Housing market, economy still deep in a post-binge hangover

Yesterday’s housing news — a July decline of 27 percent in sales of existing housing, about twice as deep as predicted  — added to the sense that the economic recovery has stalled.  A big part of the decline can be explained by the fact that federal tax subsidies for homebuyers ended in June. People who wanted or needed to buy a home had jumped into the market earlier, while the $8,000  tax credit was still in effect, leaving demand in July to collapse.

The fact that housing prices nonetheless rose slightly last month over a year ago, suggesting that the prices being demanded by sellers still have not come into balance with the prices that buyers are willing to pay.

(On a side note, the Christian Science Monitor has identified six cities in which housing prices are actually rising. Atlanta is not among them. In the healthiest housing market in the country, median prices actually rose 17 percent in the second quarter of 2010 compared to a year earlier. So load up your U-Haul, folks, and shuffle off to Buffalo, NY!)

Realistically, there’s not much that anybody can do to reverse the national trend. The well-intended housing credit, for example, did little more than delay the necessary correction between supply and demand. We are experiencing the inevitably painful hangover that follows a major housing binge, a disaster created by a combination of greed, corruption, bad government policies and willful, eager ignorance by almost every party involved, as the chart below illustrates.

H/T The Big Picture (http://www.ritholtz.com/blog/)

H/T The Big Picture (http://www.ritholtz.com/blog/)

Also yesterday, the Congressional Budget Office released its latest, legally mandated estimate of the effect of the Obama stimulus package on the economy through the second quarter of 2010. As bad as things are, the CBO found, they would be a lot worse without the stimulus.

According to the CBO, the stimulus package:

  • Raised the level of real (inflation-adjusted) gross domestic product (GDP) by between 1.7 percent and 4.5 percent,
  • Lowered the unemployment rate by between 0.7 percentage points and 1.8 percentage points,
  • Increased the number of people employed by between 1.4 million and 3.3 million,
  • Increased the number of full-time-equivalent (FTE) jobs by 2.0 million to 4.8 million compared with what those amounts would have been otherwise. (Increases in FTE jobs include shifts from part-time to full-time work or overtime and are thus generally larger than increases in the number of employed workers.)
  • The CBO also updated its estimate of the stimulus package’s impact on the debt, estimating that it will add $819 billion through 2019. For comparison’s sake, another CBO estimate last week put the cost of the Iraq War at $700 billion between 2003 and 2010, a number that does not include interest costs.

    472 comments Add your comment

    Peadawg

    August 25th, 2010
    9:40 am

    Hopey Changey baby!

    Actually just more of the same. Obama and Bush sittin’ in a tree……

    George W Bush

    August 25th, 2010
    9:40 am

    Y’all miss me yet?

    Zedd

    August 25th, 2010
    9:42 am

    Who’s/What type of math are they using this time?

    HDB

    August 25th, 2010
    9:43 am

    For those who decried the stimulus…..the results speak for themselves!! One has to SPEND money to MAKE money!! Now..if the BANKS would start lending again…..

    Southern Comfort

    August 25th, 2010
    9:44 am

    Housing and the economy as a whole will not recover for a long time. The people who are in the driver’s seat to push recovery are too scared to do anything because of “perceived” government rules and regulations. If only they had been too scared to jump into the canyon of greed, we might not even be having this discussion.

    Granny Godzilla

    August 25th, 2010
    9:46 am

    Imagine how much more quickly the hangover would have been cured if the GOP had not been so damn obstructionist?

    The binge was their fault as is the pace of the recovery.

    Doggone/GA

    August 25th, 2010
    9:47 am

    “If only they had been too scared to jump into the canyon of greed, we might not even be having this discussion.”

    AMEN!

    @@

    August 25th, 2010
    9:48 am

    jay, my posts are disappearing. Is there a reason why?

    George W Bush

    August 25th, 2010
    9:49 am

    “as is the pace of the recovery.”

    Yup, it’s all the minority’s fault!!! :roll:

    Jay

    August 25th, 2010
    9:52 am

    None that I can see, @@. They’re not showing up here in any form.

    Peadawg

    August 25th, 2010
    9:53 am

    “GOP had not been so damn obstructionist?”

    Um, Granny, haven’t the Democrats controlled both the House and Senate since 2006? Sounds like the obstructionists are the Democrats to me.

