Politics from the Palouse to Puget Sound

Thursday, January 20, 2011


Bob Clark

Unemployment Not Improving
Reverse Mortgage Foreclosures
Foreclosures Continue in Washington State at High Rates
Municipal Bonds at Risk?

For the month of December things weren’t quiet as bad as the awful November numbers in Washington State except for the fact that some 36,730 Washingtonians dropped out of the workforce and gave up trying to find a job. The U3 number (% collecting unemployment benefits) came in at 324,270 which was less than November because of a math detail. That detail centers on the number of people LEAVING the workforce (above). The U6 number or the number of folks unemployed including those in the U3 category was 599,195.

Things were gloom in King County: 8.4% collecting benefits or 92,170 that means that 186,534 people remain unemployed in the state’s largest county. In Snohomish County the U3 & U6 numbers were 9.8% or 37,220 and 64,565 totals. In Pierce County it added up to 9.2% or 36,620 and 67,667 folks out of work.

On the national scene the numbers at the end of the week ending 1/15 were not very encouraging. (Editor’s note: don’t believe the fools who write for the newspapers or report on the local TV outlets who report only the SEASONABLY ADJUSTED NUMBERS. These numbers MEAN NOTHING!). Going to the unadjusted numbers at this website we find the following: 550,594 people filed for FIRST TIME unemployment benefits for this week. Remarkably we now have 9,607,423 people collecting some sort of unemployment benefits nationwide according the US Department of Labor. If you calculate the U6 number or the total number of unemployed folks it comes in at 14,880,092! That is a lot of people who are unemployed. Several million other Americans have resorted to finding jobs that they are over qualified for and are simply doing what they can to survive.

Reverse Mortgages in the thousands up for foreclosure

If you are over 62 don’t believe these ads folks and see an attorney before signing any reverse mortgage contract. Fact is that even though the FHA is trying to help out seniors, the unfortunate truth is that literally hundreds of thousands of seniors who took our reverse mortgages are about to lose their homes as lenders are now going after those seniors who have not followed their contracts. That contract requires them to pay for a certain level of home insurance and PAY their property taxes. In addition, many of the reverse mortgage contracts have a clause that gives the home to the lender, no matter how much equity exists in the home.

HUD has already given approval to lenders to proceed to foreclosures on seniors with reverse mortgages in default and that is NOT good news! On top of that many real estate investors are already monitoring the public record to zero in on these foreclosures in order to make money on this terrible situation. Apparently this problem is particularly bad in California, Florida and Arizona.

The latest foreclosure numbers for the State of Washington are not good. Here is the map and you can take a look on a county by county basis. 40,874 homes have been foreclosed over the past 12 months and some 4,029 recent foreclosures on the market.

The Obama Administration has been very skilled at lying and doing everything it can to hide the worst recession in the history of the USA. Changing the subject on the left leaning MS/NBC, CNBC, CNN, CBS, NBC and ABC doesn’t put food on the table or pay the car and mortgage bills!
Fast Breaking News: State's want to go bankrupt, Do you own muni's? You might want to selectively review them and get out of those that your broker or research indicates are risky and uninsured, such as almost any municipality in the State of California or the State itself. For those of you who scoff at this suggestion you might want to recall the default here in Washington State of the Washington Public Power Supply System (WHOOPS!) that cost bond holders 2.25 Billion Dollars (that with a B)!
Right now institutional investors have unloaded more than 14 Billion dollars in Muni’s and are running for cover. A link to today’s NY Times piece about States that want to declare bankruptcy is above. By the way Washington State’s budget deficit is now estimated to be much more than $6 Billion dollars, and I would like to know where they intend to come up with that money.

1 comment:

Bob Clark said...

I am of the belief that you cannot believe ANYTHING the media is reporting these days on economics.