Facts That Make a Difference
1. WHAT??? - On 8/13/79 (i.e., just over 30 years ago), BusinessWeek’s cover story was titled “The Death of Equities.” The S&P 500 closed at 107 on 8/13/79. The index closed at 1026 last week (source: BusinessWeek)
2. OFF TO COLLEGE - The average American family borrows 39% of the total cost of their children’s college education, either through student loans or loans taken out by Mom and Dad (source: Sallie Mae).
3. MORE AND MORE DEBT - The Treasury Department raised a record $75 billion in its quarterly auction of debt last week (i.e., a combination of 3-year notes, 10-year notes and 30-year bonds), breaking the $71 billion record set just 3 months ago. The $75 billion included $61 billion of maturing debt that was rolled over and $14 billion of new funds that were raised (source: Treasury Department).
4. SPEND, SPEND, SPEND - 4 of the 5 largest monthly deficits ever in the history of the United States have occurred since February of this year, including July’s $181 billion deficit, which ranks # 5 all-time (source: Treasury Department).
5. THE BLACK HOLE GROWS - With 2 months remaining in fiscal year 2009 (i.e., 10/01/08 to 9/30/09), the government is projecting spending of $4.0 trillion for the 12-month period. During fiscal year 2001 (i.e., the first fiscal year during the presidency of George Bush # 43), total government spending was $1.9 trillion (source: Treasury Department).
6. BEST AND THE WORST - The nation’s unemployment rate was 9.4% as of the end of July 2009. The highest unemployment rate in the USA since 1947 was 10.8% in November and December 1982. The lowest unemployment rate since 1947 was 2.5% in May and June 1953 (source: Department of Labor).
7. BURDENED BY DEBT - 22% of American households headed by a retired person are still making a monthly mortgage payment or they have outstanding debt as a result of a home equity loan. 20 years ago (1989), only 16% of these families had mortgage debt or home equity debt (source: Federal Reserve).
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