by FNC Reporter Julie Banderas

Back then, the housing market was strong… banks were lending… and people had jobs!
It was a peak year on Wall Street. Two years later, unemployment is on the verge of hitting 10% and pay cuts are at the highest level since the great depression. According to the Wall Street Journal’s 2009 projections, workers at 23 top investment firms can expect to earn more than they did in 2007.

Their analysis shows investment banks such as Goldman Sachs, J.P. Morgan Chase, Bank of America, Citigroup and Morgan Stanley are on track to dole out 140-billion dollars to its employees this year. An increase of 20% from last year’s $117 billion dollars topping 2007’s $130 billion payout. The average salary for employees at these companies is an estimated $143,400. That’s up almost $2,000 from 2007 levels. The rally is thanks to growing confidence by some Wall Street firms that they can again pay top dollar to their top dogs once they have re-paid the taxpayer-funded capital infusions they received at the height of the crisis.

The Obama administration’s pay czar, Kenneth Feinberg is keeping a close eye on these compensation packages particularly at 7 firms receiving federal aid, including bank of America and Citigroup. Citigroup is on pace to pay about 22-billion dollars. Bank of America is on track to pay about 30-billion. Some experts say big payouts are projected high because of recent bank acquisitions but with all that money it begs the question, are these multi-billion dollar firms hiring considering there are 15 million people hunting for work across the nation? Some say yes, but the majority of American’s feel Wall Street and main street aren’t on the same track.

Reporting on Atlanta real estate for a New York-based network is a lot of fun.

In my earpiece, I hear the anchors, producers and audio technicians at our Midtown Manhattan headquarters marvel at what $225-thousand will buy you down here — charming houses that would cost a fortune up there.

Today, we’re checking in with Realtor Joshua Keen of RealSource Brokers, as we have throughout the year, to see how economic trends are affecting him. Click here to watch our live/on the scene interview.

Joshua says he’s seen business pick up by 50 percent over the past 45 days. Eighty percent of his clientele these days are first time buyers. He says much of this is being driven by the first time homebuyer tax credit which expires Nov. 30.

Joshua says the Average sales price in town remains steady at… $225-thousand.

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Long lines outside the Jefferson County Courthouse.

When we arrived at the Jefferson County Courthouse in downtown Birmingham, Alabama, a long line of residents stretched down the front steps and along a sidewalk. Many of these people were simply waiting to renew their vehicle tags.

“You’ve got people 60, 70 and 80 (years old) and they have to stand up for four and five hours,” said Timothy Stanfield, a Birmingham resident.

The long lines are symptomatic of a budget crisis that has prompted Jefferson County to close satellite government offices in outlying areas and lay off well over a quarter of its workforce.

Although Jefferson County has been in the national spotlight recently for its difficulties paying off $4 billion in sewer bonds, commissioners say the mass-layoffs stem from an unrelated financial crisis: loss of tax revenue.

Earlier this year, a judge struck down Jefferson County’s occupational tax — a half percent levy on the earnings of people who work in the county (excluding certain professionals, such as barbers, who already pay county licensing fees). That tax had generated approximately $75 million in annual revenue.

State lawmakers from the area are proposing a new occupational tax that would affect every worker in the county — no exceptions — thereby surpassing the previous tax in the amount of revenue generated.

The local sheriff is asking for something even more dramatic.

After losing a legal battle to protect his budget from the Jefferson County Commission’s fiscal ax, Sheriff Mike Hale sent a request to Alabama Governor Bob Riley, asking him to consider sending state funds — or the National Guard.

“I need force multipliers” Hale said. “I need the National Guard to partner with my deputies to make sure communities and neighborhoods are safe.”

According to the Sheriff, the $4 million budget cut slated for his office could result in layoffs of as many as 300 of his 700 employees.

Hale insists public safety is crucial. But so are many other public services, according to Jefferson County Commissioner Jim Carnes.

“It’s no good if we’ve got law enforcement (and) we don’t have a coroner to say, ‘This person was murdered,’ and a D.A.” to try the suspected killer, he said.

As for the people waiting for vehicle tags, we saw one man emerge from the courthouse with his renewed license plate — nearly 9 hours after he arrived.

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For those of you who like your glass half-full, this just in from the National Association of Realtors:

Existing home sales rose in April with strong buyer activity in lower price ranges.

Now the half-empty part: The latest S&P/Case-Shiller Index shows a 19.1 percent decline in average home prices nationwide in the first quarter of 2009 versus the same period last year. Statistics from March lead Standard and Poor’s to conclude:

We see no evidence that a recovery in home prices has begun.

Out of 20 major metropolitan areas surveyed by S&P/Case-Shiller, Phoenix, Las Vegas and San Francisco suffered the most significant decreases in housing prices over the past year — posting losses of 36, 31.2 and 30.1 percent respectively. Click on the video below to watch my report for FOX Business Network.

Joshua Keen, an agent with RealSource Brokers in Atlanta (where housing prices dropped 15.7 percent over the past year) predicts prices won’t drop much further. But he says even after the real estate sector recovers, the market will be very different from the years before the proverbial bubble burst. Keep Reading …

When I lived in South Carolina in the not too distant past, video rentals were prohibited on Sunday mornings. If you saddled up to a bar on the sabbath, it was to order sweet tea.

Here in Georgia, my current home, liquor stores are closed on Sunday and grocery stores are banned from selling beer and wine. But that may change.

Peach State lawmakers are considering a proposal to allow stores to sell alcohol on Sunday. Alabama and Texas are considering similar changes to their “blue laws.”

And the City of Atlanta approved a plan to put video lottery terminals in Underground Atlanta, a downtown tourist destination. That plan now goes before the Georgia Lottery Board.

Such proposals face resistance from social conservatives. Some fear easing restrictions on gambling and increasing access to alcohol will cause an increase in traffic accidents and criminal activity.

But supporters say the added revenue would supplement tight state and local budgets during tough financial times. They argue, booze and betting are better than increased taxes.

Will a little extra alcohol help ward off depression (psycological or economic)? I report. You decide.

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