Many top AIG execs agree to return bonuses

By SARA LEPRO, AP Business Writer

            One of the top stories coming out of the economic stimulus package has been how companies receiving additional federal funds would use the money.  However, one company American International Group Inc (AIG) used a percentage of the approximately $170 Billion they received from the stimulus package to award bonuses to employees. The number is said to be about $165 million in bonuses.  After an onslaught of negative public opinion and pressure from the White House, many of the employees have agreed to return their bonuses. According to Yahoo News, 15 of the top 20 bonus recipients have already agreed to return their bonuses.

            One of the main concerns all along regarding the stimulus package was how companies were going to use the bailout money.  The actions of the insurance company AIG is not the first time companies receiving bailout money have used some of the money for purposes other than it was intended.  President Obama and his administration have been very forceful in saying that AIG employees should return the bonuses. So far approximately $50 million of the $165 million worth of bonuses have been returned.  The actions taken by AIG put into question how Americans can trust these companies to ethically and efficiently use this taxpayer money.

 

http://news.yahoo.com/s/ap/20090324/ap_on_bi_ge/aig_bonuses

Existing Home Sales Up 5.1% in February

            Unexpectedly, the number of home sales in the United States rose 5.1% in February .  This increase was drastically higher then what economists predicted. They actually were expecting a decrease in sales rather then an increase.  Many people believe that increase in housing sales is the first step in leading out of the recession.  However, not all news was good news as many of the sales, 40 to 45 percent, were “distressed sales”, meaning that the homes were sold at prices much lower then their previous cost.  “The average price of for a home sold was $165,000, down 15.5% from last year.  In the United States, housing sales have continued to be stronger in the West, with home sales up 2.6% this month and 30.4% over the last year.  In the Northeast, the housing market is still struggling with sales down 14.9% from a year ago.

            Due to the current economic situation in the United States, any slight improvements in the housing market are a great sign for the economy.  With an increase in buying and selling of houses the market will begin to slowly recover and experience increased activity. The good news coming from the housing market caused the Dow Jones to jump more than 400 points.

 

http://www.foxbusiness.com/story/markets/economy/existing-home-sales--february/

            Financial experts say recession ends by year's end

         Yahoo News

            On Tuesday, Financial experts predicted that the U.S. Economy will work its way of the recession by the end of 2009. This good news was followed by their prediction that unemployment will continue to rise at least until 2010, with most experts predicting a peak of about ten percent unemployment.  These same experts also made broad predictions regarding the housing market by saying that “home sales will turn around by midyear and home prices will begin recovering by the end of this year after bottoming out at 35 percent of their original value.”

            With this troubling economy impacting not just the United States, but every country in the world, any news or foresight of good fortune is being taken with a grain of salt. However, with the U.S. stock markets rising some over last two to three weeks, there maybe hope for a quicker end to this recession then expected.

 

http://finance.yahoo.com/news/Financial-experts-say-apf-14734171.html

March 5, 2009

http://news.yahoo.com/s/ap/20090305/ap_on_bi_ge/states_foreclosures;_ylt=ArexJ7ku7ryfQJwrDckqUWKyBhIF

At the end of last year, a record 5.4 million Americans were behind on their mortgage or in foreclosure. This represented almost 12% of American homeowners. This shows how bad the American economy is currently and how it is effecting homeowners nationwide. The recession is apparent in all facets of the economy, especially the housing market.

http://www.nytimes.com/2009/03/06/business/economy/06retail.html?_r=1&hp

Continuing with the economic downturn, retail sales are way-down once again at almost all businesses, excluding discount stores such as Wal-Mart. High end stores, like Saks Fifth Avenue and Nordstroms, are taking severe hits in sales as everyday Americans are pinching pennies and conserving money where they can. Abercrombie and Fitch's sales dropped 30% over the past year. This figure is in high contrast to Wal-Mart which had a 5.1% sales increase. This shows that Americans are still spending money, but that they are being much more thrifty and conservative with their spending habits. The way the economy is heading, this is not a good sign for the stores that are posting record losses and are teetering on bankruptcy.

http://www.latimes.com/news/nationworld/nation/la-na-obama-jobs4-2009mar04,0,4887772.story

President Obama states that his newly signed $787 billion stimulus package will produce approximately 150,000 new jobs for highway and road work/maintenance. The article states that: "The number of jobs that will be created or saved by the highway construction program, Obama said, will exceed the number of jobs lost during the past three years combined by the Big Three automakers -- Ford, Chrysler and General Motors." If this fact is true, that is a good sign for all of the Americans that lost their jobs to these automakers. This is a step in the right direction and it shows that the stimulus package, if successful, will bring the American economy back up.