Soup kitchen queues grow as US teeters on brink of new downturn

[girl gone mad]

Meanwhile, http://www.guardian.co.uk/business/2009/jun/21/goldman-sachs-bonus-payments">Goldman Sachs is set to make its biggest ever bonus payout.

Soup kitchen queues grow as US teeters on brink of new downturn
http://www.guardian.co.uk/business/2009/jun/21/surge-in-demand-us-soup-kitchens">guardian.co.uk

One of America's largest food companies, Kellogg's, is asking for donations from the public to help fight hunger - not in the developing world, but in the heart of the US, where handouts from "food banks" are catering for a growing number of families struggling to make ends meet.

The charity, Feeding America, says demand at its 63,000 soup kitchens and food pantries is 30% higher than at the end of 2008, as spiralling unemployment and repossessions increase the demand for extra help for Americans who would otherwise go hungry. Kellogg's is offering breakfast cereal coupons to consumers who donate money to Feeding America.

The spectre of growing queues at soup kitchens evokes the hardship of the Great Depression, and underlines fears that the credit crunch is exacting a painful toll on American society. While there have been tentative signs in recent weeks that the economy is starting to strengthen, there are also growing concerns that the US could be on the brink of a "double dip," into a new downturn.

With the housing market still plunging, long-term mortgage rates have risen in response to rising bond yields on the financial markets. The Federal Reserve will meet this week to discuss monetary policy, and Ben Bernanke, its chairman, is under pressure to take action to bring mortgage rates back down. John Richards, of RBS, said next week's meeting would be "exceptionally interesting", adding: "changing the policy rate is not the issue; instead, the meeting will be the first chance for the Fed to officially consider what, if anything, it wants to do about the danger posed by rising Treasury yields to the recovery."

With rates already at zero, and the Fed buying back billions of dollars of government bonds, few options are available, but Bernanke is thought to be considering making a public commitment to keep rates low for a long time, in the hope of influencing investors and bringing long-term rates back down.

Graham Turner, of GFC Economics, said unless the Fed could reverse the rise in rates, there was a risk that the economy would slide into freefall. "There is absolutely no floor to the housing market, and the unemployment problem is not going to get better quickly," he said.

http://www.guardian.co.uk/business/2009/jun/21/surge-in-demand-us-soup-kitchens">More...

[Joanne98]

1. Why don't they get some money from their fucking shareholders.

Or better yet CEO pay cuts!

[old mark]

2. I wonder if you can invest in soup kitchens.......nt

[AnneD]

3. Yes you can invest in soup kitchens....

either by donating food, money or time. You get a portion of your dividend here on Earth in the form of good Karma, but most of your reward is in a spiritual bank account in Heaven. Seeing a homeless child get a hot meal however, is priceless.

[girl gone mad]

4. +1

[AnneD]

7. I've seen a few +1 on other threads...

hate to sound stupid but don't want to presume.....Definition please?

[old mark]

5. I have their site in my FAVORITES. I may be coming into some money to invest soon, and I

think this is a very good idea.


mark

[AnneD]

6. Our church has a food pantry.....

I always love to give to that, especially now with the kids out of school (no free school lunches). Breads and PB&J are appreciated.


Edited to add-you don't have to have a lot of money. You can get several loaves at a bread outlet for next to nothing-PB&J too. Five buck can give 3 families lunch for the kids for a week.