US poverty rate at new high: 49.1M

US poverty rate at new high: 49.1M

WASHINGTON

A record number of Americans — 49.1 million — are poor, based on a new census measure that for the first time takes into account rising medical costs and other expenses.

The numbers released Monday are part of the first supplemental poverty measure aimed at providing a fuller picture of poverty. Although considered experimental, they promise to stir fresh debate over Social Security, Medicare and programs to help the poor as a congressional supercommittee nears a Nov. 23 deadline to make more than $1 trillion in cuts to the federal budget.

Based on the revised formula, the number of poor people exceeds the record 46.2 million, or 15.1 percent, that was officially reported in September.

Broken down by group, Americans 65 or older sustained the largest increases in poverty under the revised formula — nearly doubling to 15.9 percent, or 1 in 6 — because of medical expenses that are not accounted for in the official rate. Those include rising Medicare premiums, deductibles and expenses for prescription drugs.

Late mortgage payments increase

NEW YORK

While lawmakers in Washington debated the debt ceiling and consumer confidence dropped, more homeowners were having a harder time making their mortgage payments.

The rate that mortgage holders were late with their payments by 60 days or more rose in the June-to-September period for the first time since the last three months of 2009, according to TransUnion.

The credit-reporting agency said 6.44 percent of homeowners missed two or more payments, an early sign of possible foreclosure. That was up from 5.88 percent in the third quarter of 2010, and from 5.82 percent in the 2011 second quarter.

The increase surprised TransUnion researchers, who previously forecast late payments, or delinquency, to fall for the quarter.

The problems were widespread. Between the second and third quarters, all but 10 states and the District of Columbia saw delinquency rates increase.

Oil prices rise

NEW YORK

Oil prices climbed to the highest point since late July on Monday as traders focused on declining U.S. petroleum supplies and also bet that Europe would solve its debt crisis.

Benchmark crude rose $1.26 cents to end the day at $95.52 per barrel in New York. The benchmark price hasn’t finished that high since July 29. Brent crude, which is used to price many foreign oil varieties, increased $2.59 to finish at $114.56 in London.

Prices rose early in the day as political rivals in Greece worked out a power-sharing plan that will be crucial for securing a $179 billion bailout. The partnership between Socialist Prime Minister George Papandreou and conservative leader Antonis Samaras raised hopes that Greece will follow through with spending cuts and other unpopular austerity measures that are needed as part of the international aid package.

Associated Press