Seriously?  Have you been to that site?  You will never find a more wretched hive of scum and villainy.

I agree, way to much gloom and wild talk at that link. Glad a different link has now been added.  :-o

Manufacturing activity shrinks in June, ISM says

First sub-50% reading since July 2009

 

"WASHINGTON (MarketWatch) — Manufacturing activity shrunk in June for the first time in three years as new orders dried up, according to a key report released Monday that points to a deteriorating U.S. economy.

The Institute for Supply Management’s manufacturing index fell to 49.7% from 53.5% in May, in the first reading below the 50% line indicating expansion or contraction since July 2009."

http://www.marketwatch.com/story/manufacturing-activity-shrinks-in-june-ism-says-2012-07-02

 

 

Recession now much more likely

Commentary: Factory sector stalls on doubts about Europe, fiscal cliff

 

"Typically, a large drop in the ISM index comes from a large shock to the economy. We haven’t had a large shock this time, just a slow erosion of consumer and business confidence stemming from doubts about the global economy and about the fiscal cliff that looms at the beginning of 2013 in the United States.

And for both of those problems, there’s no sign of resolution in sight."

http://www.marketwatch.com/story/recession-now-much-more-likely-2012-07-02

What a shocker. All these fine outstanding institutions would never do such things?

 

Barclays rate-fixing scandal could wash up on American shores

“This is very serious,” Gary Gensler, chairman of the U.S. Commodity Futures Trading Commission, told CNBC Monday. He noted that the rate is used as a “wholesale” rate between the largest and most sophisticated banks in the world. The rest of us have to pay a “retail” rate on top of it."

"Other banks that have disclosed that they are under investigation for LIBOR manipulation include big U.S. banks, such as Citigroup and JPMorgan Chase, and also HSBC, Deutsche Bank and the Royal Bank of Scotland, according to The Wall Street Journal."

http://marketday.msnbc.msn.com/_news/2012/07/02/12527226-barclays-rate-fixing-scandal-could-wash-up-on-american-shores?lite

 

Between last month and this month factory orders end up at 0. No growth.

 

May U.S. factory orders rise 0.7%

"WASHINGTON (MarketWatch) -- Orders for goods produced in U.S. factories rose 0.7% in May, the Commerce Department reported Tuesday. Economists surveyed by MarketWatch had expected orders to rise by 0.1%. Factory orders fell a revised 0.7% in April, compared with a prior estimate of a 0.6% drop. Orders for durable goods -- products meant to last at least three years - rose 1.3% in May. Orders for nondurable goods rose 0.2%."

http://www.marketwatch.com/story/may-us-factory-orders-rise-07-2012-07-03

^ The one thing I'd caution you on viewing month to month numbers is that there is always a slowdown in production during the summer months. Typically new orders remain flat or drop through summer months, then pick back up in the fall. Part of the natural rhythm of the annual manufacturing cycle.

 

I'm more concerned about the drop in commodities prices as an indicator of global demand. Anectdotally, a lot of my client bases' success over the last couple years has been either directly, or indirectly, attributed to export sales.

^ The one thing I'd caution you on viewing month to month numbers is that there is always a slowdown in production during the summer months. Typically new orders remain flat or drop through summer months, then pick back up in the fall. Part of the natural rhythm of the annual manufacturing cycle.

 

I'm more concerned about the drop in commodities prices as an indicator of global demand. Anectdotally, a lot of my client bases' success over the last couple years has been either directly, or indirectly, attributed to export sales.

 

I think commodities can clearly be an indicator to a certain extent (they have been flashing recessionary for a while now). They are best used when their prices are related to supply and demand. They can be a false indicator when other external factors kick in. Example, oil is rising currently not because the world economy is recovery (supply and demand), but because of concerns over access to supply do to middle east unrest.

US risks tepid recovery turning into recession, IMF warns

"America's politicians risk turning a tepid recovery into a recession next year if they fail to reach agreement on how quickly to cut the US deficit, the International Monetary Fund has warned."

"As it stands, the expiration of George W Bush's tax cuts on December 31, and the start of more than $1 trillion in spending cuts in January, mean the US is facing a severe fiscal headwind just as growth is slowing.

Fears are increasing in the US and beyond that Republicans and Democrats will fail to reach agreement over how to temper the pace of the deficit reduction in 2013, alongside delivering a long-term plan on the country's $15 trillion of debt.

"It is critical to remove the uncertainty created by the "fiscal cliff" as well as promptly raise the debt ceiling, pursuing a pace of deficit reduction that does not sap the economic recovery," the IMF said in its annual survey of the US."

http://www.telegraph.co.uk/finance/economics/9373240/US-risks-tepid-recovery-turning-into-recession-IMF-warns.html

 

 

I am going to put on my 'conspiracy hat' and go out on a limb. I think more than just the UK FED and Barclay was involved with manipulating Libor. Remember, Libor was huge in keeping US housing loan cost low and keeping refinancing rates for ARMs, etc. from going up in the core of the housing crisis. If Libor had not remained low the housing bust would have been much bigger. I remember mulitiple headlines during the peak of the housing bust talking about how Libor rates were going to go up and crush the ARMs, I/O loans holders, but it magically never happened. Maybe now we know why?

