CNBC
Published: Thursday, 30 Jun 2011 | 6:52 PM ET
By: Drew Sandholm
The U.S. stock market is not the same as the U.S. economy, Cramer said Thursday. Yet many investors conflate what's happening with the economy with what's happening to stock prices.
"It's this misconception that's kept you out of every single point of upside since the generational bottom back in March of 2009, and it's always worth debunking, especially after this week's spectacular move higher," Cramer said.
To illustrate his point, Cramer noted that most big cap companies, especially those that are performing well, get up to just 40 percent of their sales from the U.S. Meanwhile, central banks in many emerging markets are talking about pending victories over inflation, meaning they could soon stop tightening. As tightening in emerging markets comes to a close, Cramer thinks the industrials stand to benefit.
Full story:
http://www.cnbc.com/id/43586067
Thursday, June 30, 2011
Wednesday, June 29, 2011
CBS Poll: Many say economy is in permanent decline
By Brian Montopoli
Topics Economy, Polling
In a sign of increasing pessimism about the direction of the U.S. economy, roughly four in ten Americans now believes it is in permanent decline, according to a new CBS News/New York Times poll.
The percentage that sees the economy as in permanent decline has increased from 28 percent in October 2010 to 39 percent in the new poll. And the percentage that expects the economy to eventually recover to its past heights has fallen from 68 percent last October to 57 percent today.
Full story:
http://www.cbsnews.com/8301-503544_162-20075539-503544.html
Topics Economy, Polling
In a sign of increasing pessimism about the direction of the U.S. economy, roughly four in ten Americans now believes it is in permanent decline, according to a new CBS News/New York Times poll.
The percentage that sees the economy as in permanent decline has increased from 28 percent in October 2010 to 39 percent in the new poll. And the percentage that expects the economy to eventually recover to its past heights has fallen from 68 percent last October to 57 percent today.
Full story:
http://www.cbsnews.com/8301-503544_162-20075539-503544.html
The US Debt Ceiling: The Next Financial Crisis
Published: Wednesday, 29 Jun 2011 | 4:43 PM ET
By: Michael K. Farr and Keith B. Davis
It seems like we just bounce from crisis to crisis these days. Now that the Greek "can" has been successfully kicked down the road, all eyes will point to the next potential crisis: the raising of the U.S. debt ceiling.
The technical default date for the U.S. Treasury is currently estimated at August 2. This is the date on which the Treasury must use its daily cash flow, rather than its borrowing capacity, to satisfy its many daily obligations.
Full story:
http://www.cnbc.com/id/43583087
By: Michael K. Farr and Keith B. Davis
It seems like we just bounce from crisis to crisis these days. Now that the Greek "can" has been successfully kicked down the road, all eyes will point to the next potential crisis: the raising of the U.S. debt ceiling.
The technical default date for the U.S. Treasury is currently estimated at August 2. This is the date on which the Treasury must use its daily cash flow, rather than its borrowing capacity, to satisfy its many daily obligations.
Full story:
http://www.cnbc.com/id/43583087
U.S. and European Markets Rise on Optimism Over Greek Vote
By CHRISTINE HAUSER and MATTHEW SALTMARSH
Published: June 29, 2011
The markets finally exhaled.
A relief rally swept the European and American markets after an early Wednesday vote by the Greek Parliament to approve an austerity plan.
The plan was passed, a condition set by international lenders for providing more financing and preventing a default, after weeks of uncertainty in financial markets related to the debt problems in the euro zone.
Full story:
http://www.nytimes.com/2011/06/30/business/global/30markets.html?partner=yahoofinance
Published: June 29, 2011
The markets finally exhaled.
A relief rally swept the European and American markets after an early Wednesday vote by the Greek Parliament to approve an austerity plan.
The plan was passed, a condition set by international lenders for providing more financing and preventing a default, after weeks of uncertainty in financial markets related to the debt problems in the euro zone.
Full story:
http://www.nytimes.com/2011/06/30/business/global/30markets.html?partner=yahoofinance
Monday, June 27, 2011
New recession begins next year, Shilling says
By Howard Gold
NEW YORK (MarketWatch) — Rough patch or double dip?
That’s the debate going on these days from executive offices to the local malls. Business owners, workers and, yes, even economists are trying to decide whether the U.S. economy has hit a speed bump or is heading for a collision.
We all know growth is tepid, unemployment is a bear and housing, well, stinks. That’s why major Wall Street firms, the International Monetary Fund and, on Wednesday, the Federal Reserve all slashed their estimates for U.S. GDP growth this year.
http://www.marketwatch.com/story/new-recession-begins-next-year-shilling-says-2011-06-24
NEW YORK (MarketWatch) — Rough patch or double dip?
That’s the debate going on these days from executive offices to the local malls. Business owners, workers and, yes, even economists are trying to decide whether the U.S. economy has hit a speed bump or is heading for a collision.
We all know growth is tepid, unemployment is a bear and housing, well, stinks. That’s why major Wall Street firms, the International Monetary Fund and, on Wednesday, the Federal Reserve all slashed their estimates for U.S. GDP growth this year.
http://www.marketwatch.com/story/new-recession-begins-next-year-shilling-says-2011-06-24
Economists see brighter second half for 2011
Growth should pick up as gas prices come down, effects of Japan quake fade
By CHRISTOPHER S. RUGABER, PAUL WISEMAN
updated 6/27/2011 4:57:38 PM ET
WASHINGTON — Farewell and good riddance to the first half of 2011 — six months that are ending as sour for the economy as they began.
Most analysts say economic growth will perk up in the second half of the year. The reason is that the main causes of the slowdown — high oil prices and manufacturing delays because of the disaster in Japan — have started to fade.
"Some of the headwinds that caused us to slow are turning into tail winds," said Mark Zandi, chief economist at Moody's Analytics.
Full story:
http://www.msnbc.msn.com/id/43554032/ns/business-eye_on_the_economy
By CHRISTOPHER S. RUGABER, PAUL WISEMAN
updated 6/27/2011 4:57:38 PM ET
WASHINGTON — Farewell and good riddance to the first half of 2011 — six months that are ending as sour for the economy as they began.
Most analysts say economic growth will perk up in the second half of the year. The reason is that the main causes of the slowdown — high oil prices and manufacturing delays because of the disaster in Japan — have started to fade.
"Some of the headwinds that caused us to slow are turning into tail winds," said Mark Zandi, chief economist at Moody's Analytics.
Full story:
http://www.msnbc.msn.com/id/43554032/ns/business-eye_on_the_economy
Why the housing crash remains a wreck
By Marcie Geffner • Bankrate.com
Foreclosures. Short Sales. Unemployment. Tight credit. Overbuilding. Those are but some of the reasons housing markets in many parts of the country remain stubbornly depressed, even while activity in other economic sectors has begun to rebound.
New-home building and sales of existing homes historically have been leading economic indicators, pointing the way to robust recovery after a downturn. In the current cycle, however, that hasn't happened, says Lawrence Yun, chief economist at the National Association of Realtors.
"Housing has always been the leader in terms of getting the economy back on track," Yun says, "but that is not the case this time around."
Full story:
http://www.bankrate.com/finance/mortgages/why-the-housing-crash-remains-a-wreck-1.aspx
Foreclosures. Short Sales. Unemployment. Tight credit. Overbuilding. Those are but some of the reasons housing markets in many parts of the country remain stubbornly depressed, even while activity in other economic sectors has begun to rebound.
New-home building and sales of existing homes historically have been leading economic indicators, pointing the way to robust recovery after a downturn. In the current cycle, however, that hasn't happened, says Lawrence Yun, chief economist at the National Association of Realtors.
"Housing has always been the leader in terms of getting the economy back on track," Yun says, "but that is not the case this time around."
Full story:
http://www.bankrate.com/finance/mortgages/why-the-housing-crash-remains-a-wreck-1.aspx
Sunday, June 26, 2011
Bridge Comes to San Francisco With a Made-in-China Label
The New York Times
By DAVID BARBOZA
Published: June 25, 2011
SHANGHAI — Talk about outsourcing.
At a sprawling manufacturing complex here, hundreds of Chinese laborers are now completing work on the San Francisco-Oakland Bay Bridge.
Next month, the last four of more than two dozen giant steel modules — each with a roadbed segment about half the size of a football field — will be loaded onto a huge ship and transported 6,500 miles to Oakland. There, they will be assembled to fit into the eastern span of the new Bay Bridge.
The project is part of China’s continual move up the global economic value chain — from cheap toys to Apple iPads to commercial jetliners — as it aims to become the world’s civil engineer.
Full story:
http://www.nytimes.com/2011/06/26/business/global/26bridge.html?partner=yahoofinance
By DAVID BARBOZA
Published: June 25, 2011
SHANGHAI — Talk about outsourcing.
At a sprawling manufacturing complex here, hundreds of Chinese laborers are now completing work on the San Francisco-Oakland Bay Bridge.
Next month, the last four of more than two dozen giant steel modules — each with a roadbed segment about half the size of a football field — will be loaded onto a huge ship and transported 6,500 miles to Oakland. There, they will be assembled to fit into the eastern span of the new Bay Bridge.
The project is part of China’s continual move up the global economic value chain — from cheap toys to Apple iPads to commercial jetliners — as it aims to become the world’s civil engineer.
Full story:
http://www.nytimes.com/2011/06/26/business/global/26bridge.html?partner=yahoofinance
Friday, June 24, 2011
The U.S. is too big to fail, right?
Commentary: No one knows who will be hurt if Greece defaults
By Brian Edmonds
June 24, 2011, 5:10 p.m. EDT
NEW YORK (MarketWatch) — While many investors are focused on the precarious situation surrounding Greek debt, and whether the rest of the so-called PIIGS (Portugal, Italy, Ireland, and Spain) might follow closely behind, there is a less-publicized yet equally dangerous element in the mix:
If Greece defaults, who will be holding the bag?
Full story:
http://www.marketwatch.com/story/the-us-is-too-big-to-fail-right-2011-06-24
By Brian Edmonds
June 24, 2011, 5:10 p.m. EDT
NEW YORK (MarketWatch) — While many investors are focused on the precarious situation surrounding Greek debt, and whether the rest of the so-called PIIGS (Portugal, Italy, Ireland, and Spain) might follow closely behind, there is a less-publicized yet equally dangerous element in the mix:
If Greece defaults, who will be holding the bag?
Full story:
http://www.marketwatch.com/story/the-us-is-too-big-to-fail-right-2011-06-24
Thursday, June 23, 2011
Why our employment figures are wrong
Jun 23, 2011 17:55 EDT
By Sara Horowitz
The opinions expressed are her own.
The national employment figures are an economic bellwether. They profoundly affect U.S. markets, consumer spending, and even the fate of national elections. With so much at stake, you’d think we would be counting the workforce accurately. Unfortunately, we’re not.
The United States treats jobs as something turned on or off—employed or unemployed—but that binary view no longer reflects how Americans really work. Whereas in the middle of the 20th century industrial employees worked one job for one company, today, there are 42 million consultants, independent contractors, entrepreneurs and freelancers working multiple gigs for multiple clients.
Although independent workers were a full one-third of the U.S. workforce at last count (which was 6 years ago), they aren’t counted by the Bureau of Labor Statistics in a consistent and ongoing way...
Full story:
http://blogs.reuters.com/great-debate/2011/06/23/why-our-employment-figures-are-wrong/?rpc=43
By Sara Horowitz
The opinions expressed are her own.
The national employment figures are an economic bellwether. They profoundly affect U.S. markets, consumer spending, and even the fate of national elections. With so much at stake, you’d think we would be counting the workforce accurately. Unfortunately, we’re not.
The United States treats jobs as something turned on or off—employed or unemployed—but that binary view no longer reflects how Americans really work. Whereas in the middle of the 20th century industrial employees worked one job for one company, today, there are 42 million consultants, independent contractors, entrepreneurs and freelancers working multiple gigs for multiple clients.