    Bosch

    August 25th, 2010
    9:53 am

    “Atlanta is not among them.”

    Imagine that — hmmmm. I wonder if it’s all the dealing between GOP city commissioners and developers who gave them deals to turn a blind eye on responsible building practices and zoning. Of course, that’s just my opinion and conspiracy theory at large.

    @@

    August 25th, 2010
    9:54 am

    Alrighty din! Let’s try it in two, separate.

    Realistically, there’s not much that anybody can do to reverse the national trend.

    But that doesn’t stop this administration from trying to influence the malleable minds among our citizenry. As long as the government provides it, they will come.

    USinUK

    August 25th, 2010
    9:54 am

    the fact is, unless there is a new industry like the computer/internet industry from the 1980s/ 1990s, we’re looking at low growth, low income growth for a generation.

    people are working longer, so there are fewer slots for young people entering the workforce. fewer entry positions means that their entry income will be lower.

    as for housing, the US had a glut of housing in the 2000s – you need to have negative new house construction for a while to get your inventory back down to a manageable level.

    Bosch

    August 25th, 2010
    9:54 am

    GWB,

    “Y’all miss me yet?”

    Hell no.

    arnold

    August 25th, 2010
    9:55 am

    I have yet to hear of a constructive solution from either the GOP or the Tea Baggers. Nothing but complaining.

    USinUK

    August 25th, 2010
    9:57 am

    GWB – “Y’all miss me yet?”

    like I’d miss a fecal impaction.

    The Leg Lamp is a "major award" much like Cynthia Tucker's Pulitzer and Obama's Nobel.

    August 25th, 2010
    9:57 am

    The Obama/Biden “Summer of Recovery” continues….

    BIDEN: ‘We’re moving in right direction’…
    Worries about recovery deepen…
    ‘Hindenburg Omen’ creator exits stock market…
    Economy in ‘Depression, Not Recession’…
    Dow Faces ‘Bouncy Ride to 5,000′…
    Typical Slow Summer — or Something Darker?
    Drop in Home Sales Renews Pricing Fears…
    Investors Scatter to Safety…

    Joe Biden

    August 25th, 2010
    9:57 am

    Nothing to worry about.

    No fear of a depression.

    The recession is over.

    We are just experiancing a rederecession.

    Thank Allah and Jehovah for Obama.

    Southern Comfort

    August 25th, 2010
    9:58 am

    UnU

    Even with new industry, we’re going to be moving at a turtle’s pace. I think a slow steady growth over a longer period is what we need. We’ve tried the rollercoaster economy and that didn’t work out too well. As the old parable goes, slow and steady wins the race.

    The Leg Lamp is a "major award" much like Cynthia Tucker's Pulitzer and Obama's Nobel.

    August 25th, 2010
    9:58 am

    INTEL CEO blasts Obama, Dems; USA faces looming tech decline…

    Doggone/GA

    August 25th, 2010
    9:59 am

    “you need to have negative new house construction for a while to get your inventory back down to a manageable level.”

    On a report on NPR yesterday they attributed at least some of the housing numbers to existing home owners who are postponing a move to a new house. People who might have moved in the past just aren’t right now.

    The Leg Lamp is a "major award" much like Cynthia Tucker's Pulitzer and Obama's Nobel.

    August 25th, 2010
    9:59 am

    LETTERMAN TURNS: ‘He’ll have plenty of time for vacations after his one term’…

    jconservative

    August 25th, 2010
    9:59 am

    What we need to do is borrow 36 billion a year from China for the next 8 years so we can extend the Bush tax cuts.

    Actually, I am waiting for someone to say “lets cut -fill in the blank- programs $36 billion a year and then extend the Bush tax cuts”.

    I have a feeling that I will be waiting a long time.

    The Leg Lamp is a "major award" much like Cynthia Tucker's Pulitzer and Obama's Nobel.

    August 25th, 2010
    10:00 am

    Feds move to dismiss deportation cases; Backdoor ‘amnesty’…

    USinUK

    August 25th, 2010
    10:00 am

    SoCo – I think it would depend what the industry was – but, we need something that will create jobs IN the US, rather than create revenues for existing corporations who outsource to Mumbai and Shenzhen

    Peadawg

    August 25th, 2010
    10:00 am

    “The Leg Lamp is a “major award” much like Cynthia Tucker’s Pulitzer and Obama’s Nobel.”