 

Bob Diamond claims BoE's Paul Tucker told Barclays 'to lower' Libor rate

"Barclays has released an internal email sent by former chief executive Bob Diamond offering his account of a conversation with the Bank of England that led to the bank offering false Libor submissions."

“Bob Diamond did not believe he received an instruction from Paul Tucker or that he gave an instruction to Jerry del Missier. However Jerry del Missier concluded that an instruction had been passed down from the Bank of England not to keep LIBORs so high and he therefore passed down a direction to that effect to the submitters,” said the bank.

Discussing the email on a conference call following its release, Marcus Agius, chairman of Barclays, laid the blame with Mr del Missier.

"Jerry was the most senior officer who gave instructions to lower Libor rates,” said he said."

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9373506/Bob-Diamond-claims-BoEs-Paul-Tucker-told-Barclays-to-lower-Libor-rate.html

Another one of our trusted banks?

 

Morgan Stanley Got S&P to Inflate Ratings, Investors Say

"Morgan Stanley successfully pushed Standard & Poor’s and Moody’s Investors Service Inc. to give unwarranted investment-grade ratings in 2006 to $23 billion worth of notes backed by subprime mortgages, investors claimed in a lawsuit, citing documents unsealed in federal court."

http://www.bloomberg.com/news/2012-07-02/morgan-stanley-pushed-s-p-to-boost-ratings-investors-say.html

 

 

U.S. jobless claims fall 14,000 to 374,000

Initial filings for unemployment benefits at lowest level in six weeks

"The level of claims is a rough gauge of whether layoffs are rising or falling. Until the latest drop, first-time claims had totaled 380,000 or higher for five straight weeks, a worrisome sign after new applications fell in February to a four-year low of 361,000.

Also Thursday, the Labor Department said initial claims for jobless benefits two weeks ago were revised up to 388,000 from an original reading of 386,000, based on more complete data collected at the state level."

http://www.marketwatch.com/story/us-jobless-claims-fall-14000-to-374000-2012-07-05-81035446

 

 

U.S. June services activity slowest since Jan. '10

"WASHINGTON (MarketWatch) -- U.S. services activity slowed in June to the weakest level since January 2010, according to data released by the Institute for Supply Management on Thursday. The ISM services index fell to 52.1% from 53.7% in May, which was worse than the 52.9% than economists expected. Of key components, the production index dropped 3.9 points, the new orders component fell 2.2 points, while the employment component rose 1.5 points."

http://www.marketwatch.com/story/us-june-services-activity-slowest-since-jan-10-2012-07-05

 

 

China’s central bank cuts lending, deposit rates

"HONG KONG (MarketWatch) — China’s central bank on Thursday unveiled a surprise interest rate cut, lowering borrowing and deposit rates while also enabling banks greater leeway in setting their own lending rates at a discount to the benchmark."

http://www.marketwatch.com/story/chinas-central-bank-cuts-lending-deposit-rates-2012-07-05-81034410

 

 

National retailers report tepid sales for June

"Shoppers, worried about jobs and the overall economy, pulled back on spending in June, resulting in tepid sales for many retailers.

The results raise concerns about Americans' ability to spend during the back-to-school season, which is the second-biggest shopping period of the year and starts later this month."

"These are disappointing results," said Ken Perkins, president of RetailMetrics, a research firm. "The consumer is slowing down and becoming increasingly more cautious as the economic backdrop is deteriorating. This doesn't set up particularly well for back-to-school."

http://www.ibj.com/national-retailers-report-tepid-sales-for-june/PARAMS/article/35362

 

One thing is becoming very apparent, our major lending and banking institutions are corrupt and have no problems with being unethnical.

 

Report: Countrywide won influence with discounts

"WASHINGTON—The former Countrywide Financial Corp., whose subprime loans helped start the nation's foreclosure crisis, made hundreds of discount loans to buy influence with members of Congress, congressional staff, top government officials and executives of troubled mortgage giant Fannie Mae, according to a House report.

The report, obtained by The Associated Press, said the discounts - from January 1996 to June 2008 - were not only aimed at gaining influence for the company but to help Fannie Mae. Countrywide's business depended largely on Fannie, which at the time was trying to fend off more government regulation but eventually had to come under government control."

Read more: Report: Countrywide won influence with discounts - The Denver Post http://www.denverpost.com/breakingnews/ci_21009616/report-countrywide-won-influence-discounts#ixzz1zlEqoYTX

Read The Denver Post's Terms of Use of its content: http://www.denverpost.com/termsofuse

These types of numbers mean more and more people are unemployed. Since the economy needs at least 150,000 new jobs just to handle the incoming workforce each month.

 

U.S. posts weak 80,000 jobs gain in June

Unemployment rate unchanged at 8.2%

 

"WASHINGTON (MarketWatch) — The U.S. created just 80,000 jobs in June — about one-third of them temporary — as evidence hardened that the economy has hit another rough patch."

"Job growth in May was revised up to 77,000 from an original estimate of 69,000, but April’s figure was revised down to 68,000 from 77,000, according to the Labor Department’s regular survey of business establishments."

http://www.marketwatch.com/story/us-posts-weak-80000-jobs-gain-in-june-2012-07-06

China heads for a deflationary shock

 

"China is on the cusp of a deflationary vortex.

This was signalled late last year by the sharpest contraction in the (real) M1 money supply since modern records began. The hard data is now confirming the warnings.