Although independent workers were a full one-third of the U.S. workforce at last count (which was 6 years ago), they aren’t counted by the Bureau of Labor Statistics in a consistent and ongoing way...
Full story:
http://blogs.reuters.com/great-debate/2011/06/23/why-our-employment-figures-are-wrong/?rpc=43
Why Does Bernanke Lie to Us? Why Can't He Just Admit What the Problem Is?
Published: Thursday, 23 Jun 2011 | 11:15 AM ET
By: Henry Blodget, Business Insider
Yesterday, in his press conference, Fed Chairman Ben Bernanke said he really doesn't know what the economy's problem is.
Specifically, he said:
“We don’t have a precise read on why this slower pace of growth is persisting.”
That statement is pretty much a lie.
It's not completely a lie, because no one ever has a "precise read" on why the economy is doing anything. But it's a statement that ignores an elephant in the room, one that every open-eyed economist and market observer on the planet appears to be aware of except for Ben Bernanke.
Full story:
http://www.cnbc.com/id/43509918
By: Henry Blodget, Business Insider
Yesterday, in his press conference, Fed Chairman Ben Bernanke said he really doesn't know what the economy's problem is.
Specifically, he said:
“We don’t have a precise read on why this slower pace of growth is persisting.”
That statement is pretty much a lie.
It's not completely a lie, because no one ever has a "precise read" on why the economy is doing anything. But it's a statement that ignores an elephant in the room, one that every open-eyed economist and market observer on the planet appears to be aware of except for Ben Bernanke.
Full story:
http://www.cnbc.com/id/43509918
Layoffs, housing data point to chronic problems
By DEREK KRAVITZ, MARTIN CRUTSINGER
The Associated Press
2011-06-23 T23:29:35
WASHINGTON — Sour reports Thursday on the number of people who sought unemployment benefits and buyers of new homes illustrate what Federal Reserve Chairman Ben Bernanke acknowledged Wednesday: Many factors weighing on the economy are proving to be more chronic than first imagined.
Full story:
http://www.msnbc.msn.com/id/43514294
The Associated Press
2011-06-23 T23:29:35
WASHINGTON — Sour reports Thursday on the number of people who sought unemployment benefits and buyers of new homes illustrate what Federal Reserve Chairman Ben Bernanke acknowledged Wednesday: Many factors weighing on the economy are proving to be more chronic than first imagined.
Full story:
http://www.msnbc.msn.com/id/43514294
Wednesday, June 22, 2011
Some Greeks Fear Government Is Selling Nation
By RACHEL DONADIO and STEVEN ERLANGER
Published: June 22, 2011
ATHENS — They are the crown jewels of Greece’s socialist state, and they are now likely to go to the highest bidder: the ports of Piraeus and Thessaloniki; prime Mediterranean real estate; the national lottery; Greek Telecom; the postal bank and the national railway system.
And then comes the mandated deeper round of austerity measures, which will slash the wages of police officers, firefighters and other state workers who are protesting in Athens, and raise the taxes of citizens already inflamed by a recession-plagued economy and soaring joblessness.
Full story:
http://www.nytimes.com/2011/06/23/world/europe/23greece.html
Published: June 22, 2011
ATHENS — They are the crown jewels of Greece’s socialist state, and they are now likely to go to the highest bidder: the ports of Piraeus and Thessaloniki; prime Mediterranean real estate; the national lottery; Greek Telecom; the postal bank and the national railway system.
And then comes the mandated deeper round of austerity measures, which will slash the wages of police officers, firefighters and other state workers who are protesting in Athens, and raise the taxes of citizens already inflamed by a recession-plagued economy and soaring joblessness.
Full story:
http://www.nytimes.com/2011/06/23/world/europe/23greece.html
Fed cuts growth rate forecast for 2011, 2012
June 22, 2011, 2:00 p.m. EDT
Fed cuts growth rate forecast for 2011, 2012
By Steve Goldstein
WASHINGTON (MarketWatch) -- The Federal Reserve cut its economic growth forecast for the second time this year, reducing its estimate of....
Full story:
http://www.marketwatch.com/story/fed-cuts-growth-rate-forecast-for-2011-2012-2011-06-22
Fed cuts growth rate forecast for 2011, 2012
By Steve Goldstein
WASHINGTON (MarketWatch) -- The Federal Reserve cut its economic growth forecast for the second time this year, reducing its estimate of....
Full story:
http://www.marketwatch.com/story/fed-cuts-growth-rate-forecast-for-2011-2012-2011-06-22
Asia's Rich Outpace Europe as Global Wealth Rebounds
Published: Wednesday, 22 Jun 2011 | 10:31 AM ET
By: Peter Guest
Web Producer, CNBC.com
The number and bank balances of the world's millionaires have rebounded to above pre-crisis levels, but demographic and geographical shifts are changing the face of global wealth, according to a report on high net worth individuals by CapGemini and Merrill Lynch, released Wednesday.
Full story:
http://www.cnbc.com/id/43493466
By: Peter Guest
Web Producer, CNBC.com
The number and bank balances of the world's millionaires have rebounded to above pre-crisis levels, but demographic and geographical shifts are changing the face of global wealth, according to a report on high net worth individuals by CapGemini and Merrill Lynch, released Wednesday.
Full story:
http://www.cnbc.com/id/43493466
CBO: Debt crisis looms absent major policy changes
By ANDREW TAYLOR Associated Press
Posted: 06/22/2011 08:54:22 AM PDT
Updated: 06/22/2011 11:25:28 AM PDT
WASHINGTON—A new report says that the national debt is on pace to equal the annual size of the economy within a decade, levels that could provoke a European-style debt crisis unless policymakers in Washington can slam the brakes on spiraling deficits.
Full story:
http://www.mercurynews.com/news/ci_18329764?nclick_check=1
Posted: 06/22/2011 08:54:22 AM PDT
Updated: 06/22/2011 11:25:28 AM PDT
WASHINGTON—A new report says that the national debt is on pace to equal the annual size of the economy within a decade, levels that could provoke a European-style debt crisis unless policymakers in Washington can slam the brakes on spiraling deficits.
Full story:
http://www.mercurynews.com/news/ci_18329764?nclick_check=1
Fed dims outlook for jobs and growth for 2011
By Martin Crutsinger, Associated Press
WASHINGTON — Federal Reserve officials are more pessimistic about prospects for economic growth and employment than they were two months ago.
Full story:
http://www.usatoday.com/money/economy/2011-06-22-fed-meeting_n.htm
WASHINGTON — Federal Reserve officials are more pessimistic about prospects for economic growth and employment than they were two months ago.
Full story:
http://www.usatoday.com/money/economy/2011-06-22-fed-meeting_n.htm
Tuesday, June 21, 2011
Is China dumping U.S. assets for euros?
CNNMoney
Ben Rooney June 21, 2011: 3:38 PM ET
NEW YORK (CNNMoney) -- America's number one creditor appears to be losing some appetite for U.S. government securities, according to Standard Chartered Bank.
In a report issued Tuesday, the bank argues that the Treasury Department's official system for tracking China's purchases of U.S. debt is 'misleading' because of the way it tracks transactions.
Full story:
http://money.cnn.com/2011/06/21/markets/china_treasuries/
Ben Rooney June 21, 2011: 3:38 PM ET
NEW YORK (CNNMoney) -- America's number one creditor appears to be losing some appetite for U.S. government securities, according to Standard Chartered Bank.
In a report issued Tuesday, the bank argues that the Treasury Department's official system for tracking China's purchases of U.S. debt is 'misleading' because of the way it tracks transactions.
Full story:
http://money.cnn.com/2011/06/21/markets/china_treasuries/
Monday, June 20, 2011
Asian Consumers Needed to Fight 'American Zombies': Roach
Published: Tuesday, 21 Jun 2011 | 12:06 AM ET
Supervising Digital Editor, CNBC Asia
U.S. consumers, hobbled by debt and high unemployment, have been develeraging, a process that will take another 3 to 5 years, Stephen Roach, Morgan Stanley’s non-executive chairman and the author of The Next Asia told CNBC on Tuesday.
According to Roach, American consumers, whose buying habits account for 70 percent of America's gross domestic product (GDP), had effectively become "zombies" after the financial crisis.
"In the last 13 quarters since the first quarter of 2008, consumer spending growth in the United States has grown an average annual rate of 0.5 percent. Never before has the American consumer...been this weak for this long," he said. "So something big is going on post-crisis and that's why I refer to them as the zombie generation."
Full story:
http://ori.cnbc.com/id/43474044
Supervising Digital Editor, CNBC Asia
U.S. consumers, hobbled by debt and high unemployment, have been develeraging, a process that will take another 3 to 5 years, Stephen Roach, Morgan Stanley’s non-executive chairman and the author of The Next Asia told CNBC on Tuesday.
According to Roach, American consumers, whose buying habits account for 70 percent of America's gross domestic product (GDP), had effectively become "zombies" after the financial crisis.
"In the last 13 quarters since the first quarter of 2008, consumer spending growth in the United States has grown an average annual rate of 0.5 percent. Never before has the American consumer...been this weak for this long," he said. "So something big is going on post-crisis and that's why I refer to them as the zombie generation."
Full story:
http://ori.cnbc.com/id/43474044
Obama touts surge in foreign investment
By Jennifer Liberto @CNNMoney June 20, 2011: 2:26 PM ET
WASHINGTON (CNNMoney) -- Foreign companies plowed 49% more money into the U.S. economy in 2010 compared with the prior year, the Obama administration said Monday.
And 90% of that foreign investment came from Canada, Europe and Japan. Less than 1% came from China.
"The United States consistently receives more foreign direct investment than any other country in the world," President Obama said in a statement. "By voting with their balance sheets, businesses from abroad have clearly stated that the United States is one of the best places in the world to invest."
Full story:
http://money.cnn.com/2011/06/20/news/economy/foreign_investment/
WASHINGTON (CNNMoney) -- Foreign companies plowed 49% more money into the U.S. economy in 2010 compared with the prior year, the Obama administration said Monday.
And 90% of that foreign investment came from Canada, Europe and Japan. Less than 1% came from China.
"The United States consistently receives more foreign direct investment than any other country in the world," President Obama said in a statement. "By voting with their balance sheets, businesses from abroad have clearly stated that the United States is one of the best places in the world to invest."
Full story:
http://money.cnn.com/2011/06/20/news/economy/foreign_investment/
Sunday, June 19, 2011
Will the US Economy Rebound in the Second Half?
Published: Sunday, 19 Jun 2011 | 4:01 AM ET
By: CNBC.com
When the Federal Reserve sits down for its meeting on Tuesday and Wednesday, board members are likely to confront a pretty gloomy situation: persistent unemployment, the worst housing market since the Great Depression and worsening consumer sentiment.
Full story:
http://www.cnbc.com/id/43454368
By: CNBC.com
When the Federal Reserve sits down for its meeting on Tuesday and Wednesday, board members are likely to confront a pretty gloomy situation: persistent unemployment, the worst housing market since the Great Depression and worsening consumer sentiment.
Full story:
http://www.cnbc.com/id/43454368
Debt ceiling: Time's running out
Debt ceiling: Time's running out
By Jeanne Sahadi @CNNMoney June 19, 2011: 7:30 PM ET
NEW YORK (CNNMoney) -- So little time. So little clarity. So much at stake.
It's T minus two weeks until July 1. That's the chosen deadline for the small bipartisan group of lawmakers negotiating a debt-reduction "framework" to accompany an increase in the country's debt ceiling.
Even that deadline, however, will make it hard to end the debt ceiling drama by Aug. 2, when the Treasury Department says it will no longer be able to pay all the country's bills in full without being allowed to borrow.
Full story:
http://money.cnn.com/2011/06/19/news/economy/debt_ceiling/index.htm?section=money_latest
By Jeanne Sahadi @CNNMoney June 19, 2011: 7:30 PM ET
NEW YORK (CNNMoney) -- So little time. So little clarity. So much at stake.
