Existing-home sales plunged in December, dropping lower than expected after three straight increases that were fed by a fat government tax credit.

Home resales fell by 16.7% to a 5.45 million annual rate from an unrevised 6.54 million in November, the National Association of Realtors said Monday.

Monday's data said inventories shrank, and prices rose year over year for the first time in more than two years.

 

Economists surveyed by Dow Jones Newswires expected an 11.6% decrease in sales during December, to a rate of 5.78 million.

Banks are making it difficult for some people to get loans. Joblessness in the U.S. is high, muting the economy's recovery.

"The market is going through a period of swings driven by the tax credit," NAR economist Lawrence Yun said. "We'll likely have another surge in the spring as home buyers take advantage of the extended and expanded tax credit."

 

Click Here to Read the Entire Story: WSJ

Barney Frank, the Democratic Representative from Massachusetts and Chairman of the House Financial Services Committee, has called for the abolishment of Freddie Mac and Fannie Mae.

Frank, you should remember, is the Congressman who said that the companies were in great shape just before they imploded and are now on the hook for over 400 billion in public assistance. Oh, and Frank is also the one who drove the companies into that situation as he used them as tools of a social experiment forcing lending downstream to borrowers who could never repay their loans.

But ignore all that, it does not matter anymore. Now Congressman Barney Frank has a real plan. Just get rid the evidence of Congressional excess and experimentation and let’s start again.

Sorry Congressman, we have long memories here.

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"The remedy here is...as I believe this committee will be recommending, abolishing Fannie Mae and Freddie Mac in their current form and coming up with a whole new system of housing finance," said Rep. Barney Frank (D., Mass.), the chairman of the House Financial Services Committee.

His comments initially rippled through bond markets on concerns that the government might pull away from the mortgage market. Many believe that's unlikely and that any revamp would include continued government involvement. The government took over the companies in September 2008 as loan losses mounted.

Some Republicans have argued that the companies should ultimately be reduced in size and privatized, while at other end of the spectrum, some analysts have recommended turning the companies into government agencies. But several industry groups and academics have suggested that the government is likely to continue playing at least some role in the future of the companies.

Click here to read the entire article: WSJ

With an unemployment rate of at least 10% and an underemployment rate of 17.3% (See Underemployment) it should be no surprise that people are going to have a hard time making mortgage payments.

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Almost 3 million homeowners received at least one foreclosure filing during 2009, setting a new record for the number of people falling behind on their mortgage payments.

RealtyTrac, the online marketer of foreclosed homes, reported that one in 45 households -- or 2,824,674 properties nationwide -- were in default last year. That's 21% more than in 2008, and more than double 2007's total.

 

Click here to read the entire story: CNNMoney

President Obama announced another new tax the other day on banks to get the taxpayers money back that was given to the banks in the bailout.  He forgot to mention that most of those banks have already repaid the money with interest and some of the banks that he is targeting didn’t even take any money from the government.

Now I’m no rocket scientist but something tells me that you and I will be paying this additional tax in the form of new fees.  Just like the new credit card legislation that went through recently to “help” consumers.  The credit card companies just implement new fees to make up the difference……like the $19 inactivity fee that I was just charged on one of my credit cards.

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"It's going to be more expensive for the consumers," Rep. Thaddeus McCotter, R-Mich., told Fox News. "You're going to see less credit. You're going to see higher unemployment as a result of the inability to get credit. Other than that, I think it's a fine idea."

The president is proposing a levy of 15 basis points, or 15 percent, on the liabilities of large financial institutions. The tax, which officials are calling a "financial crisis responsibility fee," would apply only to financial companies with assets of more than $50 billion. Those firms -- estimated to amount to about 50 institutions -- would have to pay the fee even though many did not accept any taxpayer assistance and most others already paid back the government lent to them.

Click here to read the entire story: Fox News

If you’re thinking of moving to gain employment then you might want to check out the 10 best places to find a job according to CNN Money.    Click here to check it out: CNN Money

I’m sitting here on a Sunday morning after Christmas in awe of what I see happening to our great country. Our government is spending us into oblivion and no one seems to care. This has happened before….during the Great Depression. Franklin D. Roosevelt started his “New Deal” and after 8 years of government spending the unemployment rate still hovered in the 15% range. It finally dropped below 10% when the United States entered World War II. So is history repeating itself?

Why is ignorance such sweet bliss to humanity, and yet at the same time, destroying us? Maybe ignorance is bliss because it's easier to support something blindly than exploring all the options. It's also easier to act on instinct and learned behaviors rather than to think about what they're saying/doing.

So as I sit here contemplating what is happening in our country I encourage everyone to make informed decisions. Get your information from diverse sources….not just the evening news on one of the major networks. And just maybe, as a nation, we can start making informed decisions which will insure this great country is still around for our children and grand children.