Consumer prices have been falling for the last three months, producer prices have been falling for four months. This is not a food cost story. It is systemic.

"While an economy-wide generalized deflation is yet to be seen, the deflationary spiral looks to have started in some industrial sectors, attesting to considerable stress with the economy. Persistent deflation can be poisonous," said Xianfang Ren from IHS Global Insight in Beijing.

Indeed it can be poisonous, and China already has the twin-afflictions of the deflation malaise: a fast aging nation, and a surfeit of factories and industrial plant.

Meanwhile, Japanese machine tool orders fell 14.8pc in May, the biggest drop since 2001 – when Japan’s deflation began in earnest. The post-Fukushima reconstruction boom has run its course. Asia is turning stone cold.

All engines of the global economy are sputtering at the same time.

Chinese premier Wen Jiabao called for a "proactive fiscal policy" to keep the economy afloat, warning that "downward pressure is still relatively large."

Is this the long-feared hard landing? Of course it is."

http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100018475/china-heads-for-a-deflationary-shock/

When natural economic growth can't happen then we will print positive economic growth.

 

Fed trio move closer to QE3

Sound alarm on outlook

 

"He said the Fed is on the “edge” of being forced from the sideline to once again prop up growth.

Fed Chairman Ben Bernanke told reporters last month that the Fed was watching the labor market closely to decide whether or not to undertake more easing steps.

Earlier on Monday, two of the most dovish Fed officials speaking at a conference in Bangkok, also expressed concern that the economy was struggling and said they would support more quantitative easing."

http://www.marketwatch.com/story/feds-williams-sounds-alarm-on-outlook-2012-07-09?dist=afterbell

Maybe we can't have "natural growth" due to the epic Libor scandal that has't gotten so little play here.

China imports disappoint, exports slow

 

"HONG KONG (MarketWatch) — China’s imports grew at a weaker-than-expected rate in June while exports also slowed, according to data out Tuesday, adding to growing evidence of a deepening slowdown and raising pressure on policy makers for more direct stimulus.

Imports grew 6.3% in June from a year earlier, versus expectations for an 11.3% rise tipped in a Dow Jones Newswires poll, and below a 12.7% gain in May, according to official data.

Export shipments grew 11.3% for the month, ahead of the 9% rise expected in the Dow Jones Newswires survey, but down from May’s 15.3% rise.

Piper Jaffray principal sales trader Andrew Sullivan said the data offered up a weaker picture of conditions within China and likely meant that economic data due out Friday would be weaker than forecast."

http://www.marketwatch.com/story/china-trade-surplus-widens-as-imports-weaken-2012-07-09

Maybe we can't have "natural growth" due to the epic Libor scandal that has't gotten so little play here.

 

Makes you wonder what else they worked together on?

 

Up to 14 U.K. banks tied to Libor scandal: report

"The U.K. intends to take severe action against the illegal manipulation of market interest rates, German daily Handelsblatt reports Tuesday, citing an interview with Mark Hoban, the financial secretary to the Treasury. He said anyone who falsifies market indexes should land in jail, the newspaper reported. Mr. Hoban also called for investigators to have access to bankers' telephone, email, Facebook and Twitter accounts, in order to hunt down criminal actions, the newspaper said. The U.K. is looking to implement related laws by the year's end, the newspaper said. Hoban said 10 to 14 banks are involved in the Libor manipulation scandal, Handelsblatt reported. He said the alleged involvement of Barclays PLC (BCS, BCS.LN) triggered the investigation, which has since revealed that banks in other EU states, in Japan and in the U.S. are allegedly involved, Handelsblatt reported."

http://www.marketwatch.com/story/up-to-14-uk-banks-tied-to-libor-scandal-report-2012-07-09

 

 

Could we see the wolf pack turn on each other? Probably not, but you never know.

 

Senate panel to ask Bernanke about Libor scandal

"WASHINGTON (MarketWatch) - Sen. Tim Johnson, the chairman of the Senate Banking Committee, said Tuesday that Federal Reserve Board Chairman Ben Bernanke should be prepared to discuss the possible illegal manipulation of the London Interbank Offered Rate, or Libor, by banks in Europe, Japan and the United States when he appears before the panel later this month. Johnson said that Treasury Secretary Timothy Geithner should also be prepared to answer senators' questions on the scandal at a separate hearing also to be held this month. Johnson said that his committee staff has begun to schedule bipartisan briefings with "relevant parties" to learn more about the Libor allegations and related enforcement actions. "It is important that we understand how any manipulation may impact American consumers and the U.S. financial system," Johnson said in a statement. The U.K. bank Barclays PLC was fined roughly $450 million for fixing Libor. Barclays has said that Bank of England and Federal Reserve officials were well aware of the issue."

http://www.marketwatch.com/story/senate-panel-to-ask-bernanke-about-libor-scandal-2012-07-10

 

 

We knew but kept it quiet.

 

New York Fed Says It Knew of Barclays Libor ‘Problems’

"The Federal Reserve Bank of New York was aware of potential issues involving Barclays Plc (BARC) and the London interbank offered rate after the financial crisis began in 2007, according to a statement from the district bank."

