Posts Tagged unemployment
The Recession Is Over!
Posted by Oksana Grebenjuk in Budget, Favourites on Октябрь 27th, 2010
It turns out the recession ended more than a year ago. Feeling better now? The panel that determines the timing of recessions concluded Monday that this one ended — technically, anyway — in June 2009, and lasted 18 months. The duration makes it the longest since World War II.
It may be over, but you won’t be hearing any cheers from the millions of Americans who are struggling to find a job. Or are worried about the ones they have. Or have lost their homes. Or are behind on the mortgage.
«Every single one of the individuals who wrote the report needs a serious reality check,» said Bob Johnson of the Queens borough of New York, who is 46, had worked in communications and has been looking for a job for more than three years.
Not that it’s the fault of the academics — in this case the National Bureau of Economic Research, a group of economists based in Cambridge, Mass. It’s their job to declare when recessions officially begin and end.
Their finding is one that economic historians spend a lot of time pondering. Politicians care, too. They don’t want to be blamed for downturns that happen on their watch. Read the rest of this entry »
Dow Jones Climbed 11000 Mark
Posted by Oksana Grebenjuk in Fund Markets on Октябрь 11th, 2010
We must appreciate the game played by the speculators despite of the uneven pressure on the macro economic levels of the US economy. Some of the following data’s will make US is suffering with an unemployment rate of 9.8% and clinching towards 10% level.US citizens have no money or household savings to and nor they have avenues of earning the livings.US economy grew at less than 3% after the post recession.US suffering with a very low rate of household saving rate. In the year of 1980 under the president ship of Mr. Ronald Wilson Reagan US household savings was at 12%.In the year of 2004 under the leadership of Junior bush it went to 0% and to end the story with more spices it went down to -2% in 2007.The below chart shows the Mountain of Debt of US on its household savings.
Today the US citizens are having an average 133% debt over their household savings. This means that if a person is savings $10000 then he owes to the market $13300.It relates no savings and only debt. Life at US is running on the wheels of debt. In year of 1970 their was no easy ways of availing of debts as compared to the past decade.US policies made such turn around to exploit the US citizens that they are now finally left the citizen with the burden of borrowed capital.
In 1980 under Mr. Ronald Wilson Reagan the Conservative Policy was adopted where it was mentioned that average household debts can exceed more than 50% of the household savings. Well in the year of 2007 the household debt limit went beyond 120%.
TARP and other packages declared by the US government were only bale to clear the dust over the street of Wall Street but failed very hard to generate employment. Toxic assets buyback and balance sheet of the debt burden companies were reduced but nothing went for employment generation. Read the rest of this entry »
4th Quarter Investment And Recommended List Thoughts
Posted by Oksana Grebenjuk in Investing on Октябрь 8th, 2010
The low for the year appears to be in and we are in a Presidential Cycle rally which should eventually take us back to the highs made earlier this year.
However, we are into October which is well known for the two previous crashes and not a generally positive month overall. October is one of the worst performing months for Gold so investors looking to add to Gold and Silver positions would be well advised to look for a buying opportunity as it comes becomes available this month.
For equities, it appears as though we are making a short-term top formation as worries are beginning to appear over not just third quarter earnings but the fourth quarter as well.
In addition, we have the unemployment rate on Friday along with 3rd Quarter GDP at the end of the month. Initial estimates have the GDP number coming in under 2% but we may just see a little boost given to the number, which has been the case over the past few quarters, only to see about a percent taken off in the revisions.
Investors would be well served to continue to follow the guidepost I put up at the beginning of the year focusing on blue chip stocks with solid dividends. Large institutions are just beginning to jump back on the dividend bandwagon and small investors would be well served to get aboard first. Read the rest of this entry »
IMF warns of global economic slowdown
Posted by Oksana Grebenjuk in Trading Markets on Сентябрь 13th, 2010
The International Monetary Fund (IMF) has issued a warning that global economic growth is likely to slow towards the end of 2010, largely due to continued weakness in the financial sector and a confidence crisis in some individual nations.
The Fund recommends that the most developed countries to reduce their budget deficits and increase export volumes in order to alleviate the problem. IMF also suggested that the Asian and emerging markets concentrate more on stimulating internal demand and less on export growth.
The faltering housing market in the U.S. — the source of the global crisis — as well as the fragile sovereign debt market in Europe were highlighted as key issues to be tackled.
In tandem with The International Labour Organization (ILO), the IMF is hosting a joint conference in Oslo, Norway this week to find new ways to create jobs and sustain the economic recovery.
In a published interview ahead of the conference, IMF’s chief economist Olivier Blanchard on a number of topics the Oslo confab will discuss.
«We want to make unemployment, and the costs of unemployment, more prominent in current policy discussions,» he asserted, citing that about 34-million people worldwide have lost their jobs during the crisis. Read the rest of this entry »
Optimism…Pessimism…And A Bit Of Perspective
Posted by Oksana Grebenjuk in Budget, Favourites on Сентябрь 6th, 2010
Here’s how I’m tempted to summarize today’s release of the August employment report from the U.S. Bureau of Labor Statistics: more of the same. That theme fits nicely with comments this morning from Atlanta Fed President Dennis Lockhart, in a speech at East Tennessee State University. Here he calls for a little perspective:
«Some commentators are reading recent economic data as suggesting the onset of a second recession and deflationary cycle. Quite naturally, business people and consumers aren’t sure what to believe.