    I watch the Christmas Story over and over on TBS every Christmas. Love that movie!!!

    The Leg Lamp is a "major award" much like Cynthia Tucker's Pulitzer and Obama's Nobel.

    August 25th, 2010
    10:01 am

    Sen. Baucus (author of Obamacare) admits to not reading the bill!

    The Leg Lamp is a "major award" much like Cynthia Tucker's Pulitzer and Obama's Nobel.

    August 25th, 2010
    10:01 am

    Obama & Hillary ‘talk’ while Iran arms for nuclear war…

    @@

    August 25th, 2010
    10:01 am

    Thanks, jay.

    A grave conservative, Walter.

    Who Cares About Our Future?

    In my opinion, it takes a special form of callousness and disregard for the welfare of future generations of Americans for today’s senior citizens to fight against reform. Nobody’s talking about abolition of federal senior programs. We must accept that serious mistakes were made and we must take compassionate corrective action. But what the heck! As I said in my “What Handouts to Cut?” column, “Both today’s politicians and seniors will be dead so why should they make sacrifices now to prevent an economic calamity decades off into the future?”

    …and that same “special form of callousness and disregard for the welfare of future generations” is exhibited by those who have no problem with piling Obama’s spending extravaganza onto our children.

    USinUK

    August 25th, 2010
    10:01 am

    P-diddy … the best line “it says fra-geeeee-lay … it must be from Italy!”

    cracks me up every time.

    I'm here from the government and I'm here to help

    August 25th, 2010
    10:02 am

    HDB
    August 25th, 2010
    9:43 am

    For those who decried the stimulus…..the results speak for themselves!! One has to SPEND money to MAKE money!!

    Dumbest POST of the YEAR! NOT OUR GOVERNMENT! They print money to spend money. Name one investment the Government has made and showed a ROI of 10% or more?

    The Leg Lamp is a "major award" much like Cynthia Tucker's Pulitzer and Obama's Nobel.

    August 25th, 2010
    10:02 am

    Peadawg

    August 25th, 2010
    10:00 am

    One of the classics indeed!!

    USinUK

    August 25th, 2010
    10:03 am

    Doggone – “People who might have moved in the past just aren’t right now.”

    our housing analyst here explained it thusly: the only people asking banks for loans are the folks they don’t want to lend to. the folks they DO want to lend to are boosting their savings, not borrowing.

    USinUK

    August 25th, 2010
    10:03 am

    “Name one investment the Government has made and showed a ROI of 10% or more?”

    ahem.

    TARP.

    I'm here from the government and I'm here to help

    August 25th, 2010
    10:04 am

    Granny Godzilla aka CT, How’s the beaches?

    Imagine if the demo’s had listen to the GOP in 2002. This mess would have never happen.

    @@

    August 25th, 2010
    10:04 am

    grave=brave

    schnirt

    Normal

    August 25th, 2010
    10:05 am

    Peadawg

    August 25th, 2010
    9:53 am

    Horse feathers, Peadawg. The Republican Party has constantly refused to work with the Democrats, and the Democrats don’t really control a thing, thanks to the “the Republicans in Democrat clothing” like Lieberman, et al.

    Bosch

    August 25th, 2010
    10:05 am

    The Bosches too watch the Christmas Story Marathon ever year.

    TM

    August 25th, 2010
    10:05 am

    The sum of all the deficits from 2003 through 2010 is $4.73 trillion. Subtract the entire Iraq War cost and you still have a sum of $4.02 trillion

    USinUK

    August 25th, 2010
    10:06 am

    “This mess would have never happen.”

    really? there never would have been derivatives?

    homeowners never would have leveraged themselves up to their eyeballs?

    banks never would have launched “creative mortgage products” (as suggested by A Greenspan)?

    401Ks never would have invested in riskier and riskier securities, looking for return?

    RW-(the original)

    August 25th, 2010
    10:07 am

    Imagine how much more quickly the hangover would have been cured if the GOP had not been so damn obstructionist?

    The Porkulous bill that’s being credited for this “amazing” recovery was passed in February 2009 and signed into law on February 17th, That’s some awfully weak obstructionism since Obama only took office on January 20, 2009.