It's T minus two weeks until July 1. That's the chosen deadline for the small bipartisan group of lawmakers negotiating a debt-reduction "framework" to accompany an increase in the country's debt ceiling.
Even that deadline, however, will make it hard to end the debt ceiling drama by Aug. 2, when the Treasury Department says it will no longer be able to pay all the country's bills in full without being allowed to borrow.
Full story:
http://money.cnn.com/2011/06/19/news/economy/debt_ceiling/index.htm?section=money_latest
Saturday, June 18, 2011
Goldman Cuts GDP View to 2% as Economy Weakens
Published: Friday, 17 Jun 2011 | 8:14 PM ET Text Size
By: Jeff Cox
CNBC.com Staff Writer
Faced with the bruising headwinds of high unemployment, weak manufacturing and an otherwise listless economy, Goldman Sachs has slashed its forecast for gross domestic product.
The firm cut its second-quarter GDP outlook to 2 percent from 3 percent, a stunning blow for an economy expected to be well on the path to recovery following the financial crisis of 2008 and 2009.
Full story:
http://www.cnbc.com/id/43447127
By: Jeff Cox
CNBC.com Staff Writer
Faced with the bruising headwinds of high unemployment, weak manufacturing and an otherwise listless economy, Goldman Sachs has slashed its forecast for gross domestic product.
The firm cut its second-quarter GDP outlook to 2 percent from 3 percent, a stunning blow for an economy expected to be well on the path to recovery following the financial crisis of 2008 and 2009.
Full story:
http://www.cnbc.com/id/43447127
Friday, June 17, 2011
IMF trims U.S. economic outlook
CNNMoney
By Ben Rooney @CNNMoney June 17, 2011: 10:00 AM ET
NEW YORK (CNNMoney) -- The International Monetary Fund on Friday lowered its forecast for U.S. economic growth, and warned that risks to the global recovery have increased.
In the latest update to its World Economic Outlook, the IMF said it expects the U.S. economy to expand at an annual rate of 2.5% this year and 2.7% in 2012. That's down from projected growth rates in April of 2.8% and 2.9%.
The U.S. government said last month that the economy grew at an annual rate of 1.8% in the first quarter of 2011, down sharply from 3.1% in the final three months of 2010.
Full story:
http://money.cnn.com/2011/06/17/news/economy/imf_outlook_us_economy/
By Ben Rooney @CNNMoney June 17, 2011: 10:00 AM ET
NEW YORK (CNNMoney) -- The International Monetary Fund on Friday lowered its forecast for U.S. economic growth, and warned that risks to the global recovery have increased.
In the latest update to its World Economic Outlook, the IMF said it expects the U.S. economy to expand at an annual rate of 2.5% this year and 2.7% in 2012. That's down from projected growth rates in April of 2.8% and 2.9%.
The U.S. government said last month that the economy grew at an annual rate of 1.8% in the first quarter of 2011, down sharply from 3.1% in the final three months of 2010.
Full story:
http://money.cnn.com/2011/06/17/news/economy/imf_outlook_us_economy/
California employers drop 29,200 jobs in May
By Alana Semuels, Los Angeles Times
June 17, 2011, 11:09 a.m.
California's employers halted hiring in May, shedding 29,200 jobs from payrolls in yet another worrying sign that the nation's economic recovery is foundering.
Full story:
http://www.latimes.com/business/la-fi-california-jobs-20110618,0,4509354.story
June 17, 2011, 11:09 a.m.
California's employers halted hiring in May, shedding 29,200 jobs from payrolls in yet another worrying sign that the nation's economic recovery is foundering.
Full story:
http://www.latimes.com/business/la-fi-california-jobs-20110618,0,4509354.story
Made in USA: Some overseas jobs come home
By Chris Isidore @CNNMoney June 17, 2011: 5:34 AM ET
NEW YORK (CNNMoney) -- It's still only a trickle compared to the flood of jobs that America lost to overseas outsourcing in recent decades. But some American businesses are bringing jobs home again.
In Louisville, a closed General Electric (GE, Fortune 500) appliance plant is being renovated to begin producing refrigerators and water heaters now being made overseas. Hiring of about 1,300 union-represented workers is due to begin this fall.
Full story:
http://money.cnn.com/2011/06/17/news/economy/made_in_usa/index.htm?source=yahoo_quote
NEW YORK (CNNMoney) -- It's still only a trickle compared to the flood of jobs that America lost to overseas outsourcing in recent decades. But some American businesses are bringing jobs home again.
In Louisville, a closed General Electric (GE, Fortune 500) appliance plant is being renovated to begin producing refrigerators and water heaters now being made overseas. Hiring of about 1,300 union-represented workers is due to begin this fall.
Full story:
http://money.cnn.com/2011/06/17/news/economy/made_in_usa/index.htm?source=yahoo_quote
Leading economic index rises 0.8 percent in May
WASHINGTON | Fri Jun 17, 2011 10:05am EDT
WASHINGTON (Reuters) - A key gauge of future U.S. economic activity rose more than expected in May to a record high, but high gasoline prices and a weak housing market will see growth remaining moderate.
Full story:
http://www.reuters.com/article/2011/06/17/us-usa-economy-index-idUSTRE75G39N20110617
WASHINGTON (Reuters) - A key gauge of future U.S. economic activity rose more than expected in May to a record high, but high gasoline prices and a weak housing market will see growth remaining moderate.
Full story:
http://www.reuters.com/article/2011/06/17/us-usa-economy-index-idUSTRE75G39N20110617
Wednesday, June 15, 2011
Government Must Act Now to Avoid Fiscal Crisis: Fund Manager
"Much of the 'earning power that you are witnessing is coming from overseas, and secondly in the financial sector the reduction of loan loss reserves'"
Published: Wednesday, 15 Jun 2011 | 1:53 PM ET
By: Gennine Kelly
Web Producer, CNBC
Time is running out for the United States' fiscal problems to be fixed, said Robert Rodriguez, one of the mutual fund managers who correctly predicted the last two stock market crashes.
Congress and the U.S. presidents over the last decade "have been totally irresponsible in their spending," the principal and CEO of the $16 billion money management firm First Pacific Advisors told CNBC Wednesday.
Full story:
http://www.cnbc.com/id/43409151
Published: Wednesday, 15 Jun 2011 | 1:53 PM ET
By: Gennine Kelly
Web Producer, CNBC
Time is running out for the United States' fiscal problems to be fixed, said Robert Rodriguez, one of the mutual fund managers who correctly predicted the last two stock market crashes.
Congress and the U.S. presidents over the last decade "have been totally irresponsible in their spending," the principal and CEO of the $16 billion money management firm First Pacific Advisors told CNBC Wednesday.
Full story:
http://www.cnbc.com/id/43409151
US Housing Crisis Is Now Worse Than Great Depression
Tuesday, 14 Jun 2011 | 12:04 PM ET
By: Jeff Cox
CNBC.com Staff Writer
It's official: The housing crisis that began in 2006 and has recently entered a double dip is now worse than the Great Depression.
Prices have fallen some 33 percent since the market began its collapse, greater than the 31 percent fall that began in the late 1920s and culminated in the early 1930s, according to Case-Shiller data.
The news comes as the Federal Reserve considers whether the economy has regained enough strength to stand on its own and as unemployment remains at a still-elevated 9.1 percent, throwing into question whether the recovery is real.
Full story:
http://www.cnbc.com/id/43395857
By: Jeff Cox
CNBC.com Staff Writer
It's official: The housing crisis that began in 2006 and has recently entered a double dip is now worse than the Great Depression.
Prices have fallen some 33 percent since the market began its collapse, greater than the 31 percent fall that began in the late 1920s and culminated in the early 1930s, according to Case-Shiller data.
The news comes as the Federal Reserve considers whether the economy has regained enough strength to stand on its own and as unemployment remains at a still-elevated 9.1 percent, throwing into question whether the recovery is real.
Full story:
http://www.cnbc.com/id/43395857
IPOs Boost Demand for Silicon Valley Homes
Bloomberg
By Dan Levy - Jun 15, 2011 3:52 PM PT
A surge in wealth from technology stock sales and initial public offerings is spilling into the Silicon Valley real estate market as newly rich workers bid up home values in suburban cities south of San Francisco.
The median price of single-family houses sold in Palo Alto, home of Facebook Inc., climbed 20 percent in May from a year earlier to $1.63 million, the biggest jump since 2008, according to preliminary figures from research company DataQuick. In Mountain View, the base of LinkedIn Corp., prices rose 3.1 percent to $957,500, the ninth year-over-year gain in 12 months.
Full story:
http://www.bloomberg.com/news/2011-06-15/tech-ipos-boost-demand-for-silicon-valley-million-dollar-homes.html?cmpid=yhoo
By Dan Levy - Jun 15, 2011 3:52 PM PT
A surge in wealth from technology stock sales and initial public offerings is spilling into the Silicon Valley real estate market as newly rich workers bid up home values in suburban cities south of San Francisco.
The median price of single-family houses sold in Palo Alto, home of Facebook Inc., climbed 20 percent in May from a year earlier to $1.63 million, the biggest jump since 2008, according to preliminary figures from research company DataQuick. In Mountain View, the base of LinkedIn Corp., prices rose 3.1 percent to $957,500, the ninth year-over-year gain in 12 months.
Full story:
http://www.bloomberg.com/news/2011-06-15/tech-ipos-boost-demand-for-silicon-valley-million-dollar-homes.html?cmpid=yhoo
More small businesses plan to reduce jobs: report
CNNMoney
Aaron Smith, On Wednesday June 15, 2011, 9:11 am EDT
Small business owners have a grim outlook on the economy, with a gathering number planning to reduce jobs over the next three months, according to survey results from an industry group.
Full story:
http://finance.yahoo.com/news/More-small-businesses-plan-to-cnnm-1752326150.html;_ylt=AndQTXSRvwolW5BYFFEETK24ba9_;_ylu=X3oDMTFlYjNobG44BHBvcwMxOQRzZWMDbmV3c0h1YkFydGljbGVMaXN0BHNsawNtb3Jlc21hbGxidXM-?x=0
Aaron Smith, On Wednesday June 15, 2011, 9:11 am EDT
Small business owners have a grim outlook on the economy, with a gathering number planning to reduce jobs over the next three months, according to survey results from an industry group.
Full story:
http://finance.yahoo.com/news/More-small-businesses-plan-to-cnnm-1752326150.html;_ylt=AndQTXSRvwolW5BYFFEETK24ba9_;_ylu=X3oDMTFlYjNobG44BHBvcwMxOQRzZWMDbmV3c0h1YkFydGljbGVMaXN0BHNsawNtb3Jlc21hbGxidXM-?x=0
Tuesday, June 14, 2011
Survey: CEOs expect hiring, spending to grow
By TALI ARBEL, AP Business Writer
Associated Press June 14, 2011 07:41 AM
(06-14) 07:41 PDT New York (AP)
More than half of the chief executives of large U.S. companies said they expect to spend and hire more over the next six months despite slower economic growth.
The Business Roundtable said Tuesday that 51 percent of CEOs polled expect to increase hiring. Last quarter's level of 52 percent had been the highest since the trade group began surveying its members in 2002.
The survey began in mid-May and ended on June 3, the day the government released a May jobs report, which showed a steep pullback in hiring by employers. The unemployment rate rose to 9.1 percent.
Full story:
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2011/06/14/national/a063453D95.DTL
Associated Press June 14, 2011 07:41 AM
(06-14) 07:41 PDT New York (AP)
More than half of the chief executives of large U.S. companies said they expect to spend and hire more over the next six months despite slower economic growth.
The Business Roundtable said Tuesday that 51 percent of CEOs polled expect to increase hiring. Last quarter's level of 52 percent had been the highest since the trade group began surveying its members in 2002.
The survey began in mid-May and ended on June 3, the day the government released a May jobs report, which showed a steep pullback in hiring by employers. The unemployment rate rose to 9.1 percent.
