Corporate debt issuance at 3-year high

[mEDITate-OR:

not ask "Why? If they have stockpiled all that cash...?

what are they planning to DO with this money...

The answer is, of course, to refinance their old more expensive debt.

While you listen, or not listen, to the screaming in DC about Govt debt...

you do NOT hear much, from "Them" or the press...

and never from CNBC of Faux News...

about "corporate debt".

The total increase in corporate debt during the W years was even greater than the total govt debt W ran up on U.S..

True, the foreign trade deficits were out side that box.

and the war costs that were not, and still are not, paid for are also.

Nevertheless, from GM and Chrysler, to AIG...

to the Big Bailed Out Banks..., to the little community banks...

everybody was taking out massive increases in debt.

Now, they have to re-finance.

What "They" are NOT telling U.S. is that our Govts could save U.S. a TON of money...

by simply calling all high interest Govts bonds and borrowing...

and replacing it with current low interest borrowing.

Just as YOU should look at a REFI of your home loan, so they should to.

-------------

===========
Corporate debt issuance at 3-year high
http://money.cnn.com/2010/09/10/markets/bondcenter/bonds/
==========

Cardholders Prefer Debit as Credit-Card Use Falls + Credit card use plunges, debit use rises

[mEDITate-OR:

not see that most of U.S. did see what they were doing.

and we adjusted accordingly.

You may, but this is only permissive, not necessary or even wise...

show the Big Bailed Out Banks your sympathy.

----------

• 
  

JGBHimself

Sep-10 @ 2:17 PM

What also appears in the AZRep parent paper = USA Today - are article from two years ago at the beginning of the RE credit crisis telling U.S. about how the major credit cards were making massive increases in fees and costs in order to "cover" their "securitized" RE loans.

They also wrote that one of the problems was that the same banks/credit card co's had also "securitized" their/our credit cards debts. One bad idea deserves another, it would seem.

What they also have told U.S. is that immediately prior to the new credit card regulations, the CCCo's have once again made last minute "improvements" to the costs and fees that they charge U.S. so that they will have them in place when the new rules would prevent them.

Oddly, to the CCCo's is that many of U.S. have simply stopped using them.

And, people in underwater and about to be foreclosed homes are now not making their home loan payments, but using the money to pay off their much higher interest CC bills.

Go figure, bcuz they did.

----------

At San Francisco-based Visa Inc., the world’s biggest payments network, the total payment volume for debit cards increased by 7.9 percent in 2009 to $883 billion as credit-card volume declined by 7.3 percent to $764 billion.

------------

===========

Cardholders Prefer Debit as Credit-Card Use Falls
http://www.bloomberg.com/news/2010-09-08/cardholders-prefer-debit-as-credit-card-use-falls-javelin-says.html
-------------
Credit card use plunges, debit use rises

http://www.azcentral.com/business/articles/2010/09/10/20100910credit-card-use-plunges-hard-times-drag-debit-use-rises.html

and

http://www.usatoday.com/money/perfi/credit/2010-09-10-credit10_ST_N.htm

=============     OR, how soon we forget

Why banks are boosting credit card interest rates and fees
http://www.usatoday.com/money/industries/banking/2008-11-09-bank-credit-card-interest-rates_N.htm
-------------
Changing credit card terms squeeze consumers
http://www.usatoday.com/money/perfi/credit/2008-12-15-credit-card-consumer-squeeze_N.htm
===========

Mortgage Applications Up, Refinance Applications Fall This Week

[mEDITate-OR:

-------------

-------------

------------

===========

Mortgage Applications Up
Refinance Applications Fall This Week
http://www.realestatechannel.com/us-markets/residential-real-estate-1/real-estate-news-mortgage-bankers-association-weekly-mortgage-applications-survey-the-market-composite-index-mortgage-rates-refi-mortgages-lowest-mortgage-rates-3128.php
============

Commercial Property Losses Mount as Loan Servicers Triage Real Estate Debt

[mEDITate-OR:

not know if this is the beginning of the end...

or the end of the beginning.

What we have heard, but not seen, yet...
is the write down of commercial RE.
Why not, is a very good question.
One suggested answer is that most of current Cmcl RE loans are 5 yr balloons that did not have to be repaid or refinanced until this year and next. They tell U.S. that 75% of current Cmcl RE loans must be by the end of next year.
Another suggestion is that most Cmcl RE loans are held by small, local banks - you know, the ones on the FDIC problem list. They do not have enough "equity" left to write off these loans. If they do, they fold.
These two article do not show U.S. any charts, but they DO provide you with what probably is the best available current info on the problem.
===========
Commercial Property Losses Mount as Loan Servicers Triage Real Estate Debt
http://www.bloomberg.com/news/2010-09-10/commercial-property-losses-mount-as-loan-servicers-triage-real-estate-debt.html
-----------
U.S. Retail Space Availability to Drop in 2011
CB Richard Says
http://www.bloomberg.com/news/2010-09-08/retail-space-availability-to-drop-in-2011-as-u-s-shoppers-boost-spending.html
=========

Government Employment since 1976

[mEDITate-OR:

not see that what is NOT there, is what they think is...

ex-military, there has not been any increase in govt employment.

no war, no jobs!