    I'm here from the government and I'm here to help

    August 25th, 2010
    10:07 am

    USinUK
    August 25th, 2010
    10:03 am

    “Name one investment the Government has made and showed a ROI of 10% or more?”

    ahem.

    TARP.

    LOL :) ROFLMAO :) Thanks for proving me right1

    Normal

    August 25th, 2010
    10:09 am

    The Leg Lamp is a “major award” much like Cynthia Tucker’s Pulitzer and Obama’s Nobel.

    August 25th, 2010
    10:01 am
    Obama & Hillary ‘talk’ while Iran arms for nuclear war…

    OH GAWD! It’s the boogie man again!!! Run!

    Doggone/GA

    August 25th, 2010
    10:09 am

    “the folks they DO want to lend to are boosting their savings, not borrowing.”

    Yes, that was mentioned too…as well as they are paying off existing debts.

    Granny Godzilla

    August 25th, 2010
    10:09 am

    The Godzillas understand about the Bumpus’s dogs…..

    I'm here from the government and I'm here to help

    August 25th, 2010
    10:10 am

    $17 TRILLION in debt and YOU still have a checkbook?

    Even mindless monkey’s could figure this shyt out!

    USinUK

    August 25th, 2010
    10:11 am

    “LOL ROFLMAO Thanks for proving me right”

    you do realize that all the assets that were used as collateral to secure the loans have had returns > than the 10% you asked?

    no, evidently you didn’t.

    Normal

    August 25th, 2010
    10:12 am

    Bosch, Peadawg,
    I have two favorite versions of “The Christmas Story”. The 1935 one and the one in which George C. Scott plays Scrooge.

    USinUK

    August 25th, 2010
    10:12 am

    “Yes, that was mentioned too…as well as they are paying off existing debts.”

    yep … all of which is good for future growth, provided that today’s economic lesson doesn’t go down the memory hole …

    Granny Godzilla

    August 25th, 2010
    10:12 am

    RW

    yep good fast work, that should have been bigger, but for GOP obstructionism

    funny about all the GOPers who objected at ribbon cutting ceremonies…

    @@

    August 25th, 2010
    10:13 am

    Speaking of excessive spending…

    “I love how our opponents have nitpicked some of the research money that we have given to NIH. It reflects that they know nothing about science,” Biden said in announcing a report about the $100 billion from the stimulus package being spent on energy, science and health research.

    “In the National Institutes of Health, we have one of the greatest assemblages of doctors and scientists in the world,” Biden said. “Through the Recovery Act, we’re giving them the tools to make the most profound innovation of all: improving and extending health and human life, while bringing down the cost in medicine.”

    Tools, Joe????

    NIH has funded various grants on unusual studies such as $60,000 to study Hookah smoking among Jordanian college students; $314,613 to study a supposed increase in family violence after viewing of NFL games; $1.4 million to study the “social milieu” of male prostitutes in Vietnam’s Ho Chi Minh City and Hanoi; $181,406 to study the sex drive of Japanese quail and $410,624 on the aforementioned study, which involved teaching Chinese meditation to cocaine addicts.

    I love me some Joe.

    Gammer

    August 25th, 2010
    10:14 am

    * Obama’s stimulus, passed in his first month in office, will cost more than the entire Iraq War — more than $100 billion (15%) more.

    * Just the first two years of Obama’s stimulus cost more than the entire cost of the Iraq War under President Bush, or six years of that war.

    * Iraq War spending accounted for just 3.2% of all federal spending while it lasted.

    * Iraq War spending was not even one quarter of what we spent on Medicare in the same time frame.

    * Iraq War spending was not even 15% of the total deficit spending in that time frame. The cumulative deficit, 2003-2010, would have been four-point-something trillion dollars with or without the Iraq War.

    * The Iraq War accounts for less than 8% of the federal debt held by the public at the end of 2010 ($9.031 trillion).

    * During Bush’s Iraq years, 2003-2008, the federal government spent more on education that it did on the Iraq War. (State and local governments spent about ten times more.)

