Was posting about this on Friday, and the numbers are glum:
US Unemployment Rate Gallops Ahead of Expectations
The White House says America’s employment picture is worse than the Obama administration had anticipated just a few months ago. The somber admission follows the latest jobless report showing the highest unemployment rate the United States has seen in more than 25 years.
U.S. unemployment jumped a half percent in May, to 9.4 percent prompting this comment by Austan Goolsbee, a member of President Barack Obama’s Council of Economic Advisors:
“The economy clearly has gotten substantially worse from the initial predictions that were being made, not just by the White House, but by all of the private sector,” said Austan Goolsbee.
Economists point out that the current jobless rate is already higher than the hypothetical rate that was used to calculate the health of banks and other financial institutions in so-called “stress tests” earlier this year. And, the upward unemployment trajectory is expected to continue in coming months, even if the overall economy begins to recover.
So glum that even AP is noticing that the 3-month old “stimulus” doesn’t work:
ALL BUSINESS: Bond-market rout lifts mortgage cost
The Federal Reserve announced a $1.2 trillion plan three months ago designed to push down mortgage rates and breathe life into the housing market.
But this and other big government spending programs are turning out to have the opposite effect. Rates for mortgages and U.S. Treasury debt are now marching higher as nervous bond investors fret about a resurgence of inflation.
It’s interesting to see that the AP reporter puts this one right on Obama, rather than blaming Bush. This spending was not inherited from Bush.
Whatever benefit was derived from the low-interest mortgage refinancing was quite limited as the requirements meant you had to be in mortgage distress already, which meant that those of uis that actually manage our money and continue to pay our mortgages on time were left out in the cold. The troubled mortgages that were refinanced/modified have mostly defaulted anyway, according to Fannie Mae, resulting in a waste of money to stave off the inevitable. So the problem wasn’t fixed, and we now have a higher debt to boot, which reminds me of history going back to 1939, when Roosevelt’s own Treasury secretary, Henry Morgenthau, had realized that the New Deal economic policies had failed. Said Morgenthau,
“We have tried spending money. We are spending more than we have ever spent before and it does not work. . . . After eight years of this Administration we have just as much unemployment as when we started. . . . And an enormous debt to boot!”
Geithner could say almost the same thing now, except for the time frame.
But if you think that the administration will adjust its policies, you are mistaken. Right now I received a WaPo headline alert saying Obama promises more than 600,000 stimulus jobs
President Barack Obama promised Monday to deliver more than 600,000 jobs through his $787 billion stimulus plan this summer, with federal agencies pumping billions into public works projects, schools and summer youth programs.
Health and Human Services will provide funding for 1,129 health centers to provide expanded service for 300,000 patients; Interior will begin improvements on 107 national parks; Veterans Affairs will start work on 90 medical centers in 38 states; the Justice Department will fund 5,000 law enforcement jobs; the Agriculture Department will begin 200 new rural waste and water system projects; and the Environmental Protection Agency will begin or accelerate the cleanup of 20 Superfund sites.
These are the same kind of jobs that the Roosevelt administration was providing back then: they are all government jobs.