Jul 26, 2008 7:24 am US/Eastern
CBS4 Your Money: Consumer Mood Ends The Week Up
Congress Approves Mortgage Bank Backing With Public Money
MIAMI (CBS4) ―
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Traders work on the floor of the New York Stock Exchange.
Spencer Platt/Getty Images
Confidence among U.S. consumers unexpectedly rose in July from the lowest level since 1980, a sign that tax rebates and a rally in the stock market may have improved Americans' moods.
On Monday, there was trouble in paradise as more companies, including Royal Caribbean, announced layoffs. They'll lose at least 400 workers – most of whom are in South Florida. This is a result of higher energy costs.
On Tuesday, there was more fallout from the mortgage crisis, which has been affecting banks who were reporting their second-quarter earnings for Wall Street. Wachovia announced it lost almost $9-billion.
Congress was also given an estimate of the cost to rescue two mortgage giants, Fannie Mae and Freddie Mac. The bottom line: $25-billion in taxpayer money.
The mortgage rescue plan passed the House on Wednesday, and Pres. Bush, who earlier said he would veto it, was persuaded by Treasury Secretary Henry Paulson to go along with the bill.
There were amendments added that the president disagreed with, but insisted it was necessary to help the housing industry.
On Thursday, the federal minimum wage went up 70-cents, but the job loss numbers continued to increase. The U.S. Labor Department reported jobless claims were at their highest level since March.
The week ended with oil prices continuing their drop, which was starting to reflect ever so slightly at the gas station.
The average price of unleaded gasoline in South Florida was $4.08.
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