President Obama started the 2010 summer with a feeling of hope and confidence. It was to be the summer where his detractors were proven wrong. It was a time that the Obama Stimulus took hold and displayed the long-awaited gains that he has touted since passage.
But then came the news that jobs were not being created. Then there was the loss of the Census jobs that had previously boosted the unemployment rate. The unemployment rate languished at 9.6% – helped by the fact that Americans were running out of their 99 weeks of unemployment and falling off the Government tabulations.
Housing was even worse. Forclosure rates that had been held in check due to the Government credit for new home buyers. But that credit ended before the summer, and home slaes fell. Forclousres ramped up. Again, and from near-record highs.
The bold face of success held by the Obama Administration paled in comparison to the harsh reality that at every turn success was hard to find, even if you used Government math calculations to reorganize the figures. President Obama stopped speaking about success, stopped mentioning a summer of recovery, and just said more time was needed to see the results that he was sure to come.
Then we just recieved the news that the Census determined that 1 in 7 Americans are living in poverty – 43.6 million people. A 14.3% increase under the first year of the Obama Administration. It had increased 13.2% in 2008. That means 44 million people earn less than $21,954 for a family of four – before any taxes are taken out.
Imagine what will happen once new taxes – which is what the Government is now claiming the Health Care Reform is in court – and higher healthcare insurance rates (risen due to the Health Care Reform) are factored in. What happens if the taxes for the $50 billion Stimulus 2.4 are added? What happens if Cap & Trade is passed and the energy bills of individuals and businesses “neccessarily skyrocket”.
Even without factoring in any of these things, the effect is being felt. For nine months in a row – all of 2010 to date – the number of foreclosures has risen. August 2010 had the foreclosure rate increase 25% from 2009, up 3% from July 2010. Some analysts expect the peak of foreclosures to come some time in 2011, with recovery in the housing market potentially 2 years after that.
What is causing all this? Jobs. The economy is faltering and unemployment is pushing foreclosures now. All of this includes the $75 billion mortgage-relief program from the Obama Administration – that has had half the 1.3 million homeowners drop out unhelped.
At this point, the best thing that can be said about the summer of recovery is that it is over.