Financial News

Secretary of Treasury Timothy Geithner spoke before Congress about the condition of the economy, stating that he believes the market has shown signs of healing. The financial system has deleveraged itself much more than before, and banks are conservatively adding much needed capital. There were many issues raised during the meeting, however.

Criticism for the Treasury

Many critics of the banks say that they are still not lending enough, as more than $600 billion was granted to major banks in an effort to increase lending. Geithner took a position of concern and understanding to the criticism, and was quick to note that the measures taken thus far by the government to stabilize the financial system is just the beginning.

Government Intervention Working

Under the plan to rescue banks, $700 billion was allotted, with just over $600 billion having been used in total. Geithner also noted that about $25 billion would be repaid within the next year from several financial institutions, which could be recycled into the program for new lending. The long anticipated public-private plan to get rid of toxic assets would also come into action within the next 6 weeks. The aim of the program is to take toxic assets off the balance sheets of banks, allowing them to have the proper levels of capital to resume regular banking activities and work toward profitability.

Are you looking for a loan of any kind? How low have mortgage rates and auto loan rates been in your experience? Please share with the community if you are having problems securing financing or personal loans.

The American economy is in trouble, and that means taxes will have to go up to compensate despite any contrary arguments. America's debt now exceeds $50 trillion, more than the GDP of every economy on the planet. Market Watch's Paul Farrell outlines 22 reasons a giant tax bomb is waiting to be dropped on the country's consumers.

1. Federal Budget Deficit - Government debt is now $11.5 trillion, or 100% of our GDP.
2. Social Security needs money - We either must cut benefits or pay more taxes to compensate.
3. Medicare needs money - It will be unfunded by 2016, and will take 100% of tax revenues by 2075.
4. Health insurance liabilities - Costs are rising at double the rate of inflation, and there are plans for universal health care to cover this $2.5 trillion business.
5. Military defense costs - There are wars being fought in Afghan and Iraq.
6. Homeland security costs - Ports, chemical plants and other infrastructures need protection.
7. Real estate/mortgage losses - $50 trillion in global wealth has been lost as a result of home price declines.
8. Peak oil - Oil will become increasingly expensive to extract, and other energy sources will require heavy investment to develop.
9. Increases in fossil fuel tax - As countries like China grow and consume, demand will raise the price of everything including taxes.
10. Foreign trade deficits - Foreigners buy 70% of US debt to convert to equity.
11. Pensions underfunded - Tax payers will have to bail out pensions that are underfunded through the Pension Benefits Guarantee Corporation, which is also underfunded.
12. Local government pensions - Another $2 trillion hole that needs funding.
13. Weak US dollar - The dollar will continue to decline as we print more money.
14. US savings rates - The savings rate for Americans dropped to 0 last year.
15. Consumer debt - Credit card and personal loan debts are climbing, and more and more people are declaring bankruptcy.
16. Fannie & Freddie - Together they own $5 trillion in toxic mortgages, and the government has just invested.
17. Drug use - Demand for illegal drugs are rising in the US.
18. Non-transparent banking - The Fed is loaning out money, and nobody knows how much or where it's going exactly.
19. Lobbyists - They will continue fighting for their causes instead of what's needed, and they control Washington.
20. Class system - The gap between upper and lower income groups is rising.
21. International credibility - Our loss of credibility with our nations will affect everything, including trade.
22. Resources, education, unemployment, technology - All areas the US needs major reform on.

It's a tough situation to overcome for the entire country, and President Obama has increased his spending significantly in order to confront these problems head on. What do you think about the future of the United States? Is your savings account big enough to handle an increase in everything that is taxable?

The median price of homes fell 14% in the first quarter to $169,000, according to the National Association of Realtors (NAR) . Prices in 134 of 152 metropolitan areas saw declines, and the most notable came from the San Francisco and San Jose areas in California, as well as Cape Coral and Fort...

Pension plans are quickly becoming a thing of the past . Less than half of the 100 largest companies in the US are still offering traditional pensions to new employees, and more than 16 companies have froze pension contributions this year. This means that 401k plans and other contribution plans...

Although the government does not plan on disclosing full information about its recent stress test on 19 of the country's largest banks until tomorrow, Bloomberg has as obtained an estimate of capital requirements at 10 banks. In April, the largest financial institutions where chosen and subject...

Those fantasizing about buying their own home may need to adjust their definition of "dream house," especially if their vision included an image of a condominium. The recent economic turmoil caused in great part due to the crumbling of the sub-prime industry is making lenders reevaluate not only...

In a sad and historic day for American auto manufacturing, automotive manufacturer Chrysler has announced it will be filing for Chapter 11 bankruptcy . The process is said to be necessary dueto its inability to manage insurmountable debt, and according to an administration official, will take...

The financial markets as Americans have known it is completely ruined. For many years, national bank branches offered more competitive mortgage rates to home buyers, but due to the amount of mortgage defaults they are struggling with, community banks may be gaining the upper hand .

Community Bank...

The Wall Street Journal recently reported on home "staging" companies that are taking the process to the next level. They are hiring people to live in high-end homes to give the appearance that the home is being lived in. The idea is that instead of leaving homes vacant for potential viewers,...

It appears as if the entire housing crisis happened as playing cards were used to build the foundation, which is quite unfortunate as now the affordable housing is becoming more difficult for individuals to procure. Historically,Fannie Mae and Freddie Mac were responsible for meeting specific...