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/)
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.
Tell us what you think about the site
Customer Care »
Vacation stops, manage subscriptions and more
AJC Services
Sections
Other Editions
Visitor Agreement | Privacy Statement
© 2013 The Atlanta Journal-Constitution
472 comments Add your comment
SOUTHERN ATL
August 25th, 2010
1:44 pm
Georgia we have got a “PROBLEM”…..During the previous Georgia primaries the voting was broken down by:
DEMOCRATIC Votes Cast
2,902 precincts reported 393,897
REPUBLICAN Votes Cast
2,898 precincts reported 578,671
DIFFERENCE (+REPUBLICAN)
184,774
pat
August 25th, 2010
1:49 pm
“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”
You are bragging about this? This is incrediablly poor result from such a massive effort. Really a .7 drop in unemployment in two years? This is not outside a normal variation in employement figures. If that’s all the stimulus did, I wouldn’t brag that’s for damn sure.
Debt out the wazoo, no jobs, floundering economy, nuclear Iran with russia’s help, etc.
It would be laughable if not so pathetic….
larry
August 25th, 2010
1:54 pm
If that’s all the stimulus did, I wouldn’t brag that’s for damn sure.
It also paid for 95% of Americans to have a tax cut and payment to states so the states could keep laying off employees , such as teachers.
Bosch
August 25th, 2010
1:56 pm
Southern Atlanta,
Most Democrats knew that Roy had it in the bag and didn’t vote.
larry
August 25th, 2010
1:57 pm
If that’s all the stimulus did, I wouldn’t brag that’s for damn sure.
It also paid for 95% of Americans to have a tax cut and payment to states so the states could keep laying off employees , such as teachers
That should read ” keep from laying off employees, such as teachers”
The Leg Lamp is a "major award" much like Cynthia Tucker's Pulitzer and Obama's Nobel.
August 25th, 2010
2:00 pm
Bosch
August 25th, 2010
1:56 pm
Riiiiiiiiight.
I'm Here From The Government And I'm Here To Help
August 25th, 2010
2:07 pm
Granny Godzilla aka ctucker,
Vacation time is not blog time!
Bosch
August 25th, 2010
2:08 pm
Leg Lamp,
Whatever the case was in the primaries, they are tied in the polls, so we’ll see.
I'm Here From The Government And I'm Here To Help
August 25th, 2010
2:10 pm
Bosch
August 25th, 2010
1:56 pm
Southern Atlanta,
Most Democrats knew that Roy had it in the bag and didn’t vote.
PLEASSSSSSSSSSSSSSSSSE keep thinking that way! The Republic is at stake!
Jonathan
August 25th, 2010
2:11 pm
DawgDad- but Al Gore said we can lockbox it? He is never wrong, correct? Here is my thoughts. Keep raising the social security rate on the wealthy, continue to tax more of the benefits on the “high net worths”, and then one day when they are not looking simply stop given them benefits. Alternatively we can just charge them $150 every time they leave their front door.
I'm Here From The Government And I'm Here To Help
August 25th, 2010
2:12 pm
Bosch
August 25th, 2010
2:08 pm
Leg Lamp,
Whatever the case was in the primaries, they are tied in the polls, so we’ll see.
When was the last time a poll elected a Governor?
TaxPayer
August 25th, 2010
2:12 pm
If only Obama would hire John McCain to be the nation’s employment czar, we could all pick vegetables for $50/hour. After that, John could be re-assigned to chase Osama bin Laden to the Gates of Hell. Then, he could take over the GAO and show us all how he can balance the budget and get rid of the debt while maintaining two wars, social security, Medicare and Medicaid, all at current levels, and toss in making the Bush tax cuts permanent without borrowing another dime. Then again, those special mushrooms can’t last forever. Then what.
I'm Here From The Government And I'm Here To Help
August 25th, 2010
2:13 pm
Jonathan
August 25th, 2010
2:11 pm
DawgDad- but Al Gore said we can lockbox it?
Don’t forget EGORE cast the tie-breaking vote to TAX your SS. What a guy!
I'm Here From The Government And I'm Here To Help
August 25th, 2010
2:14 pm
TaxPayer
How much is the crack your smoking?
Imma Lib
August 25th, 2010
2:15 pm
Now get rid of those Bush tax cuts. Those folks in Washington are so much smarter than I am about spending my money!!!!
Yahump
August 25th, 2010
2:19 pm
I understand Obama has just announced a 6-month moratorium on eggs. He will form a task force next week to determine how safe is the egg indsustry. He also mentioned that Larry David would be appointed egg czar next week and his appointment was in no way related to him being follicy challenged.
