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September 3rd, 2010

Obama addresses weak job growth



Each post that we wrote this week highlights a different problem that is holding back this country’s housing market: low rates aren’t enough, today’s mortgage market is mostly made up of the haves and the have nots, lowering home prices won’t create a more stable market and yesterday’s post discussed how the American dream of homeownership doesn’t have to turn into a nightmare. Each one of those posts identified something different that’s going wrong with housing.

But what good is identifying a problem if you can’t think of a way to fix it?

As a matter of fact, almost each post this week mentioned what needs to change and what needs to be fixed in order for housing to recover: consumer confidence. Consumers will attain confidence through an improving economy, mainly an improving job market.

While this morning’s jobs report did reveal an minor increase in private market hiring — an increase of 67,000 last month — it failed to deliver any real sense of confidence. “There’s still no discernible improving trend,” said HSH VP Keith Gumbinger.

Sensing something similar, President Obama addressed August’s jobs report to reporters and TV cameras this morning at the White House. As he has done many times before, the president reiterated that there’s “no quick fix” to the country’s economic troubles. He said it’s going to take a long time to “repair the damage.” The president cited the massive number of job losses the month he took office in comparison to the August numbers. The economy is moving in a positive direction, he said, and jobs are being created, just not as fast as we need them to.

President Obama announced that he will be making further statements next week to outline plans to institute tax cuts and/or reiterate the need for a small-business jobs bill.

We know the problems, a possible solution has been identified, but making that solution work is going to be the battle. With the Congressional elections only a few months away, you can bet that lawmakers will be making a push to improve their fortunes using new initiatives. The president’s upcoming announcement may be one of many such offerings in the weeks ahead, but outside of creating new jobs — and quickly — will any actually work?

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One Response to “Obama addresses weak job growth”

  1. hsr0601 Says: September 4th, 2010 at 11:12 am

    1. Energy independence & Health care reform were two primary challenges, pledges in the presidential election and can be a framework in the healing process, while the stimulus package has been described as a GROUNDWORK for it.

    2. Job creation & Sustained GDP growth would be a final phase in the healing process.
    3. It is no surprising the stock market & its sentiment go through frequent up & down in the high hopes of full recovery.
    4. None of the media has mentioned the recovered value in the stock market brought on by the stimulus package, in marked contrast with the serious reports over the lost value of $trillions at the beginning of cash under the mattress.

    5. In the face of oil money spill & huge trade deficit, the GOP chanting deficit stubbornly has taken a hands-off attitude on the Energy independence.

    6. Pain at the pump dominated the economy news before cash under the mattress, but all of a sudden, the subprime mortgage crisis took the place of it as a root cause, potentially in an attempt to protect the oil & coal industry.

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HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.

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Tim Manni

Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

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