Archive for Economy
Elderly workers put off retirement
More than seven-in-ten (72 percent) workers over the age of 60 who say they are putting off their retirement are doing so because they can’t afford to retire financially, according to the survey by CareerBuilder.com, the online jobs site.
When comparing genders, the survey found that three-quarters (76 percent) of female workers over the age of 60 who say they are putting off retirement are doing so because they can’t afford it, while 68 percent of males say the same.
Homeownership: Less Than Meets the Eye
The U.S. has long boasted one of the highest rates of homeownership of any country, thanks in no small part to tax breaks for mortgage borrowers. That rate climbed steadily for a decade on the strength of demographic factors and the availability of newfangled mortgage products, peaking at 69% toward the end of 2006. Since then, soaring unemployment and a wave of foreclosures have pulled down the rate by 1.7 percentage points, to its current level of 67.3%, as reported by the U.S. Census Bureau.
Yet according to “The Homeownership Gap,” a paper from the Federal Reserve Bank of New York, official figures are overstated because they do not exclude owners whose homes are worth less than the outstanding balance on their mortgages. Separate out those folks—they are, after all, more like renters than owners—and in some cities, including Detroit, Las Vegas, Phoenix, and San Diego, homeownership rates are 25 to 45 percentage points below the reported figures, say the study’s authors, Andrew Haughwout, Richard Peach, and Joseph Tracy.
U.S. consumer credit down record amount in Nov
U.S. consumers sharply reduced their debt in November, the Federal Reserve reported Friday. Total seasonally adjusted consumer debt fell $17.49 billion, or at a 8.5% annual rate, in November to $2.46 trillion. This is the record tenth straight monthly drop in consumer credit. Source: MarketWatch
Oct. consumer confidence falls for second month
U.S. consumers became more cautious in October, the Conference Board said Tuesday.
The consumer confidence index fell to 47.7 in October from an upwardly revised 53.4 in September
Consumers were more pessimistic about the labor market, with those claiming jobs are “hard to get” rising to 49.6% from 47.0% in the prior month
Revised formula puts 1 in 6 Americans in poverty
The level of poverty in America is even worse than first believed.
A revised formula for calculating medical costs and geographic variations show that approximately 47.4 million Americans last year lived in poverty, 7 million more than the government’s official figure. According to the revised National Academy of Science (NAS) formula:
_About 18.7 percent of Americans 65 and older, or nearly 7.1 million, are in poverty compared to 9.7 percent, or 3.7 million, under the traditional measure. That’s due to out-of-pocket expenses from rising Medicare premiums, deductibles and a coverage gap in the prescription drug benefit.
_About 14.3 percent of people 18 to 64, or 27 million, are in poverty, compared to 11.7 percent under the traditional measure. Many of the additional poor are low-income, working people with transportation and child-care costs.
_Child poverty is lower, at about 17.9 percent, or roughly 13.3 million, compared to 19 percent under the traditional measure. That’s because single mothers and their children disproportionately receive non-cash aid such as food stamps.
_Poverty rates were higher for non-Hispanic whites (11 percent), Asians (17 percent) and Hispanics (29 percent) when compared to the traditional measure. For blacks, poverty remained flat at 24.7 percent, due to the cushioning effect of non-cash aid.
_The Northeast and West saw bigger jumps in poverty, due largely to cities with higher costs of living such as New York, Boston, Los Angeles and San Francisco.
Goldman Sachs earns $3.19 billion in third quarter, sees improving conditions
Goldman said on Thursday that its third-quarter profit rose to $3.19 billion, or $5.25 a share, from $810 million, or $1.81 a share a year ago.
“Although the world continues to face serious economic challenges, we are seeing improving conditions and evidence of stabilization, even growth, across a number of sectors, Lloyd Blankfein, Goldman Chairman and CEO said in a press release
Dow reclaims 10,000
Dow reclaims 10,000
Blue chips’ first five-digit reading since October 2008
J.P. Morgan Chase crushes estimates with $3.6 billion profit
J.P. Morgan Chase Inc. on Wednesday turned in sharply higher earnings, surpassing Wall Street estimates on strong investment-banking results, but the upbeat results were tempered by a surge in non-performing assets.
Long-term jobless hammers those who held white collar jobs
The slow road toward economic recovery could be made even slower by the fact that nearly half of long-term job seekers came from the ranks of the white-collar workforce, according to a report Tuesday from outplacement company Challenger, Gray & Christmas Inc.
The inability of these higher-earning professionals and office workers to find jobs within 27 weeks will be an increasing drag on consumer spending and further hobble the economy, according to Challenger.
“White-collar workers make up about 60 percent of the labor force and their higher earnings give them spending power that is invaluable to the economy’s health. Prolonged joblessness among these workers will be a definite drag on the recovery,” says John Challenger, chief executive officer of Challenger, Gray & Christmas.
Gold finishes at new record of $1,043.30 an ounce
Gold hits new high on rising investment demand
Gold futures ended Wednesday’s trading at a new record high above $1,040 an ounce, as investment demand rose and as the U.S. dollar remained relatively weak
