Friday, September 17, 2010

Foreclosures in US rise in August to new record levels

US foreclosure activity rose in August from the previous month, and banks and lenders took ownership from homeowners at a record pace, according to a new report released Thursday.
Bank repossessions, often the final step in the foreclosure process after a home fails to sell at auction, increased about 2 percent from the month before to 95,364, a record high. At the same the number of properties that received default notices—the first step in the foreclosure process—decreased 1 percent from a month ago and fell 30 percent from a year ago, a sign that lenders are focusing on their backlog of foreclosure inventory before tackling new distressed loans, according to foreclosure listing website RealtyTrac, which released the report.

Overall, foreclosure fillings rose 4.18 percent in August from the previous month, and were down 5.48 percent from a year ago. In all, 338,836 properties were in the foreclosure process. One in 381 U.S. households received a foreclosure notice in August. (Foreclosure notices are defined as a default notice, auction sale notice or bank repossession.)

Losing the News: The Future of the News that Feeds Democracy (Institutions of American Democracy)

Census: 1 in 7 Americans Live in Poverty




In the second year of a brutal recession, the ranks of the American poor soared to their highest level in half a century and millions more are barely avoiding falling below the poverty line, the Census Bureau reported Thursday.
About 44 million Americans - one in seven - lived last year in homes in which the income was below the poverty level, which is about $22,000 for a family of four. That is the largest number of people since the census began tracking poverty 51 years ago.
The snapshot captured by the census for 2009, the first year of the Obama presidency, shows an America in the throes of economic upheaval.
Since 2007, the year before the recession kicked into gear, the country has almost 4 million fewer wage-earners. There are more children growing up poor. And for the first time since the government began tracking health insurance in 1987, the number of people who have health coverage declined, as people lost jobs with health benefits or employers stopped offering it.
With midterm elections less than two months away, the statistics bare the reality fueling much of the anger toward Washington.
In the Washington region, Virginia's poverty rate rose the most, to 10.5 percent from 8.6 percent. Maryland's edged up half a percentage point to 9 percent. The District's rate was the highest, but it declined from 18 percent to 17 percent.
Although the recession's impact was broad-based, there were disparities among groups. The official poverty rate increased for all races and ethnicities except Asians, who continued to have the highest median household income. More working-age adults lived in poverty, while the number of poor people 65 or older fell, largely as a result of increases in Social Security payments.
More than 51 million Americans lack health insurance, the census reported, and a greater-than-ever percentage of those who do have insurance are getting it from the government.
Scholars, nonprofit groups that work with the poor and President Obama all expressed concern about the gloomy picture.
Obama said the numbers could have been much worse were it not for government assistance.
"Because of the Recovery Act and many other programs providing tax relief and income support to a majority of working families - and especially those most in need - millions of Americans were kept out of poverty last year," he said in a statement.
Many conservatives, however, laid the blame on government programs that don't work.
"We're spending more money fighting poverty than ever before, yet poverty is up," said Michael D. Tanner, a senior fellow at the Cato Institute. "Clearly, we're doing something wrong."
Along with a rise in the number of people living in poverty, the census reported a decrease in the number of people who are living just above poverty level, suggesting that many of those just slightly above poverty slipped over the edge in the previous year.
Food banks and shelters around the country say they are seeing former donors asking for help.
Dale City resident Jamie Imler is one. She used to give money to charity and make quilts for homeless shelters. But since she began treatment for breast cancer last year, she has been too weak to work at either of the two jobs she held, one in a restaurant and one for a recruitment agency. Her income has dropped from $2,000 a month to less than $700 - not enough to cover her rent - and she has been coming for the past six months to a food pantry in Prince William County called Action Through Service.
"Things were good," she said. "I was a single mom, raised my son and needed food stamps."
"And now I'm here," she added.
While the number of the country's poorest people is higher than in any other recorded period, the rate is not without precedent. The last time it was this high was 1994. And in the early 1960s, it was over 20 percent.
Despite the jump in poverty, median income did not go down for those who still had jobs. Men working full time saw their median earnings rise 2 percent, to $47,000, while the median wage of women rose about the same amount, to a little over $36,000.
The median household income declined a little, to just under $50,000. But household income is down 4.2 percent since the recession began and 5 percent from its peak of more than $52,000 in 1999. Black households fared particularly poorly, as incomes dropped 4.4 percent compared with 1.6 percent for white households.
"We always have a situation where some population groups have higher poverty rates than others," said Margaret Simms, who directs the Low Income Working Families Project at the Urban Institute. "During recessions, we see who bears the brunt in hard times in the kinds of numbers we see today."
The statistics have quickly become fodder for a debate on the proper role of government in combating economic downturns.
"It's a strong indication that there is not enough focus on growth and investment in job production," said Ken Blackwell, the former Ohio state treasurer who is a fellow at the Family Research Council.
Ron Haskins, a head of the Brookings Center on Children and Families at the Brookings Institution, said government programs do not have enough money to make up for the decline among private and employer-provided health care. "Is the government going to pick it up?" he said. "That means bigger government, bigger expenses, more taxes."
This summer, a proposal to extend jobless benefits to the long-term unemployed came under attack by Republicans, who objected to more spending that would add to the soaring deficit. The measure eventually passed.
Some of those who have struggled to find work are making their way to Good Shepherd Alliance, a food pantry in Loudoun County, which is one of the country's wealthiest jurisdictions.
Vickie Koth, executive director, said she has grown accustomed to hearing clients say, almost as if dazed by their dizzying descent, that they used to volunteer at nonprofits like hers. The downturn will end some day, she noted, and hard times should be remembered.
"A lot of the community is really seeing this issue for the first time," she said. ". . . Once this turns around, I hope that people will remember what we went through so that our communities will be more open to serving those around us who are in need."

