A significant source of growth in the US economy in recent years has exhibited further weakening per a Commerce Department report released this morning. Let’s look at new home sales and prices. New Home Sales and Prices Take a Dive in August New home sales and prices fell to their lowest rate in seven years
Today I attended a luncheon for the Turnaround Management Association of which I have been a member for approximately 10 years. During this time I have seen good economies and bad. For the past 3 years the economy has been so good that the TMA meetings looked like a Maytag repairmen convention. Today was different! The
In December, the US unemployment rate rose to a two year high of 5.0%, the worst since 2005. That increase was also the largest one month increase since April of 1995. A scant 18,000 jobs were added to payrolls in December, per the US Department of Labor. 2007 was the worst year for US job
On Friday of last week the Wall Street Journal had two articles, one on the front page and the other in the Money section, that taken together paint a chilling picture for the small and mid market companies. The front page article highlights the peril that local banks are in because of home builder loans.
JPMorgan Chase announced today that it will acquire Bear Stearns for $2 a share today. On Friday, Bear Stearns’ stock price closed at $30.00 on Friday. This is already down close to half over its Thursday close. In addition, it is 81% down from its high for the last year of $159.36. The subprime mess
The New York Times has an interesting story in today’s business section on the credit crisis spreading to small and midsize banks. The article highlights that the banks were unprepared for the residential downturn. The banks were also highly exposed to a commercial real estate downturn. This mushroom cloud spreads to small banks. Mushroom Cloud
If you are like me you are having a difficult time getting your arms around the subprime mess or crisis. I am not sure how bad it is; what it is going to do to me; and what action I should take, if any? I hear all of the problems in the news, but, as
If you haven’t been living under a rock for the past 15 months, then you have probably noticed that the decline in oil prices has resulted in many Houston businesses experiencing symptoms of an economic recession. What does a recession mean for you? Historically, recessions equate to reduced availability of professional jobs. While the effects of the free fall in oil
Fiscal vs Monetary Policy Explanation H1 What is Fiscal Policy? H2 Fiscal policy is essentially how the government decides to collect and spend money to impact the economy. This is studied in Macroeconomics to better understand the relationship between the economy and governmental influence. The study of fiscal policy is useful in speculating the reaction
See Also: Economic Indicators Balance of Payments Supply and Demand Elasticity The Feds Beige Book What are the Twin Deficits? Stagflation Definition In economics, stagflation refers to the combination of stagnation and inflation. Stagnation refers to slowing economic growth or recession. It is a period of low gross domestic product and high unemployment. Inflation refers
See Also: Economic Indicators Stagflation What are the ‘Twin Deficits’? Supply and Demand Elasticity London Interbank Offered Rate (Libor) Controversy Recession Meaning A recession definition is a period of slowed economic activity. The term describes a contracting economy. It is typically defined as two consecutive quarters of declining gross domestic product. Characterize a recession by
What is Deflation Definition? What is deflation? Deflation is the decline in the price for goods and services. It can also be referred to as the increase in the value of real money. In other words, it’s the value that the current currency will go up per unit of goods or services. Deflation Explained Deflation
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