Posts Tagged ‘economy’

Joblessness in the US to stay for a while?

Friday, February 19th, 2010

This article says unemployment will remain high and change America significantly:

The Great Recession may be over, but this era of high joblessness is probably just beginning. Before it ends, it will likely change the life course and character of a generation of young adults. It will leave an indelible imprint on many blue-collar men. It could cripple marriage as an institution in many communities. It may already be plunging many inner cities into a despair not seen for decades. Ultimately, it is likely to warp our politics, our culture, and the character of our society for years to come.

Commercial real estate losing value

Monday, September 14th, 2009

This article talks about how commercial real estate is falling in value. The article gives a few reasons to be pessimistic about the economy. One of them:

“We expect construction activity to continue to pull back over the next 18 months,” as “property values still face significant further declines.”

How much depends on consumer spending?

Tuesday, June 23rd, 2009

Some people are hoping for an economic recovery this year but I am not so sure any respite will last more than a few months because I don’t see evidence that consumer spending will increase.

Due to relatively high unemployment and many workers who are unable to get raises, how greatly can consumer spending increase? If consumer spending doesn’t increase, corporate profits can’t increase much.Neither can government revenue.

So how is the economy supposed to recover?

Is a low housing start number in this housing market is a bad thing?

Thursday, April 16th, 2009

We’re looking for “green shoots” in areas that got us into trouble in the first place – excessive consumption, mis-allocated capital, and a trading mentality. We’re celebrating firms like Goldman and JP Morgan because they made good trading gains while credit to the real economy continues to be cut.

If you believe like the Administration and Wall Street that we’ve got a “confidence” problem, then growing housing starts indicates improvement. If you that we have a structural problem with the economy, then a drop in building over-supplied assets is actually good news.

Lower housing prices can be a good thing because it means that workers can prosper at lower compensation levels, which means that we can start regaining cost advantages relative to our trading partners and taking back industry lost as well as creating new industry. All it would take would be to let the zombies on Wall Street go under.