Andrew Torgan
CNN Financial News Producer
The total number of Americans drawing unemployment benefits has hit a new record high of 5.1 million.
New claims for benefits rose unexpectedly to 667,000 in the week ended Feb. 21 - holding at a 26-year high. But the number of people receiving unemployment checks for one week or more - known as “continuing claims” - rose to a record 5,112,000 in the week ended Feb. 14. That’s an increase of 114,000 from the preceding week and the highest number since the government started keeping records back in 1967.
New home sales fell 10% in January, sinking to the lowest level on record.
Sales of newly constructed homes fell to a seasonally adjusted annual rate of 309,000 in January from a revised 344,000 in December. That’s the lowest level since the Census Bureau began keeping records in 1963.
The report also showed that the median sales price of new houses sold in January was $201,000, down 15% from a year ago.
General Motors posted a $9.6 billion net loss in the fourth quarter, a period in which its sales plunged and it needed a federal bailout to avoid filing for bankruptcy.
The company also disclosed that its auto operations burned through $5.2 billion in cash during the last three months of the year – and says it needs new loans this year.
GM now hopes to get another 16-billion dollars from the government and company executives are in Washington today to ask for that money.
Citigroup is said to be close to striking a deal with federal regulators that would boost the government's stake in the bank to as much as 40%.
The government has already invested $45 billion in Citigroup as part of the Troubled Asset Relief Program. If the plan goes through, it could force Citigroup to give up some or all of its ownership in Banamex, the No. 2 bank in Mexico by assets, and one of the crown jewels in Citigroup's global operations.
That's because Mexican law prohibits any company that's more than 10%-owned by a foreign government from running a bank in the country. The Wall Street Journal says the issue may have to be resolved through diplomatic channels. A deal could be announced as early as today.
The Obama administration unveiled plans Wednesday aimed at assessing the health of the nation's 19 largest banks in order to determine the size and scope of future bailouts.
Under the so-called “stress test” program, which was first hinted at earlier this month when the White House rolled out its financial recovery plan, banking regulators would examine major financial institutions like Citigroup, Bank of America and JPMorgan Chase, estimating company-wide losses for the next two years if economic conditions worsened and the bank's ability to absorb such losses.
Gas prices dropped 9-tenths of a cent overnight to $1.882 a gallon ($1.88 for graphics). 8 states have regular unleaded gas prices of $2 and higher. 42 states and the District of Columbia have regular unleaded gas prices below $2. The highest gas prices are in Alaska ($2.515). The cheapest gas prices are in Missouri ($1.665)
Finally, one in four Americans in a recent survey said someone in their family has put off needed healthcare in the past year because of the cost.
The Kaiser Family Foundation poll says more than half of the 1,200 people surveyed earlier this month said they or a family member living with them have cut back on healthcare to save money - including 16% who postponed surgery or a doctor's visit for a chronic illness.
So despite the country's deep economic woes, it’s no surprise that 62% of respondents said it's more important than ever for the Obama Administration to take on healthcare reform now.
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I am very concerned as the bailout pakage for the auto makers. I feel that this money should be used to retool all car auto maker to more green types of travel. The solution is lay off most of the work force for one year and bring them back to green product that works. Everybody in this world knows that we must all give alittle to get alot! So, you get laid off for a year. Take a long deserved break and spend time with your family and friends. Knowing that you are going back to work in a new greener planet. This can easily be done. All the goverments of this world not Just the Unitied States should be considering a change towards helping Our Mother Earth heal from our damage we have caused upon her. Look around you. Or Planet is dieing, and all everyone is concerned about is how much money we have. What ever happened to having a heart instead of having a fat wallet.
Timothy Geithner, of tax evasion fame, is going to try to rebuild Wall Street through a "Public/Private Investment Fund" with the "private" portion most likely being comprised of his Wall Street friends.
Wall Street, under Geithner's leadership, will easily transition from making a killing off of mortgage fraud and now focus on universal healthcare fraud.
They will reason that since healthcare will be universal, everyone will be a potential victim; they will create huge bets against policies being paid and make a killing in the short term before another bailout will be required.
@ Michael "C"..... there you go again, with a great comment! I agree, with you, my hope is that the Stimulus/Recovery Bill will kick in soon! People are desperate!
When we have tent cities popping up all over our major cities, we are in trouble!
THANKS BUSH FOR GIVING THE TOP 1% TAX CUTS!
PLEASE, folks........ consider buying a few extra items at the grocery store next time, a bag if you are able to, and donating to your local food bank. The shelves are going empty fast. Thank you!
The world has been looking for something to turn the economy around. Your network has been talking about the recession for a long time now.
If you're interested in getting out of it, you'll have the chance to in the next two weeks. Something of significance will happen and when it does, you just want to make sure you're paying attention.
Til then, enjoy...
The Bush crew gave tax payer dollars to their friends in the banking industry. Now these bankers foreclose on the very families that through their taxes have allowed these banks to give large bonuses to their executives. The last administration should be ashamed of the legacy of corruption and greed they leave behind.
I have a great deal of hope for our new president.
I just hope the American people can finally see through the smoke and mirrors that politicians on both sides put up in order to justify their corrupt practices.
The stimulus package had better start working--the economy is reaching the terminal phase of economic death.
YES ! to healthcare reform !
Now let's embark upon a program of Patriotic Economics. Made in U.S.A. must be the battlecry in this WAR just like Remember Pearl Harbor was the battlecry on December 7th 1941 ! Neo-con 'Globalization' is nothing more than Economic Appeasement and G W Bush hold up his 'Free Trade Agreements' is the economic equivalent of Neville Chamberlain holding up the scape of paper and proclaiming 'Peace in Our Time'.