    USinUK

    August 25th, 2010
    10:15 am

    Normal – you’re thinking A Christmas Carol … they’re talking about Ralphie in The Christmas Story …

    you’ll put your eye out.

    that Christmas Story.

    getalife

    August 25th, 2010
    10:15 am

    The economic graphs shows a w to remind us who was the president that never saw the collapse coming.

    cons want them back in power to finish the job of destroying our country.

    Perhaps we need to start over because the system is too corrupt.

    Bosch

    August 25th, 2010
    10:16 am

    My neighbor has a leg lamp like the one in the movie. I’m soooooooo jealous.

    Bosch

    August 25th, 2010
    10:16 am

    I have a Red Ryder BB Gun sitting on my porch as we type.

    I'm here from the government and I'm here to help

    August 25th, 2010
    10:17 am

    USinUK

    NOT Exactly but keep drinking the kook-aid. Try some ICE, I have heard it helps the taste!

    The Leg Lamp is a "major award" much like Cynthia Tucker's Pulitzer and Obama's Nobel.

    August 25th, 2010
    10:18 am

    USinUK

    August 25th, 2010
    10:01 am

    I have a Hallmark that plays that phrase. Cracks me up too.

    USinUK

    August 25th, 2010
    10:19 am

    “NOT Exactly but keep drinking the kook-aid. Try some ICE, I have heard it helps the taste!”

    yeah. exactly.

    sorry you don’t like the truth. it does tend to get in the way of a good tantrum.

    The Leg Lamp is a "major award" much like Cynthia Tucker's Pulitzer and Obama's Nobel.

    August 25th, 2010
    10:19 am

    Bosch

    August 25th, 2010
    10:16 am

    Did you put your eye out?

    Kamchak

    August 25th, 2010
    10:19 am

    Fannie, Freddie, CRA, ACORN—It’s all their fault!

    Just thought I would get that out of the way on the first page.

    Gordon

    August 25th, 2010
    10:19 am

    Jay,

    Did the report break out the number of people employed and number of FTE jobs by public vs. private sector?

    I'm here from the government and I'm here to help

    August 25th, 2010
    10:20 am

    Granny Godzilla aka MNGL aka ctucker,

    Are you going the VI parade on 9/1? How’s the vacation going? You sunburned yet?

    Granny Godzilla

    August 25th, 2010
    10:21 am

    Gammer

    you fell for that too?

    williebkind

    August 25th, 2010
    10:23 am

    Jay is this change working for you and your neighborhood?

    williebkind

    August 25th, 2010
    10:24 am

    How much have you guys lost in the stock market with this booming economy provided by the stimulus?

    The Leg Lamp is a "major award" much like Cynthia Tucker's Pulitzer and Obama's Nobel.

    August 25th, 2010
    10:24 am

    WAR: U.S. Weighs Expanded Strikes in Yemen…

    @@

    August 25th, 2010
    10:25 am

    O-:MG!!!!!!!!!!!!

    O.K., the discussion is evolving into “A Christmas Story”. Fine…

    much like left-wingers, Ralphie’s little brother won’t eat until their mother calls forth “mommy’s little piggy”.

    Apropos?

    Bruno

    August 25th, 2010
    10:25 am

    “The people who are in the driver’s seat to push recovery are too scared to do anything because of “perceived” government rules and regulations.”

    Last night, Road Scholar challenged me (us) to come up with some new ideas to help the economy. There are a lot of things we can’t change quickly, such as the oversupply of houses on the market, but I think Obama and the Dems could be doing a LOT more to create a positive environment for business. IMO, they have created an atmosphere of fear for business in the form of both new regulations (new credit card and banking rules) and requirements (health care). I can’t blame companies for sitting on their cash and not expanding until the legislative free fall settles down.

    You can hate on Reagan and GWB all you want, but they both helped set us on a road to economic recovery following bad times through positive leadership. Whatever good qualities Obama may have, leadership isn’t one of them.

    If only they had been too scared to jump into the canyon of greed, we might not even be having this discussion.

    USinUK

    August 25th, 2010
    10:25 am

    Gordon – weekly numbers aren’t broken down that way … only the montly numbers are

    Normal

    August 25th, 2010
    10:25 am

    USinUK,
    Oh, that one…hated it! Parts were too close to home…

    The Leg Lamp is a "major award" much like Cynthia Tucker's Pulitzer and Obama's Nobel.