«At the last meeting of the Federal Open Market Committee (FOMC) in Washington, the committee made a decision that has been widely interpreted as signaling declining confidence in the strength and sustainability of the recovery….
«In my remarks today, I will provide a less alarmist interpretation of recent economic information and the Fed’s recent policy decision. I will argue that, generally speaking, there was too much optimism in the early months and quarters of the recovery and now there may be excessive pessimism.»
One point is that recoveries are not generally linear affairs: Read the rest of this entry »
Consumer Spending in U.S. Rises More Than Forecast
Posted by Oksana Grebenjuk in Favourites, Trading Markets on Август 30th, 2010
Consumer spending in the U.S. rose more than forecast in July, exceeding gains in incomes, a sign the improvement will not last without more jobs.
Purchases rose 0.4 percent, the most since March, after little change the prior month, Commerce Department figures showed today in Washington. Incomes climbed 0.2 percent, less than projected, and the savings rate dropped.
Disposable incomes, or the money left over after taxes, dropped for the first time since January after adjusting for inflation, showing the lack of jobs is hurting Americans’ spending power. Companies from Intel Corp. to J. Crew Group Inc. are cutting forecasts as unemployment and flagging confidence prompt households to scale back.
“This, so far, is allaying near-term double-dip concerns,” said Derek Holt, an economist at Scotia Capital Inc. in Toronto, referring to fears the world’s largest economy will tip back into a recession. “It nonetheless showcases very lackluster growth in the U.S. economy.”
Stock-index futures fell after the report, extending earlier losses, and Treasury securities rose. The contract of the Standard & Poor’s 500 Index was fell 0.3 percent to 1,060.3 at 8:54 a.m. in New York. The yield on the benchmark 10-year Treasury note dropped to 2.60 percent from 2.65 percent late on Aug. 27. Read the rest of this entry »
Housing’s a wreck. Builders rally. Huh?
Posted by Oksana Grebenjuk in Investing on Август 25th, 2010
Existing home sales plummeted in July. New home sales sunk as well, hitting a record low. And even though luxury homebuilder Toll Brothers reported a surprise quarterly profit Wednesday, that was largely due to a tax break. Sales were down slightly from a year ago and orders dropped 16%.
Despite this, some investors appear willing to once again bet that the housing market has hit bottom. Shares of Toll Brothers (TOL) were up more than 2% in early afternoon trading.
The S&P SPDR Homebuilders (XHB) exchange traded fund, which holds other builders such as KB Home (KBH) and Pulte (PHM), as well as building materials makers and home improvement retailers, rose 1.5%.
It’s a strange reaction to say the least. The broad market is down because of more gloomy housing data. But the companies that are most directly tied to the health of the housing market are up?
It doesn’t make a heck of a lot of sense. It may be a case of traders betting for the umpteenth time that this is finally a bottom for housing.
That’s a mistake. Now that the tax credit for homebuyers has expired, it’s difficult to imagine what can juice the real estate market again in the near-term. Read the rest of this entry »
New jobless claims unexpectedly rise by 24,000
Posted by Oksana Grebenjuk in Budget on Апрель 14th, 2010
New weekly jobless claims unexpectedly rose by 24,000 to 484,000 last week, the government said this morning, increasing worries that high unemployment will stick around for a long time.
Forecasters had expected the new jobless claims number to come in at 430,000.
The four-week moving average, which smooths out volatility in the number, rose by 7,500 last week to 457,750.
Continuing claims rose from 4.57 million to 4.64 million.
Economists suggest the spike in claims could be related to the Easter holiday. Each week, it seems, there’s some sort of anomaly that affects the new jobless claims — the big February snows, the March snapback from the big February snows, the Easter holiday — so it’s hard to get a good handle on the real jobless picture in the U.S. Read the rest of this entry »
Gov’t unveils plan to shrink some home loans
Posted by Oksana Grebenjuk in Banks, Favourites on Март 31st, 2010
Under pressure to stem the foreclosure crisis, the Obama administration launched a plan Friday to reduce the amount some troubled borrowers owe on their home loans and give jobless homeowners a temporary break.
Administration officials cautioned that the plan won’t stop all foreclosures or help all troubled homeowners. Instead, officials said their goal is to meet their original target, announced last year, of helping 3 million to 4 million borrowers avoid foreclosure.
The new effort is designed to help two groups:
- Borrowers who owe more on their loans than their houses are worth. Nearly 15 million homeowners fall into this category, according to Moody’s Analytics. About 10 million of them owe at least 20 percent more than their house’s current value.
These people would be helped in either of two ways: Their mortgage companies can cut the total amount they owe on their mortgage. Or they can refinance into loans backed by the Federal Housing Administration, which insures loans against default. The FHA will get $14 billion in incentive money from the federal bailout fund. Read the rest of this entry »
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