For those of you hoping that foreclosure crises has hit bottom, we’ve got some bad news. A new report released by the The Pew Charitable Trusts says that 1 in 33 homeowners is expected to be in foreclosure over the next two years, due primarily to subprime mortgages made in 2005 and 2006.
economy
By 4.17.08
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American Airlines lost a bunch of money this quarter. Ruh-roh. [NYT]
By 4.17.08
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What recession? Hedge fund managers are still making billions a year. [Reuters]
Retail Bankruptcies Threaten To Wreck Economy, Empty Your Local Mall
By 4.15.08
As the cost of food and gas begin to crowd out other expenses, and access to credit is limited by the mortgage meltdown, a “widening wave of bankruptcies in American retailing” is threatening the economy, says the NYT.
By 4.11.08
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Consumer Confidence is now at a 26-year low. Do you need a hug? [Marketwatch]
By 4.4.08
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More debtors are behind their loans than at any time since 1992. [American Banker’s Association]
By 4.2.08
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Snapshot of the economy: Small car sales up in March, SUV sales down. Those experiencing the biggest deltas? Toyota Yaris:up 83.2%, Nissan Titan: down 44.9% [Kicking Tires]
At What Point Is A Recession Really Just A Depression?
By 4.1.08
Vigeland: What are the traditional definitions of a recession first and also a depression? How are they different?
Why You're Not A Logical Consumer
By 4.1.08
CNNMoney has an interesting interview with behavioral economist, Dan Ariely. In the interview, Dan talks about how price comparison (which we take for granted as a “good” habit for consumers to engaging in) may not be very helpful after all. Ha!
Treasury Secretary Calls For Supercharged Fed, Streamlined Regulatory System
By 3.29.08
Treasury Secretary Henry Paulson wants to consolidate the nation’s financial regulators into a tripartite gang that can save the economy from distress and doom. The plan to give the Federal Reserve broad new regulatory powers and streamline the regulatory community has been in the works since last March, before the start of the subprime meltdown. Paulson is worried that the U.S. markets are no longer competitive with maturing world markets, some of which aren’t hampered by nuisances like regulation. After the jump we’ll explain the consumer impact of the plan and introduce you to your three new regulators.
By 3.28.08
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JC Penney slashed its forecast today. The retailer blamed the economic slowdown for its poor sales performance.
“J.C. Penney counts half of American families as its customers, and they are feeling macroeconomic pressures from many areas … [and] the sharp decline in sales is reflective of these trends. While the economic stimulus package may provide some temporary benefit, we expect the continuation of a difficult environment over the course of 2008.”
What Should We Do With 125,000 Out Of Work Mortgage Bankers?
By 3.28.08
Today CNNMoney profiles an out of work mortgage banker who has been sending out 10 resumes a day since he was laid off in Feburary. He just got his first interview.
AT&T Says It Can't Find Enough Skilled US Workers To Fill 5,000 Jobs
By 3.27.08
Here’s some depressing news. AT&T’s CEO says his company is having trouble finding enough skilled workers in the United States to fill the 5,000 jobs he promised to bring back to this country.
American Customer Satisfaction Drops
By 3.27.08
The American Customer Satisfaction Index (ACSI) dropped again for the second consecutive quarter to 74.9. Why does this matter? “When customer satisfaction declines, consumers have less enthusiasm for repeating experiences that no longer provide the same gratification,” says Professor Claes Fornell. AKA, they’ll be spending less money.
PricewaterhouseCoopers Real Estate Expert Doesn't Own Much Real Estate
By 3.26.08
Marketplace had a telling interview with Susan Smith of PricewaterhouseCoopers, the editor-in-chief of a new report about the commercial real estate market titled “Rough Road Ahead for Investors.”
By 3.26.08
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Consumer confidence dropped to 64.5 in March, down from 76.4 in February, the lowest level in 5 years. [AP]
The 30 Cent Store
By 3.26.08
You know times are tough when the Dollar Store needs to hold a 70% off sale. That should be a line in a blues song. Maybe it’s an art installation making commentary on the current strength of the dollar.