Full story:
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2011/06/14/national/a063453D95.DTL
Reports point to lower food prices, more hiring
In welcome set of good economic reports, wholesale food prices fall and CEOs seem more hopeful
Christopher S. Rugaber and Martin Crutsinger, AP Economics Writers, On Tuesday June 14, 2011, 5:45 pm EDT
WASHINGTON (AP) -- Americans are finally getting some relief from high gas and food prices.
Wholesale food prices fell last month by the most in nearly a year, and gas prices keep dropping after peaking in May. A separate survey suggests CEOs are feeling more optimistic and will hire more in the second half of this year.
It amounted to welcome news Tuesday after a rough patch that has stoked worries the economic recovery is slowing. More jobs and lower prices would both give Americans more money to spend on other things and rejuvenate economic growth.
Full story:
http://finance.yahoo.com/news/Reports-point-to-lower-food-apf-4165456857.html?x=0&sec=topStories&pos=main&asset=&ccode=
Christopher S. Rugaber and Martin Crutsinger, AP Economics Writers, On Tuesday June 14, 2011, 5:45 pm EDT
WASHINGTON (AP) -- Americans are finally getting some relief from high gas and food prices.
Wholesale food prices fell last month by the most in nearly a year, and gas prices keep dropping after peaking in May. A separate survey suggests CEOs are feeling more optimistic and will hire more in the second half of this year.
It amounted to welcome news Tuesday after a rough patch that has stoked worries the economic recovery is slowing. More jobs and lower prices would both give Americans more money to spend on other things and rejuvenate economic growth.
Full story:
http://finance.yahoo.com/news/Reports-point-to-lower-food-apf-4165456857.html?x=0&sec=topStories&pos=main&asset=&ccode=
Monday, June 13, 2011
NYSE Must Be Purchased to Compete With Hong Kong, Brazil, Leibowitz Says
By Jeff Bliss - Jun 13, 2011 3:54 PM PT
Bloomberg
NYSE Euronext Chief Operating Officer Larry Leibowitz told Congress his company must be taken over by Deutsche Boerse AG to keep up with bourses that focus on derivatives and emerging markets.
NYSE Euronext (NYX), owner of the New York Stock Exchange and NYSE Liffe derivatives venue, has a market capitalization of $9.07 billion, in fifth place worldwide, according to data compiled by Bloomberg. Hong Kong Exchanges & Clearing Ltd. is in first place at $23 billion, followed by Chicago-based CME Group Inc. (CME) at $18.2 billion, Frankfurt-based Deutsche Boerse at $14.9 billion and Sao Paulo-based BM&Fbovespa SA (BVMF3) at $14.4 billion.
Full story:
http://www.bloomberg.com/news/2011-06-13/nyse-euronext-deal-necessary-to-compete-globally-leibowitz-tells-congress.html?cmpid=yhoo
Bloomberg
NYSE Euronext Chief Operating Officer Larry Leibowitz told Congress his company must be taken over by Deutsche Boerse AG to keep up with bourses that focus on derivatives and emerging markets.
NYSE Euronext (NYX), owner of the New York Stock Exchange and NYSE Liffe derivatives venue, has a market capitalization of $9.07 billion, in fifth place worldwide, according to data compiled by Bloomberg. Hong Kong Exchanges & Clearing Ltd. is in first place at $23 billion, followed by Chicago-based CME Group Inc. (CME) at $18.2 billion, Frankfurt-based Deutsche Boerse at $14.9 billion and Sao Paulo-based BM&Fbovespa SA (BVMF3) at $14.4 billion.
Full story:
http://www.bloomberg.com/news/2011-06-13/nyse-euronext-deal-necessary-to-compete-globally-leibowitz-tells-congress.html?cmpid=yhoo
America Can’t Escape China’s Inflation
Published: Monday, 13 Jun 2011 | 7:44 PM ET Text Size By: Shaun Rein, CNBC Contributor
Founder & Managing Director, China Market Research Group
Federal Reserve chief Ben Bernanke is not worried about inflation in America, but investors should be concerned about the threat of something far more ominous - stagflation, when inflation soars but economic growth stagnates.
Despite record profits on Wall Street, the danger of a double dip recession hitting America remains real as unemployment hovers above 9 percent. Although inflation has not come to America’s shores yet, it might soon because of raging inflation in its second largest trading partner, China, which is causing companies to increase the prices of goods shipped to America.
Full story:
http://www.cnbc.com/id/43375015?__source=yahoo%7Cheadline%7Cquote%7Ctext%7C&par=yahoo
Founder & Managing Director, China Market Research Group
Federal Reserve chief Ben Bernanke is not worried about inflation in America, but investors should be concerned about the threat of something far more ominous - stagflation, when inflation soars but economic growth stagnates.
Despite record profits on Wall Street, the danger of a double dip recession hitting America remains real as unemployment hovers above 9 percent. Although inflation has not come to America’s shores yet, it might soon because of raging inflation in its second largest trading partner, China, which is causing companies to increase the prices of goods shipped to America.
Full story:
http://www.cnbc.com/id/43375015?__source=yahoo%7Cheadline%7Cquote%7Ctext%7C&par=yahoo
Economists warn against more Fed action
Economists in AP survey say time, not more action by the Fed, is best prescription
Paul Wiseman, AP Economics Writer, On Monday June 13, 2011, 3:00 pm EDT
WASHINGTON (AP) -- The best cure for the economy now is time.
That's the overwhelming opinion of leading economists in a new Associated Press survey. They say the Federal Reserve shouldn't bother trying to stimulate the economy -- and could actually do damage if it did.
The economists are lowering their forecasts for job creation and economic growth for the rest of this year, mainly because of high oil prices. A batch of bleak data over the past month has suggested that the 2-year-old economic recovery is slowing.
Full story:
http://finance.yahoo.com/news/AP-survey-Economists-warn-apf-2754962802.html?x=0&sec=topStories&pos=9&asset=&ccode=
Paul Wiseman, AP Economics Writer, On Monday June 13, 2011, 3:00 pm EDT
WASHINGTON (AP) -- The best cure for the economy now is time.
That's the overwhelming opinion of leading economists in a new Associated Press survey. They say the Federal Reserve shouldn't bother trying to stimulate the economy -- and could actually do damage if it did.
The economists are lowering their forecasts for job creation and economic growth for the rest of this year, mainly because of high oil prices. A batch of bleak data over the past month has suggested that the 2-year-old economic recovery is slowing.
Full story:
http://finance.yahoo.com/news/AP-survey-Economists-warn-apf-2754962802.html?x=0&sec=topStories&pos=9&asset=&ccode=
Friday, June 10, 2011
Most 2011 stock market gains are gone
The Dow Jones industrial average slips below 12,000 for the first time since March. Negative reports on manufacturing, real estate prices and unemployment as well as other economic benchmarks have led to six consecutive weeks of falling share prices.
By Nathaniel Popper, Los Angeles Times
June 10, 2011, 6:33 p.m.
Reporting from New York—
So much for those stock market gains that were fattening up portfolios not so long ago.
Disappointing economic news drove stocks down again Friday, sending the Dow Jones industrial average below 12,000 for the first time since March 18.
Most of the profits U.S. stock investors have seen since the beginning of the year have been wiped out after six straight weeks of falling share prices.
Full story:
http://www.latimes.com/business/la-fi-markets-20110611,0,840254.story
By Nathaniel Popper, Los Angeles Times
June 10, 2011, 6:33 p.m.
Reporting from New York—
So much for those stock market gains that were fattening up portfolios not so long ago.
Disappointing economic news drove stocks down again Friday, sending the Dow Jones industrial average below 12,000 for the first time since March 18.
Most of the profits U.S. stock investors have seen since the beginning of the year have been wiped out after six straight weeks of falling share prices.
Full story:
http://www.latimes.com/business/la-fi-markets-20110611,0,840254.story
Recession risk small, but growing: CNNMoney economc survey
Chris Isidore @CNNMoney June 10, 2011: 4:03 PM ET
NEW YORK (CNNMoney) -- Experts worry that the risk of falling into another recession has increased, according to a CNNMoney economic survey.
To be sure, economists still place long odds on that worst case scenario. But the odds are a lot less long than they were just a little while ago.
Full story:
http://money.cnn.com/2011/06/10/news/economy/recession_economic_survey/?section=money_latest
NEW YORK (CNNMoney) -- Experts worry that the risk of falling into another recession has increased, according to a CNNMoney economic survey.
To be sure, economists still place long odds on that worst case scenario. But the odds are a lot less long than they were just a little while ago.
Full story:
http://money.cnn.com/2011/06/10/news/economy/recession_economic_survey/?section=money_latest
Thursday, June 9, 2011
Home prices may drop another 25%, Shiller predicts
Thursday, June 9, 2011
BY KATHLEEN LYNN
STAFF WRITER
The Record
Home prices may drop as much as 25 percent, after inflation, over the next five years, economist Robert Shiller, co-founder of the Standard & Poor's/Case-Shiller home price index, said Thursday.
"A 10 to 25 percent further decline in real home prices over the next five years would not surprise me at all," Shiller said at a Standard & Poor's housing summit in New York.
Shiller, a Yale professor, said it's possible that the market will follow the grim path seen in Japan after a 1980s housing bubble. Property values there declined every year for about 15 years, dropping by two-thirds overall, he said.
Continue reading:
http://www.northjersey.com/realestate/123577409_Home_prices_may_drop_another_25___Shiller_predicts.html
BY KATHLEEN LYNN
STAFF WRITER
The Record
Home prices may drop as much as 25 percent, after inflation, over the next five years, economist Robert Shiller, co-founder of the Standard & Poor's/Case-Shiller home price index, said Thursday.
"A 10 to 25 percent further decline in real home prices over the next five years would not surprise me at all," Shiller said at a Standard & Poor's housing summit in New York.
Shiller, a Yale professor, said it's possible that the market will follow the grim path seen in Japan after a 1980s housing bubble. Property values there declined every year for about 15 years, dropping by two-thirds overall, he said.
Continue reading:
http://www.northjersey.com/realestate/123577409_Home_prices_may_drop_another_25___Shiller_predicts.html
Wednesday, June 8, 2011
U.S. recovery, rest in peace
By Colin Barr
CNNMoney
June 8, 2011: 11:28 AM ET
The recovery is over.
So says UCLA economist Ed Leamer. He notes that May brought the first year-over-year decline in the Pulse of Commerce Index of domestic diesel fuel use since the end of 2009 – the latest yellow flag to be raised over the sputtering U.S. economy.
The index, which indirectly tracks industrial production via trucking mileage, has now declined in four of the five months this year and in eight of the past 12. The weak showing doesn't say a recession is at hand, but it means the economy has stopped closing the gap between its actual output and its pre-recession potential growth trend, Leamer says.
Continue reading:
http://finance.fortune.cnn.com/2011/06/08/u-s-recovery-rest-in-peace/?iid=HP_River
CNNMoney
June 8, 2011: 11:28 AM ET
The recovery is over.
So says UCLA economist Ed Leamer. He notes that May brought the first year-over-year decline in the Pulse of Commerce Index of domestic diesel fuel use since the end of 2009 – the latest yellow flag to be raised over the sputtering U.S. economy.
The index, which indirectly tracks industrial production via trucking mileage, has now declined in four of the five months this year and in eight of the past 12. The weak showing doesn't say a recession is at hand, but it means the economy has stopped closing the gap between its actual output and its pre-recession potential growth trend, Leamer says.
Continue reading:
http://finance.fortune.cnn.com/2011/06/08/u-s-recovery-rest-in-peace/?iid=HP_River
Lost decade: Debt fuels slow economic growth, unemployment
Chris Isidore, CNNMoney
Wednesday June 8, 2011, 10:10 am EDT
The economy is still struggling. And Americans are in for a long and painful adjustment period.
One major reason: their own household debt.
Many experts say private debt owed by households, as well as businesses, is an even bigger problem than the government debt that's getting so much attention lately. And it won't be solved without a difficult stretch of high unemployment and slow growth that will likely last for six or seven more years, producing America's own version of Japan's "Lost Decade."
