The Other McCain

"One should either write ruthlessly what one believes to be the truth, or else shut up." — Arthur Koestler

Obamanomics: It’s Still Not Working

Posted on | February 26, 2010 | 16 Comments

Time for another dose of economic reality:

Sales of previously owned homes in January stumbled considerably for the second consecutive month. The National Assn. of Realtors in Washington said Friday that sales fell 7.2%. . . .
Economists said that last month’s sales drop from December was another sign the market is critically weak and unlikely to recover robustly this year as the potential for more foreclosures looms.
Friday’s report follows news this week that sales of newly built homes hit a record low in January and that mortgage applications plunged to their lowest level in nearly 13 years. . . .

Fannie Mae is begging for another bailout:

Battered by the housing crisis, mortgage finance company Fannie Mae said Friday that it needs another $15.3 billion in bailout money from the federal government. . . .
Continuing problems with Fannie Mae’s mortgage portfolio are still straining its finances. Some 5.38% of its single-family loans were more than 90 days delinquent, up from 2.42% a year earlier.
Total nonperforming loans were $216.5 billion at year-end, compared with $198.3 billion in the prior quarter and $119.2 billion in the prior year-end.

Just eight weeks into 2010, the FDIC has already shut down 21 banks:

Regulators seized a small bank in Nevada on Friday, bringing the year total to 21 as small institutions continue to struggle with bad loans.
The Federal Deposit Insurance Corp said Carson River Community Bank in Carson City, Nevada was closed, and its deposits were assumed by Heritage Bank of Nevada, from Reno, Nevada.
The agency said earlier this week that the number of “problem” U.S. banks jumped 27 percent during the fourth quarter of 2009 to 702, the highest level since 1993 and a sign that the industry’s recovery remains uneven.

“Uneven” is putting things rather mildly, I’d say. There’s nothing but more bad news on the horizon:

A Congressional panel charged with monitoring the health of the nation’s financial system is warning that a wave of commercial real estate loan failures could wreck the banking system over the next four years much as the residential real estate collapse did in 2008.
In its February 2010 report, “Commercial Real Estate Losses and the Threat to Financial Stability,” the Congressional Oversight Panel notes that $1.4 trillion in commercial real estate loans will expire between 2011 and 2014. Most of these loans will require refinancing. Almost half of these, the report says, are already “underwater” — owing more than the property is currently worth, thanks to a 40 percent drop in commercial property values since 2007. Falling rents and rising vacancy rates put further downward pressure on those values.

The worst of this crisis is yet to come. Take it from someone who predicted the failure of Obamanomics:

And it’s still not working.

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Comments

  • http://libfail.com Libfail

    Can’t wait to see how many liberals come on this post and complain about Republicans again. Why are Democrats in power if all they can do is blame Republicans? Leaders don’t whine about others they solve the problems. Apparently Democrats are incapable of doing that right now.

  • http://libfail.com Libfail

    Can’t wait to see how many liberals come on this post and complain about Republicans again. Why are Democrats in power if all they can do is blame Republicans? Leaders don’t whine about others they solve the problems. Apparently Democrats are incapable of doing that right now.

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  • http://www.mypetspecialties.com/gentle_leader/ Gentle Leader

    I get so frustrated and angry just thinking about the damage that Obama has caused in the past year of office. It is hard to believe that we have to tolerate this for three more years. When you take to the people who are still backing him, they are clueless and uninformed.

  • http://www.mypetspecialties.com/gentle_leader/ Gentle Leader

    I get so frustrated and angry just thinking about the damage that Obama has caused in the past year of office. It is hard to believe that we have to tolerate this for three more years. When you take to the people who are still backing him, they are clueless and uninformed.

  • RES

    On a more positive (if not wholly irrelevant) note, please be advised that there is a contingent of American cheerleaders desperately in need of friends (on Facebook) in their desire to raise our troops’ morale IYKWIMAITYD:

    USA CHEERLEADERS
    We have 2 days left & have not reached our goal of 10,000 Fans, if our fans would invite 20 or more of their friends we would meet our goal before the deadline! Help us reach the goal and our Sponsor will give $5,000 to a Military Charity that we chose!Thank You all for your Support in this endeavor!!!
    http://www.facebook.com/?ref=home#!/pages/USA-CHEERLEADERS/34473734110?ref=mf

    SF author John Ringo (latest release: Live Free Or Die) has promised to kill me (literarily) if these poor deserving, barely clad young ladies achieve their goal.

    N.B., Stacy, if you included an email address I wouldn’t have to highjack your thread this way just to give you a chance to endorse this noble mission.

  • RES

    On a more positive (if not wholly irrelevant) note, please be advised that there is a contingent of American cheerleaders desperately in need of friends (on Facebook) in their desire to raise our troops’ morale IYKWIMAITYD:

    USA CHEERLEADERS
    We have 2 days left & have not reached our goal of 10,000 Fans, if our fans would invite 20 or more of their friends we would meet our goal before the deadline! Help us reach the goal and our Sponsor will give $5,000 to a Military Charity that we chose!Thank You all for your Support in this endeavor!!!
    http://www.facebook.com/?ref=home#!/pages/USA-CHEERLEADERS/34473734110?ref=mf

    SF author John Ringo (latest release: Live Free Or Die) has promised to kill me (literarily) if these poor deserving, barely clad young ladies achieve their goal.

    N.B., Stacy, if you included an email address I wouldn’t have to highjack your thread this way just to give you a chance to endorse this noble mission.

  • RES

    Back on topic: doesn’t Obama & the Dems’ latest plan amoount to promising that the beatings will continue until morale improves? Sheesh! Liberals fiddle while the economy burns.

  • RES

    Back on topic: doesn’t Obama & the Dems’ latest plan amoount to promising that the beatings will continue until morale improves? Sheesh! Liberals fiddle while the economy burns.

  • Adobe Walls

    Mr. McCain I’ve read your prescient article “It Wont Work” for the first time. I find that your only significant error was that even after 14 months the Social Democrats are indeed still blaming the Republicans for causing and preventing the solution of all of our problems.

  • Adobe Walls

    Mr. McCain I’ve read your prescient article “It Wont Work” for the first time. I find that your only significant error was that even after 14 months the Social Democrats are indeed still blaming the Republicans for causing and preventing the solution of all of our problems.

  • Joe

    Neocarter malaise, it tastes just as bad the second time around.

  • Joe

    Neocarter malaise, it tastes just as bad the second time around.

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  • Buzz

    Hoover tried it. It didn’t work. Roosevelt tried it and only WWII saved our butts.
    The real difference this time is that the Spender in Chief has no interest in saving our economy. That’s not the President’s job anyway. His only agenda is the purposeful destruction of our way of life.
    George Soros must be ecstatic.

  • Buzz

    Hoover tried it. It didn’t work. Roosevelt tried it and only WWII saved our butts.
    The real difference this time is that the Spender in Chief has no interest in saving our economy. That’s not the President’s job anyway. His only agenda is the purposeful destruction of our way of life.
    George Soros must be ecstatic.