The federal deficit for October reached a record-setting level for that month: $176 billion. The Treasury Department made the announcement on November 13, saying the shortfall occurred as income of $135 billion was exceeded by $311 billion in spending.
Many small banks are turning down federal money from the Troubled Asset Relief Program (TARP) because they recognize that it comes with too many strings attached. Additionally, the small businesses they primarily cater to “need lines of customers, not lines of credit,” as ABC News put it on November 9.
The unemployment rate shot from 9.8 percent in September to 10.2 percent in October, the highest it has been since 1983, the Labor Department reported on November 6. In response, the Obama administration is set to sign a $24-billion economic stimulus bill.
The Ford Motor Company has posted a net income of nearly $1 billion in the third quarter of this year, no thanks to Uncle Sam. Ford was the only Detroit automaker to escape federal bailout money while steering clear of bankruptcy court.
The federal $3 billion “Cash for Clunkers” program promoted by the Obama White House last summer cost an average of $24,000 per additional car sold, according to an analysis by automotive consumer researcher Edmunds.com. The White House has responded with a blistering attack disputing the finding.
A year after the onset of the greatest financial crisis since the Great Depression, details continue to emerge of the sordid secret deals cut by the Federal Reserve in bailing out certain financial giants. The very latest, courtesy of Bloomberg News, alleges that the Federal Reserve Bank of New York, under the leadership of Timothy Geithner (now U.S. Treasury Secretary), engineered a sweetheart deal to pay off holders of AIG debt at par, rather than the 40 cents on the dollar that AIG negotiators had been pushing for.
Fed Chairman Ben Bernanke is growing impatient. With the financial crisis continuing to drag on, Bernanke appeared again before Congress yesterday to urge lawmakers to pass legislation aimed at preventing future economic crises of the severity of the ongoing Great Recessioan.
The government has announced that Social Security recipients will not receive a cost-of-living adjustment, or COLA, in 2010. This is because the COLA is tied to price inflation, which according to the government has been negative so far in 2009.
The national unemployment rate hit 9.8 percent in September, the highest it has been since June 1983. A total of 15.1 million Americans are now out of work, and 7.2 million jobs have been eliminated during the recession, the Labor Department said.
America’s gross domestic product declined in the second quarter of this year, and in September the economy continued to lose jobs. Yet because the decline in the GDP was not as bad as predicted, and the number of jobs lost in September was less than those lost in August, both economic trends were generally reported in a positive light.