    August 25th, 2010
    10:27 am

    Here’s a snapshot of what Obamacare will look like…

    Mother at short-staffed Swedish hospital told to clean own room after caesarean…

    I'm here from the government and I'm here to help

    August 25th, 2010
    10:27 am

    USinUK,

    All of the 17 large banks have repaid their TARP investments while less than 10% of the smaller banks have done so, and about 15% of the small banks have missed a payment.

    http://bailout.propublica.org/list/dividends

    All seem to be well under a 10% return. Some have yet to pay anything. You wanna try your BS again?

    USinUK

    August 25th, 2010
    10:28 am

    Normal – I like the Jean Luc Picard Christmas Carol. the effects weren’t great, but he makes a kick-a$$ Scrooge.

    Saul Good

    August 25th, 2010
    10:29 am

    USinUK@6:58 am (from the thread downstairs)… errr…. nice list as well! Never saw that site…thanks for posting it.

    I didn’t read all the posts yet…but with regards to housing… I know HDB posted above that banks need to start lending again. Some are…and even in the “speculative” real estate market again. Smart? I’m not so sure. Truth be told… I had to go to my friend’s studio a few days ago which is located in his house in Country Club of the South… while going down Old Alabama I noticed that in a few of the smaller “high end” subdivisions are putting up “spec” homes again. Smart? Probably not…probably a REALLY bad move with so many homes currently on the market. I mean it’s “good” that a handful of builders and their subcontractors are getting work (which WILL help the economy)…it’s good that building supply co’s are moving some inventory…I’m not sure how much that helps manufacturers of building supplies because most places still are not ordering too much and simply selling from what they have (and most likely not ordering much as far as NEW supplies)… what happens if those homes linger? I mean…my own thought is that it’s “Wishful Thinking” on behalf of the builders…but most of all the banks loaning the money. Unless it’s the builders going into their own pockets…I can’t see how taking the risk of building MORE new homes in a market over-saturated with homes both old and new (that never sold) is a GOOD thing. Short term good for those back to work building those homes…but it will only prolong things in terms of the housing market rebounding if banks continue to invest in real estate. I mean did they not learn ANYTHING????

    Gordon

    August 25th, 2010
    10:29 am

    USinUK,

    This looks like a report through the 2nd quarter, not a weekly report. But maybe I’m wrong. I was just curious what types of jobs are being created.

    The Leg Lamp is a "major award" much like Cynthia Tucker's Pulitzer and Obama's Nobel.

    August 25th, 2010
    10:29 am

    Marine General: Obama giving ’sustenance’ to Taliban…

    Says most Marines don’t want gay roommates…

    USinUK

    August 25th, 2010
    10:30 am

    speaking of BS, you seem to be soaking in it, I’m here …

    “As U.S. banks have returned to health following the worst financial crisis in decades, the U.S. Treasury has shared in their gains. Banks that have exited the government’s Troubled Asset Relief Program, or TARP, have on average earned taxpayers 10.3% in annualized returns for their investments, according to Keefe Bruyette & Woods. Wall Street firms Goldman Sachs Group Inc. (GS) and Morgan Stanley (MS), which each repaid their $10 billion in government investments last summer, generated returns of nearly 20% and 16%.”

    Read more: http://www.nasdaq.com/aspx/company-news-story.aspx?storyid=201007071728dowjonesdjonline000557%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20&title=returns-on-us-tarp-investments-may-decline#ixzz0xd0E6WDa

    so, go peddle it somewhere else

    Normal

    August 25th, 2010
    10:30 am

    The Leg Lamp is a “major award” much like Cynthia Tucker’s Pulitzer and Obama’s Nobel.

    August 25th, 2010
    10:27 am

    But “Obamacare” hasn’t even started yet? Maybe “for profit” health care is the real culprit.

    Bruno

    August 25th, 2010
    10:31 am

    “the fact is, unless there is a new industry like the computer/internet industry from the 1980s/ 1990s, we’re looking at low growth, low income growth for a generation.”

    “Even with new industry, we’re going to be moving at a turtle’s pace. I think a slow steady growth over a longer period is what we need. We’ve tried the rollercoaster economy and that didn’t work out too well. As the old parable goes, slow and steady wins the race.”

