July 2012 U.S. Economic Fundamentals
- Thread starter Ally
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California approves homeowner mortgage law
They passed a law to stop foreclosures during mortgage renegotiations, with a ban on "robo-signing" - the bulk-approval of foreclosures.
The deal includes much of a $25bn federal settlement with five banks, and would the first state law of its kind.
The bill, opposed by many banks, has been sent to California Governor Jerry Brown to be signed into law.
Read the full article here.
They passed a law to stop foreclosures during mortgage renegotiations, with a ban on "robo-signing" - the bulk-approval of foreclosures.
The deal includes much of a $25bn federal settlement with five banks, and would the first state law of its kind.
The bill, opposed by many banks, has been sent to California Governor Jerry Brown to be signed into law.
Read the full article here.
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Job growth seen picking up in June
WASHINGTON (Reuters) - Employers likely increased hiring in June, but not by enough to dispel concerns that the economy is losing steam.
Employers are expected to have added 90,000 new workers to their payrolls, according to a Reuters survey of economists. That would be tepid but still better than 69,000 jobs created in May, which was the fewest in a year.
The data could give a better read on the labor market than reports from the last six months because a mild winter may have led companies to boost hiring then at spring's expense.
Read the full article here.
WASHINGTON (Reuters) - Employers likely increased hiring in June, but not by enough to dispel concerns that the economy is losing steam.
Employers are expected to have added 90,000 new workers to their payrolls, according to a Reuters survey of economists. That would be tepid but still better than 69,000 jobs created in May, which was the fewest in a year.
The data could give a better read on the labor market than reports from the last six months because a mild winter may have led companies to boost hiring then at spring's expense.
Read the full article here.
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Many Americans shut out of cheap housing market
One night last spring, David Hall returned home to his studio apartment outside Boston to learn that his monthly rent had spiked from $725 to $995.
It would be much cheaper for the maintenance manager to buy a nearby starter house than to stay put. But his mortgage broker told him that while his credit score was good, it was not high enough to meet banks` tough standards, he said.
`I know if I walk into a bank, they are just going to laugh at me,` Hall says. `So I`m stuck.`
Read the full article here.
One night last spring, David Hall returned home to his studio apartment outside Boston to learn that his monthly rent had spiked from $725 to $995.
It would be much cheaper for the maintenance manager to buy a nearby starter house than to stay put. But his mortgage broker told him that while his credit score was good, it was not high enough to meet banks` tough standards, he said.
`I know if I walk into a bank, they are just going to laugh at me,` Hall says. `So I`m stuck.`
Read the full article here.
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Arizona's new housing crisis: No workers
There`s a whiff of 2005 in the Arizona air. While D.J. Hughes hunts for carpenters to join his team at a Phoenix-area house-framing company, competitors are tracking down his workers at building sites and offering them more money. `Everybody is trying to pull crews from everyone,` says Hughes, a project manager for J.L. Baugh Construction in Gold Canyon, Ariz., who admits to attempted talent raids on rivals. `I`ve been doing this for a quarter of a century, and this is the biggest shortage of skilled laborers I`ve ever seen.`
Read the full article here.
There`s a whiff of 2005 in the Arizona air. While D.J. Hughes hunts for carpenters to join his team at a Phoenix-area house-framing company, competitors are tracking down his workers at building sites and offering them more money. `Everybody is trying to pull crews from everyone,` says Hughes, a project manager for J.L. Baugh Construction in Gold Canyon, Ariz., who admits to attempted talent raids on rivals. `I`ve been doing this for a quarter of a century, and this is the biggest shortage of skilled laborers I`ve ever seen.`
Read the full article here.
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U.S. jobs engine sputtering
U.S. employers added only 80,000 jobs in June, a third straight month of weak hiring that shows the economy is still struggling three years after the recession ended.
The unemployment rate was unchanged at 8.2 per cent, the Labor Department said in its report Friday.
The economy added an average of just 75,000 jobs a month in the April-June quarter. That's one-third of the 226,000 a month created in the first quarter. Through the first six months of the year, job creation is also trailing last year's pace.
Read the full article here.