“In the spring of 2008, following the failure of Bear Stearns and shortly before the first media report on the subject, we made further inquiry of Barclays as to how Libor submissions were being conducted,” the statement said. “We subsequently shared our analysis and suggestions for reform of Libor with the relevant authorities in the U.K.”

http://www.bloomberg.com/news/2012-07-10/new-york-fed-says-it-knew-of-barclays-libor-problems-.html

What several billions in extra income among friends and their costumers?

 

A scandal over rate-fixing is about to hit the US

 

"The rate, which is fixed via a poll of banks by the British Bankers’ Association, an industry group in London, is the benchmark for setting payments on some $360 trillion worth of financial instruments, ranging from credit cards to more complex derivatives, such as futures contracts.

The potential scope of the unfolding scandal, now acquiring global significance, is enormous. Other banks that have disclosed that they are under investigation for LIBOR manipulation include big U.S. banks, such as Citigroup and JPMorgan Chase, and also HSBC, Deutsche Bank and the Royal Bank of Scotland.

Economists and analysts predict the LIBOR scandal could be one of the most expensive to hit the banking sector since the financial crisis, engulfing more multinational banks with fines that dwarf the one handed to Barclays and further eroding investor confidence in the banking sector."

 

“If the bankers’ manipulations of the LIBOR was responsible for raising LIBOR rates by just 20 basis points in that period, their shenanigans added between $1.1 billion and $2.2 billion to the yearly interest paid by American homeowners,” he said. “And those mortgages account for less than one percent of all of the financial assets and instruments affected by manipulated LIBOR rates.”

http://www.msnbc.msn.com/

Wells Fargo to pay $175 mln on fair-lending charge

"WASHINGTON (MarketWatch) — Wells Fargo & Co. on Thursday said it will pay a total of $175 million to settle Justice Department charges that the company violated fair-lending laws for its role in allegedly steering black and Hispanic borrowers into subprime mortgages."

http://www.marketwatch.com/story/wells-fargo-to-pay-175-mln-on-fair-lending-charge-2012-07-12

 

 

U.S. jobless claims drop 26,000 to 350,000

Onetime factors such as fewer auto layoffs than normal cited

http://www.marketwatch.com/story/us-jobless-claims-drop-26000-to-350000-2012-07-12

 

 

Dr. Bernanke can't save us

"Markets desperately hope for, even demand, a new round of quantitative easing, but Dr. Bernanke and his Federal Reserve can't save us. Here's why:

1. Europe's Debt Crisis

Europe is the crisis that just won't quit, with Spain, Italy, Greece, ad nauseam , all running out of money.

2. Earnings

Second-quarter earnings season is shaping up as a weak affair with downgrades coming from most every sector.

3. Global Recession

This item is part and parcel of Items #1 and #2.

4. Diminishing Returns of Quantitative Easing

This is a relatively new phenomenon in which markets are realizing and analysts, (even central bankers) are saying that each round of quantitative easing has smaller impact and brings greater risks for the global economy.

5. The Dreaded Fiscal Cliff

Dr. Bernanke has made it quite clear in recent testimony to Congress that the "fiscal cliff" coming up in December is too big for him to manage and that it needs to be resolved to avoid a significant economic shock."

http://www.marketwatch.com/story/dr-bernanke-cant-save-us-2012-07-12

 

 

Home foreclosures on the rise in the US

"Lenders in the US are notifying more property homeowners that they face losing their home, with foreclosures rising for the first time in two years."

"In the three months between April and June, the foreclosure process began on 311,010 properties, up 6pc on a year earlier, according to data collector RealtyTrac. That represented the first annual rise since the end of 2009."

http://www.telegraph.co.uk/finance/financialcrisis/9395485/Home-foreclosures-on-the-rise-in-the-US.html

 

 

Debt crisis: Italy's statisticians threaten 'stats black-out'

"Italy's official statisticians are threatening to down calculators and stop reporting on its stricken economy – as they themselves fall victim to the recession they are paid to track."

"From January 2013, the agency - the equivalent of the UK's own Office for National Statistics - warned it will stop putting out any official data, if the government goes ahead with planned budget cuts."

http://www.telegraph.co.uk/finance/financialcrisis/9395245/Debt-crisis-Italys-statisticians-threaten-stats-black-out.html 

What did Tim know?

Geithner’s Libor labors

 

"The latest development in the Libor-manipulation scandal is that the banks weren’t really fixing the price of the key interest rate in total secret — US regulators were aware of the sleazy activities at the time, and seemed to have done nothing.

Which should surprise no one."

"But the dirty little secret on Wall Street is that the New York Fed is a horrible regulator: It sees its chief job as keeping the banking system intact. Since it needs its member banks to buy US government debt and to control the money supply, the last thing it wants to do is shed light on the banks’ shady practices.

Which is why the Wall Street power brokers loved Geithner so much: On his New York Fed watch, he basically let them get away with the financial equivalent of murder, letting them take on the astronomical amounts of risk that ultimately blew up the system in 2008.

And then, when they needed a bailout, he was there with a plan that made sure their banks and jobs were safe."

Read more: http://www.nypost.com/p/news/opinion/opedcolumnists/what_did_tim_know_NQ113lKVCrJPZHUhVCVVfM#ixzz20RZGMzne

This is just sad, the stock market shots up because the data is so bad, it is creating 'hope' for more free money with another round of QE. Clearly we are no longer functioning off of historic market/economic trends and conditions.