    SC and USinUK–I think that both of you are right in predicting slow, steady growth at best. I hate to say/think it, but our best hope may lay in the vast, nearly untapped markets of China and India. We’re already maxed out economically here in the US in terms of consumer products. I mean, how many more big screen TVs do we need per household?? In those other countries, however, there’s a lot of room for upward movement. Ultimately, there’s going to be an “averaging” effect, however. While they’re going up, we’re probably going to go down a notch.

    The Thin Guy

    August 25th, 2010
    10:32 am

    What I know about economics could be put in an ant’s navel with room left over for the Vienna Boys’ Choir. That at least gives me something in common with Imam Hoover Øbungle and the Blog Boyars employed by the ajc. But I do remember Ross Perot saying that if NAFTA passed that whissing sound you’re hearing is jobs leaving America.It’s simple. Manufacturing jobs go where the labor costs are cheapest if there are no tariffs on imported goods that means anywhere but the USA. So the only jobs we have plenty of are bloggers, doctors, lawyers, and Indian Chiefs (whoops, make that Native American Ethnic Group Executives). Of course, JB never mentions NAFTA because it had bipartisan support and the only democrat he would ever criticize is Zell Miller.

    SOUTHERN ATL

    August 25th, 2010
    10:32 am

    I know that I am off subject/topic on this one but it amazes me that John McCain would spend over $20 million dollars on his campaign…..

    In Arizona, John McCain easily defeated former Rep. J.D. Hayworth in the state’s GOP Senate primary. But it came at a huge cost to McCain — both financially and politically. McCain spent $21 million on the race — more than any non-self-funding candidate so far this campaign and more than he had spent on all of his previous Senate primary campaigns combined.
    But the campaign’s greatest toll may have been the damage to McCain’s own political legacy. Under pressure from tea party activists, who had early targeted the senator as vulnerable to a strong primary challenge, McCain moved to the right on several issues, including immigration reform, and denied his reputation as a political maverick, willing to buck his party on matters of conscience.

    http://news.yahoo.com/s/yblog_upshot/20100825/el_yblog_upshot/big-primary-night-highlights-limits-of-tea-party-insurgency#mwpphu-container

    I'm here from the government and I'm here to help

    August 25th, 2010
    10:32 am

    Obama giving ’sustenance’ to Taliban…

    Impeachable offense!

    Dusty

    August 25th, 2010
    10:33 am

    Hmmm…Jay is shooting wild and crazy this morning.

    He gently reminds us that things are not REAL good. Then throws in a graph on mortgages (no mention of Freddie & Faniie) and mentiones the tiny impact of the stimulus.

    But but but ….the war the war the terrorists are costing us lotsa money. IN othe words, we must not support the war and always mention its cost. That’s right, suggests Bookman. Compare the cost of long run freedom to the cost of a barely perceptible stimulus program.

    The twistings & turnis of the anti-war liberal mind are forever amazing. I repeat. Comparing the cost of war while our military are fighting to the cost of a limp stimulus program!!! Bookman needs another vacation..

    USinUK

    August 25th, 2010
    10:35 am

    Gordon – Since the beginning of the year, private industry has seen positive job growth in the monthly reports with the strongest gains in manufacturing

    jm

    August 25th, 2010
    10:36 am

    Government was the problem on this one. Stupid DC and federal policies created this disaster by building the crumbly foundation upon which to expand home ownership. The house of cards eventually, logically, came down. At the core, if someone wants to blame DC for something, this time it would be right on target.

    JF McNamara

    August 25th, 2010
    10:36 am

    Housing isn’t coming back anytime soon unless we import a bunch of immigrants with money. We’ve got too many homes and not enough people who can pay mortgages. High supply / low demand = low prices.

    If we want more jobs and to solve the housing situation. We need an influx of people, and to increase our manufacturing base. A better solution to secure prosperity might be allowing a huge tax credit for high achievers (Combined Income 150K or more) with 3 or more kids and start pushing children among the top levels of society. The price is so high, that the most intelligent people are having the fewer and fewer kids. That’s bad for society in general as its lowering the potential tax base in the future.

    If we want another baby boomer style economy, we need another baby boom.

    I'm here from the government and I'm here to help

    August 25th, 2010
    10:37 am

    USinUK,

    Just one of many examples! Try to follow along…

    1st Constitution Bancorp was loaned $12,000,000.00 we the TAXPAYERS have received $837,000.00 in Dividends and NO Interest was paid. Our ROI was…… 0.0675.

