Nothing was more responsible for the economic implosion of 2008 than the mortgage industry. So it is somewhat illuminating that – to go along with the European Union government spending crises and yesterday’s corresponding bloodbath in the Dow (down 376 points) which officially put Wall Street into “correction territory” – we now see that, if anything, our mortgage woes under Obama are actually worse than ever.
Mortgage delinquencies hit 10%
By Les Christie, staff writerMay 19, 2010: 1:20 PM ET
NEW YORK (CNNMoney.com) — A dubious distinction was reached during the first three months of 2010: More than 10% of all mortgage borrowers are now behind on their payments.
The delinquency rate hit a record of 10.06% in the first quarter, according to the Mortgage Bankers Association. The seasonally adjusted rate accounts for all mortgages on properties that have up to four units and that are at least one payment late.
The rate has been inching steadily toward this record. In the previous quarter, 9.47% of borrowers were behind on payments; and one year ago, 9.12% were late. […]
Nearly all varieties of loans suffered increased delinquencies compared with 12 months earlier. Prime fixed-rate loans hit 6.17%; prime adjustable-rate mortgages (ARMs) tipped 13.52%. Subprime fixed-rates jumped to 25.69%; and subprime ARMs are a whopping 29.09%.
So, to put it bluntly, a full year and a half later, Barry Hussein hasn’t done anything to fix the biggest component that created the economic collapse of 2008. Not a damn thing.
The problem is actually worse than ever.
A significant factor contributing to this crisis is unemployment. But, again, Obama hasn’t done a damn thing (all failed predictions and promises aside) to create jobs:
Jobless claims rise by largest amount in 3 months
By MARTIN CRUTSINGER, AP Economics Writer Martin Crutsinger, Ap Economics Writer – Thu May 20, 4:29 pm ET
WASHINGTON – The number of people filing new claims for unemployment benefits unexpectedly rose last week by the largest amount in three months. The surge is evidence of how volatile the job market remains, even as the economy grows.
Applications for unemployment benefits rose to 471,000 last week, up by 25,000 from the previous week, the Labor Department said Thursday. It was the first increase in five weeks and the biggest jump since a gain of 40,000 in February.
The total was the highest since new claims reached 480,000 on April 10. It also pushed the average for the last four weeks to 453,500.
“Although no one expects this volatile series to go in one direction every single week, this is clearly a disappointment,” said Jennifer Lee, senior economist at BMO Capital Markets.
Stocks slid as investors’ already bleak view of the world economy worsened with another drop in the euro and the disappointing U.S. employment news. The Dow Jones industrial average fell more than 250 points in early afternoon trading.
“Unexpectedly.” The propagandists adverb of choice.
After a newspaper or news station has used the word a thousand times, you’d think they’d grow tired of making excuses for the numerous failures of the White House. But, noooooo. They never weary of describing bad news as “unexpected” as a device to imply that it was really nobody’s fault.
Now, mind you, they liked to use the word “unexpected” a lot when Bush was president, too. But then it was to reduce the credit that Bush should have received for successful policies. Take the result of his tax cut, which boosted revenue. The New York Times wrote:
“For the first time since President Bush took office, an unexpected leap in tax revenue is about to shrink the federal budget deficit this year, by nearly $100 billion.
On Wednesday, White House officials plan to announce that the deficit for the 2005 fiscal year, which ends in September, will be far smaller than the $427 billion they estimated in February.”
When a Democrat is president, bad news is always “unexpected” to the mainstream media. When a Republican is president, it’s always GOOD news that’s “unexpected.”
What is the Obama message that continually keeps being falsified by “unexpected” actual results?
“We can say beyond a shadow of a doubt today we are headed in the right direction,” Mr. Obama told an audience of about 230 workers and local business leaders. “All those tough steps we took, they’re working, despite all the naysayers who were predicting failure a year ago.” ….
“Last month we had the strongest job growth we had seen in year, and by the way, almost all of it was in the private sector, and a bunch of it was manufacturing,” the president said, referring to last week’s report that found that the economy added 290,000 jobs in April. “So this month was better than last month. Next month is going to be stronger than this month. And next year is going to be better than this year.”
Only it’s a load of crap from a pathological liar.
The AP article cited above continues with this paragraph:
In a separate report, a private research group said its index of leading economic indicators dipped slightly in April. It was the first decline in more than a year. Six of the 10 components on the Conference Board’s index deteriorated. Among them: U.S. residents filed fewer applications to build homes; vendors were slower in delivering supplies to companies; the unemployed filed more claims for jobless aid; and consumers’ confidence dropped.
Ah, but I have absolutely no doubt whatsoever that the drop was “unexpected.”
May 20 (Bloomberg) — The index of U.S. leading economic indicators unexpectedly declined in April, a sign the economic expansion may slow in the second half of the year.
NEW YORK (Associated Press) — A private research group’s index of leading economic indicators unexpectedly slipped in April, its first drop in more than a year and a sign that growth could slow this summer.
I knew it!!! You clearly can’t blame Obama for any of that. I mean, duh, who could possibly have “expected” it???
Why don’t we just keep believing more of Obama’s constant stream of lies, instead???
Let’s see. Month of May. Major market correction, with the Dow down 900 points this month. Check. Mortgage delinquencies up. Check. Unemployment up. Check. Leading economic indicators down. Check.
Famed market analyst Meredith Whitney says that Obama’s moronic financial “reform” that passed the Senate yesterday will succeed in creating tragic levels of unemployment for extended periods of time.
Just remember: Barack Obama is telling you the truth. It’s reality that’s lying to you.
Everything is hunky dory. And anything to the contrary has to be “unexpected.”