 

Stocks up after longest decline since May

"NEW YORK (MarketWatch) — U.S. stocks rose Friday, rebounding from the market’s longest decline since May, after U.S. and Chinese economic data failed to dent hopes of further stimulus."

"Ahead of the bell, China said its growth expanded 7.6% last year from the year-earlier period, its slowest pace in three years, but in line with views."

"U.S. stocks rose further after the University of Michigan-Thomson Reuters consumer sentiment index fell to an initial read of 72 in July from 73.2 in June."

http://www.marketwatch.com/story/stocks-up-after-longest-decline-since-may-2012-07-13?dist=lcountdown

 

 

Moody's downgrades Italy's government bond rating

'HONG KONG (MarketWatch) -- Moody's Investors Service said Friday that it has cut Italy's government bond rating to Baa2 from A3 with a negative outlook. Italy's Prime-2 short-term rating has not changed, Moody's said. The ratings firm said that Italy is more likely to experience a further sharp increase in its funding costs, or the loss of market access, than five months ago "due to increasingly fragile market confidence." Also, Italy's near-term economic outlook has deteriorated, Moody's said, as shown in both weaker growth and higher unemployment, which it said "creates risk of failure to meet fiscal consolidation targets."

http://www.marketwatch.com/story/moodys-downgrades-italys-government-bond-rating-2012-07-13?dist=lcountdown

I saw this article today: http://finance.yahoo.com/news/top-job-generating-states.html

 

What I noticed is that it seems to be deceiving.  Ohio gained 75,700 jobs, which would put it in the #4 spot, yet doesn't even make their top 10.  They basically just used non-farm jobs for the ranking for the most part, and Ohio ranks 4th in the nation for growth the past year.  Did they intentionally leave it off or is it just a poorly researched article?  Perhaps it should go into that Dumb List thread.

And so they all knew and did what?

 

New York Fed knew of Libor cheating in 2008

Washington regulators quickly alerted

 

"WASHINGTON (MarketWatch) — An unidentified employee of U.K. bank Barclays PLC told the New York Federal Reserve Bank more than four years ago that the bank was filing false reports on a key interest rate, according to documents released by the regional bank on Friday.

The documents show that a summary of this admission was quickly circulated throughout the U.S. government, including the Federal Reserve and the Treasury Department, in 2008."

http://www.marketwatch.com/story/new-york-fed-knew-of-libor-cheating-in-2008-2012-07-13

I saw this article today: http://finance.yahoo.com/news/top-job-generating-states.html

 

What I noticed is that it seems to be deceiving.  Ohio gained 75,700 jobs, which would put it in the #4 spot, yet doesn't even make their top 10.  They basically just used non-farm jobs for the ranking for the most part, and Ohio ranks 4th in the nation for growth the past year.  Did they intentionally leave it off or is it just a poorly researched article?  Perhaps it should go into that Dumb List thread.

 

It probably all depends on what set of data they are using for their article.

I saw this article today: http://finance.yahoo.com/news/top-job-generating-states.html

 

What I noticed is that it seems to be deceiving.  Ohio gained 75,700 jobs, which would put it in the #4 spot, yet doesn't even make their top 10.  They basically just used non-farm jobs for the ranking for the most part, and Ohio ranks 4th in the nation for growth the past year.  Did they intentionally leave it off or is it just a poorly researched article?  Perhaps it should go into that Dumb List thread.

 

It probably all depends on what set of data they are using for their article.

 

I thought that too, and then I compared the numbers from the ranking to those of the growth of non-farm jobs on the BLS site.  They're all within a few thousand of each other, so the differences wouldn't have caused Ohio to be left off the list.  It's hard to imagine that non-farm jobs grew by almost 76,000 in Ohio, but some other factor caused that number to be reduced by the tens of thousands needed to be left off the list completely.  I really think it's an oversight, and not the only one.  Indiana was the only other state besides Ohio to have yearly job growth surpass 50,000, but not be on the list.  Maybe it's not a big deal, but it bugs me when the state doesn't get the positive publicity it has earned, yet Forbes can come out with 100 lists a year on how bad the weather in Cleveland is. 

I saw this article today: http://finance.yahoo.com/news/top-job-generating-states.html

 

What I noticed is that it seems to be deceiving.  Ohio gained 75,700 jobs, which would put it in the #4 spot, yet doesn't even make their top 10.  They basically just used non-farm jobs for the ranking for the most part, and Ohio ranks 4th in the nation for growth the past year.  Did they intentionally leave it off or is it just a poorly researched article?  Perhaps it should go into that Dumb List thread.

 

It probably all depends on what set of data they are using for their article.

 

I thought that too, and then I compared the numbers from the ranking to those of the growth of non-farm jobs on the BLS site.  They're all within a few thousand of each other, so the differences wouldn't have caused Ohio to be left off the list.  It's hard to imagine that non-farm jobs grew by almost 76,000 in Ohio, but some other factor caused that number to be reduced by the tens of thousands needed to be left off the list completely.  I really think it's an oversight, and not the only one.  Indiana was the only other state besides Ohio to have yearly job growth surpass 50,000, but not be on the list.  Maybe it's not a big deal, but it bugs me when the state doesn't get the positive publicity it has earned, yet Forbes can come out with 100 lists a year on how bad the weather in Cleveland is. 

 

You could also email the writer. It would be interesting to see why those two states were left out.

