I'm catching my wind again after being somewhat down yesterday. Trout Fishing season is going to begin soon, and that is always something to look forward to. The gardens are just beginning, and even though I get exhausted from the physical labor, it is good to take a break from math, statistics and the news.
I'm going to add to this post throughout the trading day.
US
- The stock market was up yesterday, irrespective of the continual bad news coming into the market. (See Euro Below). Today, some of the economic reports (specifically the ADP labor report) is driving the stock market to a MINOR Correction.
- Then this: Obama pushing banks to loan on homes with weak credit. http://www.washingtonpost.com/business/economy/obama-administration-pushes-banks-to-make-home-loans-to-people-with-weaker-credit/2013/04/02/a8b4370c-9aef-11e2-a941-a19bce7af755_story.html Wait just a cotton-picking moment. That is scary. Isn't loaning to people with bad credit what got us into the sub-prime mess in the first place? What happens when the banks lend to people who really could not afford it? Mr. Obama's point is that banks are backed by the federal programs, and they have zero risk in the loans. (What about the taxpayers, Mr. Obama? If those loans go south like they did last time, you are saying the tax payers will cover bad loans.)
- Fannie Mae makes a recod profit: http://www.thedailybeast.com/articles/2012/08/08/fannie-mae-s-5-1-billion-second-quarter-profit-attributed-to-newfound-prudence.html Is Mr. Obama saying since the housing market is recovering, the Tax Payer can take on more risk, because we make huge profits? Are you an investor dear Reader? Then you will know that a few months of profits does not equate to stable program after 100's of billion dollars in losses. (Oh, come on Zeb, you are just being a wet blanket no matter what). The net cost to taxpayers of the Fannie Mae bailout is now $90.5 billion, down from $100+ billion at one point. However, that is a ridiculous amount of money (but who counts now unless we are talking Trillions of $$$).
- "It is very difficult for people of low and moderate incomes to refinance or buy homes." John Taylor President of National Community Reinvestment Coalition. That sums up Mr. Obama's agenda quite nicely I suspect. Sounds to me the banks are currently performing as they should -- restricting who can borrow. However, that viewpoint is in the way of Politics, and we know from George W. Bush's push on housing that was very bad politics as well as hugely expensive.
Euro
- Most of Europe's stock markets were solidly in the black yesterday even though:
- Unemployment in the Eurozone hit a record high of 12%. Readers: European people in Greece, Italy, Spain, Cypress, Slovenia and probably others are hurting. I do not rejoice in people's pain. I agonize with them (even though at the moment I cannot even begin to "feel" what they feel. I've often wondered why many US citizens sympathize (and give) to very poor nations, and when our best allies are suffering, some of us seem to rejoice? I have no answer for that dichotomy. I found this rejoicing and rejection of assistance, when I use to help our Congress Person directly. When President Obama wanted to help the Eurozone through the IMF, many very outspoken Republicans were totally against it saying very harsh things against the Greek people (instead of the Greek government). Folks, I do not know why elected leaders of the country want to take all the abuse they do, but I learned if one has empathy and caring, being a Congressman or Senator is a very tough job. (I apologize for "caring" for the people and my Congress person. I found the attitudes of several of the Republicans she is elected by to be very harsh.)
- Number of People unemployed in the 17 member Eurozone rose by 33,000 to hit 19.07 million (according to Eurostat).
- Greece (of course) jobless rate was 26.4% and Spain was not far behind at 26.3%
- The rise in unemployed was the 22nd month in a row. Youth unemployment is extremely high.
- Eurozone manufacturing is falling n March. PMI for March fell to 46.8 (definitely recession figures). Any score below 50 indicates a contraction.
- Euro is up as a bailout agreement was announced between the IMF and Cypress officials. IMF will contribute 1B Euros.
China
Japan
UK
1.
UK factory output contracted in March, and was
much worse than forecasted by European economists.
2.
The UK officials have not announced a triple-dip
recession, but figures indicate they have entered the recession zone.
So Long -- The Death Throes of the Middle Class
Is there anyone who is concerned about the debt ceiling? Have any of us forgot that by implementing the sequester the USA government still runs out of money soon?
When was it predicted the government would have the debt ceiling problem? March 27, 2013... Remember that? What happened? (The President signed into law a delay until May 14 or 18 as Washington Post reports). The sequester implementation delayed it a month (or more).
Have you heard anything? If you are Republican are you hearing anything from your representatives? Of course, the Republicans have caved in every time, and so as a citizen of the USA -- so what? -- someday the USA has to pay its bills the same as everyone else.
The USA can take it from the citizens via of inflation or taxes -- and it doesn't really matter - the middle class has to pay the bill because there is not enough money if all the rich's income was taken for the next several years. Don't forget that ever.
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