Post by unlawflcombatnt on Jan 25, 2007 18:36:39 GMT -6
Today's economic news was almost devoid of any positives. The Dow Jones declined 119 points. Housing, Ford automobile, and weekly employment reports were all negative. Existing Home Sales declined, Ford posted its largest annual loss in its 103-year history, and the weekly increase in filings for jobless benefits reached a 16-month high of 36,000, which was the highest since the Katrina aftermath.
Existing Home sales declined 0.8% for December. The year-over-year decline in sales was 9%, the worst annual decline since 1989. The median, year-over-year price change for existing homes was 0% for 2006, compared with a 12.4% reported increase for 2005. The annual change of 0.0% understates the trend in prices, however. Prices peaked in most of the large areas of the country in the May-July period. The median Existing Home price was $230,000 in July. December's median price of $222,000 is 3.5% less than July's national peak.
Ford sales and profits declined for the year 2006. Total sales for 2006 declined 9.5%, from $176.9 billion in 2005 to $160.1 billion in 2006. 4th quarter sales for 2006 were only $40.3 billion, $6 billion less than 4th quarter sales in 2005 of $46.3 billion. Ford's 2006 profits declined $12.7 billion, the worst in its 103-year history. Ford's $5.7 billion loss in the 4th quarter accounted for almost half the decline. Ford stocks declined $6.79/share in 2006, following 2005's increase of $0.77/share. Ford also expects to lose money during 2007.
Ford plans to close 16 plants, while cutting its white collar work force alone by 14,000. Ford plans to more cuts as it "gains efficiencies from building more cars worldwide...in more 'efficient' factories. (Read: in factories where labor costs are dirt cheap, i.e., "outsourcing" more American jobs.)
There was a huge increase in jobless claims filed for the week. The number of new filings reached a 16-month high of 36,000. This was the highest weekly increase in 16-months. The previous high followed the Katrina disaster.
Combining all of this, it's difficult to see how 4th quarter GDP will be "better" than 3rd quarter GDP, especially given that the biggest (and most inexplicable) addition to 3rd quarter GDP was automobile sales. Housing sales and prices are declining. Though December housing starts were higher than November, the December annualized number of 1.642 million was still 5% less than September's 1.724 million. December 2006's retail sales increase of 3% was less than December 2005's increase of 5%.
Though December's employment increase was 167,000, the 3-month average increase during the 4th quarter was only 126,000, which is 24,000 less than the maintenance level of 150,000 stated by most economists.
Existing Home sales declined 0.8% for December. The year-over-year decline in sales was 9%, the worst annual decline since 1989. The median, year-over-year price change for existing homes was 0% for 2006, compared with a 12.4% reported increase for 2005. The annual change of 0.0% understates the trend in prices, however. Prices peaked in most of the large areas of the country in the May-July period. The median Existing Home price was $230,000 in July. December's median price of $222,000 is 3.5% less than July's national peak.
Ford sales and profits declined for the year 2006. Total sales for 2006 declined 9.5%, from $176.9 billion in 2005 to $160.1 billion in 2006. 4th quarter sales for 2006 were only $40.3 billion, $6 billion less than 4th quarter sales in 2005 of $46.3 billion. Ford's 2006 profits declined $12.7 billion, the worst in its 103-year history. Ford's $5.7 billion loss in the 4th quarter accounted for almost half the decline. Ford stocks declined $6.79/share in 2006, following 2005's increase of $0.77/share. Ford also expects to lose money during 2007.
Ford plans to close 16 plants, while cutting its white collar work force alone by 14,000. Ford plans to more cuts as it "gains efficiencies from building more cars worldwide...in more 'efficient' factories. (Read: in factories where labor costs are dirt cheap, i.e., "outsourcing" more American jobs.)
There was a huge increase in jobless claims filed for the week. The number of new filings reached a 16-month high of 36,000. This was the highest weekly increase in 16-months. The previous high followed the Katrina disaster.
Combining all of this, it's difficult to see how 4th quarter GDP will be "better" than 3rd quarter GDP, especially given that the biggest (and most inexplicable) addition to 3rd quarter GDP was automobile sales. Housing sales and prices are declining. Though December housing starts were higher than November, the December annualized number of 1.642 million was still 5% less than September's 1.724 million. December 2006's retail sales increase of 3% was less than December 2005's increase of 5%.
Though December's employment increase was 167,000, the 3-month average increase during the 4th quarter was only 126,000, which is 24,000 less than the maintenance level of 150,000 stated by most economists.