Friday, July 29, 2011

GDP Report Shatters Illusion of Jobless, Productivity-Packed Recovery + Recession: $131 billion worse than we thought

[mEDITate-OR:
Not think...:
Do not tell U.S. what is true...
only what we want to think is true...
even if that is not even close to reality.
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To adopt the president's favorite metaphor of the ditch and the driver:
The ditch was a 33% deeper than we thought.
And we're driving 33% slower than we hoped.
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chart-great-recession.top.gif
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And, then...
Take a look at these graphs, via Economist, to soak it in:
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GDP Report Shatters Illusion of Jobless, Productivity-Packed Recovery
http://www.theatlantic.com/business/archive/2011/07/gdp-report-shatters-illusion-of-jobless-productivity-packed-recovery/242761/
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Recession: $131 billion worse than we thought
http://money.cnn.com/2011/07/29/news/economy/recession_gdp/index.htm?iid=HP_LN
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GDP Economic Growth Slower Than Expected In Q2 = Y2Y increase of 1.62 % & M2M of 1.3 %

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GDP-072911.jpg
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GDP 2011 Q2
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GDP Economic Growth Slower Than Expected In Q2
= Y2Y increase of 1.62 % & M2M of 1.3 %
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Tuesday, July 26, 2011

Seattle = Case-Shiller: Spring Bounce Continues Slightly Weakened

[mEDITate-OR:
miss completely, how stunning the collapse has been in Miami/Tampa and in LossVegas/Phoenix.
see those four cities at the bottom of the 1st chart.
The 2nd chart shows U.S. how bad the 3rd & 4th quarters were last year in Seattle.
The 3rd chart shows U.S. that Seattle & Portland appear to moving in different directions, now.
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JGBellHimself
But, first a little "revisionist RE history" - as in back to The Truth.
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Said you, Tim: "the government’s massive intervention in the market screwed with the natural flow"

Asked we, on SN,L: "Oh Really?"

Do you remember Jan 08, when the private MBS industry had totally collapsed, removing US$ 1.5 Trillion from the funds available for home loans? Do you remember in July 08, when the Chinese informed U.S. that they would stop buying US$ 35-45 Billion of GSE securities PER MONTH? And the other half of the RE funding system collapsed? Do you remember W "nationalizing" FMae&FMac? And, why?

What, precisely, Tim, was "normal" about 2008? The whole funding system for ALL new RE loans simply disappeared, leaving you, Tim, unable to sell you home - except to an all cash buyer. Oh, or to hold your own RE contract. What "interest" did you have in that?

Then over US$ 2.5 Trillion of bad ARMs and subprime RE loans originated by YOUR banksters at WAMU in the Sand States, like po' ol' AZ, collapsed. Leaving almost everyone here more than 50% underwater or down from the peak bubble values. What precisely did "the government" do to create and/or destroy those private Wall Street bankster MBSs? What was "normal" about all that Tim?

With the flood of foreclosures, the home building lobby - all those GD Democrats - supported a First Time Home Buyers Tax Credit. Of course, you remember that, but do you remember what the new home building starts and sales numbers WOULD have been without that sales stimulus? Do you wish to be "predictive" of how far down we would be Far Right now if W had not "nationalized" FMae&FMac?  Oh, and guaranteed the Chinese their "investments" in them would now be safe - fully guaranteed by the full faith and credit of all of U.S.!! What was "normal" about all that Tim?

After an accident many years ago the doctor finally told me we were "back to normal". When we told our best fiend, at the time, he said: "Frankly, we were all hoping for a little better than that."

Are we really "back to normal", Tim? Mind telling U.S., precisely, when and/or where that occurred?

A few tax credit dollars bothers you, does it?  How much did we "loan" the auto industry - per job created?  What did we get for the US$ 3 Trillion we have spent in Iraq and Afghanistan? Peace in our time?

And, now we will return the control of your TV set back to you - until your next visit to The Twilight Zone.
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Case-Shiller HPI: Decline From Peak
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Tim, the slope of your CS - Seattle home price index (BELOW), from Sep to Feb is stunning. What a "downer"!

Has it really been THAT bad? Do we - you, me and U.S. - have any reason to believe that the 2nd half of this year will not be that bad, too? Don't know if you are trying to sober U.S. up, or drive U.S. to drink.
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Case-Shiller HPI: Seattle Rewind
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Recently, we compared the last five year M2M for Seattle-Portland with LossVegas-Phoenix. SeaPo did show slight selling season gains, but then dropped back down lower every Y2Y. LossPho had NO upticks at all, only slightly slower losses in the selling seasons. Simply all down hill.

