Browsing Category: "house prices"
We are exactly 8 months in from the Dow bottom that everyone now refers to as the economic nadir of this recession and things are more convoluted than ever before, due to the worsening job situation. Today, we are building on our last look half a year into the recovery in the month of October, to give you a more time-pertinent look at the state of the economy. The economy has truly reached a critical juncture, where the question is will the indicators flat-line and stop the robust recovery, or will they continue to improve and give us a very strong, quick recovery. To answer this, the key questions must first be answered, how is the recovery holding up, will it continue, will it be jobless, and will it be widespread.
NOTE: Click on the graph to see a larger picture.
1. How is the recovery holding up? Even though the net change in payrolls continues to improve, and the Dow continues to increase, it is clear that the rate at which both of these indicators are increasing has slowed. The Dow saw a down month in October, and is only up since 10/09/09 because of the strong week that just passed. Meanwhile, other indicators are showing substantial weakening in the face of increasing impatience as consumers wait for true recovery.
We are exactly 7 months in from the Dow Bottom that everyone now refers to as the economic nadir of this recession. What we hope to make a now monthly feature of this site, now continues, building on our last look half a year into the recovery in the month of September. The key questions remain, how is the recovery holding up, will it continue, will it be jobless, and will it be widespread. We traditionally subscribe to the notion of a picture is worth a thousand words so we’ll be answering each of these questions quite simply: with a graph.
NOTE: Click on the graph to see a larger picture.
1. How is the recovery holding up? After the week that just passed it seems as if the recovery just keeps on continuing: While last month it seemed as if the recovery was in fact losing steam, now it seems like we just keep on hitting highs. With earnings season ahead of us, we’ll be looking to see if this can continue.
We are exactly 6 months in from the Dow Bottom that everyone now refers to as the economic nadir of this recession and consequently we are 6 months into an economic recovery. The key questions are, how is the recovery holding up, will it continue, will it be jobless, and will it be widespread. We generally subscribe to the notion of a picture is worth a thousand words so we’ll be answering each of these questions quite simply: with a graph.
NOTE: Click on the graph to see a larger picture.
1. How is the recovery holding up? Not too bad, but it could be better: As you can see it appears as if the recovery is losing steam to some degree as the trend line begins to flatten out near the end.
The Dow finished the week down just over one percent after yesterdays drop of over 2 percent. Oil finished the week down five dollars a barrel to close at $123.26. The drop in the Dow was due to financial stocks after bad bank earnings and more housing problems triggered a major sell off yesterday. Fannie Mae and Freddie Mac each finished the week down 10% or more. After bad earnings after hours Wednesday Washington Mutual stock dropped big, finishing down 35% on the week. Despite this the financial sector was still up .74% this week after better than expected earnings from other financial stocks. Oil finished down about $5 this week to close at $123.26. Oil was down after Hurrican Dolly missed the oil rigs in the Gulf of Mexico. Also, record gas prices brought fears that demand for gas would be lower than expected. Fiscal Frenzy will be starting new Saturday articles on different market sectors beginning tomorrow.
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