USinUK
August 25th, 2010
2:20 pm
thomas – “But to the person who was layed off from a job making only 10-12 bucks an hour………. the decision is not of polar opposites.”
the person who makes 10-12/hour is still only going to receive a % of their salary – they’re not going to get the same size check I received.
The Leg Lamp is a "major award" much like Cynthia Tucker's Pulitzer and Obama's Nobel.
August 25th, 2010
2:20 pm
I’m Here From The Government And I’m Here To Help
August 25th, 2010
2:12 pm
Maybe ACORN can register some polls as democrats.
The Leg Lamp is a "major award" much like Cynthia Tucker's Pulitzer and Obama's Nobel.
August 25th, 2010
2:23 pm
“US combat troops still flowing into Iraq… ”
Well, the Obama adminstration does claim that much of the money they’ve spent has been to prevent job losses.
The Leg Lamp is a "major award" much like Cynthia Tucker's Pulitzer and Obama's Nobel.
August 25th, 2010
2:24 pm
“Putin shoots gray whale with crossbow! ”
Why not a white whale? The guy must be a racist.
The Leg Lamp is a "major award" much like Cynthia Tucker's Pulitzer and Obama's Nobel.
August 25th, 2010
2:25 pm
NASA to Reveal ‘Big News’ From Planet-Hunting Spacecraft…
Space-based detector could find ‘anti-universe’…
So THAT’S where Granny Godzilla lives.
The Leg Lamp is a "major award" much like Cynthia Tucker's Pulitzer and Obama's Nobel.
August 25th, 2010
2:26 pm
ADDICTED: Average Teen Sends 3,000 Texts A Month; Experts Compare To Drugs…
and we wonder why test scores continue to fall…
USinUK
August 25th, 2010
2:30 pm
leg lamp … 2:20-2:26 …
but, according to @@, it’s the “leftists” with ADD …
I'm Here From The Government And I'm Here To Help
August 25th, 2010
2:32 pm
The Leg Lamp is a “major award” much like Cynthia Tucker’s Pulitzer and Obama’s Nobel.
Love Ya, Man!!!
Dusty
August 25th, 2010
2:34 pm
Well, lunch time was delightful. As @@ said, playtime is over. Might as well leave with some fine thoughts for liberals:
Bush was an honest men and a good president. Manufactured info by die-hard liberals doesn’t change a thing.
Obama is going to lose the next election because he is not a capable president as he shows us time and again..
Liberals can pick lettuce and chickens as well as anyone and are well suited for both jobs.
I don’t like Deal but we already know how bad Roy was before. No use to get punished twice.
I’m not responsible for other people’s rotten language, especially not for those liberals who can express themselves in no other way.
Bookman is probably working on his next thread, i..e “How Palin tried to sell Alaska back to Russians” as proven by a poll of local Eskimos and a few polar bears. Have fun!
TaxPayer
August 25th, 2010
2:35 pm
I’m Here From The Government And I’m Here To Help
August 25th, 2010
2:14 pm
TaxPayer
How much is the crack your smoking?
I wouldn’t know what your addiction costs, Son of Whiner.
Transcending race
August 25th, 2010
2:35 pm
Financial reform bill calls for diversity
Each of the 30 federal financial agencies and departments are required to establish an office to boost hiring of and contracting opportunities for minorities and women. Critics say it will be burdensome and unnecessary.
http://www.latimes.com/business/la-fi-reform-diversity-20100825-18,0,4400143.story?track=rss
Government bureaucracies within government bureaucracies.
Jonathan
August 25th, 2010
2:39 pm
He was great. Will miss him as much as Obama and lil Rham-
Bosch
August 25th, 2010
2:39 pm
USinUK,
I thought you was gone!!
Mick
August 25th, 2010
2:46 pm
I’m Here From The Government And I’m Here To Help
Social securtiy was not intended to be the sole source for retirement, only a safety net. In that respect it works quite well. It is not a ponzi because it is perpetual with each generation paying for the next. If people are depending on it for their only income for retirement then that is poor planning or just move to belize where one can live quite comfortably on $1500 per month. Without this safety net, I’m quite sure this country would be in far worse condition after the meltdown in sept. 08.
USinUK
August 25th, 2010
2:49 pm
Bosch – the mister was late leaving work … so dinner is doing its thing and I’m faffing around on the intertubes
Mick
August 25th, 2010
2:59 pm
Dusty
Bush was not an honest man. When he left, this country was broken by war and HIS debt. No matter who followed, that person was doomed. If gore was pres. social security would have been in a lockbox, 911 might not have happened and there would have been no iraq war meaning 5,000 service would not have lost their lives, 30,000 would not have suffered sever injuries. Halliburton should be asked to pick up their medical tabs – for life.