I saw this on a message board and fully expect this 'strategy' to spread to some extent between now and November...

 

Hey everyone. Want to unelect Obama? Lets all stop spending for a couple months. Buy only what you need. Postpone any big purchase like a car till after the election. It would work. Pass it around.

Fed fiddles as America slides back into recession

"The Economic Cycle Research Institute in America has doubled down on its recession call. A fresh US slump is not just a risk any longer. It has already begun."

"What we know is that retail sales rolled over in February and broader trade sales peaked in December. Industrial output peaked in April. The nationwide ISM index of manufacturing crashed through the break-even line of 50 in June, just as it did at the onset of the Great Recession in late 2007, but this time at a faster pace.

Job growth has slumped to 75,000 a month over the last three months, too low to stop unemployment rising again to 8.2pc, or 14.9pc on the wider U6 measure."

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/9401574/Fed-fiddles-as-America-slides-back-into-recession.html

 

 

Is this really a surprise to anyone? I thought this was just common knowledge.

 

Was the petrol price rigged too?

"Motorists may have been paying too much for their petrol because banks and other traders are likely to have tried to manipulate oil prices in the same way they rigged interest rates, an official report has warned."

"Concerns are growing about the reliability of oil prices, after a report for the G20 found the market is wide open to “manipulation or distortion”.

Traders from banks, oil companies or hedge funds have an “incentive” to distort the market and are likely to try to report false prices, it said.

Politicians and fuel campaigners last night urged the Government to expand its inquiry into the Libor scandal to see whether oil prices have also been falsely pushed up."

http://www.telegraph.co.uk/earth/energy/fuel/9401934/Libor-scandal-Was-the-petrol-price-rigged-too.html

 

 

U.S. retail sales fall for third straight month

"Purchases sink 0.5% in June as the nation’s economy slows"

"WASHINGTON (MarketWatch) — U.S. retail sales fell in June for the third straight month as consumers cut spending on most goods and services, reflecting a sharp slowdown in economic growth in the second quarter."

"Sales fell in each month of the second quarter. Sales in May were unchanged at a 0.2% decline, while sales in April were revised down to a 0.5% drop from a 0.2% reduction.

The pullback in spending suggests the U.S. grew at a 1% to 1.5% pace in the second quarter, most economists estimate. That’s down from 1.9% in the first quarter and 3.0% in the last three months of 2012."

http://www.marketwatch.com/story/us-retail-sales-fall-for-third-straight-month-2012-07-16?dist=lcountdown

 

 

By the time this is over, it will become the largest 'financial theft' in world history. The fines alone will show that a trillion plus was made off of the manipulation of Libor and the fines never total the amount made.

 

US builds criminal cases in interest rate-fixing scandal

"Prospect of charges could push financial institutions to settle with authorities"

"The prospect of criminal cases is expected to rattle the banking world and provide a new impetus for financial institutions to settle with the authorities. The Justice Department investigation comes on top of private investor lawsuits and a sweeping regulatory inquiry led by the Commodity Futures Trading Commission. Collectively, the civil and criminal actions could cost the banking industry tens of billions of dollars."

"The multiyear investigation has ensnared more than 10 big banks in the United States and abroad. With the prospects of criminal action, several firms, including at least two European institutions, are scrambling to arrange deals, according to lawyers close to the case. In part, they are trying to avoid the public outcry that stemmed from the Barclays case, which prompted the resignation of top executives."

http://www.msnbc.msn.com/id/48187483/ns/business-us_business/

I saw this on a message board and fully expect this 'strategy' to spread to some extent between now and November...

 

Hey everyone. Want to unelect Obama? Lets all stop spending for a couple months. Buy only what you need. Postpone any big purchase like a car till after the election. It would work. Pass it around.

 

I don't believe the majority of American's have that much interest in politics to not purchase a new car, take a vacation, or buy an xbox. What stops American's from doing these things on a larger scale is job loses, no raises, lack of job security and maxing out the credit card.

I don't think there are enough people stupid enough, even on the fringe, to sabotage their own economy.

I do, and I remember the talk of a "strike" from some our our "job creator" overlords as well.  Always wondered if that isn't shaving at least a little off our employment and GDP numbers.

SPOILERS:  This is the plot of Atlas Shrugged.

Both consumer spending and consumer confidence greatly affect the economy on a whole.  Efforts to manipulate either in a way that hurts the economy need to be exposed and thwarted.  Similar criticisms can be and are made about distorting the truth the other way (i.e. the economy is doing better than it is)...... in fact, that is kind of the theme of this blog/thread

Both consumer spending and consumer confidence greatly affect the economy on a whole.  Efforts to manipulate either in a way that hurts the economy need to be exposed and thwarted.  Similar criticisms can be and are made about distorting the truth the other way (i.e. the economy is doing better than it is)...... in fact, that is kind of the theme of this blog/thread

 

If efforts are underway to 'manipulate' our economy for political gain it should be exposed. (Feel free to post credible info on such things) I just really don't believe the average American is so wrapped up in politics they are willing to forgo expenditures just to make a political point. Most American's aren't even willing to educate themselves on the Libor issue that literally could be in the trillions that were 'stolen' out of their pockets. Most are to busy watching America's Got Talent.

I do believe there are plenty of businesses-- great and small-- who would gladly put off investing or hiring just to make a point.  Of course, if Obama wins, then what do they do?

