Yesterday’s distressing unemployment data sent the national unemployment rate above 10%. This came as President Obama prepared to sign into law a bill providing an extension of jobless benefits. The bill is a relatively small measure, by recent economic stimulus standards, at $24 billion. The bill will extend the eligibility to collect unemployment benefits by 14 weeks. In states with higher unemployment rates (of more than 8.5%), there is a 20 week extension. But it’s not just the jobless benefits that have seen an extension. The bill is also extending the first time home buyer tax credit along the lines negotiated at the end of last week. The $8,000 credit for first time home buyers will be extended until the end of April, and... [Read more]

In a rather dour Friday morning surprise, the U.S. unemployment rate hit 10.2%. There have been predictions for months that the unemployment rate would exceed 10%, but as the economy started showing signs of life, hope was emerging along the lines of thinking that maybe that psychologically important level could be avoided. This morning’s non-farms payroll data destroyed all such thoughts. However, even though the news sent stocks a little lower initially, they are inching up, desperate to remain in the black, even with the news. Even though the unemployment rate is higher, job loss is moving at a slower pace, and there are fewer lost jobs last month than the month before. However, the fact that 190,000 jobs were lost in October was still... [Read more]

As the holiday season approaches, there are hopes that the job market will follow the rest of the economy and perhaps pick up the pace a bit. At the very least, there are hopes that some part-time jobs might be had. Those who are out of work, and those whose hours have been cut might see the holiday season as a good time to pick a little extra work. This is a good plan, but it is important to remember that things are a bit competitive out there, and you may have to fight for a part-time seasonal job. Here are three tips to consider as you apply for seasonal jobs: Don’t limit yourself to retail: While you are likely to think of retail for seasonal employment, there are plenty of other businesses that need help. Service companies need extra... [Read more]

The Federal Reserve should be announcing its interest rate decision later today, and stocks are heading higher on the assumption that the Fed is likely to keep interest rates near 0%, as well as the expectation that the Fed will keep stimulus help coming in. Indeed, what Ben Bernanke says about economic policy going forward is more likely to influence the stock market than just about anything else today, and expectations that he will play up the fact that we’re only at the beginning of the recovery, and that there will be a continued need for economic stimulus for some time, have the stock market rallying. Wall Street is hopeful that policymakers will continue to prop up the big companies, and focus on helping the banking system retain... [Read more]

One of the realities of banking is that there are fees involved. And, interestingly, the bigger the bank, the bigger the fees. It is rather frustrating to read about bailouts of big banks, only to find that very large percentages of their profits come from fees. So, not only are your taxes going to help prop up these big banks, but you also prop them up through the fees you pay. The Service Employees International Union estimates (since banks don’t reveal it) that J.P. Morgan Chase, Citigroup and Bank of America all make more than 70% of their profits from fees. That’s billions of dollars every year. Indeed, fees are big business for banks, since they provide a way for them to make money and fund various ventures and enterprises... [Read more]