The government reported today that U.S. economy lost 524,000 jobs in the month of December, bringing the unemployment rate up to 7.2% from November's 6.8% unemployment rate. This is the highest unemployment rate in sixteen years. Over just the last four months of 2008, almost 2 million jobs have been lost. The job losses were spread far and wide across most industries and over 11 million Americans are now out of work. Since the start of...
President-elect Barack Obama said today that the ongoing recession could last for years unless dramatic action was taken as soon as possible.Obama said, "Throughout America’s history, there have been some years that simply rolled into the next without much notice or fanfare. Then there are the years that come along once in a generation – the kind that mark a clean break from a troubled past, and set a new course for our nation. This is...
It's not like you don't already know that things are really bad, but here are some numbers for you.The Congressional Budget Office (CBO) reported yesterday that the U.S. recession - officially recognized to have started about a year ago - is likely to last well into 2009.If it doesn't end until the second half of 2009, it'll be the longest recession since World War II. The two next longest recessions since that period, 1973-1974 and 1981-1982,...
The Federal Trade Commission (FTC) reported earlier this week that Payneless Credit Repair, LLC and its owner, located in Richardson, Texas, has agreed to settle charges that the company's business practices violated federal law. The FTC charges against the company, filed in July 2008, are part of the FTC's crackdown on credit repair agencies, "Operation Clean Sweep." The company made false claims claiming they could fix a consumer's credit, charging advance fees of anywhere from $500...
The Obama Transition team announced on Sunday that President-elect Barack Obama intends to form a "White House Task Force on Working Families."The Task Force will be chaired by Vice President-elect Joe Biden and becomes effective January 20, 2009, the day Obama is sworn in as President of the United States.The aim of the Task Force is to raise the living standards for American middle-class, working families. Top-level administration policy-makers of the Task Force will paritcipate in...
President Bush announced this morning the decision to help U.S. automakers General Motors Corp. and Chrysler, LLC with an emergency loan to give them an opportunity to bring their businesses back to profitability. Ford Motor Company is not taking out a government loan at the moment; Ford CEO Alan Mullaly said that they have enough money to get through the ongoing recession.Bush said that under normal economic circumstances he would allow the automakers to fail as...
The Federal Trade Commission (FTC), the nation's consumer protection agency, reported earlier today that Atlanta, Georgia-based sub-prime card issuer CompuCredit Corporation has agreed to a settlement in response to charges of unfair and abusive credit card practices.The FTC filed a complaint in federal court in June 2008, alleging that CompuCredit Corporation used deceptive and misleading conduct in marketing, issuing, and servicing of credit accounts.The sub-prime card issuer has agreed to reverse fees associated with their credit...
The Office of Thrift Supervision (OTS), a division of the U.S. Treasury Department, approved a final rule today to prevent savings associations from engaging in credit card practices that are unfair to consumers.The Federal Reserve Board (FRB) and the National Credit Union Administration (NCUA) are expected to approve the same rule later today, so that consumers can expect the same kinds of protections regardless of what type of financial institution issued their credit cards.The OTS began...
The U.S. Department of Labor reported today that consumer prices declined by 1.7% in November, after a 1% decrease in October. Price declines like this may seem very small to the consumer - a 2% discount is hardly anything to get excited about - but the U.S. hasn't seen a price decline this severe in the entire time the Department of Labor has been keeping track of consumer prices starting in 1947.Price Changes by CategoryThough the...
The Federal Reserve announced today that they cut the federal funds rate to a range of 0 to .25%, down from the previous interest rate of 1%. The rate cut brings the key interest rate down to a historic low. Citing their concern over the worsening job market, and the decrease in consumer spending, business investment, and industrial production, this is the Fed's latest attempt at stimulating the economy with a rate cut.The Fed stated that...