    Bruno

    August 25th, 2010
    10:37 am

    “As U.S. banks have returned to health following the worst financial crisis in decades”

    USinUK, have you checked the stock prices on the banks the past few days?? BAC just set a new one year low, and Citi isn’t too far behind.

    I probably panicked a little early, but I sold my CSCO stock this AM for a small loss in anticipation of more bad economic news this week. If I hadn’t been so greedy, I could have realized a substantial profit by selling it last Thursday. That greed will get you every time…..

    Southern Comfort

    August 25th, 2010
    10:38 am

    I think Obama and the Dems could be doing a LOT more to create a positive environment for business. IMO, they have created an atmosphere of fear for business in the form of both new regulations (new credit card and banking rules) and requirements (health care).

    I can’t fault a business for looking out for their bottom line, but do you think that fear is because many of these companies know they screwed us over and are afraid of the repercussions of their actions? After what we’ve been through, I don’t have much faith in the companies being able to self-regulate without some rules and regulations to keep us from being screwed again. I don’t think the rules and stuff that Congress put into effect protect us at all. It’s more of gaming the systems for the benefit of those corporate donors.

    If these businesses were truly interested in survival, they’d realize the customers of tomorrow are their workers of today. No workers = no customers. These companies want to achieve unrealistic profits. There’s no way possible for a company to sustain growth and profit quarter after quarter or year after year. At some point, you have to accept a loss or two, and I haven’t seen a company yet willing to do that. If companies were more realistic than idealistic, things would turn around much faster and on a more solid foundation.

    Normal

    August 25th, 2010
    10:39 am

    Saul,
    I’m just waiting for the other shoe to fall. There will be another collapse and it won’t be pretty, but prices should reach a low water mark. Then let the Government step in with another FDR type employment system, get people to work upgrading the railway systems, roads and bridges, canals and dams, etc. With men working again and housing more affortdable, we will see better days again…but it’s going to get painful.
    And it seems we never learn…

    http://www.thehistorybox.com/ny_city/panics/panics_article1a.htm

    I'm here from the government and I'm here to help

    August 25th, 2010
    10:39 am

    USinUK
    August 25th, 2010
    10:35 am

    Gordon – Since the beginning of the year, private industry has seen positive job growth in the monthly reports with the strongest gains in manufacturing

    PLEEEEEEEEEEEEEEASE put down the KOOK-aid!

    Union

    August 25th, 2010
    10:40 am

    what did that amount work out to be for a job saved or created? looks to be around 180k per?

    jm

    August 25th, 2010
    10:40 am

    “This mess would have never happen.”

    USinUK – you bet. The core of the problem is housing, while bank leverage and credit derivatives were a real problem, but still a bit of a sideshow. If we had a functioning free market in housing, down payments would have been 20% or more and we would never have had this stupid over investment in housing.

    The government created a market with Fan/Fred guarantees that never should have existed, and so it eventually collapsed.

    The Leg Lamp is a "major award" much like Cynthia Tucker's Pulitzer and Obama's Nobel.

    August 25th, 2010
    10:41 am

    A libs worst nightmare..

    Quayle wins GOP slugfest in AZ 3rd Cong. District

    I'm here from the government and I'm here to help

    August 25th, 2010
    10:41 am

    job saved

    ObamaTalk! BS!

    Harry Callahan

    August 25th, 2010
    10:44 am

    The solution is coming on Nov 2. We’re going to put adults in charge of the country.

    Southern Comfort

    August 25th, 2010
    10:44 am

    Government was the problem on this one.

    I can agree with you, but not your reasoning. Had Congress left the regulations in place like Glass-Stegall, they would have helped us more than they hurt us. The government screwed us by getting in bed with some of the businesses that got regulations loosened and took full advantage of that to game the system.

    USinUK

    August 25th, 2010
    10:44 am

    I’m here – what part of “average earned taxpayers 10.3% in annualized returns” eludes you?

    that’s why they call it AVERAGE. some returns are 0.6%. some are 25%.

    you asked what program has earned us a ROI >10%.

    I answered it and have shown you evidence.

    you were wrong. man up and deal with it.