IF it ain't over until The Fat Lady sings, what are we gonna do, if she ain't fat no' mo'???
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Note the time/year shift between SeaPo and LossDiego
Later to the party, but now worse off.
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Case-Shiller HPI: West Coast
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Seattle Bubble Blog
Case-Shiller: Spring Bounce Continues Slightly Weakened
http://seattlebubble.com/blog/2011/07/26/case-shiller-spring-bounce-continues-slightly-weakened/
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The Other Distressing Gap = Wealth gap widens between whites, minorities - "two societies - separate and unequal"

[mEDITate-OR:
fail to realize that we have, not justly...
started another "race war"...
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According to the Census, white men are not creating very many babies.
Or, all woe-men are not willing to have their babies.
According to the Census, Chicanos are now the largest minority among U.S.
And, they ARE having babies, a LOT of new babies.
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What the WASPs badly want to do is reverse history.
What they probably will do is drive all minorities out of their communities, and some states.
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For example, the New South California.
There is a slight problem for them, however.
In the South, they are now outnumbered by both blacks and Chicanos.
In Texas the rubber really hits the road
even with Texas style Gerrymandering they cannot legally "hide" enough of the new Chicanos.
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If you are aware of the racist bigotry that is aimed at Obama, and all blacks...
you must also be aware of the racist bigotry that is now aimed at Chicanos
Tis ugly, and tis gonna get a whole lot worse.
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Chart: WEALTH GAP
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Wealth gap widens between whites, minorities
http://www.msnbc.msn.com/id/43887485/ns/business-eye_on_the_economy/
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Home Sales: Distressing Gap = Arizona among worst job creators in past five years, losing 253K jobs

[mEDITate-OR:
full miss-understand what Bill@CR has been trying to tell U.S.
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His chart on The Distressing Gap is one of the most, if not the most, interesting of the RE chart that he produces for U.S.
See: below: the list of current RE charts from CR
The Point is that there will BE no job creation in the RE industries until the Distressing Gap closes back into normal ranges.
What Bill@CR can NOT tell U.S. is when that will happen.
There is some economic evidence that we might be closer down in AZ, than in Cal or Nev. There is strong evidence that the robo-signing delays on foreclosures in Fla, and the same delays in NYC; will make the Distressing Gap last much longer, and much deeper in Fla & NYC.
Location, Location and possibly Location.
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This week, the AZBJ published a story with the heading above
What they did NOT tell U.S., or anyone in AZ, was that almost all the job losses were in the home construction businesses.
Not all, obviously, but IF we back out the Sand State's RE bubble machine, there are not many other jobs that were lost - back then.
Today, all that has changed.
The multiplier effects on other industry jobs, and on government payrolls, has only begun to crash.
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The second fall is not going to be the last one, either.
What we are now seeing is the destruction of America, as we know it.
To regain "The America" that white men want to believer always existed, before.
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They will not get what they think they want.
And, neither will we.
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Comment by JGBellHimself:
While the heading is close, what is also very interesting is that by percentage loss the worst states are all the "Sand States" that were devastated by the RE bubble collapse - Cal, Nev, Fla & AZ - plus, Michigan and Georgia. These same states are also those with the most underwater home values.
While AZ and Nev are not also in the top five of size/number of jobs lost, that is only bcuz of the size of the two states being smaller.
And, while AZ did lose huge numbers of construction jobs, many of them MAY simply have moved to Texas. Construction jobs opportunities for Chicanos, VS bad law/policy in AZ.
What is not said, is that AZ may have lost both jobs and people. And the ramifications of that are important to understand
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StateJobs (June 2011)5-year raw change5-year percent changeAscendingYears up of past 5Years down of past 5Years even of past 5
Nevada1,115,400-169,000-13.16%140
Michigan3,921,200-417,400-9.62%230
Arizona2,390,700-253,100-9.57%230
Florida7,247,000-761,500-9.51%230
California14,068,600-1,009,400-6.70%230
Georgia3,818,000-270,400-6.61%140
Rhode Island462,400-31,400-6.36%230
Indiana2,792,100-186,700-6.27%230
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On June Home Sales:
• Graph Galleries:
and
On House Prices:
• Graph Galleries: Home Prices
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Home Sales: Distressing Gap
http://www.calculatedriskblog.com/2011/07/home-sales-distressing-gap.html
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Arizona among worst job creators in past five years, losing 253K jobs
http://www.bizjournals.com/phoenix/news/2011/07/25/arizona-among-worst-job-creators-in.html
Arizona jobless rate jumps to 9.3 percent
http://www.bizjournals.com/phoenix/news/2011/07/21/arizona-jobless-rate-jumps-to-93.html
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