The damage from the credit crisis and the destruction of the housing industry is spilling over into all parts of the economy. The economic numbers released this week were dismal, with the unemployment rate hitting 6.5% as the country lost 240,000 jobs in Oct. Add to this, the job losses for August and September were revised to show an additional 179,000 jobs lost. This brings the total of jobs lost in 2008 to over 1.18 million. Unemployment claims this week were 481,000, increasing the total the number of workers on unemployment to 3.84 million.
Some experts are predicting that without government help, one or more of the big three automakers will not survive through the end of the year. GM is currently going through $2.3 billion each month, and they only have $16.2 billion on hand, which is on the low end of what they need as operating cash.
The retail sales numbers were the worst since 1971, as almost all major retailers reported sales declines. Circuit City began liquidation sales at 155 of their stores.
Mortgage applications hit an eight year low.
The US Chamber of Commerce admitted this week that the nation is in a recession.
All these factors mean that President elect Obama will have a daunting task. From all indications, he has hit the ground running by assembling a first rate rate economic team. Hopefully they can come up with a plan to keep the recession from turning into a depression.
Mortgage rates improved slightly this week, as the rate for no point low fee thirty year mortgages dropped to 6.25%.
Guest Author Randy Kelly is a Mortgage Banker and Finance Author with Boulder West Financial 
Services. He can be reached on-line at http://www.boulderwest.com/.
