U.S. Economy Shows Signs of Life

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Several months after President Barack Obama first proposed his $787 billion recovery plan, the economy is showing small signs of recovery.
    
A new government report says businesses created or saved more than 30,000 jobs in the first months of the president's stimulus program.  
    
Also, strong profit reports from big banks have helped push the Dow Jones Industrial Average above the 10,000 mark two days in a row.

Comeback on Wall Street

As unemployment approaches 10 percent and people continue to lose their jobs, Wall Street is recovering its lost confidence.

"Wall Street is able to make more money than before because Washington loaned them money at cut rates to rehabilitate them," said economist Peter Morici of the University of Maryland.

But most Americans are hoping stocks continue to climb. Dolores Holmes is one of them.  She lost almost 80 percent of her retirement savings in the stock market and she's still waiting to get it back. 

"I wanted to retire at 62," she said. "Now it looks like it will be about 67."  

Even though the number of newly laid-off workers has fallen to the lowest level since January, employers are not hiring people back. 

That news isn't helping the housing market with the latest report showing that Americans are losing their homes to foreclosure at the record rate of 425 every hour and seven every minute.

"I was collecting unemployment but unemployment just wasn't enough to continue making the payment," said Paul Imperiale.

The Obama administration has responded to this crisis by setting aside $50 billion to help banks and mortgage lenders modify home loans to make them more affordable.  So far this year, 500,000 homeowners have been helped - but not the unemployed because they're not eligible for that plan.  

Experts say the size of the problem is much larger than the solution as the number of home foreclosures continue to increase. 

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Charlene  Aaron

Charlene Aaron

CBN News Reporter

Charlene Aaron serves as a general assignment reporter and helps anchor for the CBN News Channel.  Follow her on Twitter @CharNews and "like" her at Facebook.com/CharleneIsraelCBNNews.