 4, 2009 at 11:05 AM

you’re welcome. It’s been brewing for awhile, but getting louder now. It would be a HUGE amount of money to pay back depositors, and the FDIC is nearly broke. fwiw, If I had money there, I’d take it out.

JiangxiDad on September 4, 2009 at 11:22 AM

Even when he’s on vacation, the bad news keeps rolling in.

MarkTheGreat on September 4, 2009 at 11:20 AM

I really hope the bad news truck is making next day deliveries out to Camp David.

ted c on September 4, 2009 at 11:23 AM

Unemployment up…
Jobs produced down…
Confidence down…
Polls down…

so, what’s up for next week’s vacation? Will it be a 2 day work week–Monday off, Tuesday–speech, Wednesday–speech, Thursday – Sunday–VACATION…

sure the hell can’t run a country, but he does a damn good job with a vacation planner.

ted c on September 4, 2009 at 11:25 AM

Job gains generally start about 6-9 months after the economy comes out of the recession.
Jimbo3 on September 4, 2009 at 9:40 AM

I think you have to compare historical data where we took the same approach to fix the problem. Are there any or is this unprecedented? That’s why people have looked to data where countries applied the same solutions, like Japan.

Unless there is, with the amount of meddling the govt is doing right now, you can throw those historical templates right out the window.

Mr_Magoo on September 4, 2009 at 11:27 AM

The commercial bubble will burst well before that. The seams are starting to tear. My opinion, it will be shortly after Christmas.

HoustonRight on September 4, 2009 at 9:47 AM

Many retailers are doing there best to hold on until Christmas. Unfortunately, all the early indicators are showing a very weak Christmas season this year.

Of course, I’m getting a present that doesn’t have to be bought in a store, so I’m going to be having a very merry Christmas this year.

MarkTheGreat on September 4, 2009 at 11:29 AM

The Admin is absolutely full of cr@p. Now, B.O. is taking a month-long break to try to figure what in the Hell to do about all of it and Joe Plugs has absconded with the One’s t’prompter and playing President.

What (else) could go wrong?

JoeinTX on September 4, 2009 at 11:29 AM

you’re welcome. It’s been brewing for awhile, but getting louder now. It would be a HUGE amount of money to pay back depositors, and the FDIC is nearly broke. fwiw, If I had money there, I’d take it out.

JiangxiDad on September 4, 2009 at 11:22 AM

Figures. My wife and I just closed our accounts at other banks and opened a joint account with WF. But we don’t have much in there right now. Honestly the only reason we went with them is because we got our mortgage through them and thought it would be convenient to handle all our finances through them.

Doughboy on September 4, 2009 at 11:29 AM

That’s almost as bad as spending $1 Trillion and not finding the WMDs! Almost…

simplesimon on September 4, 2009 at 9:52 AM

As if the only reason we went into Iraq was to find the WMD’s.

BTW, we did find WMDs. Just not as many as was predicted. We also found WMD programs, just waiting to be restarted as soon as liberals lifted the embargoes.

MarkTheGreat on September 4, 2009 at 11:32 AM

you’re welcome. It’s been brewing for awhile, but getting louder now. It would be a HUGE amount of money to pay back depositors, and the FDIC is nearly broke. fwiw, If I had money there, I’d take it out.

JiangxiDad on September 4, 2009 at 11:22 AM

I am trying to convince my Mother who has a pretty large inheritance to move it or put it into something else. She won’t listen (she is liberal) but she is starting to see how scarey it is becoming.

She did ask me the other day if she took it would, where to put it. I said we could buy a safe or I would figure out something. So she is obviously thinking about it.

I have been very blessed up to this point. I still have a job and so on. My Mom, who lives with me may lose her and she has extreme medical issues. That is what I am worried about.

upinak on September 4, 2009 at 11:33 AM

It’s been brewing for awhile, but getting louder now. It would be a HUGE amount of money to pay back depositors, and the FDIC is nearly broke. fwiw, If I had money there, I’d take it out.

JiangxiDad on September 4, 2009 at 11:22 AM

I think, after Colonial and Guaranty, FDIC is officially broke already. There is word on the street that some of the bond issue money from the past couple of weeks will be diverted to FDIC to replenish the fund.