U.S. employers added only 80,000 jobs in June, a third straight month of weak hiring that shows the economy is still struggling three years after the recession ended.
The unemployment rate was unchanged at 8.2 per cent, the Labor Department said in its report Friday.
The economy added an average of just 75,000 jobs a month in the April-June quarter. That's one-third of the 226,000 a month created in the first quarter. Through the first six months of the year, job creation is also trailing last year's pace.
Read the full article here.
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June Jobs: 5 things you need to know
Another summer, another jobs bummer. Payrolls rose by only 80,000 in June, the U.S. Labor Department reported Friday morning. The national unemployment rate held at 8.2 percent. It was the second straight disappointing month for employment growth (economists surveyed by Bloomberg had been expecting a gain of 100,000). More worrying is that it`s the second year in a row that a spring spurt has jumped the rails.
Many of the key June numbers were basically unchanged from May: The unemployment rate; the total number of unemployed people, 12.7 million; the long-term unemployed (more than 27 weeks), 5.4 million (41.9 percent of all jobless). But that`s the problem. Last month`s report, it was widely agreed, was a disaster: Only 69,000 jobs were added (since revised to 77,000), the lowest gain in a year. The implications for President Barack Obama are obviously not good; voters may or may not be watching the numbers closely on a holiday week, but with only four more jobs reports before the election, the chances to convince them the economy is on the upswing are dwindling.
It probably also increases the odds that the Federal Reserve will move to stimulate the economy further. Pimco`s Bill Gross and others already have speculated that further stimulus could be forthcoming in August. (Update: Mark Thoma, economics professor at the University of Oregon, says the Fed will stay in `wait and see mode` unless data point to further weakening ahead of the next Federal Open Market Committee meeting on July 31-Aug. 1.)
Read the full article here.
Another summer, another jobs bummer. Payrolls rose by only 80,000 in June, the U.S. Labor Department reported Friday morning. The national unemployment rate held at 8.2 percent. It was the second straight disappointing month for employment growth (economists surveyed by Bloomberg had been expecting a gain of 100,000). More worrying is that it`s the second year in a row that a spring spurt has jumped the rails.
Many of the key June numbers were basically unchanged from May: The unemployment rate; the total number of unemployed people, 12.7 million; the long-term unemployed (more than 27 weeks), 5.4 million (41.9 percent of all jobless). But that`s the problem. Last month`s report, it was widely agreed, was a disaster: Only 69,000 jobs were added (since revised to 77,000), the lowest gain in a year. The implications for President Barack Obama are obviously not good; voters may or may not be watching the numbers closely on a holiday week, but with only four more jobs reports before the election, the chances to convince them the economy is on the upswing are dwindling.
It probably also increases the odds that the Federal Reserve will move to stimulate the economy further. Pimco`s Bill Gross and others already have speculated that further stimulus could be forthcoming in August. (Update: Mark Thoma, economics professor at the University of Oregon, says the Fed will stay in `wait and see mode` unless data point to further weakening ahead of the next Federal Open Market Committee meeting on July 31-Aug. 1.)
Read the full article here.
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U.S. hiring steady in June at four-year high
PRINCETON, NJ -- U.S. workers reported essentially no change in net hiring at their workplaces in June, with the Gallup Job Creation Index averaging +20 for the month, similar to the +19 recorded in May and identical to the +20 in April. The index continues to hold at levels that are the most positive since mid-2008.
Read the full article here.
PRINCETON, NJ -- U.S. workers reported essentially no change in net hiring at their workplaces in June, with the Gallup Job Creation Index averaging +20 for the month, similar to the +19 recorded in May and identical to the +20 in April. The index continues to hold at levels that are the most positive since mid-2008.
Read the full article here.
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Rents now rising even faster than home prices
U.S. housing prices are up for the first time in a while, prompting a number of commentaries about how home prices may have finally begun to bounce off the bottom. As it turns out, though, rents are increasing faster.
That's according to the just released Housing and Rental Price Monitors from Trulia, developed by their chief economist and occasional Cities contributor Jed Kolko. He's calculated that in 22 of the 25 largest U.S. rental markets, rents are outpacing home prices.