Continue reading:
http://finance.yahoo.com/news/Lost-decade-Debt-fuels-slow-cnnm-3856912071.html?x=0
Wednesday June 8, 2011, 10:10 am EDT
The economy is still struggling. And Americans are in for a long and painful adjustment period.
One major reason: their own household debt.
Many experts say private debt owed by households, as well as businesses, is an even bigger problem than the government debt that's getting so much attention lately. And it won't be solved without a difficult stretch of high unemployment and slow growth that will likely last for six or seven more years, producing America's own version of Japan's "Lost Decade."
Continue reading:
http://finance.yahoo.com/news/Lost-decade-Debt-fuels-slow-cnnm-3856912071.html?x=0
The Economy Is Worse Than You Think - Expect more bad news...
Expect more bad news until someone enacts a plan to bring deficits under control without raising taxes.
By MARTIN FELDSTEIN, Wall Street Journa
The policies of the Obama administration have led to the weak condition of the American economy. Growth during the coming year will be subpar at best, leaving high or rising levels of unemployment and underemployment.
The drop in GDP growth to just 1.8% in the first quarter of 2011, from 3.1% in the final quarter of last year, understates the extent of the decline. Two-thirds of that 1.8% went into business inventories rather than sales to consumers or other final buyers. This means that final sales growth was at an annual rate of just 0.6% and the actual quarterly increase was just 0.15%—dangerously close to no rise at all. A sustained expansion cannot be built on inventory investment. It takes final sales to induce businesses to hire and to invest.
Continue:
http://online.wsj.com/article/SB10001424052702303657404576363984173620692.html?mod=googlenews_wsj
By MARTIN FELDSTEIN, Wall Street Journa
The policies of the Obama administration have led to the weak condition of the American economy. Growth during the coming year will be subpar at best, leaving high or rising levels of unemployment and underemployment.
The drop in GDP growth to just 1.8% in the first quarter of 2011, from 3.1% in the final quarter of last year, understates the extent of the decline. Two-thirds of that 1.8% went into business inventories rather than sales to consumers or other final buyers. This means that final sales growth was at an annual rate of just 0.6% and the actual quarterly increase was just 0.15%—dangerously close to no rise at all. A sustained expansion cannot be built on inventory investment. It takes final sales to induce businesses to hire and to invest.
Continue:
http://online.wsj.com/article/SB10001424052702303657404576363984173620692.html?mod=googlenews_wsj
Fed survey: Economy falters in several US regions
Fed survey: Economy falters because of slower manufacturing and weaker consumer spending
Christopher S. Rugaber, AP Economics Writer, On Wednesday June 8, 2011, 6:25 pm EDT
WASHINGTON (AP) -- For the first time this year, the economy has slowed in several U.S. regions, burdened by high gas prices that have weakened consumer spending and crises in Japan that reduced manufacturing output.
All 12 of the Federal Reserve's bank regions grew this spring. But four regions endured slower growth in April and May compared with earlier this year, a Fed survey released Wednesday showed.
It was the weakest survey since fall, when two regions failed to grow at all. And it confirmed a slew of recent data that portray a national economy whose growth has faltered. Hiring has slowed, orders to factories have declined and home prices have fallen.
Full story:
http://finance.yahoo.com/news/Fed-survey-Economy-falters-in-apf-1245068985.html?x=0&sec=topStories&pos=7&asset=&ccode=
Christopher S. Rugaber, AP Economics Writer, On Wednesday June 8, 2011, 6:25 pm EDT
WASHINGTON (AP) -- For the first time this year, the economy has slowed in several U.S. regions, burdened by high gas prices that have weakened consumer spending and crises in Japan that reduced manufacturing output.
All 12 of the Federal Reserve's bank regions grew this spring. But four regions endured slower growth in April and May compared with earlier this year, a Fed survey released Wednesday showed.
It was the weakest survey since fall, when two regions failed to grow at all. And it confirmed a slew of recent data that portray a national economy whose growth has faltered. Hiring has slowed, orders to factories have declined and home prices have fallen.
Full story:
http://finance.yahoo.com/news/Fed-survey-Economy-falters-in-apf-1245068985.html?x=0&sec=topStories&pos=7&asset=&ccode=
Tuesday, June 7, 2011
Obama dismisses 'double-dip' recession threat
by Stephen Collinson Stephen Collinson – Tue Jun 7, 1:28 pm ET
WASHINGTON (AFP) – US President Barack Obama Tuesday dismissed fears of a plunge into a "double-dip" recession and warned against "panic" over dismal economic data that is beginning to cloud his reelection hopes.
In a news conference with German Chancellor Angela Merkel, Obama responded to signs the recovery may be slowing and sought to assure "skittish and nervous" investors and voters that better times lay ahead.
"I am not concerned about a double-dip recession," Obama said, empathizing with people who were frustrated that growth had not been unleashed more quickly.
"I'm concerned that the recovery we're on is not producing jobs as quickly as I wanted to happen," he said, adding there was "enormous work to do" to strengthen the recovery after the worst recession in decades.
As Republicans fire up their race for the party White House nomination and lambast Obama's economic policies as a failure, the president recalled that the world came close to a "complete disaster" back in 2009-2010.
Full story:
http://news.yahoo.com/s/afp/20110607/ts_alt_afp/useconomypoliticsobama_20110607172835
WASHINGTON (AFP) – US President Barack Obama Tuesday dismissed fears of a plunge into a "double-dip" recession and warned against "panic" over dismal economic data that is beginning to cloud his reelection hopes.
In a news conference with German Chancellor Angela Merkel, Obama responded to signs the recovery may be slowing and sought to assure "skittish and nervous" investors and voters that better times lay ahead.
"I am not concerned about a double-dip recession," Obama said, empathizing with people who were frustrated that growth had not been unleashed more quickly.
"I'm concerned that the recovery we're on is not producing jobs as quickly as I wanted to happen," he said, adding there was "enormous work to do" to strengthen the recovery after the worst recession in decades.
As Republicans fire up their race for the party White House nomination and lambast Obama's economic policies as a failure, the president recalled that the world came close to a "complete disaster" back in 2009-2010.
Full story:
http://news.yahoo.com/s/afp/20110607/ts_alt_afp/useconomypoliticsobama_20110607172835
Bernanke sees stronger growth in second half of year
Federal Reserve Chairman Ben Bernanke notes that the job market and economy have weakened in recent weeks, but he predicts that growth will strengthen later this year.
Associated Press
June 7, 2011, 3:06 p.m.
Washington—
Federal Reserve Chairman Ben S. Bernanke noted Tuesday that the U.S. job market and the economy have weakened in recent weeks. But he said that was mainly because of higher gas prices and the Japan crises — factors that should ease in coming months — and predicted that growth would strengthen later this year.
Bernanke made no mention of any new steps the Fed might take to boost the economy. The Fed's $600-billion Treasury bond-buying program is ending this month. The program was intended to keep interest rates low to strengthen the economy, but critics said it raised the risk of high inflation.
Full story:
http://www.latimes.com/business/la-fi-bernanke-20110607,0,5032285.story
Associated Press
June 7, 2011, 3:06 p.m.
Washington—
Federal Reserve Chairman Ben S. Bernanke noted Tuesday that the U.S. job market and the economy have weakened in recent weeks. But he said that was mainly because of higher gas prices and the Japan crises — factors that should ease in coming months — and predicted that growth would strengthen later this year.
Bernanke made no mention of any new steps the Fed might take to boost the economy. The Fed's $600-billion Treasury bond-buying program is ending this month. The program was intended to keep interest rates low to strengthen the economy, but critics said it raised the risk of high inflation.
Full story:
http://www.latimes.com/business/la-fi-bernanke-20110607,0,5032285.story
Monday, June 6, 2011
Mazda to End Assembly of Sedans in Michigan Venture Plant Owned With Ford
By Alan Ohnsman and Craig Trudell - Jun 6, 2011 1:44 PM PT .
Mazda Motor Corp. (7261) plans to stop making sedans at a Michigan plant shared with Ford Motor Co. (F) since 1992 as part of efforts to improve efficiency.
Production of the next-generation Mazda6 sedan will be moved to Hofu, Japan, from the AutoAlliance International factory, or AAI, in Flat Rock, Michigan, Mazda said today in a statement. The company didn’t say when the change takes effect.
“The decision was made after carefully assessing all risks and opportunities, including global needs, changing demand in North America and exchange-rate exposure,” Chief Executive Officer Takashi Yamanouchi said in the statement. “We are committed to working with Ford, our joint venture partner in AAI, to identify potential future opportunities for the plant.”
Full story:
http://www.bloomberg.com/news/2011-06-06/mazda-to-end-assembly-of-sedans-in-michigan-venture-plant-owned-with-ford.html
Mazda Motor Corp. (7261) plans to stop making sedans at a Michigan plant shared with Ford Motor Co. (F) since 1992 as part of efforts to improve efficiency.
Production of the next-generation Mazda6 sedan will be moved to Hofu, Japan, from the AutoAlliance International factory, or AAI, in Flat Rock, Michigan, Mazda said today in a statement. The company didn’t say when the change takes effect.
“The decision was made after carefully assessing all risks and opportunities, including global needs, changing demand in North America and exchange-rate exposure,” Chief Executive Officer Takashi Yamanouchi said in the statement. “We are committed to working with Ford, our joint venture partner in AAI, to identify potential future opportunities for the plant.”
Full story:
http://www.bloomberg.com/news/2011-06-06/mazda-to-end-assembly-of-sedans-in-michigan-venture-plant-owned-with-ford.html
Sunday, June 5, 2011
U.S. economy is being suffocated by uncertainty
Posted on Sat, Jun. 04, 2011 10:15 PM
COMMENTARY
By E. THOMAS McCLANAHAN
The Kansas City Star
The economic recovery is two years old this month. Isn’t that reassuring? I didn’t think so. As recoveries go, this one is as blah as it gets. Judging by the most recent indicators, we may be headed for a double dip, or perhaps a period of flatlining that feels just as bad.
Job growth is sluggish and unemployment is again on the rise. In the first three months of this year, the economy slowed substantially, from a 3.1 percent pace at the end of 2010 to a growth rate of only 1.8 percent.
Consumer spending is lackluster, thanks to stagnant wages and high fuel prices. Confidence remains low — and it took another hit last week: Americans learned that the value of their homes — for many, their largest investment — once again sagged.
Why is this economy taking so long to get moving? I can point to two reasons. One, this recovery is getting no help from housing, which is typically the sector that perks up first as interest rates fall when the economy slows.
But the bigger factor is an extraordinarily high level of economic uncertainty, for which the Obama administration deserves the major share of blame.
The mood was captured in a recent column by Yale law prof Stephen Carter.
Read more:
http://www.kansascity.com/2011/06/04/2926820/us-economy-is-being-suffocated.html#ixzz1OTNKzYO0
COMMENTARY
By E. THOMAS McCLANAHAN
The Kansas City Star
The economic recovery is two years old this month. Isn’t that reassuring? I didn’t think so. As recoveries go, this one is as blah as it gets. Judging by the most recent indicators, we may be headed for a double dip, or perhaps a period of flatlining that feels just as bad.
Job growth is sluggish and unemployment is again on the rise. In the first three months of this year, the economy slowed substantially, from a 3.1 percent pace at the end of 2010 to a growth rate of only 1.8 percent.
Consumer spending is lackluster, thanks to stagnant wages and high fuel prices. Confidence remains low — and it took another hit last week: Americans learned that the value of their homes — for many, their largest investment — once again sagged.
Why is this economy taking so long to get moving? I can point to two reasons. One, this recovery is getting no help from housing, which is typically the sector that perks up first as interest rates fall when the economy slows.
But the bigger factor is an extraordinarily high level of economic uncertainty, for which the Obama administration deserves the major share of blame.
The mood was captured in a recent column by Yale law prof Stephen Carter.