(Feel free to post credible info on such things)

 

Thanks!  Very generous of you ;)

If the banks can organize themselves well enough to manipulate Libor I am sure they can do the same with home prices.

 

'Shadow REO': As Many as 90% of Foreclosed Properties Held Off the Market

"But the extent to which lenders keep their stock of REOs -- industry parlance for "real estate owned" properties -- off the market may be much larger than most people think.

As many as 90 percent of REOs are withheld from sale, according to estimates recently provided to AOL Real Estate by two analytics firms. It's a testament to lenders' fears that flooding the market with foreclosed homes could wreak havoc on their balance sheets and present a danger to the housing market as a whole."

http://www.thestreet.com/story/11616596/1/shadow-reo-as-many-as-90-of-foreclosed-properties-held-off-the-market.html

 

^I hope they are paying property taxes on the 90% of homes held back.

If the banks can organize themselves well enough to manipulate Libor I am sure they can do the same with home prices.

 

'Shadow REO': As Many as 90% of Foreclosed Properties Held Off the Market

"But the extent to which lenders keep their stock of REOs -- industry parlance for "real estate owned" properties -- off the market may be much larger than most people think.

As many as 90 percent of REOs are withheld from sale, according to estimates recently provided to AOL Real Estate by two analytics firms. It's a testament to lenders' fears that flooding the market with foreclosed homes could wreak havoc on their balance sheets and present a danger to the housing market as a whole."

http://www.thestreet.com/story/11616596/1/shadow-reo-as-many-as-90-of-foreclosed-properties-held-off-the-market.html

 

 

Banks don't own most of the housing stock though.  If they slow liquidation to prop up housing prices, they are enriching almost 70 percent of the country's households along the way. So even if you think there is some kind of nefarious, shadowy plot, which there isn't, it's not even clear it's a bad thing.

 

That article is kind of a mess, by the way.  It sort of gives up the game when it mentions that Fannie couldn't even put half its REO inventory on the market if wanted to, because it's not vacant or is in need of repair.  Add to that the assessment lag for the first X days after a property enters REO and, well, the hold back share starts looking a lot smaller... But I know that's not exactly headlining grabbing.

If the banks can organize themselves well enough to manipulate Libor I am sure they can do the same with home prices.

 

'Shadow REO': As Many as 90% of Foreclosed Properties Held Off the Market

"But the extent to which lenders keep their stock of REOs -- industry parlance for "real estate owned" properties -- off the market may be much larger than most people think.

As many as 90 percent of REOs are withheld from sale, according to estimates recently provided to AOL Real Estate by two analytics firms. It's a testament to lenders' fears that flooding the market with foreclosed homes could wreak havoc on their balance sheets and present a danger to the housing market as a whole."

http://www.thestreet.com/story/11616596/1/shadow-reo-as-many-as-90-of-foreclosed-properties-held-off-the-market.html

 

 

Banks don't own most of the housing stock though.  If they slow liquidation to prop up housing prices, they are enriching almost 70 percent of the country's households along the way. So even if you think there is some kind of nefarious, shadowy plot, which there isn't, it's not even clear it's a bad thing.

 

That article is kind of a mess, by the way.  It sort of gives up the game when it mentions that Fannie couldn't even put half its REO inventory on the market if wanted to, because it's not vacant or is in need of repair.  Add to that the assessment lag for the first X days after a property enters REO and, well, the hold back share starts looking a lot smaller... But I know that's not exactly headlining grabbing.

 

There two side to the coin in this conversation. Yes, if they artificially try and prop up prices it may impact current home owners with increased values once again. But, it damages the incoming buying pool by inflating their purchase price above what the real supply and demand price point should be. This means they are paying more for their house than the free market system would have dictated.

Industrial production edges up 0.4% in June

"WASHINGTON (MarketWatch) — Industrial production continued a see-saw pattern in June, advancing after a gain in business equipment output but finishing the second quarter with the slowest rate of growth in a year.

Industrial production rose a seasonally adjusted 0.4% in June after a 0.2% dip in May, the Federal Reserve said Tuesday.

The Fed initially reported the May drop to be 0.1%, so even though the June growth was stronger than the 0.3% forecast in a MarketWatch-compiled poll, the level of industrial production was below what economists estimated."

http://www.marketwatch.com/story/industrial-production-edges-up-04-in-june-2012-07-17

 

 

Pessimistic Bernanke doesn’t commit to action

"WASHINGTON (MarketWatch) — Federal Reserve Chairman Ben Bernanke sketched out for members of Congress the weaker economic outlook and stressed that the central bank is prepared to take further action to try to give the recovery a jolt."

http://www.marketwatch.com/story/job-gains-to-be-frustratingly-slow-bernanke-says-2012-07-17?link=MW_story_insert

 

 

QE3 is pointless as we head over the cliff

"Commentary: Fed’s powerless about Europe or U.S. fiscal crisis

WASHINGTON (MarketWatch) — The U.S. economy faces two major risks, and there’s nothing Ben Bernanke or the Federal Reserve can do about it.

That’s the message Bernanke himself delivered to the Senate Banking Committee on Tuesday. The message wasn’t received by either politicians or markets.

