Thousands Line Up For Mortgage Assistance, Biden Touts Recovery

Thousands of Floridians line up outside Palm Beach County Convention Center hoping for mortgage assistance from the Neighborhood Assistance Corporation of America.

The line started with some camping out two days before the NACA event started.

The non-profit group opened the doors at 9 a.m. to begin a five-day marathon of around-the-clock loan modifications. The event, which is free, aims to get homeowners cheaper monthly mortgage payments through interest rate reductions, extending the life of the loan and a reduction in loan amount.

To be first in line, Lizandra Garcet, of West Palm Beach, arrived Thursday morning to set up her beach chairs at the front entrance of the convention center.

This news comes on the same day as Vice President Biden tours the country touting the “Summer of Recover”.   Yesterday, Biden proudly announced that 200,000 low-income houses have been weatherized with stimulus funds.  Perhaps he should explain that to the people in line in Florida and see how they feel about their money being so wisely used.

In other news, the Commerce Department revised its estimate for the April – June period by half!  The 2.4% growth rate was fut to 1.4%.  The estimate for the current quarter is only 1.7%.  From AP News:

Such slow growth won’t feel much like an economic recovery and won’t lead to much hiring. The unemployment rate, now at 9.5 percent, could even rise by the end of the year.

“The economy is going to limp along for the next few months,” said Gus Faucher, an economist at Moody’s Analytics. There’s even a one in three chance it could slip back into recession, he said.

Many temporary factors that boosted the economy earlier this year are fading. Companies built up their inventories after cutting them sharply in the recession to match slower sales. The increase provided a boost to manufacturers, but now many companies’ stockpiles are in line with sales and don’t need to grow as much.

In addition, the impact of the government’s $862 billion fiscal stimulus program is lessening.

That leaves the private sector to pick up the slack. But businesses are cutting back on their spending on machines, computers and software, according to a government report earlier this week. And the housing sector is slumping again after a popular home buyer’s tax credit expired in April.