Vashta.Nerada on September 4, 2009 at 11:33 AM

you’re welcome. It’s been brewing for awhile, but getting louder now. It would be a HUGE amount of money to pay back depositors, and the FDIC is nearly broke. fwiw, If I had money there, I’d take it out.

JiangxiDad on September 4, 2009 at 11:22 AM

And put it where? Indexed annuities and out of banks?

dhunter on September 4, 2009 at 11:34 AM

Vashta.Nerada on September 4, 2009 at 11:33 AM

now that is scarey.

upinak on September 4, 2009 at 11:35 AM

And put it where? Indexed annuities and out of banks?

dhunter on September 4, 2009 at 11:34 AM

How about gold and silver.

upinak on September 4, 2009 at 11:35 AM

Honestly the only reason we went with them is because we got our mortgage through them and thought it would be convenient to handle all our finances through them.

Doughboy on September 4, 2009 at 11:29 AM

I think its the mortgages in the West that have gotten WF in trouble, and being forced to swallow Wachovia on top of that. I don’t like to spread rumors, but the financial system essentially exists on trust and goodwill, and they’ve (not just WF) shown themselves to be worthy of neither.

JiangxiDad on September 4, 2009 at 11:36 AM

OT: but related.

There’s a buzz about Wells Fargo being the next WaMu or Citi. here, for ex.

JiangxiDad on September 4, 2009 at 10:57 AM

Most of the major banks are technically insolvent. Even with the federal backstop they are underwater in a big way. The fact that the regulators know this and still allow these banks to accept deposits (very illegal) just shows that the cops are well bribed.

It’s mostly accounting games. Pushing forward delinquent status to 60 days instead of 30 days, counting unpaid delinquent fees as income, failing to foreclose and seize properties. This last one is especially important because auctioning off distressed properties would force the lender to write down the loss, and therefore expose the lenders as incurring massive losses. This would also have the effect of causing a death spiral in housing prices as we would see a huge inventory glut. If you’re in cash when this happens you’ll make out like a bandit, assuming you can sit on assets for a while.

All of this needed to happen years ago. Housing prices need to be allowed to bottom out to bring in new buyers (at old-school lending standards such as 20% cash down and low DTI ratios), and any banks that are exposed as insolvent in the process must be liquidated in order to pay off depositors. Of course this isn’t going to happen easily since the banks, the regulators, and the lawmakers are all part of the same scam.

This by the way is a very compelling argument against hyperinflation. Eventually banks are going to be forced to recognize the loss. No matter how much game-playing you engage in, you still have to answer to cash flow. Assets will eventually have to be dumped, driving down prices across the board. You can’t have hyperinflation without a sustained boom in income, otherwise prices will just fall again.

Most importantly, we won’t have hyperinflation because it would hurt the banks the most, and our entire regulatory and legislative structure is hell-bent on preventing that from happening.

TheMightyMonarch on September 4, 2009 at 11:37 AM

And put it where? Indexed annuities and out of banks?

dhunter on September 4, 2009 at 11:34 AM

Just PERSONAL opinion here, mind you. Cash and gold somewhere at home (you’re not getting any int. at the bank anyway.) Keep small amount only in bank.

Safest place imo is very short US Treasury bills (3mos. or less). They are guaranteed to be paid back to you, even before FDIC claims, and because they are short term, you don’t take much of any int. rate risk, no repayment risk. The only prob. is of course that they pay nearly 0% interest. But in my case, I’ve moved on from wanting a return on my money. I’ll settle for the return of my money.

JiangxiDad on September 4, 2009 at 11:40 AM

Why isn’t this graph on the front page of every paper and the lead story on every effing news cast in the nation?

Alden…you serious! I have learned in the 39 years on this earth and since I became active politically in my late teens that the media in this country reports, not facts, but “information” in an effort to craft and mold their desired narrative. HA had a couple of great examples several days ago when Bush was in office of the media poo-pooing the economy when the unemployment rate actually went down by .3%, yet here we are on the precipice of 10% unemployment, ballooning deficits, and it is reported as a positive that indeed the policies of the Obama administration seem to be working. I’m still awaiting a critical piece on Biden after his comments, just a day ago, that the stimulus is working. I have drifted more independent over the years to better understand both sides, but I still have the chip on my shoulder when it comes to media bias. It is real, it has been proven time and time again, it clearly favors progressives/liberals in this country and as we see today is destructive to our country. It benefits no one except those that are trying to craft the narrative.