Hillbilly Deluxe
August 25th, 2010
3:01 pm
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.
Bosch, with all due respect, that didn’t start when the GOP came to power in Georgia; it’s been going on as long as I can remember.
The Leg Lamp is a "major award" much like Cynthia Tucker's Pulitzer and Obama's Nobel.
August 25th, 2010
3:01 pm
Mick
August 25th, 2010
2:59 pm
Nirvana had Gore been in office?
mmmuuuwwwaaaaAAAAAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!
falling Obama approval causes Guam to tip over
August 25th, 2010
3:04 pm
Hey Bookman. Two Names for ya.! Barney Frank and Chris Dodd.
stands for decibels
August 25th, 2010
3:09 pm
What you are implying is that there is no difference between the government actually borrowing from the SS trust fund and not borrowing from it. Only if you look at the SSA as a separate entity can you say that it only needs tweaks. If you look at it as just part of the government (as you should since the government spends the surplus and is responsible for the deficit), then the question becomes “where will the government get the money to pay SSA?” If it had not borrowed and spent the money, it would have it.
Here’s another way to look at it. If you, I, or China buy a T-bill, it is an accounts receivable on our books and an accounts payable on the government’s books. When the government buys a T-bill, it is both an accounts receivable and an accounts payable on its books. In other words, nothing.
Here’s an even simpler way of looking at it. You cannot spend and save the same dollar.
The trust fund is simply an accounting mechanism to keep track of how much one part of the government owes another part of the government.
In an “all things being equal” world, sure. I get the “they’re just IOUs!” argument. I heard Bush try his best to make it, back in late 2004, during his ill-fated SS Piratization Tour.
Here’s my major problem with it—that wasn’t fake money that working class Americans and their employers were pumping into Social Security starting in the 80s. It was quite real, thank you very much. This insurance program was tasked with funding itself responsibly, and it did.
And now? Well, we’re being told it was just monopoly money, and we had our fingers crossed, and you didn’t say “Mother may I?” AND “Simon Says”, so we get to take it from you and if you don’t like it go [bleep] yourselves.
Well sorry, but I’m not going to take that lying down. [Bleep] the Catfood Commision, and frankly, [Bleep] Barack Obama for making me waste my [bleep]ing time on this. I can see having to defend SS when you’ve got a GOP President and/or Congress, but Democrats? Allowing this “discussion” to even take place? [bleep]ing hell.
Mick
August 25th, 2010
3:12 pm
The Leg Lamp
No, not nirvana but almost certainly not the wreckage left behind after the bush reign of error.
The Leg Lamp is a "major award" much like Cynthia Tucker's Pulitzer and Obama's Nobel.
August 25th, 2010
3:17 pm
Mick
August 25th, 2010
3:12 pm
Calm down, calm down. Put the pill bottle away. Just keep telling yourself that Gore and Kerry won and that all is well in the US of A.
williebkind
August 25th, 2010
3:17 pm
Transcending race
August 25th, 2010
2:35 pm
That is an effort to economically empower minorities. Another form of discrimination by the liberals. Those poor minorities can not make it without their help.
Bosch
August 25th, 2010
3:18 pm
Hillbilly,
But not to the extend that we’ve seen in the past decade — which happened under the watchful eye of the great GOP leaders.
Bosch
August 25th, 2010
3:18 pm
Hillbilly,
Make that two decades –
Bosch
August 25th, 2010
3:20 pm
Hillbilly,
Nevermind, that makes no sense – you’re right —
Mick
August 25th, 2010
3:21 pm
Yeah love those percoset but knowing that they didn’t win leaves us where we are today..
Hillbilly Deluxe
August 25th, 2010
3:21 pm
Bosch
We went through pretty much the same thing here in 1974, that we did in 2008. Knew a guy who owned a plumbing company that went from 100+ employees to 12, in 2 weeks.
I'm here from the Government and I'm here to help!
August 25th, 2010
3:22 pm
ObamaECON,
Equity markets are extending yesterday’s losses that resulted from a plunge in existing home sales, but have come off the lows of the day, as new home sales plummeted to a record low and durable goods orders fell far short of expectations, exacerbating the anxiety toward the economic recovery.
I'm here from the Government and I'm here to help!
August 25th, 2010
3:24 pm
GD Hit a New 52 Week Low at $56.88
I'm here from the Government and I'm here to help!