Read more:
http://www.kansascity.com/2011/06/04/2926820/us-economy-is-being-suffocated.html#ixzz1OTNKzYO0
State, local layoffs to hit record levels
By Tami Luhby @CNNMoney June 5, 2011: 8:58 PM ET
NEW YORK (CNNMoney) -- Don't look to state and local governments to prop up the job market.
To the contrary, this cash-strapped sector is set to go on a record-breaking layoff binge when the new fiscal year starts on July 1.
State and local governments are forecast to shed up to 110,000 jobs in the third quarter, the first time the blood-letting has risen into the triple digits, according to IHS Global Insight.
"We're on a downward path," said Greg Daco, principal U.S. economist at IHS. "It's not looking good."
State and local government employment has been a drag on the economy all year, averaging a loss of 23,000 jobs a month over the past three months. Meanwhile, the private sector has created an average of 180,000 a month during the same period.
In May, public employment shrunk by 29,000 jobs, mostly at the state and local level, while businesses created 83,000 jobs, the Labor Department reported Friday. All told, the sector has lost 510,000 positions since its peak in August 2008.
Full story:
http://money.cnn.com/2011/06/05/news/economy/state_local_layoffs/?section=money_latest
NEW YORK (CNNMoney) -- Don't look to state and local governments to prop up the job market.
To the contrary, this cash-strapped sector is set to go on a record-breaking layoff binge when the new fiscal year starts on July 1.
State and local governments are forecast to shed up to 110,000 jobs in the third quarter, the first time the blood-letting has risen into the triple digits, according to IHS Global Insight.
"We're on a downward path," said Greg Daco, principal U.S. economist at IHS. "It's not looking good."
State and local government employment has been a drag on the economy all year, averaging a loss of 23,000 jobs a month over the past three months. Meanwhile, the private sector has created an average of 180,000 a month during the same period.
In May, public employment shrunk by 29,000 jobs, mostly at the state and local level, while businesses created 83,000 jobs, the Labor Department reported Friday. All told, the sector has lost 510,000 positions since its peak in August 2008.
Full story:
http://money.cnn.com/2011/06/05/news/economy/state_local_layoffs/?section=money_latest
Don't count on stimulus. It's not coming -- Economic stimulus runs dry
By Charles Riley @CNNMoney June 5, 2011: 8:19 PM ET
NEW YORK (CNNMoney) -- Congress will not be riding to the rescue.
Economic indicators are pointing to slower growth. More Americans are looking for jobs, and the housing market is in a confirmed double dip.
In another time and place, lawmakers have might responded with economic stimulus measures to get the country back on track.
This time around, it's not in the cards.
Having spent the majority of the current legislative session operating at a truly glacial pace, Congress is sitting on the sidelines, waiting to see how the debate over the debt ceiling pans out.
"I am not sure you could even get the votes [for a stimulus package] if it was clear we were headed for a depression," said Norman Ornstein, a resident scholar at the conservative American Enterprise Institute.
Full story:
http://money.cnn.com/2011/06/05/news/economy/economic_stimulus/index.htm?iid=HP_LN
NEW YORK (CNNMoney) -- Congress will not be riding to the rescue.
Economic indicators are pointing to slower growth. More Americans are looking for jobs, and the housing market is in a confirmed double dip.
In another time and place, lawmakers have might responded with economic stimulus measures to get the country back on track.
This time around, it's not in the cards.
Having spent the majority of the current legislative session operating at a truly glacial pace, Congress is sitting on the sidelines, waiting to see how the debate over the debt ceiling pans out.
"I am not sure you could even get the votes [for a stimulus package] if it was clear we were headed for a depression," said Norman Ornstein, a resident scholar at the conservative American Enterprise Institute.
Full story:
http://money.cnn.com/2011/06/05/news/economy/economic_stimulus/index.htm?iid=HP_LN
White House adviser minimizes bad jobs report
AP
6/5/2011 9:56:22 AM ET 2011-06-05T13:56:22
WASHINGTON — A top White House economic adviser says the upward tilt over the past six months in new jobs is a better indicator of the nation's employment picture than a gloomy report Friday that warned of slow growth ahead.
Continue reading:
http://www.msnbc.msn.com/id/43284939/
6/5/2011 9:56:22 AM ET 2011-06-05T13:56:22
WASHINGTON — A top White House economic adviser says the upward tilt over the past six months in new jobs is a better indicator of the nation's employment picture than a gloomy report Friday that warned of slow growth ahead.
Continue reading:
http://www.msnbc.msn.com/id/43284939/
China on Latin American buying spree to lock in long-term needs in oil, minerals, food
Ian James, Associated Press, On Sunday June 5, 2011, 11:49 am EDT
CARACAS, Venezuela (AP) -- Latin America is blessed with a wealth of natural resources such as oil, copper and soy, and seeks investment and loans to capitalize on them. China needs the commodities to keep its economy growing and has about $3 trillion in reserves to burn.
Those interests have come together in a burgeoning and unorthodox partnership, as China lends and invests tens of billions of dollars in countries around Latin America in return for a guaranteed flow of commodities, particularly oil.
Recent deals have made China a key financier to the governments of Venezuela and Argentina. At the same time, Chinese companies have secured a decade's worth of oil from Venezuela and Brazil, and steady supplies of wheat, soybeans and natural gas from Argentina.
Full story:
http://www.google.com/hostednews/ap/article/ALeqM5iE1pk13beyKCKo2kRK6A3_FPjiIg?docId=f75dacc859eb45979a941ae558a7d45e
CARACAS, Venezuela (AP) -- Latin America is blessed with a wealth of natural resources such as oil, copper and soy, and seeks investment and loans to capitalize on them. China needs the commodities to keep its economy growing and has about $3 trillion in reserves to burn.
Those interests have come together in a burgeoning and unorthodox partnership, as China lends and invests tens of billions of dollars in countries around Latin America in return for a guaranteed flow of commodities, particularly oil.
Recent deals have made China a key financier to the governments of Venezuela and Argentina. At the same time, Chinese companies have secured a decade's worth of oil from Venezuela and Brazil, and steady supplies of wheat, soybeans and natural gas from Argentina.
Full story:
http://www.google.com/hostednews/ap/article/ALeqM5iE1pk13beyKCKo2kRK6A3_FPjiIg?docId=f75dacc859eb45979a941ae558a7d45e
Car Czar: Auto Bailouts a “Great Deal” for Taxpayers
By Aaron Task | Daily Ticker – Fri, Jun 3, 2011 12:04 PM EDT
The government has reached a deal with Fiat to sell its remaining 6% stake in Chrysler for $500 million and is preparing to unload its remaining GM shares later this year, according to numerous reports.
Based on GM's current share price, the entire auto industry bailout will end up costing U.S. taxpayers $10 to $12 billion; that's money well spent, according to Steven Rattner, the former head of the government's automotive task force and author of Overhaul: An Insider's Account of the Obama Administration's Emergency Rescue of the Auto Industry.
"As an economic recovery matter, the $10 billion plus or minus the auto intervention will cost was a great deal for American taxpayers and a critical part of the economic recovery," Rattner says. "We saved 2 or 3 million jobs, at least in the short run, because the entire industry would have shut down had we not helped these two companies because of the interlocking nature of the suppliers."
Full article:
http://finance.yahoo.com/blogs/daily-ticker/car-czar-auto-bailouts-great-deal-taxpayers-govt-160422632.html
The government has reached a deal with Fiat to sell its remaining 6% stake in Chrysler for $500 million and is preparing to unload its remaining GM shares later this year, according to numerous reports.
Based on GM's current share price, the entire auto industry bailout will end up costing U.S. taxpayers $10 to $12 billion; that's money well spent, according to Steven Rattner, the former head of the government's automotive task force and author of Overhaul: An Insider's Account of the Obama Administration's Emergency Rescue of the Auto Industry.
"As an economic recovery matter, the $10 billion plus or minus the auto intervention will cost was a great deal for American taxpayers and a critical part of the economic recovery," Rattner says. "We saved 2 or 3 million jobs, at least in the short run, because the entire industry would have shut down had we not helped these two companies because of the interlocking nature of the suppliers."
Full article:
http://finance.yahoo.com/blogs/daily-ticker/car-czar-auto-bailouts-great-deal-taxpayers-govt-160422632.html
Saturday, June 4, 2011
The Small Business Hiring Myth - those businesses which live from one government contract to the next are not private businesses at all
By Charles Hugh Smith02/08/2011
Pundits and politicos promote a magical myth: a coming small business hiring boom. That fantasy is completely disconnected from the harsh realities of private enterprise.
Regardless of their ideological persuasion, pundits and politicos reliably repeat the mantra that "small business is the engine of jobs growth." The mantra is followed by the pundit-politico's belief that a "small business jobs boom is right around the corner."
I have news for the pundits and politicos: ain't gonna happen. Why? The answer cannot be found in the manipulated and massaged Bureau of Labor Statistics numbers (have any real jobs been created, net of jobs lost, in the past year? Who knows?) or in the punditry's Cargo-Cult-like belief in a mythical "small business jobs machine" that they have never experienced and know nothing about.
While a handful of the new crop of politicos are entrepreneurs, most Washington denizens are attorneys, the offspring of wealthy or politically connected families or people who have lived off the government at some level their entire lives. Most have never had a customer or client or had to borrow off a credit card to make payroll. (I have; any pundits who can honestly raise their hands for that one?)
Continue reading:
http://www.financialsense.com/contributors/charles-hugh-smith/the-small-business-hiring-myth
Pundits and politicos promote a magical myth: a coming small business hiring boom. That fantasy is completely disconnected from the harsh realities of private enterprise.
Regardless of their ideological persuasion, pundits and politicos reliably repeat the mantra that "small business is the engine of jobs growth." The mantra is followed by the pundit-politico's belief that a "small business jobs boom is right around the corner."
I have news for the pundits and politicos: ain't gonna happen. Why? The answer cannot be found in the manipulated and massaged Bureau of Labor Statistics numbers (have any real jobs been created, net of jobs lost, in the past year? Who knows?) or in the punditry's Cargo-Cult-like belief in a mythical "small business jobs machine" that they have never experienced and know nothing about.
While a handful of the new crop of politicos are entrepreneurs, most Washington denizens are attorneys, the offspring of wealthy or politically connected families or people who have lived off the government at some level their entire lives. Most have never had a customer or client or had to borrow off a credit card to make payroll. (I have; any pundits who can honestly raise their hands for that one?)
Continue reading:
http://www.financialsense.com/contributors/charles-hugh-smith/the-small-business-hiring-myth
Friday, June 3, 2011
Unemployment rate much worse than 9.1%
June 3, 2011
Steve McCann
American Thinker
Just how dire is the unemployment situation? The May employment situation has just been released by the Bureau of Labor Statistics showing an unemployment rate of 9.1%. But what are the actual statistics that reveal the true depth of employment misery?
In the month of May the BLS claimed that 139.8 million people were employed out of a civilian noninstitutional population [those who live in the US, older than 16 and not in an institution or active military] of 239.3 million or an effective rate of 58.4%. The civilian labor force which takes into account those the BLS consider employed and actively looking for work (not those who have dropped out of the labor force) stood at 153.7 million or 64.2% of the civilian noninstitutional population.
The last time there were 139.8 million employed (prior to the Obama years) was in October of 2004. At that time the civilian noninstitutional population was 224.2 million for an effective rate of 62.4%. The civilian labor force was estimated to be 147.8 million or 66% of the civilian noninstitutional population. The published unemployment rate was 5.5%.
http://www.americanthinker.com/blog/2011/06/unemploymnet_rate_muc_h_worse_than_91.html
Steve McCann
American Thinker
Just how dire is the unemployment situation? The May employment situation has just been released by the Bureau of Labor Statistics showing an unemployment rate of 9.1%. But what are the actual statistics that reveal the true depth of employment misery?