Read the full article here.
U.S. housing prices are up for the first time in a while, prompting a number of commentaries about how home prices may have finally begun to bounce off the bottom. As it turns out, though, rents are increasing faster.
That's according to the just released Housing and Rental Price Monitors from Trulia, developed by their chief economist and occasional Cities contributor Jed Kolko. He's calculated that in 22 of the 25 largest U.S. rental markets, rents are outpacing home prices.
Read the full article here.
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11 ugly facts about the U.S. economy
June`s jobs report made grim reading for anyone betting on a U.S. recovery anytime soon.
The tepid 80,000 jobs the economy added, 10,000 below already low expectations, slammed stock markets and sent the price of oil into a nosedive.
Read the full article here.
June`s jobs report made grim reading for anyone betting on a U.S. recovery anytime soon.
The tepid 80,000 jobs the economy added, 10,000 below already low expectations, slammed stock markets and sent the price of oil into a nosedive.
Read the full article here.
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Massive drought in the U.S. midwest sends global crop prices soaring
A massive drought in the U.S. corn belt, the worst some say in nearly a quarter-century, has triggered a buying frenzy in global grain markets and bolstered Canadian fertilizer producers.
Prices for key agricultural commodities such as corn, soybean and wheat have soared in the past few weeks as investors realize yields in the corn belt are going to be far lower than they expected in the spring.
Grain prices are approaching the peak levels reached in mid-2008, a period when many other commodities were also hitting record highs just before the economic meltdown. While many commodities are well below those levels today, grains have climbed all the way back.
Read the full article here.
A massive drought in the U.S. corn belt, the worst some say in nearly a quarter-century, has triggered a buying frenzy in global grain markets and bolstered Canadian fertilizer producers.
Prices for key agricultural commodities such as corn, soybean and wheat have soared in the past few weeks as investors realize yields in the corn belt are going to be far lower than they expected in the spring.
Grain prices are approaching the peak levels reached in mid-2008, a period when many other commodities were also hitting record highs just before the economic meltdown. While many commodities are well below those levels today, grains have climbed all the way back.
Read the full article here.
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Why the U.S. recovery isn't strong enough?
The Great Recession officially ended in June of 2009 and for nearly three years economic growth has been maintained at an annual rate of 2.4 percent. With its usual delay, the labor market hit bottom 8 months after the recession's official end. Since then, we've had 28 straight months of payroll job growth totaling about 3.9 million workers (excluding the temporary government jobs added for the 2010 decennial census).
While this superficially sounds like progress, it has been one of the weakest recoveries on record. Here's why:
First, economic growth has not been strong. In fact, with the exception of the 1980 downturn that ended in a double-dip recession, we've had by far the weakest post-recession gross domestic product growth in more than 60 years.
Read the full article here.
The Great Recession officially ended in June of 2009 and for nearly three years economic growth has been maintained at an annual rate of 2.4 percent. With its usual delay, the labor market hit bottom 8 months after the recession's official end. Since then, we've had 28 straight months of payroll job growth totaling about 3.9 million workers (excluding the temporary government jobs added for the 2010 decennial census).
While this superficially sounds like progress, it has been one of the weakest recoveries on record. Here's why:
First, economic growth has not been strong. In fact, with the exception of the 1980 downturn that ended in a double-dip recession, we've had by far the weakest post-recession gross domestic product growth in more than 60 years.
Read the full article here.
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Uh oh! Now even Warren Buffet is sounding bearish on the U.S. economy
Warren Buffett made some of his most pessimistic comments on the economy in recent memory on Thursday, telling CNBC that things have slowed in the United States in the last six weeks.
Buffett, in a live interview, said Europe had also experienced a `pretty fast` slowdown in recent weeks as spending declined. The 81-year-old `Oracle of Omaha` said that even as the economy cooled off, residential housing was starting to pick up, albeit off a low base.
Read the full article here.
Warren Buffett made some of his most pessimistic comments on the economy in recent memory on Thursday, telling CNBC that things have slowed in the United States in the last six weeks.