August 25th, 2010
3:28 pm
Mick
August 25th, 2010
2:46 pm
I’m Here From The Government And I’m Here To Help
Social securtiy was not intended to be the sole source for retirement, only a safety net. In that respect it works quite well. It is not a ponzi because it is perpetual with each generation paying for the next. If people are depending on it for their only income for retirement then that is poor planning or just move to belize where one can live quite comfortably on $1500 per month. Without this safety net, I’m quite sure this country would be in far worse condition after the meltdown in sept. 08.
Mick, SS makes a pyramid scheme look good. Who else do you give your money to and wait 45 to 50 years to start receiving monthly payment with NO interest. Name one? If you like it so much and think its’ a “SAFETY NET”, send me the same amount, plus your employers amount and let’s see who has the most cash after 50 years. It’s a JOKE!
I'm here from the Government and I'm here to help!
August 25th, 2010
3:29 pm
Mick
August 25th, 2010
2:59 pm
Dusty
Bush was not an honest man.
Mick, your light bulb is on dimmer!
TaxPayer
August 25th, 2010
3:34 pm
Dang! I’m gonna have to sell some stocks if they keep going up. Stocks need to start dropping and keep on dropping by at least ten percent before I buy any more. This is absurd. I guess I’ll just keep raking in those dividends for now.
I'm here from the Government and I'm here to help!
August 25th, 2010
3:58 pm
TaxPayer
dividends – Shows what a nut your are! LOL
I'm here from the Government and I'm here to help!
August 25th, 2010
3:59 pm
WASHINGTON, Aug. 25, 2010 – Iraqi security forces arrested 20 people with suspected terrorism ties during several operations in Iraq yesterday, military officials reported
What? I thought Obama said WE WON!
I'm here from the Government and I'm here to help!
August 25th, 2010
4:02 pm
Rules for Obama BS Bingo:
1. Before Barrack Obama’s next televised speech, print your “BS Bingo” player card.
2. Check off the appropriate block when you hear one of the words/phrases.
3. When you get five blocks horizontally, vertically, or diagonally, stand up and shout “BS!”
Testimonials from past satisfied “BS Bingo” players:
“I had been listening to the speech for only five minutes when I won.” – Jack W., Boston
“My attention span during speeches has improved dramatically.” – David D., Florida
“What a gas! Speeches will never be the same for me after my first win.” – Bill R., New York City
“The atmosphere was tense in the last speech as 4 of us waited for the fifth box. My wife won!” – Ben G., Denver
Jason T
August 25th, 2010
4:12 pm
Come on Bookman! You and little Cynthia are the same person aren’t you??? We’ve never actually seen the two of you together, have we?
Jason T
August 25th, 2010
4:15 pm
“falling Obama approval causes Guam to tip over” <<<<<<Now that IS HILARIOUS!!!
I'm here from the Government and I'm here to help!
August 25th, 2010
4:15 pm
For the past 18 months, U.S. forces have been transitioning security responsibilities to Iraqi forces. The remaining U.S. troops will work in an “advise and assist” role in support of Iraqi forces for the next 16 months.
The U.S. troop reduction doesn’t mean the U.S. military’s role in Iraq is over, the admiral said, noting that 50,000 “is a lot of troops.”
“It’s not a small number,” he added, “[and] it’s a lot of capability. It will continue to have a significant impact.”
Mullen said he’s confident that the U.S. mission in Iraq will end on schedule Dec. 31, 2011.
Why couldn’t we do this in WWII? It’s so simple a caveman can do it. BS!!!
Chris Matthews
August 25th, 2010
4:16 pm
I forgot Obama was black!
I'm here from the Government and I'm here to help!
August 25th, 2010
4:23 pm
CLASS!!!
Google
President Bush greets our heroes at Dallas / Ft. Worth airport on Aug 11, 2010
Bosch
August 25th, 2010
4:29 pm
OK, so a top secret CIA agent accidentally shoots himself in the leg and dies? Sounds fishy to me.
Bosch
August 25th, 2010
4:30 pm
Make that CIA assassin
two cents worth
August 25th, 2010
4:55 pm
well if it “Lowered the unemployment rate by between 0.7 percentage points and 1.8 percentage points,” then why did unemployment go from 8% (pre-stimulus pkg rate) to our current level of 9.5%???????
Hay que derecho
August 25th, 2010
4:56 pm
Do we miss Bush?
Yeah, I kinda miss the average unemployment #s of 5.4% under Bush vs the near 10% under the community organizer.
Can’t say I miss Bush’s 4 trillion dollar deficits over 8 years. Then again in comparison Obama ran up nearly that amount in just 1 stinking year! Change you can believe in! Ha!
