“ADP reports state that only 158,000 jobs were added to the U.S. private sector last month. The general forecast for the month of March was just under 200K added jobs. The March ADP tally was the smallest since October.
The primary cause of the slowdown seems to be hiring in construction firms. Construction employment gains have seemed to pause after the rebuilding following Hurricane Sandy has started to tail off.
Another reason [...]
Yet Another Funny Chart: January Factory Orders Confirm Manufacturing Slump Continues
Following the earlier laughable seasonally adjusted ADP data (because for some reason Mark Zandi does not find it necessary to supplement his report with the unadjusted data), courtesy of which the gullible public was supposed to believe that in February as small businesses were running out of money they proceeded to engage in a massive hiring spree, we thought: “hmmm: [...]
Young US households — those aged 35-to-44 — lost a stunning 59 percent of their wealth during the recession, a government report released yesterday revealed.
That’s the stiffest hit of any age group, said the report from the US Census Bureau.
The age group — typically struggling with mortgages, tuition bills and rising tax bills — makes up the backbone of America’s middle class.
The losses were mainly due to the drop in [...]
Taxes are set to rise next year, and as a result, the U.S. economy is headed for a recession and stocks are poised to tank, warns international investor Jim Rogers.
The Bush tax cuts are set to expire at the end of this year, but election-year politics will likely mean they will expire and renewing them after expiration will be messy.
Add to that, the economy is due for a downturn anyway [...]
Matthew and Carina Hensley offered $10,000 more than the asking price for a three-bedroom house in suburban Seattle, then lost out to one of seven other bidders.
Their $270,000 proposal last month came with a family portrait and a letter introducing the couple, their eight-month-old daughter, Harper, and their desire to build a family in the Renton, Washington, house with a yard backing onto a woody hillside.
Bidding wars, absent from [...]
March 13, 2012
As more details emerge about the massive $26 billion foreclosure settlement between the five biggest mortgage lenders and the states’ attorneys general, a growing number of borrowers are realizing that the deal will do little, if anything, to help them out.
Proponents of the settlement deal tout that roughly 1 million homeowners who owe more on their homes than their homes are worth are expected to have their [...]
A bank-owned sign is seen in front of a foreclosed home in Miami. Florida was among the hardest hit states in the real estate collapse.
If you had talked to some good economists just before the housing bubble burst, they would have told you it didn’t make sense to buy a house.
“At the peak of the housing bubble, house prices were way out of line with [...]
Startling Unpublished Keynes Equations Discovered
LONDON | Friday Sep 30, 2011 3:26pm EDT
(Routers) – A remarkable discovery reveals equations that economists say could end the business cycle – forever.
Ian Macallum, spokesman for the Royal & Ancient Historical Society of London, told Routers that the equations were contained in an unpublished manuscript which was found in the attic of an 18th century flat in Soho.
“We were skeptical when [...]
WASHINGTON (AP) — Even if Congress heeds President Barack Obama’s demands to “pass this bill right away” and enacts his jobs and tax plan in its entirety, the unemployment rate probably still would hover in nosebleed territory for at least three more years.
Why? Because the 1.9 million new jobs the White House says the bill would produce in 2012 [...]
The risk of double dip recession is rising.
And while economists disagree on just how likely the U.S. economy is to fall into another downturn, they generally agree on one thing — a new recession would be worse than the last and very difficult to pull out of.
“Going back into recession now would be scary, because we don’t have the resources or the will to respond, [...]
Economist Paul Krugman described moral hazard as: “…any situation in which one person makes the decision about how much risk to take, while someone else bears the cost if things go badly.” Financial bail-outs of lending institutions by governments, central banks or other institutions can encourage risky lending in the future, if those that take the risks come to believe that they will not have to [...]
President Obama’s senior political adviser David Plouffe said Wednesday that people won’t vote in 2012 based on the unemployment rate.
Plouffe should probably hope that’s the case, since dismal job figures aren’t expected to get any better for Obama and the economy on Friday.
Most economists expect a report from the Bureau of Labor Statistics to show that the nation added about 100,000 jobs in June. That’s not [...]
Almost 40% of homeowners who took out second mortgages—extracting cash from their residences to cover everything from vacations to medical bills—are underwater on their loans, more than twice the rate of owners who didn’t take out such loans.
The finding, in a report to be released Tuesday by real-estate data firm CoreLogic Inc., illustrates the consequences of easy borrowing amid the housing boom’s inflated prices. The [...]
Joshua Lott for The New York Times
Jayson Meyerovitz, a broker in the Phoenix area, is concerned about bank-owned foreclosures: “If so many houses hit the market, what is going to happen then?”
EL MIRAGE, Ariz. — The nation’s biggest banks and mortgage lenders have steadily amassed real estate empires, acquiring a glut of foreclosed homes that threatens to deepen the housing slump and create a further [...]
Looking at the relative prices of buying and renting homes in Silicon Valley, Manhattan and a few other places is enough to make you wonder whether parts of the housing market are still due for a crash. To consider that question in more detail, I had a conversation with Mark Zandi, the chief economist at Moody’s Analytics, which provided much of the data for my column:
Q. I’m [...]
GOP spending plan would cost 700,000 jobs, new report says
By Lori Montgomery
Washington Post Staff Writer
Monday, February 28, 2011; 11:15 AM
A Republican plan to sharply cut federal spending this year would destroy 700,000 jobs through 2012, according to an independent economic analysis set for release Monday.
The report, by Moody’s Analytics chief economist Mark Zandi, offers fresh ammunition to Democrats seeking block the Republican plan, which would terminate [...]
Jobs are heading up and down at the same time. The Bureau of Labor Statistics announced the morning of Feb. 4 that only 36,000 jobs were added in the month of January, but the unemployment rate dropped from 9.4 percent to 9.0 percent.
The mainstream news media will likely latch on to the dropping unemployment rate, despite job gains that were less than one-fourth of the consensus [...]
Mark Zandi must be knee deep in booze and hookers these days for all of his rosy economic forecasts.
New York Times reports in “The Rich Catch Everyone ElseÃ¢â‚¬â„¢s Cutback Fever”:
The provisional economic recovery has been helped in large part by the spending of the most affluent.
Late last year those households started buying with much more confidence, while other consumers held back. Now, even the rich appear to be tightening their belts.
Ã¢â‚¬Å“One of the reasons that the recovery has lost momentum is that high-end consumers have become more jittery [...]