In the month of May the BLS claimed that 139.8 million people were employed out of a civilian noninstitutional population [those who live in the US, older than 16 and not in an institution or active military] of 239.3 million or an effective rate of 58.4%. The civilian labor force which takes into account those the BLS consider employed and actively looking for work (not those who have dropped out of the labor force) stood at 153.7 million or 64.2% of the civilian noninstitutional population.
The last time there were 139.8 million employed (prior to the Obama years) was in October of 2004. At that time the civilian noninstitutional population was 224.2 million for an effective rate of 62.4%. The civilian labor force was estimated to be 147.8 million or 66% of the civilian noninstitutional population. The published unemployment rate was 5.5%.
http://www.americanthinker.com/blog/2011/06/unemploymnet_rate_muc_h_worse_than_91.html
Welcome to austerity, America!
By Nin-Hai Tseng, writer-reporter June 3, 2011: 11:36 AM ET
Those calling for smaller government should be pleased: State and local municipal employees are losing their jobs at a much faster pace than the private sector.
FORTUNE – For all of Washington's bickering over the debt ceiling and all the battle cries for government budget cuts, it's important to point out that there's already a back-door austerity plan well under way and it's showing its very dreary colors in cities and states across America.
Just take a look at today's unemployment figures for May. Job growth slowed sharply, adding only 54,000 nonfarm payroll jobs, compared with 232,000 jobs added in April. What's interesting is that private sector employment has continued to trend up, while governments struggling with severe budget shortfalls have shed workers in corporate cost-cutting fashion.
Full story:
http://finance.fortune.cnn.com/2011/06/03/welcome-to-austerity-america/
Those calling for smaller government should be pleased: State and local municipal employees are losing their jobs at a much faster pace than the private sector.
FORTUNE – For all of Washington's bickering over the debt ceiling and all the battle cries for government budget cuts, it's important to point out that there's already a back-door austerity plan well under way and it's showing its very dreary colors in cities and states across America.
Just take a look at today's unemployment figures for May. Job growth slowed sharply, adding only 54,000 nonfarm payroll jobs, compared with 232,000 jobs added in April. What's interesting is that private sector employment has continued to trend up, while governments struggling with severe budget shortfalls have shed workers in corporate cost-cutting fashion.
Full story:
http://finance.fortune.cnn.com/2011/06/03/welcome-to-austerity-america/
U.S. unemployment rises to 9.1% as hiring plunges
In the coming months, the labor market will be flooded with young high school and college graduates.
A net 54,000 jobs are created in May, less than half what's needed to keep pace with growth in the working-age population. There are indications that temporary factors caused some of that weakness.
By Don Lee, Los Angeles Times
June 4, 2011
Reporting from Washington—
The nation's job market took a sharp turn for the worse last month as employers abruptly curbed their hiring and the unemployment rate inched up — grim evidence that the economic recovery was faltering.
The new Labor Department report, which showed the unemployment rate rising to 9.1%, was bad news for millions of Americans seeking work and for the hundreds of thousands of newly minted college graduates whose prospects are increasingly uncertain.
But beyond those looking for work, the downturn in hiring signaled continuing troubles for the rest of the nation: A weaker economy — along with the increased risk of sliding into a new recession — reduces the likelihood that personal income will rise or that families will better themselves financially in other ways.
In recent days, an array of data have pointed to a slowdown in manufacturing and consumer spending, as well as persistent weakness in the depressed housing market.
Payrolls grew by only 54,000 in May, less than half what's needed to keep pace with growth in the working-age population.
Full story:
http://www.latimes.com/business/la-fi-jobs-20110604,0,5088539.story
A net 54,000 jobs are created in May, less than half what's needed to keep pace with growth in the working-age population. There are indications that temporary factors caused some of that weakness.
By Don Lee, Los Angeles Times
June 4, 2011
Reporting from Washington—
The nation's job market took a sharp turn for the worse last month as employers abruptly curbed their hiring and the unemployment rate inched up — grim evidence that the economic recovery was faltering.
The new Labor Department report, which showed the unemployment rate rising to 9.1%, was bad news for millions of Americans seeking work and for the hundreds of thousands of newly minted college graduates whose prospects are increasingly uncertain.
But beyond those looking for work, the downturn in hiring signaled continuing troubles for the rest of the nation: A weaker economy — along with the increased risk of sliding into a new recession — reduces the likelihood that personal income will rise or that families will better themselves financially in other ways.
In recent days, an array of data have pointed to a slowdown in manufacturing and consumer spending, as well as persistent weakness in the depressed housing market.
Payrolls grew by only 54,000 in May, less than half what's needed to keep pace with growth in the working-age population.
Full story:
http://www.latimes.com/business/la-fi-jobs-20110604,0,5088539.story
Bleak jobs report dampens hopes of steady growth
Anemic job growth in May sends unemployment rate up slightly, dims hopes of steady recovery
Christopher S. Rugaber, AP Economics Writer, On Friday June 3, 2011, 7:05 pm
WASHINGTON (AP) -- A bleak jobs report suggests the recovery from the Great Recession will be longer and bumpier than many economists had envisioned.
Most economists say job growth should strengthen later this year as gasoline prices drop further and the economy recovers from the effects of natural disasters in the U.S. and abroad. But the recovery is starting to weaken 17 months before the 2012 election, which could hurt President Barack Obama's re-election prospects.
The unemployment rate in May inched up to 9.1 percent from 9 percent, the Labor Department said Friday; when Obama took office, it was 7.8 percent.
The Conference Board, a business research group, predicts the rate will be 8.5 percent at the end of next year. That would mean Obama would face a higher unemployment rate than any president running for re-election since World War II.
Full story:
http://finance.yahoo.com/news/Bleak-jobs-report-dampens-apf-3059717337.html?x=0&sec=topStories&pos=main&asset=&ccode=
Christopher S. Rugaber, AP Economics Writer, On Friday June 3, 2011, 7:05 pm
WASHINGTON (AP) -- A bleak jobs report suggests the recovery from the Great Recession will be longer and bumpier than many economists had envisioned.
Most economists say job growth should strengthen later this year as gasoline prices drop further and the economy recovers from the effects of natural disasters in the U.S. and abroad. But the recovery is starting to weaken 17 months before the 2012 election, which could hurt President Barack Obama's re-election prospects.
The unemployment rate in May inched up to 9.1 percent from 9 percent, the Labor Department said Friday; when Obama took office, it was 7.8 percent.
The Conference Board, a business research group, predicts the rate will be 8.5 percent at the end of next year. That would mean Obama would face a higher unemployment rate than any president running for re-election since World War II.
Full story:
http://finance.yahoo.com/news/Bleak-jobs-report-dampens-apf-3059717337.html?x=0&sec=topStories&pos=main&asset=&ccode=
Goodbye jobs, hello QE3?
By Nin-Hai Tseng, writer-reporter June 3, 2011: 10:22 AM ET
It's official: Most economists have been way too optimistic about pace of the economic recovery. Will the latest jobs numbers spur the Fed to act again?
FORTUNE -- Virtually everyone has been wishfully thinking that what's been slowing down the U.S. economy was only temporary. But the spate of crushingly disappointing economic data has all but confirmed that most economists have been way too optimistic, and that the problems ailing markets are not going to disappear anytime soon.
Start with today's unnerving unemployment figures, which will no doubt lead to calls for the Fed to step in and play doctor again. After several months of strong hiring, job growth slowed sharply in May, adding only 54,000 nonfarm payroll jobs. This compares with an increase of 232,000 jobs in April. The unemployment rate ticked up 9.1% from 9.0% in April. The figures were dramatically lower than expected -- economists had been predicting a rise of 160,00 payrolls and a slight drop in the unemployment rate, to 8.9%.
Full story:
http://finance.fortune.cnn.com/2011/06/03/goodbye-jobs-hello-qe3/?iid=HP_River
It's official: Most economists have been way too optimistic about pace of the economic recovery. Will the latest jobs numbers spur the Fed to act again?
FORTUNE -- Virtually everyone has been wishfully thinking that what's been slowing down the U.S. economy was only temporary. But the spate of crushingly disappointing economic data has all but confirmed that most economists have been way too optimistic, and that the problems ailing markets are not going to disappear anytime soon.
Start with today's unnerving unemployment figures, which will no doubt lead to calls for the Fed to step in and play doctor again. After several months of strong hiring, job growth slowed sharply in May, adding only 54,000 nonfarm payroll jobs. This compares with an increase of 232,000 jobs in April. The unemployment rate ticked up 9.1% from 9.0% in April. The figures were dramatically lower than expected -- economists had been predicting a rise of 160,00 payrolls and a slight drop in the unemployment rate, to 8.9%.
Full story:
http://finance.fortune.cnn.com/2011/06/03/goodbye-jobs-hello-qe3/?iid=HP_River
May jobs report: Hiring slows, unemployment rises
By Chris Isidore @CNNMoney June 3, 2011: 1:14 PM ET
NEW YORK (CNNMoney) -- In yet another alarm bell of a weakening U.S. economy, the job market took a disappointing turn in May.
The economy gained a mere 54,000 jobs in the month, a significant slowdown from 232,000 jobs added to payrolls in April, the government reported Friday.
The report was a major disappointment to economists who were expecting a gain of 170,000 jobs, according to a CNNMoney survey. Most believe the economy needs to add about 150,000 jobs a month just to keep pace with population growth.
The unemployment rate worsened to 9.1% from 9% in April. Economists had predicted the rate would improve to 8.9%.
"It is now pretty clear that the economy ran into a brick wall last month," said Paul Ashworth, chief U.S. economist for Capital Economics, in a research note. "The extent of this slowdown is becoming a big concern."
Full story:
http://money.cnn.com/2011/06/03/news/economy/may_jobs_report_unemployment/index.htm?iid=HP_Highlight
NEW YORK (CNNMoney) -- In yet another alarm bell of a weakening U.S. economy, the job market took a disappointing turn in May.
The economy gained a mere 54,000 jobs in the month, a significant slowdown from 232,000 jobs added to payrolls in April, the government reported Friday.
The report was a major disappointment to economists who were expecting a gain of 170,000 jobs, according to a CNNMoney survey. Most believe the economy needs to add about 150,000 jobs a month just to keep pace with population growth.
The unemployment rate worsened to 9.1% from 9% in April. Economists had predicted the rate would improve to 8.9%.
"It is now pretty clear that the economy ran into a brick wall last month," said Paul Ashworth, chief U.S. economist for Capital Economics, in a research note. "The extent of this slowdown is becoming a big concern."
Full story:
http://money.cnn.com/2011/06/03/news/economy/may_jobs_report_unemployment/index.htm?iid=HP_Highlight
Consumer pain adds to weak job growth
By Annalyn Censky @CNNMoney June 3, 2011: 2:19 PM ET
NEW YORK (CNNMoney) -- A dismal jobs report defied Wall Street's expectations Friday.
But considering the beating consumers have taken recently, why was anyone surprised?
The American consumer is now feeling the cost of $4 gas and higher food prices, seeing their wages rise very little and still being held back by declining home values, which recently fell to their lowest level in nine years.
"Remember, the consumer accounts for roughly 70% of the overall economy," said Kathy Bostjancic, director for macroeconomic analysis at The Conference Board. "If the consumer is showing reluctance, then that does not incentivize companies to build up or hire."
Full story:
http://money.cnn.com/2011/06/03/news/economy/weak_jobs_report_consumers/index.htm?iid=HP_LN
NEW YORK (CNNMoney) -- A dismal jobs report defied Wall Street's expectations Friday.
But considering the beating consumers have taken recently, why was anyone surprised?
The American consumer is now feeling the cost of $4 gas and higher food prices, seeing their wages rise very little and still being held back by declining home values, which recently fell to their lowest level in nine years.
"Remember, the consumer accounts for roughly 70% of the overall economy," said Kathy Bostjancic, director for macroeconomic analysis at The Conference Board. "If the consumer is showing reluctance, then that does not incentivize companies to build up or hire."
