THE ECONOMY: Forecast for Employment Market Worst in Years
The Labor Department reported last week that initial jobless claims soared to 516,000 in the latest week, which marks the highest level since 2001. Continuing claims for unemployed workers increased to its highest level since 1983 at a mark just short of 3.9 million. The unemployment rate is forecast to reach as high as 7.5% by the end of 2009 in a survey of economists released by the National Bureau of Economic Research. The dismal job report shows just how tough the job market is for Americans and the likelihood that consumer spending and consumer confidence will remain depressed in coming months.Posted 11/17/08
FINANCIAL RESCUE: Bailout Dollars Going in Different Direction?
Treasury Secretary Henry Paulson has announced more details of the government's plan for the rescue package with more focus on directly providing funds to banks and financial companies and less focus on buying troubled mortgage assets. Paulson specifically pointed to credit card lending, auto loans, and student loans as markets which need to be shored up with more available credit. The new direction of the bailout dollars has a higher impact on the American consumer and is not expected to meet political resistance.Posted 11/12/08
ONLINE BANK DEALS: High Rates on Savings Accounts
Online savings accounts are available with yields as high as 4.00% from banks with minimum deposits as low as $1. Money-Rates.com is also posting close to 50 banks with yields of over 3.00% on their savings account, which is currently a competitive rate when compared to 90-day US Treasury Bills (0.17%) and 6-month US Treasury Bills (0.78%). Major banks like Citibank, GMAC Bank, and E*Trade Bank also allow secure online transfers from their savings account making it easier to customers to access their funds.Posted 11/12/08
MORTGAGE UPDATE: Citi Pledges Help to Homeowners, Fixed-Rates Lower
Citigroup has announced that under a new assistance program 500,000 mortgage holders living in areas of expected economic distress will be contacted to work with Citi to prevent possible delinquencies and foreclosures of their mortgages. The program which may involve $20 billion of mortgage loans is expected to be part of the type of suggested reform that the new Obama administration will advocate to help stabilize the housing market. On the rate front, rates on fixed-rate mortgages are averaging 6.20% on a 30-year loan and 5.88% on a 15-year loan according to the most recent survey of lenders by Freddie Mac. The volatility in the mortgage market is expected to continue as credit markets continue to adjust to a global recession. Homeowners can compare the latest mortgage rates on the Money-Rates.com Mortgage page.Posted 11/11/08
BANKING: Regional Banks in Texas and California closed by FDIC
Franklin Bank, Texas and Security Pacific Bank, California were the latest two victims of the credit crisis after the FDIC announced that both banks were closed on Friday. The 19 U.S. banks closed in 2008 marks a large increase in bank failures from previous years, but 99.8% of all banks in the United States have survived (so far) the credit and mortgage crisis.Posted 11/9/08
POLITICS: President Obama and Interest Rates
Barack Obama's historic run to the presidency ended successfully with a resounding electoral college victory, but now the President-Elect faces the uneviable task of turning around a U.S. economy mired in a potentially deep recession. With the Federal Reserve quickly running out of magic-bullet interest rate cuts and government spending already on the rise, the new administration faces some tough choices regarding fiscal budget, health care, taxes, financial reform, and restoring consumer confidence. Economists have been nearly uniform in their forecast calling for longer-term interest rates and lower hort-term interest rates. Whether interest rates go up or down under President Obama, consumers can find the best rates on credit cards, mortgages, and savings accounts daily at Money-Rates.com.Posted 11/6/08
GLOBAL ECONOMY: Europe's Central Banks Drop Benchmark Rates
The potential for a prolonged global economic downturn has prompted major central banks in Europe to reduce key interest rates including the Bank of England who dropped their key rate from 4.50% to 3.00%, the European Central Bank who dropped rates from 3.75% to 3.25%, and the Swiss National Bank who lowered rates 50 points as well. Some economists are forecasting that yields on Treasuries will remain in a lower range now that other major countries have lowered their benchmark rates, while other economists are pointing to the government's expected increase in spending as an impetus to push up yields on Treasury bonds.Posted 11/5/08
BANKING: New Mobile Banking Deals and Applications
Regions Bank is offering 25,000 free high-end phones to online banking customers who sign a new 2-year service plan. The phones will be compatible with Regions Bank's Mobile Banking phone application. In 2009 the number of mobile banking applications available for download is forecast to increase. Currently the best selling smartphone, the Apple 3G iPhone, has available for download applications from Eastern Bank, Provident Bank, Bank of America, ING Direct, and Keypoint Credit Union which can be used to check balances, transfer funds, pay bills, or find the closest ATM or banking center.Posted 11/3/08
TREASURY: New Savings Bond Rates Announced
The semi-annual rate adjustments to savings bonds were announced today by the Treasury Department with the Series I Bond adjusted to a total rate of 5.64% and the Series EE Bonds set at 2.80%. The earnings rate for the Series I Bond includes the fixed portion of 0.70% and the preceding inflation rate of 4.92% which will be effective until the next rate adjustment on May 1, 2009. Economists have warned that economic growth may be negative for a sustained period of time which would effect the earnings rate of the Series I Bond after May 1, 2009.Posted 11/3/08
FINANCIAL: Lower Prime Rate Will Help Consumers
Consumers in the United States are expected to benefit from a lower prime rate from banks with better rates on credit cards and home equity loans. The prime rate could go as low to 4.00% or lower by the end of the year which could help Americans struggling with debt. The highest rates on Savings Accounts (4.00%), Money Market Accounts (4.00%), CDs (5.25%), and Reward Checking Accounts (6.00%) have remained unchanged over the last two weeks, although national bank rate averages have declined.Posted 10/29/08
PERSONAL FINANCE: ING Direct Launches New Savings Site
ING Direct has an interesting new promotion called WE, THE SAVERS which is a statement of financial independence for savers willing to sign the savings declaration. The declaration makes timely promises of responsibility regarding savings, spending, credit, investing, and borrowing. The new site, wethesavers.com, has an interactive map showing how many people from each state have signed the declaration.Posted 10/29/08
MONEY-RATES.COM: Twitter Updates now Available
Keep track of the latest rate bank, mortgage, or credit card deals with Money-Rates.com Twitter updates. The social network and micro-blogging tool allows users to access rate deal updates via the Twitter website, SMS, RSS, e-mail, or Facebook. The most recent update is the new 4.00% APY online savings account from Washington Mutual Bank. Sign up here.
