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Russ Henke
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Russ Henke |
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3/2/2007 6:15 AM |
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Thoughts of interest to COFES and COFES attendees |
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Fears Worsen for W’s Second Recession |
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By Russ Henke on
12/28/2007 1:35 PM
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New-home sales in the US fell 9% in November from October to a seasonally-adjusted annual sales pace of 647,000, the US Commerce Department reported December 28, 2007. Economists were predicting November 2007 new-home sales to decline by only 1.8%. Over the last 12 months, new-home sales in the US have plunged by more than 34%, the biggest annual drop since 1991 (i.e. under Bush 41).
"I think you can classify what we are seeing in the housing market as a crash," said Mark Zandi, chief economist at Moody's Economy.com, according to the AP. "Sales and home prices are in a free fall. The downturn is intensifying."
Fed by the persistent lack of federal regulation in the mortgage market, the housing debacle has significantly increased the odds that the US economy will soon fall into a recession, the second one under Bush 43. We recall that his daddy presided over only one recession.
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News Independence? |
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By Russ Henke on
12/19/2007 8:07 AM
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The five-person Federal Communications Commission approved a controversial new rule to allow broadcasters in the twenty largest US media markets to also own a newspaper. The existing ban against this practice had been in place for thirty-two years. The White House has already pledged to veto any congressional action that seeks to change the decision.
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Final US Jobs report of the Year – Thank Goodness! |
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By Russ Henke on
12/9/2007 6:59 AM
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The November 2007 jobs report was “the clearest sign yet that the American economy was headed for a substantial slowdown.” Mark Zandi, chief economist at Moody’s Economy.com, said that the November job creation numbers are “indicative of a very fragile US economy that will come undone unless conditions improve soon.”
Meanwhile, the average hourly wages among rank-and-file US workers (i.e. the vast majority of us Americans) was just $17.63 last month, simply emphasizing the long-term erosion of spending power for most American workers in the last seven years.
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Economic news.... |
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By Russ Henke on
11/23/2007 6:06 PM
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Crude-oil futures ended November 23, 2007 at the highest-ever closing level. Crude oil for January 2009 delivery settled up 89 cents at $98.18 a barrel on the New York Mercantile Exchange. The session touched an intraday high of $98.45. Crude ended the week up $4.34, or 4.4%.
The US dollar also helped boost oil as it touched a new historic low of $1.4966 per euro before “recovering” to $1.4834. A sliding dollar makes oil cheaper for buyers holding other currencies. These buyers are likely to increase demand and bid up oil prices. You think?
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More news in the Rich-get-Richer series… |
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By Russ Henke on
11/21/2007 7:34 AM
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On November 19, 2007 from Bloomberg News comes word that shareholders in the securities industry are having their worst year since 2002, losing $74 billion of equity. But it appears that won't prevent Wall Street from paying record bonuses for 2007, totaling almost $38 billion. That's billion with a "b", folks!
By way of comparison, Bloomberg News reported that the industry's 2007 bonuses are larger than the gross domestic products of Sri Lanka, Lebanon or Bulgaria. The average $201,500 bonus is more than four times the $48,201 median household income in the US last year, according to US Census Bureau statistics.
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Truth hurts... |
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By Russ Henke on
11/19/2007 7:19 AM
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Just in time for the Annapolis peace conference planned for the last week of November 2007 comes news over the weekend November 17-18 from PBS: In Israel, a new word has been added to the official Hebrew Dictionary. The new word is “Condel”. It means, “to run around, have lots of meetings, and get nothing done.” Condel is a real word, frequently used in Israel and spreading elsewhere, inspired by the US Secretary of State Condi Rice.
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Blackstone back in the news |
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By Russ Henke on
11/12/2007 6:52 PM
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If you missed paying $35 per share in the Blackstone IPO in July 2007, you’ll be somewhat gratified by this news.
Shares of Blackstone Group traded as much as 11% lower November 12, 2007, as investors reacted negatively to the private-equity firm reporting a third-quarter loss. The company's quarterly loss amounted to 44 cents a share. On average, analysts had been expecting Blackstone to earn plus 30 cents a share for Q3 2007.
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Still More Figures... |
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By Russ Henke on
11/10/2007 9:34 AM
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The Figure: Number of US deaths in Iraq in October was 39.
The Lie: “This number of 39 proves the surge is working.”
The Facts: Bush implemented “The Surge” in January 2007. As of early November,
the year 2007 had already become the deadliest year yet for US troops in Iraq. At
least 852 American military personnel have died in Iraq so far this year — the
highest annual toll since Bush began the Iraq war in March 2003.
The Figure: Six US troops were killed when insurgents ambushed their foot patrol
in the high mountains of eastern Afghanistan on November 9, 2007.
The Lie: “The US vanquished the Taliban in 2001, to avenge 9/11.”
The Facts: The year 2007 has just become the deadliest for US troops in
Afghanistan since the 2001 in ...
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One more Figure... |
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By Russ Henke on
11/8/2007 7:22 AM
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The Figure: On November 7, 2007, the US national average gas price for Unleaded Regular reached $3.04 per gallon.
The Lie: Autumn always means falling gasoline prices, as demand eases after the busy summer travel season.
The Facts: The average price per gallon of Unleaded Regular Gas has gone up 28 cents in 30 days. In some states the average price is much higher. In California, the price on November 7 averaged $3.31.
Related Fact: The price of a gallon of Unleaded Regular Gas when George W. Bush took office on January 20, 2001: $1.46
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Figures lie; Liars figure… |
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By Russ Henke on
11/7/2007 6:09 PM
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The Figure: Real US gross domestic product (GNP) -- the output of goods and
services produced by labor and property located in the United States -- increased
at an annual rate of 3.9% in the third quarter of 2007, according to advance
estimates released by the US Bureau of Economic Analysis at the end of October
2007.
The Lie: “The proves that the economy of the US is strong and resilient.”
The Facts: The advance estimate of GNP proves nothing. It’s a very preliminary
estimate. The dramatic impact on GNP of the value of the US dollar being at record lows
against foreign currencies has yet to be analyzed.
The Figure: The US economy added 166,000 jobs in October 2007, the fastest pace in
five months, the Labor Department said.
The Lie: “The proves tha ...
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