Foreclosures and Hopeful People

Posted on March 18th, 2009 by saman

Even if most of the predictions as far as foreclosures are concerned are gloomy, we all know that hope dies the last. Thus, if recent studies’ forecast will be met, the first quarter of 2009 will be better than the last quarter of 2008, when the U.S. economy registered a 3.8% contract.

The idea is not shared by some economists, however. Thus, Mark Vitner, economist at Wachovia Securities, shows that challenges in the U.S. economy are still profound, and an increase in the GDP will not be registered earlier than 2010.

The department of Treasury of the United States works to complement the economic revival plan and support of the financial sector, which will be presented next week, said the American president, Barack Obama. We need a strong and financially viable system for the loans to reach the population and companies, said U.S. chief executive. The first version of the Barack Obama plan was approved on January 28 by the House of Representatives.

It provides, in essence: • Total value: 825 billion U.S. dollars of which 550 billion for:• Infrastructure • State aid • extension of unemployment aid • health services (Medicaid) • 275 billion U.S. dollars, representing reductions of taxes

The U.S. President, Barack Obama, said that the administration will announce a new strategy to re-launch the financial system. This will facilitate the granting of loans and U.S. companies. In the statement made, Obama has once again asked the Senate to give up the spirit of partisanship and to adopt the economic revival plan to help big U.S. companies out of the collapse produced by the foreclosures crisis. Americans know it will take years, not months, for the U.S. to recover economically, said Obama. He added that the first version of the re-launching plan was approved by the House of Representatives, but it will not be enough.

The Treasury Secretary, Tim Geithner, will announce as soon as possible a strategy that will revive the financial system and put in circulation loans to families and enterprises, added the U.S. president. The U.S. Commerce Department announced that the gross domestic product has descended in the last quarter of 2008 by 3.8%, recording the biggest decline for the past 27 years. GDP fell less than it had been foreseen, given that analysts expect a reduction of 5.4%, but this is the second consecutive quarter of decline for the first time in years 1990-1991.

The economic and foreclosures crisis also affects those who write about it. Bloomberg Press Agency will give off 100 employees, this being the first release since its foundation.

Although disposal concerns especially employees in the United States, the agency has not ruled out the possibility sacked employees in Japan and Europe. Activities of radio and television by Bloomberg lose 20 million dollars per year, according to the information published in the New York Post. Bloomberg, founded by the current mayor of New York, Michael Bloomberg, currently has 10,500 employees worldwide, of which 6500 in the United States. The editorial part is provided by 2,300 journalists.