Federal Debt Reduction Program

Our economy is experiencing one of the most severe recessions since the Great Depression. Many of us have seen the value of our assets and retirement drop significantly during this economic downturn.
In an effort to stabilize assets and to get our economy moving forward toward positive growth the government has pumped trillions of dollars into the economy through various programs. Some of these programs were designed to spur job creation as well as get credit flowing to the consumer and to keep borrowing costs low for an extended period of time.
One such program has been removing debt from financial statements for some time. The FED has committed to purchasing $1.25 Trillion in bad debt through March 31, 2011. We anticipate interest rates to rise as much as 0.5% to 0.75% by the summer of 2011. Many financial professionals are saying now is the time to consolidate your debt. With credit scores declining down as much as 50% across the nation, and with rates as historic lows, and tax credits available for those who lost their jobs, now is a great time to consider consolidating your debt.
With the employment picture showing little signs of improvement, expect the unemployment rate to remain constant throughout 2010, with some positive job creation moving into 2011 as our economy slowly pulls out of this recession. We can expect credit scores to stabilize in 2010 as our economy and job losses start to bottom out and show signs of recovery. Expect interest rates to increase from the historic lows we have been experiencing due to the termination of the FED’s credit program in March, 2011 and other government funded programs such as the homebuyer tax credit which is due to expire in June 2010.
Overall we feel the worse is behind us and anticipate a slow by gradual recovery moving forward. We do anticipate some bumps along our road to recovery, but our forecast for the asset market is positive.