A local loan officer, Rod Flowers with SunTrust Mortgage, sent this to me and I thought it was worth publishing. It’s very interesting data. As an FYI at the end of his message…he sent some great news…interest rates are falling.

Investing After A Recession Begins

The S&P 500 has gained an average of +13.1% per year (total return) for the 10-year period that started on January 1^st of the calendar year following the official beginning date of each of the last 5 recessions.

Spending Less

The personal savings rate in the USA at the end of April 2009 was 5.7%.  Just over a year earlier the nation’s personal savings rate was 0.2%!

Some BIG Ones

5 of the 8 largest corporate bankruptcies in US history (as measured by assets at the time of filing) have occurred in the last 9 months.

Down A Lot From A Year Ago

The actual profits of the companies in the S&P 500 stock index on a trailing 1-year basis are 88% less today than they were 1-year ago.

Gimme A Break

A first time home buyer has until 12/01/09 to purchase a home that qualifies for a tax credit that is worth 10% of the cost of the home, up to $8,000.   This tax credit is claimed on IRS Form 5405.

Too Much Debt

The average American homeowner had $1.41 of mortgage debt for every $1 of home equity as of 3/31/09.

A Few Years

53% of adults surveyed believe it will take them at least 5 years from now to grow their net worth back to the level it had reached in late 2007.

Beach Bums

9 of the 10 largest lenders of the nearly of the $1 Trillion of sub-prime mortgages originated during 2005-2006 are based in California.

No Stopping

Baby boomers are the 78 million Americans born between the years 1946-1964.  25% of this group expects to work until they die, up from 15% in December of 2007.

Keep Trying

More that 4 out of every 5 college graduates (80.3%), from the class of 2009, who have applied for jobs have been unable to find work.