John Stewart of "The Daily Show" and Stephen Colbert of "The Colbert Report" to hold political rallies in washington


(CNN) -- Two Comedy Central funnymen are apparently entering into the partisan political fray with rallies of their own in the nation's capital.
Jon Stewart and Stephen Colbert have set October 30 as the date for their respective rallies.
On Thursday night's airing of "The Daily Show With Jon Stewart," the comedian announced plans for a "Rally to Restore Sanity."
"See you October 30 on the National Mall to spread the timeless message, 'Take it down a notch for America,' " he said.
Stewart dubbed the event a "clarion call for rationality."
"A million moderate march, where we take to the streets to send a message to our leaders and our national media that says, 'We are here! We ... are only here until 6 though, because we have a sitter,'" he said.
On "The Colbert Report," which airs immediately after Stewart's show, Colbert fired back with plans for his "March to Keep Fear Alive."
"Now is not the time to take it down a notch. Now is the time for all good men to freak out for freedom," Colbert said.
Stewart said on his Thursday show that he had reserved a spot on the National Mall.
"The forms have been filled out, the checks have been written," he said.
Stewart and Colbert have submitted one application for a permit for the Washington Monument grounds on October 30, National Park Service spokesman Bill Line confirmed Friday.
"A permit is not finalized yet, and they are still working through a resolution as for any event," Line added.
Stewart is known more for commentaries on his 30-minute show than publicity stunts. But Colbert has engaged the public several times outside his show's New York studio, filing papers to run for president in South Carolina and shaving his head while taping his show in Iraq to show support for troops.
In a nonscientific online poll after the death last year of Walter Cronkite, Time magazine named Stewart "America's most trusted newscaster." Stewart captured 44 percent of that vote, with NBC's Brian Williams finishing a distant second at 29 percent.
See the poll results here
Actual scientific polling in 2007 by the Pew Research Center for People and the Press found Stewart tied for fourth place as viewers' favorite news person, ranking alongside Dan Rather, Tom Brokaw, Brian Williams and CNN's Anderson Cooper, and just behind Katie Couric, Charles Gibson and Bill O'Reilly.
See the Pew poll results here
In a separate Pew survey, 16 percent of Americans said they regularly watched "The Daily Show" or "The Colbert Report." Those numbers are comparable to some major news programs. For instance, 17 percent said they regularly watched Fox News' "The O'Reilly Factor," and 14 percent watched PBS' "NewsHour With Jim Lehrer" regularly.
See the full survey results
The announcements come less than three weeks after conservative talk-show host Glenn Beck hosted a much-publicized "Restoring Honor" rally on the National Mall, urging large crowds to "turn back to God" and return America to the values on which it was founded.
That event drew criticism for its timing and location -- on the 47th anniversary of the Rev. Martin Luther King Jr.'s "I Have a Dream" speech, delivered in the same place.
The Rev. Jesse Jackson told CNN at the time that Beck was mimicking King and "humiliating the tradition." And other civil rights activists gathered nearby with the Rev. Al Sharpton and his National Action Network in a "Reclaim the Dream" rally.
Stewart first publicly floated the idea of a counter-rally in a profile in the September 12 edition of New York magazine.
"Maybe we would do a 'March of the Reasonable,' on a date of no particular significance," Stewart says in the article.
Read the New York magazine profile
The website logos and icons created for the Colbert and Stewart rallies mimic Beck's, using identical typography and similar stylized images.
"We're looking for the people who think shouting is annoying, counterproductive, and terrible for your throat; who feel that the loudest voices shouldn't be the only ones that get heard," the website for the "Rally to Restore Sanity" says.
The "March to Keep Fear Alive" site takes a more alarmist approach: "Never forget -- 'Reason' is just one letter away from 'Treason.' Coincidence? Reasonable people would say it is, but America can't afford to take that chance."

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