Business News Bits for Thursday, August 27, 2009

There is more evidence that the economy is headed in a positive direction. News of smaller second quarter losses signal growth and economists are forecasting that results from the current quarter will show further gains. It may seem counterintuitive to feel positive about the economic future when the economy has experienced losses quarter after quarter, but analysts consider that it is no longer experiencing a free-fall. The market seems to be leveling with fewer losses than previously seen. Economists anticipate gains in this third quarter and even more gains in the fourth quarter.

Lowest Natural Gas Price in Seven Years

Major industry cutbacks have contributed in the lowest natural gas prices in seven years. Cutbacks in production have led to conservation and increased levels of natural gas. Since Tuesday, the cost of oil has decreased and it is likely to continue decrease. Average gas prices have consistently remained under the $2.75 mark since June.

How are States Filling the Enormous $215 Billion Budget Hole?

The state university system and prison systems took the brunt of major state budget cuts. States turned to these areas because of the cumulative $215 billion states need to cut in order to fill the enormous gap in the budget. Increased income and sales taxes, increased tuition cost for college students, higher educational budget cuts, increased cost of Medicaid for patients, and cuts on prison spending are ways in which the states are hoping to fill the gap.

Mortgage Rates are Crawling Upward

After hitting a major low in the spring, mortgage rates are crawling upward. Up 0.02 percent, 5.14 percent is the average rate on a 30 year mortgage. These rates are still low enough to encourage new and experienced home buyers to purchase. At its lowest, the average mortgage rate was 4.78 percent. At this time the federal government is helping to support economic recovery by pumping over $600 billion into mortgage securities, which has keep mortgage rates low.

Low Oil Prices Have Not Meant a Positive Turn Around for Airlines

The lowest oil prices seen in years have not had the positive impact on the airline sector that may have been anticipated. Most Airline stocks have fallen two percent and are in the danger zone. United Airlines and US Airways are just two of several airlines suffering the most significant losses.

Federal Reserve Chairman and Wife are Victims of Identity Theft

Ben and Anna Bernanke are the victims of identity theft. The personal bank account of Ben Bernanke, the Federal Reserve Chairman, and his wife has been breached by George L. Reid who confessed to stealing money from Bernanke's account and depositing it into his own. Last August, Anna Bernanke's purse, which contained personal identification information and a checkbook, was stolen while she was at Starbucks on Capitol Hill.

Resources

http://news.yahoo.com/s/ap/20090827/ap_on_bi_go_ec_fi/us_economy;_ylt=AlTi1cKKuIZfGafxHjzBKYOyBhIF;_ylu=X3oDMTJiODM5N2p0BGFzc2V0A2FwLzIwMDkwODI3L3VzX2Vjb25vbXkEY3BvcwMyBHBvcwM1BHNlYwN5bl90b3Bfc3RvcnkEc2xrA2Vjb25vbXlzc21hbA--

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http://news.yahoo.com/s/nm/20090827/ts_nm/us_usa_economy_states_pew;_ylt=AnBkbpdQRoWYa2iejMnN5AGyBhIF;_ylu=X3oDMTJ1MDA5cHNrBGFzc2V0A25tLzIwMDkwODI3L3VzX3VzYV9lY29ub215X3N0YXRlc19wZXcEcG9zAzEEc2VjA3luX2FydGljbGVfc3VtbWFyeV9saXN0BHNsawNwcmlzb25zY29sbGU-

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http://news.yahoo.com/s/ap/20090827/ap_on_bi_ge/us_airlines_sector_snap;_ylt=Ahs3n9CbPtkfHWc4xPDalnCyBhIF;_ylu=X3oDMTJzYjg2anFiBGFzc2V0A2FwLzIwMDkwODI3L3VzX2FpcmxpbmVzX3NlY3Rvcl9zbmFwBHBvcwMzBHNlYwN5bl9hcnRpY2xlX3N1bW1hcnlfbGlzdARzbGsDc2VjdG9yc25hcGFp

http://news.yahoo.com/s/ap/20090827/ap_on_re_us/us_bernanke_identity_theft;_ylt=AsmVgrPyLPjAWHXZfP_pcF3s.6F4;_ylu=X3oDMTJ0MDU2Y2huBGFzc2V0A2FwLzIwMDkwODI3L3VzX2Jlcm5hbmtlX2lkZW50aXR5X3RoZWZ0BGNwb3MDNgRwb3MDNgRzZWMDeW5fdG9wX3N0b3JpZXMEc2xrA2Jlcm5hbmtlcGVycw--