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Perhaps the most interesting part is where he talks about specifics that are holding the economy back still. “Recently, the housing market has shown some clear signs of improvement, as home sales, prices, and construction have all moved up since early this year. These developments are encouraging, and it seems likely that, on net, residential investment will be a source of economic growth and new jobs over the next couple of years. However, [...] via WSJ: 368%: The jump since 2007 in the measure of consumer credit held by the government comprised primarily of student loans. If a student loan bubble were to pop, the government, not private banks, would be the one standing around with gum in its hair. Issuance of student loans has soared in recent years, hitting $867 billion at the end of 2011, according toan analysis from theFederal Reserve Bank of New York, more than [...] By Reuters Banks have become so restrictive in making mortgages that many worthy homebuyers are being frozen out of the U.S. housing market, and lending practices are not likely to loosen any time soon, Federal Reserve Chairman Ben Bernanke said on Thursday. Speaking via satellite to a banking conference in Chicago, Bernanke highlighted ongoing problems in mortgage finance availability, even though banks are much healthier now as the 2007-2009 financialcrisis has receded. “To be [...] Earlier today Citi reported earnings that missed expectations of $1.02 on an unadjusted basis ($0.95) but beat adjusted ($1.11). Same with revenue. And while one can go through the bank’s 10-Q and earnings presentation, there are just two charts worth pointing out which show the same trend exhibited by JPM last week: loan loss reserve release was $1.2 billion or 40% of the $2.931 billion in after tax net income. [...] I guess full recourse mortgages really do have an impact. They scare away buyers in a down market… and with nobody buying the market heads down even further. As we learned last week from the Irish Banking Federation (IBF) mortgage statistics, liquidity in the market remains very low, with mortgage transactions set to fall to the lowest level since 1971 this year. Access to mortgage credit is a prerequisite for stabilisation [...] BERNANKE: HOUSING MAY NO LONGER BE VIEWED AS SECURE INVESTMENT That’s right. He just said that. And with that, a Lewis Black moment is coming on… He also said some other stuff. BERNANKE SAYS HOUSING IMPEDING FED EFFORT TO SPUR U.S. ECONOMY As a [...] by The Economic Collapse How do you decide whether you are wealthy or not? Do you determine that by how much money you spend at the stores? Of course not. You can tell if you are wealthy or not by comparing your assets (the money in your bank account, equity in your home, etc.) to your liabilities (your mortgage, credit card debt, student loan debt, etc.). Well, a lot of Americans seem [...] by David Zamos BUT, seemingly, he continued promising anything anyone wanted to hear in his successful effort to relocate to the White House, and, despite promising the most transparent administration in history, on Obama’s very first full day in the Oval Office, Obama sealed his personal records resulting in us knowing less about Obama’s live than we do about the life of even George Washington. Additionally, only [...] From http://market-ticker.org/akcs-www?post=178873 ISM: MSM Cheers Massive Input Cost Ramp? I’m astounded… The report was issued today by Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Managementâ„¢ Manufacturing Business Survey Committee. “The manufacturing sector grew at a faster rate in January as the PMI registered 60.8 percent, which is its highest level since May 2004 when the index registered 61.4 percent. The continuing strong performance is [...] At its peak in the first quarter of 2008, the debt-to-income ratio stood at 131%. The fundamental problems have still not been addressed, the government is still enabling companies to make risky loans, placing an artificial floor under housing, subsidizing failure and taxing success hoping to eek out just enough recovery. The sheer damage done in these boom-and-bust cycles is much greater than politicians and the media usually acknowledge. The government [...] |
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