In his twice-a-year official testimony on the state of the economy, Bernanke repeated the warning he’s delivered many times before: The economy is weak, threatened with a renewed recession because policy makers here and in Europe are hell-bent on disaster."

http://www.marketwatch.com/story/qe3-is-pointless-as-we-head-over-the-cliff-2012-07-17

^^Are the banks not free, under the free market system, to withhold property from the market in they feel it is in their best interest?

^I think he's inferring it's a cartel or something that working together, so it's all "artificial."  If he actually knew how dysfunctional servicers were, and how little of the REO stock banks themselves actually carried on their books, I think he'd probably stop projecting magical monopoly powers on them.  Never mind the fact that stabilizing home prices benefits a vast majority of U.S. households, so the two sides of his coin aren't remotely equivalent.

^I think he's inferring it's a cartel or something that working together, so it's all "artificial."  If he actually knew how dysfunctional servicers were, and how little of the REO stock banks themselves actually carried on their books, I think he'd probably stop projecting magical monopoly powers on them.  Never mind the fact that stabilizing home prices benefits a vast majority of U.S. households, so the two sides of his coin aren't remotely equivalent.

 

I actually work with several brokers that do just foreclosure sales for major banks. And they are currently very organized on how many units they release each month onto markets.

 

Your definition of stabilizing and my definition of stabilizing the US housing market is very different. I believe that what is best is to have a market that has housing in balance with incomes and where people don't pay more than 30% (which was the historic norm until the 2000s) of the household income to housing. We are not at that place in most markets, so we continue to have more people cost burdened by their homes. By having housing in balance with incomes we can create long term stability in the housing market. The efforts to maintain housing above these historic norms create unstable market conditions.

^^Are the banks not free, under the free market system, to withhold property from the market in they feel it is in their best interest?

 

Are they no matter what the economic ramifications to the average citizen is?

 

Maybe, but it doesn't mean that their efforts are the path to a stable housing market/US economy. I think we have clearly seen that what is good for the banks is not nessarily good for the overall economy or main street.

Absolutely.  But, on the other hand, shocking the system by flooding the market with inventory far in excess of current demand might not be good for the overall economy or Main St

SPOILERS:  This is the plot of Atlas Shrugged.

 

SPOILER: Atlas Shrugged was a lousy, sanctimonious diatribe wrapped in a thin, permeable membrane of a plot.

If the banks can organize themselves well enough to manipulate Libor I am sure they can do the same with home prices.

 

'Shadow REO': As Many as 90% of Foreclosed Properties Held Off the Market

"But the extent to which lenders keep their stock of REOs -- industry parlance for "real estate owned" properties -- off the market may be much larger than most people think.

As many as 90 percent of REOs are withheld from sale, according to estimates recently provided to AOL Real Estate by two analytics firms. It's a testament to lenders' fears that flooding the market with foreclosed homes could wreak havoc on their balance sheets and present a danger to the housing market as a whole."

http://www.thestreet.com/story/11616596/1/shadow-reo-as-many-as-90-of-foreclosed-properties-held-off-the-market.html

 

 

Banks don't own most of the housing stock though.  If they slow liquidation to prop up housing prices, they are enriching almost 70 percent of the country's households along the way. So even if you think there is some kind of nefarious, shadowy plot, which there isn't, it's not even clear it's a bad thing.

 

That article is kind of a mess, by the way.  It sort of gives up the game when it mentions that Fannie couldn't even put half its REO inventory on the market if wanted to, because it's not vacant or is in need of repair.  Add to that the assessment lag for the first X days after a property enters REO and, well, the hold back share starts looking a lot smaller... But I know that's not exactly headlining grabbing.

 

I agree, my opinion of the article changed dramatically by page 3 when it was revealed that that statistic included homes that are currently occupied by renters, homes that are being repaired or need repair, and others that aren't ready to be put on the market, and homes that Fannie, Freddie, and the government don't even have the manpower to list.

 

Also, the slow liquidation isn't necessarily entirely a bad thing for prospective buyers, either, because as long as we're employed, we can play the waiting game as well.  Not putting all of the properties on the market immediately means a slow, steady stream of them over a longer period.  Instead of a surge of downward pressure on prices all at once, we see a milder downward pressure for the foreseeable future.  I can live with that.  I like my apartment, and my savings are growing every month (except for this month, but that was because I got married, and if you think banks gouge consumers, you should see what caterers do).  Eventually, the pressures of property taxes and deferred maintenance (i.e., depreciation, from the REO creditor's point of view) will nudge banks in a more sale-friendly direction on any given property even as they try to hold inventory back, in the aggregate.  The owners also have incentive to release more of the shadow inventory every time that there's an uptick in the market level, which will nurture a self-correcting cycle as long as there's shadow inventory to fuel that cycle.  That means that I'm less worried about a sudden resurgence in the housing market costing me a serious missed opportunity if I wait another year, or maybe even two, to plunk down a down payment.

SPOILERS:  This is the plot of Atlas Shrugged.

 

SPOILER: Atlas Shrugged was a lousy, sanctimonious diatribe wrapped in a thin, permeable membrane of a plot.

 

And the movie had the cinematic qualities of an episode of Law & Order.

Absolutely.  But, on the other hand, shocking the system by flooding the market with inventory far in excess of current demand might not be good for the overall economy or Main St

 

I think it would be one thing if they are releasing at a rate not to cause significant home price declines quickly, but its a whole different story if their goal is to juice the price of housing.