 

Try to sell that at your Tea Party.

 

The 3rd chart is stunning, with your mourning Tea...!!!

When you back out military employment, non-military employment has gone down.

They are lying to you.

They know it and don't care.

Most of U.S. don't know, and don't care.

-------
REMEMBER: go to the CR web site for the LARGE charts!
---------
This graph shows federal, state, and local government employment as a percent of the civilian noninstitutional population since 1976 (all data from the BLS).

Federal government employment has decreased over the last 35 years (mostly in the 1990s), state government employment has been flat, and local government employment has increased.
----------
The second graph shows government employment excluding education as a percent of the civilian noninstitutional.

The percent of federal and state government employment (ex-education) have all declined. Local government employment has been steady - so overall government employment (ex-education) as a percent of the civilian population is down over the last 35 years.

------------
There has been a surge in defense spending, but Federal spending ex-defense and state and local spending has been fairly flat (but as I noted above, underfunded future liabilities - like state and local underfunded pension plans - don't show up).

============
Government Employment since 1976
by CalculatedRisk on 9/09/2010 12:23:00 PM
http://www.calculatedriskblog.com/2010/09/government-employment-since-1976.html
===========

US trade deficit contracted sharply in July posting its biggest drop in 17 months + Shrunk 14% in July = narrows to $42.8 billion in July

[mEDITate-OR:
not see all those petro dollars going to Mexico, Canada & Venezuela.

While we love to make speeches about China pegging their dollar to U.S....

we seem to forget that Canada has done, or is trying to do, the same thing.

In spite of both Canada and China having stronger economies, currently, the political and economic leadership of Canada screams bloody murder whenever the Loonie gets close to par or above it.

Why, bcuz if the Loonie is slightly under the greenback, nobody seem to notice the US$ 5 Billion per month we give to Canada for their oil.

This month Canada's share was down a bit, but, Mexico took the difference and upped their share..., to fight the good fight against the drug cartels, of course.

And, if you believe that one, we have some really good coke to sell you, at a discount.

---------------

----------------

--------

------------

============

US trade deficit contracted sharply in July - posting its biggest drop in 17 months
http://www.finfacts.ie/irishfinancenews/article_1020534.shtml
--------------
Trade Gap Shrunk 14% in July
http://www.theatlantic.com/business/archive/2010/09/trade-gap-shrunk-14-in-july/62694/
----------
Trade deficit narrows to $42.8 billion in July
http://news.yahoo.com/s/ap/20100910/ap_on_bi_ge/as_china_trade
=========

Student loan debt now surpasses credit card debt in the US

[mEDITate-OR:
not see that we're another day older and deeper in debt...
-----------

=============

• 
  

JGBHimself

Sept-10 @ 1:46 PM

This article appears in the LSU student newspaper a couple of days ago with a great pie chart too. But, what is does is show U.S. that while "They" may have cut YOUR taxes, they forced you, your kids and your grandkids to mortgage themselves up to the hilt, to get an education.

From the GI Bill after WW2 and Korea making it possible for all those now about to retire on SS to go to college or trade schools free, and afford to buy their first homes, we are now down to this GD mess.

When those war vets came back & got their degrees, they owed no one anything. Today, even the Gulf vets benefits, while having been improved, do not cover most educational costs. And, those without GI benefits will get of out school with debts and monthly payments almost equal to the mortgage on a starter home. And, there are no jobs for them.

"They" tell U.S. that they cut our taxes. What they forgot to tell U.S. was that they would take it all back, and more, from U.S. as increased educational and medical care cost that we have to pay out of pocket, or borrow.

========
Student loan debt now surpasses credit card debt in the US
http://www.lsureveille.com/mobile/news/student-loan-debt-now-surpasses-credit-card-debt-in-the-us-1.2321476
and
http://www.azcentral.com/business/consumer/articles/2010/09/10/20100910student-loan-debt-exceeds-credit-card-debt.html#ixzz0zA68yR4T
=========

China's August trade surplus 2nd highest this year + August exports up 34.4%, imports rise 35.2%

[mEDITate-OR:

wonder where the charts are...

well, in China, of course...

