The Wall Street Journal – Second-Mortgage Misery 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…CoreLogic found that borrowers with second mortgages had deeper levels of… Continue reading Home Equity
<Click on graphic for larger image> Barron’s – Michael Santoli: The World After QE2 Despite investors’ worries, the markets and economy won’t be doomed when the Fed’s massive stimulus program ends Just how much impact QE2 has had and how its demise will affect the nation are matters of debate. But it’s clear that the… Continue reading Talking About QE3
CNBC – More Americans Think Economy Will Never Recover Americans are growing increasingly doubtful about direction of the US economy, according to the latest survey from business-advisory firm AlixPartners. In fact, an increasing number, some 61 percent, say they don’t expect to return to their respective pre-recession lifestyles until the spring of 2014, if ever. … Continue reading Will The Economy Ever Recover?
The Financial Times – US data chief warns on employment Bad US payrolls data for May appear to reflect a “general weakening in job growth” rather than any temporary distortion, the head of the agency that compiles the statistics said in an interview with the Financial Times. “Probably the most notable thing about [the jobs… Continue reading Payroll Post Mortem
The New York Times – Floyd Norris: A Revival In Manufacturing Seems to Be Fading In the United States, the Institute for Supply Management reported that the overall reading for its survey in May fell to 53.5 from 60.4. Figures above 50 indicate that more companies say business is improving than say it is getting… Continue reading The Manufacturing Economy
<Click on chart for larger image> The New York Times – Bank Shares Take a Beating, and It May Not Be Over Yet Michael Scanlon is tempted by bank stocks, truly he is. They are cheap — selling at near their lows for the year, and trading at well below the valuation of other large… Continue reading Bank Stocks Struggle
Barron’s – John Steele Gordon: The Making of Wall Street Wall Street wasn’t always “Wall Street.” Until the credit crisis of the 1830s, the center of U.S. finance was in Philadelphia. Then came Andrew Jackson THE GREAT BOOM OF THE 1830s came to a screeching halt, as interest rates spiked sharply higher and stocks fell.… Continue reading How Wall Street Was Invented
Reuters – Obama Fed pick withdraws, slams partisan politics Nobel Prize winner Peter Diamond said on Sunday he planned to withdraw as a nominee for Federal Reserve governor, after his nomination was repeatedly opposed by Republicans. “It is time for me to withdraw, as I plan to inform the White House,” Diamond, an economics professor… Continue reading Peter Diamond Withdraws
Comment Below is a chart showing the cumulative losses in real estate jobs since housing peaked. This industry has yet to recover from a jobs standpoint. <Click on chart for larger image> <Click on chart for larger image> <Click on chart for larger image> <Click on chart for larger image> <Click on chart for larger… Continue reading A Terrible Employment Report In Charts
The Wall Street Journal – WSJ: Dallas Fed’s Fisher Says More Easing by Fed Not Needed The Federal Reserve has done enough to spur economic growth and new steps to boost the economy aren’t warranted, Richard Fisher, president of the Federal Reserve Bank of Dallas, said in an interview with The Wall Street Journal. His… Continue reading QE3?