Jun 19, 2010
Storm is Brewing...Indicators
Citing what he believes are clear signs the economy is bouncing back from recession,Vice-President Joe Biden yesterday touted Barack Obama's 'stimulus package' and bailout of Wall Street.
The Obama administration's economic stimulus program has allocated $620 billion so far and created or saved at least 2.3 million jobs, Vice President Joe Biden said Thursday. "The Recovery Act is working," Biden said. "It's going to continue to work. It's not over."
Time for yet another fact-check on the pathological liars of the Obama Administration.
Banks are failing at double the rate of last year. During 2009, which the government claims was the peak of the recession, the total number of bank failures at this point in the year was 40. It is already 83 for this year. As losses have mounted on loans made for commercial property and development, the growing bank failures have sapped billions of dollars out of the deposit insurance fund. It fell into the red last year, and its deficit stood at $20.7 billion as of March 31. Yet the FDIC is running ads on radio stations across the country attempting to scare people away from keeping their savings at home and making the wildly erroneous and reckless assertion that as long as the FDIC insures bank accounts they can never fail, no matter what. That statement is a bare-faced lie.
The FDIC depends on bank fees and taxpayers to insure deposits in banks. So, what if banks continue to fail? Where will the money come from to 'cover' bank accounts? A taxpayers bailout? Such a notion is also ludicrous when the U.S. is in debt by over 13 TRILLION dollars, and when one adds in unfunded liabilities, that debt is actually 109 trillion. usdebtclock
If the U.S. were to sell every single asset we have--land, homes, businesses, everything, the total value would be roughly 50 trillion. Thus, we are in debt at the rate of DOUBLE the amount of our entire value.
In addition, the number of jobs the Obama Administration claims it has 'saved or created' includes multiple thousands of temporary jobs, such as census workers, who will be out of work very shortly. The private sector is clearly NOT rebounding when it comes to job creation.
One more dire indicator of continued economic distress is the rate of home loan defaults and foreclosures. The number of homes repossessed during April is at an all-time high of 92,432. That is a 45% increase over April 2009. If repossessions continue at this pace, more than 1.1 million homes will be lost in 2010. About one in four U.S. homeowners is underwater and 5 million of those borrowers owe mortgage debt that exceeds their property values by 25% or more. The total of negative equity in these deeply underwater borrowers is a whopping $655 billion.
These various factors add up to one simple, sobering truth--the economy is not on the rebound, and the Obama Administration and the Democrat-controlled Congress (which has been in Democrat hands since 2006) can take little comfort in what that means for the upcoming midterm elections in November....but alot can happen between now and then...are you prepared?