recession watch

WaMu CEO Compares Mortgage Meltdown To The Great Depression

WaMu CEO Compares Mortgage Meltdown To The Great Depression

By 4.16.08

WaMu announced today that they lost $1.14 billion in the first-quarter and CEO Kerry Killinger said that nothing of this scale had happened “since the Great Depression.” Comforting!

“Nothing of this scale has happened since the Great Depression,” Chief Executive Kerry Killinger said at WaMu’s annual meeting. “This is the toughest credit cycle I have seen in my years in the industry.”

WaMu says it will cut 3,000 more jobs, including that of Mary Pugh, chair of their finance committee who “had been fiercely criticized for failing to protect Washington Mutual from overexposure to subprime and other risky mortgages,” according to Reuters.

By 4.11.08

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Consumer Confidence is now at a 26-year low. Do you need a hug? [Marketwatch]

At What Point Is A Recession Really Just A Depression?

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?

By 3.28.08

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Consumer Confidence is now at a 16 year low, according to the Reuters/University of Michigan Survey of Consumers. [Reuters]

Most Americans Say They Will Not Spend Their Stimulus Checks

Most Americans Say They Will Not Spend Their Stimulus Checks

By 3.24.08

Jared Bernstein, an Economic Policy Institute senior economist, notes that taxpayers have in the past spent half to two-thirds of their rebate checks. However, he points out that the current economic conditions are unique.

By 3.24.08

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JP Morgan has raised its Bear Stearns offer from $2 to $10. [NYT]

By 3.19.08

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The New York Times ponders: How could irresponsible mortgage lending “take out take out the whole global financial system?” [NYT]

By 3.19.08

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Amsterdam doesn’t want your stinking worthless U.S. currency. [Reuters]

Another Deep Rate Cut From The Fed

Another Deep Rate Cut From The Fed

By 3.18.08

The Federal Reserve Open Market Committee today announced a rate cut of 75 basis points to 2-1/4 percent.

By 3.7.08

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The Freakonomics blog says we’re in a recession. Who the hell are we to argue? [Freakonomics]

Foreclosures Hit An All Time High As Many Homeowners Simply Give Up

Foreclosures Hit An All Time High As Many Homeowners Simply Give Up

By 3.6.08

The Mortgage Bankers Association says that foreclosures have hit an all-time high as more and more borrowers with adjustable rate mortgages walk away from their homes before their payments increase.

By 3.4.08

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Initially, the lenders gave the impression that the majority of these loans were being given out to sophisticated investors who couldn’t document their $500,000 income and had better places to put their money to work. Clearly this wasn’t the case as we are seeing that 71% of the people are electing for the lowest of the low payments. Of course when the market in California was ripping it up by seeing 20%+ appreciation each year, making the minimum payment made sense because you were going to sell in 1 to 2 years and pocket the change. Heck, it was cheaper than renting!

[Dr. Housing Bubble]

Fed Chairman Asks Banks To Forgive Mortgage Debt

Fed Chairman Asks Banks To Forgive Mortgage Debt

By 3.4.08

Fed Chairman Ben Bernanke is urging lenders to “forgive portions of mortgage debt held by homeowners at risk of defaulting,” says Bloomberg.

$4 Gas By Spring?

$4 Gas By Spring?

By 2.27.08

Gasoline prices, which for months lagged the big run-up in the price of oil, are suddenly rising quickly, with some experts fearing they could hit $4 a gallon by spring. Diesel is hitting new records daily and oil closed at an all-time high on Tuesday of $100.88 a barrel.

Walmart Is Starting To Worry

Walmart Is Starting To Worry

By 2.19.08

“I feel we are well positioned for an economic downturn,” Scott said. “Our low prices and low-cost business model should give us an advantage over other retailers if things get more difficult for consumers.”

By 2.14.08

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Fed Chairman Ben Bernanke on the state of that not-a-recession that we may or may not be in. [FED]

Consumer Comfort Index At 14-Year Low

Consumer Comfort Index At 14-Year Low

By 2.6.08

Well, here’s some bad news. Reuters says that the ABC News/Washington Post Consumer Comfort Index dropped to -33 in the week ended Feb. 3, which is its lowest reading since November 1993.

In a separate ABC News/Washington Post poll released earlier this week, 59 percent of Americans said they think the economy is already in a recession.

Fed Cuts Rate 1/2 Point To 3%

Fed Cuts Rate 1/2 Point To 3%

By 1.30.08

Financial markets remain under considerable stress, and credit has tightened further for some businesses and households. Moreover, recent information indicates a deepening of the housing contraction as well as some softening in labor markets.

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