Economic Indicators varying, but looking more positive each month
Thursday, August 13, 2009
Written by the Editor of 'Obama and the White House Blog' James
About a week ago, President Obama stated that there are now some very good indicators that the economy is already starting to rebound, or at least has stopped it's free fall. The newest unemployment figures show that things are easing up, but President Obama also acknowledged that there is still a long way to go. The jobless rate fell for the first time in 15 months in the month of July.
But as the saying goes, there is the 'good with the bad'. The housing market last month showed signs of recovery, yet this month the foreclosures skyrocketed. I was thinking that the housing market was back on firm ground. Here in Texas, the housing markets are good, unlike a good part of the country. Dallas has seen its share of foreclosures and bank problems, but nothing like the ravaged places like Michigan and Ohio. But for home buyers and auto buyers, things couldn't be better. Banks are now giving loans, and the government has given incentives to buy both a car and an home to the American people. Up to an $8,000 tax credit that you can apply directly to the purchase of your home, and a $4,500 savings if you qualify to trade in a used vehicle that is considered not gas efficient.
From my home state known as the buckeye state, unemployment has skyrocketed. In my home town of Youngstown Ohio, the steel mills were already having problems staying afloat prior to the economic crisis. But now, if you still had any kind of job in the steel industry, you most likely are now visiting the unemployment line. Up in Michigan, the auto industry was hit the hardest, and people are feeling the effects of the dire situation that now faces them, from trying to find places to live, buying food, and even trying to find health care.
Now more of the good. The stock markets are rebounding in a big way. The DOW now sets somewhere just below 10,000 which should present a welcome sigh of relief to many people and their 401k's that have been hit hard for the last 12 months. On a personal note, within the last 15 months, I've lost a minimum of $12,000 in my 401K. But last week I checked it again and to my surprise, I've gained $4,000 back. I took the gamble and left my 401K options alone, thinking that it would eventually come back, and I was right. Hopefully my 401K will completely recover and will grow again. In my case, that this is a very critical situation, because my goal is to retire in approximately 10 years.
There are many people that doubled President Obama that he didn't have what it takes to be able to turn back the economy. The signs of economic recovery seem to be good, but the price tag for the economic bailout is very high. Some critics and opponents of President Obama and his policies are very critical in his ability, what he has done so far in his administration, and afraid of what this country will be in by the time he steps down as President. Unfortunately for the right wing party, it looks like this president is well on his way for his second term. Most people will be fast in telling me that I'm rushing into a bad decision about his re-election, but I've seen no indicators that he is failing in his job. The results of the health care reform legislation is still out until Congress returns from the summer break and voting begins on the Health Care reform bill. Many presidents tried to make a health care reform bill that would stick, but all failed, and now it is President Obama's turn to see if drastic changes can be made. So far, he has been more successful, and with the majorities in the House and Senate, there is a very good chance that the health care bill will go through. My only concern is knowing exactly what is in it before Congress votes on it.
With all that President Obama is doing, his popularity is now dropping lower than ever before, but mainly do to the opposition to his health care reform bill. To be completely anointed as doing the right thing regarding health care reform, the first thing that must happen is that President Obama must get the health care legislation passed, then get re-elected. If the people re-elect him after all the decisions he's made, then he must have done the right thing. Only time will tell.