While we do cover our take on them...

we do NOT show any of their charts, or provide our own.

What has to be accounted for, is the massive attempt by China to buy more from U.S. - however, what we need to hear/read that they ARE trying to tell U.S. is that WE place severe restrictions on most of the items that they need & want to buy from U.S.

It is hypocritical to blame them for not buying enough of what we refuse to sell.

---------------

-----------

-----------

==========

China's August trade surplus 2nd highest this year
http://news.yahoo.com/s/ap/20100910/ap_on_bi_ge/as_china_trade_4
--------------
China Posts $20 Billion Trade Surplus
as U.S. Seeks Yuan Gains
http://www.bloomberg.com/news/2010-09-10/china-s-trade-surplus-reaches-20-billion-adding-pressure-for-yuan-gains.html
-------------
China's August exports up 34.4%, imports rise 35.2%
http://www.chinadaily.com.cn/business/2010-09/10/content_11284816.htm
-------------
Import drive to be launched - Crucial products targeted to narrow trade gap
http://www.chinadaily.com.cn/business/2010-09/07/content_11265903.htm
========

Trade Deficit declines in July

[mEDITate-OR:

think that this is not good news...

or that it is not bad news..

While everyone of U.S. appears to be talking about the balance of trade with China, what they are NOT telling U.S. is that this year there has been a very sizable increase in BOTH China's imports from U.S. and of our exports to the rest of the world.

While everything is NOT in balance, we should note that the US balance with Mexico has remained constant all year = US$ 5 Billion a month we send them for their oil shipments to U.S.
-----------

The first graph shows the monthly U.S. exports and imports in dollars through June 2010.

Although imports declined in July, imports have been increasing much faster than exports.

----------
The second graph shows the U.S. trade deficit, with and without petroleum, through July.
The blue line is the total deficit, and the black line is the petroleum deficit, and the red line is the trade deficit ex-petroleum products.
The decrease in the deficit in July was across the board, although the oil deficit only declined slightly. And the trade gap with China declined slightly to $25.92 billion from $26.15 billion in June - essentially unchanged.

===========
Trade Deficit declines in July
http://www.calculatedriskblog.com/2010/09/trade-deficit-declines-in-july.html
===========

Youth employment and unemployment in July 2010

[mEDITate-OR:
not be shocked by these Summer Jobs for your kids.., that were NOT there...

As bad as these numbers truly are, the numbers for black teenagers is much worse.

Try to go to college with these numbers...!
Ugly, truly ugly.

---

------------

===========
Youth employment and unemployment in July 2010
http://www.bls.gov/opub/ted/2010/ted_20100903.htm
===========

Fruits and Vegetables: Even more neglected

[mEDITate-OR:
not see you've been bad...
and tis gonna make you sick...
of the money you're gonna have to spend on health care...
instead of on broccoli & cauliflower...
well, maybe there IS a better idea.
--------

============
Fruits and Vegetables: Even more neglected
http://www.sfgate.com/cgi-bin/blogs/chronrx/detail?entry_id=71963
==========

The cost of housing

[mEDITate-OR:

see that with migrants, instead of union members, the cost of building a home decreased...

but the price you paid for a new home exploded..., up.

and now a wee bit later down of course.

Some bought bigger houses, which for them was good.

But, what also appears to be true is that as we shifted to two income families, we increased the total share of funds that we spent on housing.

-------------

------------

===========


============

Taxes: What people forget about Reagan

[mEDITate-OR:

not want to listen to The Truth about your greatest former fearless leader...

and not want to see about your most recent compassionate conservative...

They left you with a ton of debt.

-------------   What you forgot about, from the not too distant past

------------   What W will leave out of his memoirs

===========
Taxes: What people forget about Reagan
http://money.cnn.com/2010/09/08/news/economy/reagan_years_taxes/index.htm
============

Unemployment Edges up to 9.6 Percent as Weak Job Growth Continues + Real unemployment for August 2010

[mEDITate-OR:
not see that what "They" are telling U.S. is simply an untruth.

The 1st chart shows U.S. in red what is "reported" to U.S. each week.
However, what you see in blue is the REAL number...
or as close to it as we probably can get.

The 2nd chart shows U.S. that not all unemployed are equal...
that black & Hispanics are far more out of work that whites are.
However, while that may be true, some other things are too:
middle age white men are much more out of work - literally & figuratively - than white women are, and they probably will never get the same jobs back.
black teenagers are totally out of work, for this summer.

Ugly, wherever, you look.
--------------

The government has traditionally represented unemployment as those people who are currently seekin full-time employment. Anyone who has surrendered the job hunt is 'on the margin', and not counted.