Buffett, in a live interview, said Europe had also experienced a `pretty fast` slowdown in recent weeks as spending declined. The 81-year-old `Oracle of Omaha` said that even as the economy cooled off, residential housing was starting to pick up, albeit off a low base.
Read the full article here.
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New crop of super-sized luxury homes defy U.S. struggling economy
Even as the U.S. economy struggles to rebound from the worst recession since the Great Depression, Americans are living larger.
Larger, as in larger homes: two-story foyers, twin front staircases, children`s wings, dedicated man caves, coffee bars, four-car garages, and bedroom closets large enough for a fifth vehicle.
The percentage of new single-family homes greater than 3,000 square feet has grown by one-third in the last decade, according to data released last month by the U.S. Census Bureau. The increase has occurred even while 4.3 million homes have been foreclosed upon since January 2007, a result of the housing- bubble collapse and economic meltdown. Slightly more than 1 in 4 new homes built last year were larger than 3,000 square feet, the highest percentage since 2007.
Read the full article here.
Even as the U.S. economy struggles to rebound from the worst recession since the Great Depression, Americans are living larger.
Larger, as in larger homes: two-story foyers, twin front staircases, children`s wings, dedicated man caves, coffee bars, four-car garages, and bedroom closets large enough for a fifth vehicle.
The percentage of new single-family homes greater than 3,000 square feet has grown by one-third in the last decade, according to data released last month by the U.S. Census Bureau. The increase has occurred even while 4.3 million homes have been foreclosed upon since January 2007, a result of the housing- bubble collapse and economic meltdown. Slightly more than 1 in 4 new homes built last year were larger than 3,000 square feet, the highest percentage since 2007.
Read the full article here.
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Sickest housing markets in America
According to data released earlier this month, asking home prices in the nation`s largest metro regions rose for the fourth time in five months. This is another positive sign for the national real estate market. However, a review of the data, provided by home price authority Trulia.com, indicates that many of the country`s largest cities continue to struggle due to weak demand, high foreclosure rates and negative equity.
While many of the largest housing markets are showing positive signs, based on both vacancy rate and average year-over-year home price decline, many markets are taking longer than most to recover. Several of these are a product of the burst housing bubble, while others have been in trouble for decades. Based on housing data, 24/7 Wall St. identified the five `sickest` housing markets in America.
Read the full article here.
According to data released earlier this month, asking home prices in the nation`s largest metro regions rose for the fourth time in five months. This is another positive sign for the national real estate market. However, a review of the data, provided by home price authority Trulia.com, indicates that many of the country`s largest cities continue to struggle due to weak demand, high foreclosure rates and negative equity.
While many of the largest housing markets are showing positive signs, based on both vacancy rate and average year-over-year home price decline, many markets are taking longer than most to recover. Several of these are a product of the burst housing bubble, while others have been in trouble for decades. Based on housing data, 24/7 Wall St. identified the five `sickest` housing markets in America.
Read the full article here.
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Rising home prices bring 700,000 Americans above water
Rising home prices helped more than 700,000 homeowners regain equity in their homes during first quarter, but 11.4 million borrowers still owed more on their mortgage than their homes were worth, according to the latest report from data aggregator CoreLogic.
The number of U.S homeowners with negative equity declined by 6 percent in the first quarter compared to the fourth quarter, leaving 23.7 percent of all homes with mortgages underwater. That's down from 25.2 percent in the fourth quarter.
Read the full article here.
Rising home prices helped more than 700,000 homeowners regain equity in their homes during first quarter, but 11.4 million borrowers still owed more on their mortgage than their homes were worth, according to the latest report from data aggregator CoreLogic.
The number of U.S homeowners with negative equity declined by 6 percent in the first quarter compared to the fourth quarter, leaving 23.7 percent of all homes with mortgages underwater. That's down from 25.2 percent in the fourth quarter.
Read the full article here.
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Airbus plans new factory in Alabama
NEW YORK (CNNMoney) -- European aircraft manufacturer Airbus announced plans Monday to build a new facility in Alabama to produce commercial airliners.