Full story:
http://money.cnn.com/2011/06/03/news/economy/weak_jobs_report_consumers/index.htm?iid=HP_LN
Phantom Jobs Mask Extent of Joblessness
By Jeff Nielson 06/03/11 - 05:56 PM EDT
The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (TheStreet) -- In many previous commentaries I have maintained that the "statistics" from the U.S. Bureau of Labor Statistics have lost almost any relevance or analytical value.
Where we can still find some small analytical value in these numbers is to compare the differences in the BLS' (revised) aggregate numbers with the headline it has been dispensing each month. Unfortunately, the revised aggregate numbers only provide us with data up to the end of 2010. However we can still reach some interesting conclusions based upon the available numbers.
The U.S. propaganda machine tells us that the "great recession" ended in March 2009, while the BLS has been reporting monthly "job gains" in nearly every report since that time. As a matter of simple arithmetic, if the U.S. economy began adding jobs in the spring of 2009 (and the job losses had supposedly eased in the months immediately prior to that), we should have seen the year-over-year numbers turn positive no later than the end of 2009 when we looked at the total number of employed workers in the U.S. (as calculated by the same BLS).
Full story:
http://www.thestreet.com/story/11142740/1/phantom-jobs-mask-extent-of-joblessness.html
The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (TheStreet) -- In many previous commentaries I have maintained that the "statistics" from the U.S. Bureau of Labor Statistics have lost almost any relevance or analytical value.
Where we can still find some small analytical value in these numbers is to compare the differences in the BLS' (revised) aggregate numbers with the headline it has been dispensing each month. Unfortunately, the revised aggregate numbers only provide us with data up to the end of 2010. However we can still reach some interesting conclusions based upon the available numbers.
The U.S. propaganda machine tells us that the "great recession" ended in March 2009, while the BLS has been reporting monthly "job gains" in nearly every report since that time. As a matter of simple arithmetic, if the U.S. economy began adding jobs in the spring of 2009 (and the job losses had supposedly eased in the months immediately prior to that), we should have seen the year-over-year numbers turn positive no later than the end of 2009 when we looked at the total number of employed workers in the U.S. (as calculated by the same BLS).
Full story:
http://www.thestreet.com/story/11142740/1/phantom-jobs-mask-extent-of-joblessness.html
Thursday, June 2, 2011
Moody's sounds alarm over U.S. debt limit and deficits
By Daniel Bases and Donna Smith
NEW YORK/WASHINGTON | Thu Jun 2, 2011 9:23pm EDT
NEW YORK/WASHINGTON (Reuters) - Ratings agency Moody's warned on Thursday it would consider cutting the United States' coveted top-notch credit rating if the White House and Congress do not make progress by mid-July in talks to raise the debt limit.
Treasury Secretary Timothy Geithner, seeking to convince Congress to increase his borrowing authority and prevent a government default, went to Capitol Hill to press his case in a 45-minute meeting with first-term lawmakers.
"I am confident that two things are going to happen this summer," Geithner told reporters after the meeting. "One is that we are going to avoid a default crisis and we are going to reach agreement on a long-term fiscal plan."
Full story:
http://www.reuters.com/article/2011/06/03/us-usa-debt-idUSTRE74E1HD20110603?feedType=RSS&feedName=topNews
NEW YORK/WASHINGTON | Thu Jun 2, 2011 9:23pm EDT
NEW YORK/WASHINGTON (Reuters) - Ratings agency Moody's warned on Thursday it would consider cutting the United States' coveted top-notch credit rating if the White House and Congress do not make progress by mid-July in talks to raise the debt limit.
Treasury Secretary Timothy Geithner, seeking to convince Congress to increase his borrowing authority and prevent a government default, went to Capitol Hill to press his case in a 45-minute meeting with first-term lawmakers.
"I am confident that two things are going to happen this summer," Geithner told reporters after the meeting. "One is that we are going to avoid a default crisis and we are going to reach agreement on a long-term fiscal plan."
Full story:
http://www.reuters.com/article/2011/06/03/us-usa-debt-idUSTRE74E1HD20110603?feedType=RSS&feedName=topNews
Warning: Economic recovery at risk
By Annalyn Censky @CNNMoney June 2, 2011: 3:34 PM ET
Economy news from CNNMoney
NEW YORK (CNNMoney) -- Job growth seems to be losing momentum, home prices just slumped to new lows and consumers are feeling far from rosy about the economy.
Can you blame them? Two years have passed since the recession officially ended, and the recovery appears to be slowing down -- not accelerating.
"We've had a poor economic recovery to begin with, and now it appears to be segueing into an end," said Robert Brusca, chief economist at FAO Economics.
How did this happen?
Economists blame a complicated web of factors.
First, the recovery is losing its government-provided training wheels. The Federal Reserve's $600 billion in monetary stimulus is scheduled to run out later this month, and federal stimulus dollars to state and local governments have already wound down...
Full story:
http://money.cnn.com/2011/06/02/news/economy/recovery_at_risk/index.htm?iid=HP_LN
Economy news from CNNMoney
NEW YORK (CNNMoney) -- Job growth seems to be losing momentum, home prices just slumped to new lows and consumers are feeling far from rosy about the economy.
Can you blame them? Two years have passed since the recession officially ended, and the recovery appears to be slowing down -- not accelerating.
"We've had a poor economic recovery to begin with, and now it appears to be segueing into an end," said Robert Brusca, chief economist at FAO Economics.
How did this happen?
Economists blame a complicated web of factors.
First, the recovery is losing its government-provided training wheels. The Federal Reserve's $600 billion in monetary stimulus is scheduled to run out later this month, and federal stimulus dollars to state and local governments have already wound down...
Full story:
http://money.cnn.com/2011/06/02/news/economy/recovery_at_risk/index.htm?iid=HP_LN
More job seekers give up, reducing unemployment
Why is the unemployment rate down? Partly because so many have stopped looking for work
Paul Wiseman, AP Economics Writer, On Thursday June 2, 2011, 8:08 am EDT
WASHINGTON (AP) -- Where did all the workers go?
The labor force -- those who have a job or are looking for one -- is getting smaller, even though the economy is growing and steadily adding jobs. That trend defies the rules of a normal economic recovery.
Nobody is sure why it's happening. Economists think some of the missing workers have retired, have entered college or are getting by on government disability checks. Others have probably just given up looking for work.
"A small work force means millions of discouraged workers, lower output in the future and a weak recovery," says Rep. Kevin Brady of Texas, the ranking Republican on the Congress' Joint Economic Committee. "Those are unhealthy signs."
By the government's definition, if you quit looking, you're no longer counted as unemployed. And you're no longer part of the labor force...
Full story:
http://finance.yahoo.com/news/More-job-seekers-give-up-apf-1644448346.html?x=0&sec=topStories&pos=9&asset=&ccode=
Paul Wiseman, AP Economics Writer, On Thursday June 2, 2011, 8:08 am EDT
WASHINGTON (AP) -- Where did all the workers go?
The labor force -- those who have a job or are looking for one -- is getting smaller, even though the economy is growing and steadily adding jobs. That trend defies the rules of a normal economic recovery.
Nobody is sure why it's happening. Economists think some of the missing workers have retired, have entered college or are getting by on government disability checks. Others have probably just given up looking for work.
"A small work force means millions of discouraged workers, lower output in the future and a weak recovery," says Rep. Kevin Brady of Texas, the ranking Republican on the Congress' Joint Economic Committee. "Those are unhealthy signs."
By the government's definition, if you quit looking, you're no longer counted as unemployed. And you're no longer part of the labor force...
Full story:
http://finance.yahoo.com/news/More-job-seekers-give-up-apf-1644448346.html?x=0&sec=topStories&pos=9&asset=&ccode=
Home prices hit 2002 levels
U.S. home prices have fallen to 2002 levels and are expected to drop further.
By Julie Schmit, USA TODAY
They were 5.1% lower in the first quarter than in the same period last year and fell 4.2% from the previous quarter, according to the Standard & Poor's/Case-Shiller Home Price index released Tuesday.
Millions of U.S. homes are in foreclosure or headed there, which will depress prices further. "Home prices continue on their downward spiral with no relief in sight," says David Blitzer, chairman of the S&P index committee.
Prices will fall at least 3% more this year "and perhaps even further next year," says economist Paul Dales of Capital Economics...
Full story:
http://www.usatoday.com/money/economy/housing/2011-05-31-home-prices-case-shiller_n.htm
By Julie Schmit, USA TODAY
They were 5.1% lower in the first quarter than in the same period last year and fell 4.2% from the previous quarter, according to the Standard & Poor's/Case-Shiller Home Price index released Tuesday.
Millions of U.S. homes are in foreclosure or headed there, which will depress prices further. "Home prices continue on their downward spiral with no relief in sight," says David Blitzer, chairman of the S&P index committee.
Prices will fall at least 3% more this year "and perhaps even further next year," says economist Paul Dales of Capital Economics...
Full story:
http://www.usatoday.com/money/economy/housing/2011-05-31-home-prices-case-shiller_n.htm
Wednesday, June 1, 2011
'Shockingly weak' job growth in May
By Laurie Segall and Annalyn Censky @CNNMoney June 1, 2011: 10:26 AM ET
NEW YORK (CNNMoney) -- Growth in the job market weakened in May, surprising economists and spurring them to call a report on private payrolls "shockingly weak," "grim," and even a "hairball."
"The ADP Employment report coughed up a hairball in May," Robert Dye, senior economist with the PNC Financial Services Group, said in a research note, referring to a report by payroll processing company ADP released Wednesday.
That report showed private sector employers added only 38,000 workers in May, far lower than the revised 177,000 jobs added in April and much weaker than economists had expected.
Full story:
http://money.cnn.com/2011/06/01/news/economy/jobs_adp_challenger/index.htm?iid=HP_LN&iid=EL
NEW YORK (CNNMoney) -- Growth in the job market weakened in May, surprising economists and spurring them to call a report on private payrolls "shockingly weak," "grim," and even a "hairball."
"The ADP Employment report coughed up a hairball in May," Robert Dye, senior economist with the PNC Financial Services Group, said in a research note, referring to a report by payroll processing company ADP released Wednesday.
That report showed private sector employers added only 38,000 workers in May, far lower than the revised 177,000 jobs added in April and much weaker than economists had expected.
Full story:
http://money.cnn.com/2011/06/01/news/economy/jobs_adp_challenger/index.htm?iid=HP_LN&iid=EL
Signs point to an economy growing more slowly
Economy showing signs of sputtering in face of high oil prices and supply disruptions in Japan
Paul Wiseman, AP Economics Writer, On Wednesday June 1, 2011, 5:33 pm EDT
WASHINGTON (AP) -- The economy is tiring again.
Reports Wednesday on manufacturing and company hiring were so weak that many economists immediately downgraded their forecasts for Friday's jobs report for May. Some analysts also slashed their estimates for growth in the April-June quarter.
"We're definitely in a soft patch," says Steve Blitz, senior economist for ITG Investment Research.
No one knows whether the slowdown is a temporary setback or the start of a prolonged period of anemic growth. Many analysts hold out hope that the economy will rebound in the second half of 2011.
Full story:
http://finance.yahoo.com/news/Signs-point-to-an-economy-apf-915672181.html?x=0&sec=topStories&pos=4&asset=&ccode=
Paul Wiseman, AP Economics Writer, On Wednesday June 1, 2011, 5:33 pm EDT
WASHINGTON (AP) -- The economy is tiring again.
Reports Wednesday on manufacturing and company hiring were so weak that many economists immediately downgraded their forecasts for Friday's jobs report for May. Some analysts also slashed their estimates for growth in the April-June quarter.
"We're definitely in a soft patch," says Steve Blitz, senior economist for ITG Investment Research.
No one knows whether the slowdown is a temporary setback or the start of a prolonged period of anemic growth. Many analysts hold out hope that the economy will rebound in the second half of 2011.
Full story:
http://finance.yahoo.com/news/Signs-point-to-an-economy-apf-915672181.html?x=0&sec=topStories&pos=4&asset=&ccode=
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