Total unemployment from mid-1997 to the present.

The blue line represents everyone out of work, whether or not they are currently job hunting ('U-6').

The red line is the number the government publishes, which only represents people who are actively seeking employment ('U-3').

-------------------

=============
Unemployment Edges up to 9.6 Percent as Weak Job Growth Continues
http://yubanet.com/usa/Unemployment-Edges-up-to-9-6-Percent-as-Weak-Job-Growth-Continues.php
-----------
Real unemployment for August 2010
http://www.csmonitor.com/Business/Paper-Economy/2010/0903/Counting-the-margin-Real-unemployment-for-August-2010
=======

THE Politically Correct Job Losses chart

[mEDITate-OR:
----------   Politically Correct Job Losses chart
here is, a different homemade chart, showing monthly job losses/gains in the private sector since the start of the Great Recession. The image makes a distinction -- red columns point to monthly job totals under the Bush administration, while blue columns point to job totals under the Obama administration.

===========
UNEMPLOYMENT RATE TICKS HIGHER, BUT PRIVATE SECTOR JOBS GROW
http://www.washingtonmonthly.com/archives/individual/2010_09/025513.php
==========

Home Equity Lines of Credit, the Next Looming Disaster?

[mEDITate-OR:

miss the latest, greatest article by Keith Jurow.

{with addresses for the two prior must read articles}

While this "scenario" played out possibly somewhat differently in the other sand states - Nev, Fla & AZ - what is clear is that "everybody was doing it". And, many of them, and most of U.S. got Pucked in the process.

Clearly, some were able to not only pull out all of their speculative equity, but many were able to "save" it in other investments. Far more were not, and are now - again clearly - looking at doing a strategic default to extricate themselves from the underlying debts.

Notice, IF they did pull out most if not all of their equity, the remaining HELOC that they have, is relatively very small. That loss they MIGHT have to still take. But, even with that loss, the total "profit" has been totally extricated.

IF they pulled it out in time, and reinvested it safely, they got away "like a bandit".

If they spent it on bling, they are now BK candidates.

WE are all "The Losers" in this house of card sharks.

------------

-----------
Madness of HELOC Lending During the Bubble Years
Aided by the seemingly limitless desire of banks to lend money, homeowners opened an incredible number of HELOCs during the bubble years of 2004-2006.
Nowhere was the madness of HELOC borrowing more astounding than in California.  During the two key years of 2004 and 2005, a total of 1.43 million HELOCs were originated in California just for the purchase of homes according to figures received from CoreLogic.
Wait a minute, you say.  That's more than the total number of homes sold in California during these years.  Correct.  A total of 1.25 million existing single family homes were purchased in California in 2004-2005 according to the California Association of Realtors.
-------------
One example:
"The original sales price is not clear from my records, but it looks as if the buyers paid about $1,200,000 in 1997. There was a $900,000 loan which I assume was 80% of the total purchase price. The original owners were a couple, and after the point where only the wife is on title in 2004 -- presumably after a divorce -- the HELOC abuse became truly remarkable.
On 3/11/2004 the wife appears alone on title, and the first mortgage is $999,800.
On 8/30/2004 she refinanced with a $1,000,000 first mortgage.
On 12/28/2005 she refinanced with a $2,170,000 first mortgage.
On 2/1/2006 she got a HELOC for $250,000.
On 8/22/2006 she refinanced with an Option ARM for $2,500,000.
On 11/15/2006 she opened a HELOC for $490,000.
On 8/1/2007 she refinanced with another Option ARM for $3,225,000.
On 10/22/2007 she opened a HELOC for $500,000.
Total property debt is $3,725,000.
Total mortgage equity withdrawal is $2,725,200 during a four-year stretch."
============
Home Equity Lines of Credit, the Next Looming Disaster?
http://www.realestatechannel.com/us-markets/residential-real-estate-1/housing-bubble-home-equity-lines-of-credit-heloc-second-mortage-lien-holders-home-foreclosures-bank-failures-the-new-york-times-keith-jurow-3122.php
---------
Is Massive Refinancing During Bubble Years a Ticking Bomb?
http://www.realestatechannel.com/us-markets/residential-real-estate-1/real-estate-news-mortage-refiancing-real-estate-bubble-fdic-financial-crisis-inquiry-commission-president-obama-home-equity-lines-of-credit-heloc-2633.php
------------
Investors Played a Key Role in Creating Housing Bubble
http://www.realestatechannel.com/us-markets/residential-real-estate-1/real-estate-news-real-estate-investors-real-estate-speculators-home-foreclosure-crisis-realtytrac-national-association-of-realtors-home-foreclosure-rates-in-2010-2136.php
============