Signs of faltering US economy surface

Signs of faltering US economy surface
When the Fed convenes Tuesday, it could signal how it might respond to the slowdown.
By Ron Scherer | Staff writer of The Christian Science Monitor

from the August 6, 2007 edition

Page 1 of 3

New York - The economy is losing its umph as summer winds to a close.

For one, it's looking as if the downturn in housing is spreading to other parts of the economy. Investors, watching this happen, are becoming increasingly nervous and more selective with their loans.

The tightening of credit standards is taking place at a time when trends in consumer spending and the labor market are sending mixed signals.

These developments create a complex challenge for the Federal Reserve governors, whose role is to stimulate the economy in times of trouble. The Board of governors meets Tuesday to set interest rate policy. Already, the bond market has factored in an interest rate cut or two by December – if not by October.

Although the Fed is not expected to reduce rates tomorrow, it might send a signal that it will do so in the future if the central bank decides a slowing economy is a greater risk than inflation.

more...

http://www.csmonitor.com/2007/0806/p02s01-usec.html

Your posts are always good (even though I am relatively new, I have read
a lot of yours)
Just wanted to say thanks with all the 'I'm leaving' going on.
:toast:

:hi:

August is prime season for selling houses, and yet we have hardly had one new house come through for a termite treatment (which is required if a person buys a house and gets money from a lending institution). For the first time since I've been working here (and that's 6 years), we are getting more termite jobs from existing homeowners (who have discovered termites or damage) than from new houses or new construction.

Another interesting fact--the houses that ARE selling are not being bought by locals, but by people out of state. They are either buying it as investment properties (rentals) or for retirement homes. I talked with one customer who is moving here from Wyoming who told me that they had the taxes on their house raised so high they couldn't afford to pay them--and so they were selling and moving here so they could retire. They were one of the lucky ones. What I've found happening is houses are ready to close--and the deal falls through because the buyers can't get rid of their existing house so they have the money for the down payment, etc. That's happened a lot lately, too.

I only see it getting worse. Stocked up on emergency food at the salvage store again this weekend.

We need another award to present to posters like you, like a medal or something for being a great DUer.

The signs of this have all been there.

I live in an area with a major real estate market. Things were going well until last year. Now, many of the realtors are screaming bloody murder- some with no sales for a year or more.

No income for them means no income for many of our other businesses, which in turn means fewer jobs for less money, etc.

Those pieces of paper have to move, preferably in large quantities to large numbers of people, or we all suffer.

I have heard the big problem is the credit crunch because banks and mortgage companies are holding $300 billion in loans that they cannot market.

No loans, no sales of homes, no mortgages, no refinances, and housing inventory will continue to accumulate as more homes slip into default and foreclosure.

I would imagine that we will hear lots of 'calming voices' in the days to come, but the market savvy traders are hard at work liquidating many of their positions.

Allowing the rate to stay the same will not help.

As I heard a spinmeister put it the other day...not a weakening economy, just one that will have slower growth. (yeah, probably more like NEGATIVE growth!!) Hmmm...to me that sounds like an economy that is shrinking. I just checked the other day...its been 3 years since I've had a raise, and I KNOW that food is more expensive, and gas is more expensive, and all the utilities are more expensive, and so on and so on. Since * took over the (mis)administration, I've had ONE raise. Gee, no wonder I can't buy anything except the bare necessities anymore!!!

I work in printing, and historically our company has slowed down a little at the start of the summer, for about 2 or 3 weeks. Well, the past couple years, summer has been starting in April, and going on til the middle of August or so. This year, its even slower than it has been the past couple years. In talking to an over the road truck driver, he said even the trucking companies are slow. He told me that ALL the businesses he's been into are slow, not just printing. I guess I'm a little lucky, because I have 2 things going for me there: I've been there a LONG time (and that counts with the owner) and I can do almost every job in the whole business.

"Faltering" my *ss.....that's like saying "The sun's surface is warm".

I'm sorry to hear a story so similar to mine.

I've been at the same company 8 years now, and the attitude during the Clinton years was that we were an important resource that they needed to preserve. These days, they expect us to be happy to work for them for peanuts.

I'm SO glad things are going well for the top 1%. Maybe they can see fit to trickle down more than 1% of their 90% share. :sarcasm:

18 years ago, when the forgetful one tore apart our country!!!!

What in good conscience do the Dems do now? They have to try to help -- of course.

They'll be shoring up Bush's shit --

Everywhere I look in TN stuff's for sale as debt-reality comes home to roost for many here. I just got a great deal on a used home.