Thursday, August 12, 2010

So You Thought the Economy Was Getting Better

Seems there are a few problems.

Foreclosure Activity Increases 4 Percent in July According to RealtyTrac(R) U.S. Foreclosure Market Report Conflicting Trends Continue: Fewer Initial Defaults, More Bank Repossessions
"July marked the 17th consecutive month with a foreclosure activity total exceeding 300,000," said James J. Saccacio, chief executive officer of RealtyTrac. "Declines in new default notices, which were down on a year-over-year basis for the sixth straight month in July, have been offset by near-record levels of bank repossessions, which increased on a year-over-year basis for the eighth straight month."
And the news is not all good on default notices.
default notices, scheduled auctions and bank repossessions : -- were reported on 325,229 properties in July, a nearly 4 percent increase from the previous month but a nearly 10 percent decrease from July 2009.
Better than last year, but that is hardly a ringing endorsement.

And aside from the housing market, the jobs situation is not that good either.

Jobs picture dims as unemployment claims rise - Yahoo! News
First-time claims for jobless benefits edged up by 2,000 to a seasonally adjusted 484,000, the Labor Department said Thursday. That's the highest total since February. Analysts had expected claims to fall.

Initial claims have now risen in three of the last four weeks and are close to their high point for the year of 490,000, reached in late January. The four-week average, which smooths volatility, soared by 14,250 to 473,500, also the highest since late February.
The 4-week trend is increasing, which is the better metric, indicates that things are getting worse at a steep rate.

I expect government will do something, even if it is the wrong thing, because they can't leave it up to the marketplace.

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