Adam Buck, a spokesman for the mayor of Mobile's office in Alabama, said the $600 million facility will begin construction next year and will generate 1,000 permanent new jobs. It will be located on the site of a former Air Force base, where Airbus already has an engineering facility, Buck said.
Read the full article here.
NEW YORK (CNNMoney) -- European aircraft manufacturer Airbus announced plans Monday to build a new facility in Alabama to produce commercial airliners.
Adam Buck, a spokesman for the mayor of Mobile's office in Alabama, said the $600 million facility will begin construction next year and will generate 1,000 permanent new jobs. It will be located on the site of a former Air Force base, where Airbus already has an engineering facility, Buck said.
Read the full article here.
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U.S. retail sales fall for third straight month
WASHINGTON `U.S. retail sales fell for a third straight month in June as demand slumped for everything from cars and electronics to building materials, a sign the economic recovery is flagging.
Retail sales slipped 0.5%, the Commerce Department said on Monday.
It was the first time sales had dropped in three consecutive months since late 2008, when the economy was still mired in a deep recession. Analysts polled by Reuters had expected retail sales to rise 0.2%.
Read the full article here.
WASHINGTON `U.S. retail sales fell for a third straight month in June as demand slumped for everything from cars and electronics to building materials, a sign the economic recovery is flagging.
Retail sales slipped 0.5%, the Commerce Department said on Monday.
It was the first time sales had dropped in three consecutive months since late 2008, when the economy was still mired in a deep recession. Analysts polled by Reuters had expected retail sales to rise 0.2%.
Read the full article here.
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10 American cities struggling with foreclosures
In May, there were 205,990 foreclosure filings on U.S. properties, according to latest foreclosure report from Realty Trac. That's up 9 percent from April, but down 4 percent from a year ago,
More worrisome though, May foreclosure starts (default notices or scheduled foreclosure auctions) jumped 16 percent from a year ago, after 27 straight months of year-over-year declines.
Read the full article here.
In May, there were 205,990 foreclosure filings on U.S. properties, according to latest foreclosure report from Realty Trac. That's up 9 percent from April, but down 4 percent from a year ago,
More worrisome though, May foreclosure starts (default notices or scheduled foreclosure auctions) jumped 16 percent from a year ago, after 27 straight months of year-over-year declines.
Read the full article here.
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One crucial indicator shows the U.S. economy isn't slowing at all
The mainstream consensus has lately been that the economy is slowing. Based on my tracking of federal revenues in real time, I suspect that that view is incorrect. Instead the recent data reflects only normal oscillations within the ongoing slow growth trend.
Total federal tax collections, including withholding taxes, are available to us with just a one day lag in the US Treasury`s Daily Treasury Statements, which makes them an excellent analytical resource. Withholding is mostly for compensation, and thus it is a good measure of the economy`s strength. However, it is extremely volatile day to day so I rely more on a monthly moving average of the 10 day total collections, comparing that with the prior year. Smoothing sacrifices a bit of timeliness to get a clearer picture of the trend without losing too much of the edge that the daily data provides. Unfortunately, I have found even the 10 day total data too noisy for meaningful comparison so I`ve had to resort to additional smoothing. As a result the smoothed data is a little slow, so I also look at raw month to date data after mid month.
Read the full article here.
The mainstream consensus has lately been that the economy is slowing. Based on my tracking of federal revenues in real time, I suspect that that view is incorrect. Instead the recent data reflects only normal oscillations within the ongoing slow growth trend.
Total federal tax collections, including withholding taxes, are available to us with just a one day lag in the US Treasury`s Daily Treasury Statements, which makes them an excellent analytical resource. Withholding is mostly for compensation, and thus it is a good measure of the economy`s strength. However, it is extremely volatile day to day so I rely more on a monthly moving average of the 10 day total collections, comparing that with the prior year. Smoothing sacrifices a bit of timeliness to get a clearer picture of the trend without losing too much of the edge that the daily data provides. Unfortunately, I have found even the 10 day total data too noisy for meaningful comparison so I`ve had to resort to additional smoothing. As a result the smoothed data is a little slow, so I also look at raw month to date data after mid month.
Read the full article here.