SPGuy on September 4, 2009 at 11:42 AM

TheMightyMonarch on September 4, 2009 at 11:37 AM

I agree with what you say. But the only reason to still single out one bank over another is because one of these days, maybe not today, but one of these days, the FDIC will say that they will make the depositors whole, but over time. You will have to wait for your money. Why bother?

JiangxiDad on September 4, 2009 at 11:42 AM

I think its the mortgages in the West that have gotten WF in trouble, and being forced to swallow Wachovia on top of that. I don’t like to spread rumors, but the financial system essentially exists on trust and goodwill, and they’ve (not just WF) shown themselves to be worthy of neither.

JiangxiDad on September 4, 2009 at 11:36 AM

Well we’ve only got just over 5 grand in there right now. It’ll be a while before we anything substantial in our savings since we still have her….errrr, “our” debts to pay off(it’s funny how you inherit EVERYTHING when you get married).

Doughboy on September 4, 2009 at 11:42 AM

Biden should just tape everything he says and send it to Saturday Night Life for broadcast each week. He’s as funny, outrageous, and goofy as anything created by the SNL writer’s group.

stefano1 on September 4, 2009 at 11:43 AM

So, Ed, when will you finally admit that this is a depression?

corona on September 4, 2009 at 10:06 AM

Every time I think of the things Barry is doing to this country, I get pretty depressed.

Does that count?

MarkTheGreat on September 4, 2009 at 11:46 AM

How about gold and silver.

upinak on September 4, 2009 at 11:35 AM

Some of mines going there but not sure if I can convince wife and mother in law to put hers there. Will try though.

I like annuities for funds not needed as Insurance Companies have been secure and are secured by state asssociations .
But Obviously the communists in charge know this also and are going for them now. They’re going to confiscate or destroy all the wealth in this country then we will be at their mercy or, Hopefully, they will be at ours and swingin from the lampposts. I think annuities in Companies without much health exposure might work till inflation goes crazy then its Gold and Silver or OIL

dhunter on September 4, 2009 at 11:49 AM

JiangxiDad on September 4, 2009 at 11:40 AM

I have it in some gold, more silver and copper. Copper is right now a very weird metal. It is sought after in raw form which mean in bars after processing but not made into anything specific…. and not recycled. I have round disks. I have sold some as of late to take care of a few bills that I didn’t want around. I got 300 per 5 lbs dick. It is also pure copper… nothing added.

Doctors are looking for it in droves.. which is weird.

Also, I am gold panning on the weekends. Hey I will have an ounce in about 5 more weeks unless the snow flies and the water freezes.

upinak on September 4, 2009 at 11:50 AM

I’ll settle for the return of my money.

JiangxiDad on September 4, 2009 at 11:40 AM

That’s what I’m after now also. I agree cash is king but to a point.

dhunter on September 4, 2009 at 11:51 AM

dhunter on September 4, 2009 at 11:49 AM

Just be careful where you get your gold and silver at. I go to a mint. But then again I go there to drop OFF my gold nuggets and have the nuggest melted into small penny sized coins or slugs.

I will be panning my butt off this weekend.

upinak on September 4, 2009 at 11:52 AM

Welcome to “Fun Employment” everybody…!!!

Seven Percent Solution on September 4, 2009 at 11:52 AM

Of course reductions in entitlements never crossed these idiot’s pee brains.

Rovin on September 4, 2009 at 10:31 AM

These maroons still believe that deficit spending helps the economy, and taxes have no affect on the economy.

MarkTheGreat on September 4, 2009 at 11:53 AM

upinak on September 4, 2009 at 11:50 AM

I bought copper stock (which I later sold) and I know the chinese have been buying copper like crazy (they don’t know wtf to do with their mountains of dollars) so it has been a very good invest lately. Hope it stays that way. Copper is widely used in real estate construction too.

JiangxiDad on September 4, 2009 at 11:57 AM

Comment pages: 1 2 3