Get ready for that double dip recession that all the experts are saying we are now about to enter.
Bend over and get ready for some change you can believe in!!!!!!!
two cents worth
August 25th, 2010
4:59 pm
someone tell me what bush did that was so bad, honestly?? i’m not trying to be funny or stir up anything, but why all the venom towards bush, when no one says what was “so bad”?????if he was so bad, why did he get re-elected in 2004? here are the FACTS from the first six years of the bush presidency……note that the last two years of his term were when the democrats had control of congress……
http://www.house.gov/jec/publications/110/rr110-3.pdf
Hay que derecho
August 25th, 2010
5:00 pm
two cents worth,
Quit trying to make sense of the community organizer’s policies and get with the program. How dare you question the dear leader, the annointed one, didn’t you know that Obama is well qualified for president. After all as a community organizer he accomplished all kinds of stuff. Well what did he do? Well, he uh…. He um….. he helped some lady get more food stamps…. and he helped someone qualify for disability- you see dey back was hurtin What else did he accomplish? Well, he did uh……mmmmhhhh………. he, er, uh……….. nevermind! You’ll never get it. He’s got better slogans than any of you nazi republicans- change you can believe in!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
I'm here from the Government and I'm here to help!
August 25th, 2010
5:03 pm
WASHINGTON, Aug. 25, 2010 – A wave of attacks in Iraq today demonstrates that al-Qaida in Iraq is still capable of operating and is desperate to regain lost momentum, the top spokesman for U.S. Forces Iraq told American Forces Press Service today.
I'm here from the Government and I'm here to help!
August 25th, 2010
5:03 pm
“We haven’t seen these types of attacks since May 10,” Army Maj. Gen. Stephen R. Lanza said in a telephone interview from Baghdad. “This shows there is still capability with al-Qaida here to conduct operations. It also shows their intent or desire to try to reinsert themselves, which they have had trouble doing in the past.”
Hay que derecho
August 25th, 2010
5:04 pm
two cents worth,
Bush had unemployment that averaged 5.3% over 8 years. That sucks compared to the 5.2 % that we averaged under Clinton.
And also the present day nearly 10% under Obama is completely misleading. What you republicans don’t understand is that things are so awesome and people have made so much money in 2 years under Obama that they no longer feel the need to work- too much prosperity- and that is why we have near 10% unemployment. People are just taking some time off work because times have been so bountiful under Obama.
Sick of Repubs
August 25th, 2010
5:25 pm
@The Leg Lamp is a “major award” much like Cynthia Tucker’s Pulitzer and Obama’s Nobel…. Are you from Alabama?
Sick of Repubs
August 25th, 2010
5:33 pm
Yesterday, Republican John Boehner escalated his campaign to become the next Speaker of the House. He gave a “major speech” in Cleveland — much-hyped by his staffers, who told reporters that this, finally, was the moment when the GOP would introduce its economic agenda.
After all the build-up, all we heard was another list of what Republicans are against.
Every supposedly new idea was more of the same. He wants to extend the Bush tax cuts for the rich. He wants to repeal health insurance reform. He opposes clean-energy legislation.
Duck Feal
August 25th, 2010
5:57 pm
Um, where are all the jobs the Bush tax cuts created???
mmm, mmm, mmm, Barack the Liar Obama - BEND OVER, Here comes the CHANGE!
August 25th, 2010
6:37 pm
The LIAR in Chief is at it again….What happened to “if you’re happy with your health plan you can keep it?”
More than 3 million seniors may have to switch their Medicare prescription plan next year, even if they’re perfectly happy with it, thanks to an attempt by the government to simplify their lives
I’m from the government, I’m here to help…just ask an Indian or military vet.
November cant come soon enough
August 25th, 2010
7:54 pm
Jay doesnt believe in Democrats and Republicans…… THERE ARE ONLY PROGRESSIVES AND EXTREMISTS.
ODDOWL
August 26th, 2010
3:15 am
The Bush/Cheney deregulation of the banking industry produced these greedy, selfish, cutthroat capitalist bankers. The only solution seem to be the nationalization of the banking industry. European style unionized, Democrat Socialism is beginning to look better and better. The average salary in German, France, Switzerland, the Scandinavian countries is about $35.00 an hour with cradle to grave coverage of everything. The average salary in deregulated, cutthroat capitalist America is about $14.00 an hour. Two dollars an hour more than it was in 1981 when President Jimmy Carter left office and the imposition of Reaganism-Bushite-Cheneyism. Wake up America !!!