For years, Bloomberg Businessweek notes, the American residential dream went something like this: Move to a city, work hard, and eventually you’ll make enough to move out. So perhaps it’s not surprising that today many of America’s largest metropolitan areas house their highest earners on the outskirts of town. Exactly where they live varies from city to city — or rather, from suburb to suburb. Perhaps this is what they mean by 'rotten to the core'?
Show this article to anyone that believes that the economy has actually improved in the last 5 years. On Tuesday evening, the President once again attempted to convince all of us that things have gotten better while he has been in the White House. He quoted a few figures, used some flowery language and made a whole bunch of new promises. And even though he has failed to follow through on his promises time after time, millions upon millions of Americans continue to believe him. To say that his credibility is "strained" would be a massive understatement. No, things have not been getting better in America. In fact, they continue to get even worse. The following are 32 statistics that Obama neglected to mention during the State of the Union address...
The President will do his best to put a positive spin on the current economic environment and the success of his policies to date when he gives his speech tonight. However, how you define the current environment may have much to do with where you fall in current income distribution. This was a point made by Mr. Boyer: "In 2012, the richest 10 percent of Americans earned their largest share of income since 1917, said Emmanuel Saez, an economist at the University of California at Berkeley. Meanwhile, Census Bureau statistics showed that real average income among the poorest 20 percent of families continued to fall each year from 2009 to 2011." As with all things - it is the lens from which you view the world that defines what you see. In the end, it will be whether we choose to "see" the issues that currently weigh on economic prosperity and take action, or continue to look the other way. History is replete with examples of the demise of empires that have done the latter.
For the first time ever, working-age people now make up the majority in U.S. households that rely on food stamps.
The housing recovery is ultimately a story of the "real" employment situation. With roughly a quarter of the home buying cohort unemployed and living at home with their parents the option to buy simply is not available. The rest of that group are employed but at the lower end of the pay scale which pushes them to rent due to budgetary considerations and an inability to qualify for a mortgage. The optimism over the housing recovery has gotten well ahead of the underlying fundamentals. While the belief was that the Government, and Fed's, interventions would ignite the housing market creating a self-perpetuating recovery in the economy - it did not turn out that way. Instead, it led to a speculative rush into buying rental properties creating a temporary, and artificial, inventory suppression. While there are many hopes pinned on the housing recovery as a "driver" of economic growth in 2014 - the lack of recovery in the home ownership data suggests otherwise.
Following ongoing promises from the Fed that the Taper will continue at a pace of $10 billion per month come rain or shine, suddenly good news are critical for stocks, as the stock market is desperate for a strong economy to which Yellen can pass the baton. It did not get that with Friday's payrolls number so it was hoping for some good news in today's retail sales. And judging by the market response to the just released December retail sales, it got it, if only for now: headline December retail sales rose 0.2%, on expectation on a 0.1% increase even as auto sales tumbled -1.8%. Retail Sales ex autos rose 0.7% higher than the 0.4% expected, while ex autos and gas was up a more modest 0.6%, also better than the 0.3% expected. How is it possible that December retail sales according to the US government were better than expected, when every retailer has posted abysmal results? Well it seems the Census Bureau merely engaged in some recalendarization, with November numbers all revised substantially lower: headline down from 0.7% to 0.4%, ex autos 0.4% to 0.1%, and ex autos and gas from 0.6% to 0.3%. In other words, a complete wash with today's "beat." So when netting away the calendar effect of an early start to the holiday season, perhaps the only value added data in the retail sales report was the data involving Electronics and Appliance Stores.They posted the biggest 2 month drop in 2 years!
After Seven Lean Years, Part 1: US Residential Real Estate: The Present Position And Future ProspectsSubmitted by Tyler Durden on 01/13/2014 10:24 -0400
In the last 8+ years, housing has proceeded through a cycle of bubble-bust-echo-bubble: now the echo bubble is crumbling, for all the same reasons the 2006-7 bubble burst: a prosperity based on asset bubbles and low interest rates is a phantom prosperity that cannot last.
Yesterday's chart of the day was the stunning prevalence of poverty in Greece, which soaring to 44%, up from 14% a year ago, was too mindboggling to even comment on. Today, courtesy of the Census Bureau, we get a glance at a just as disturbing aspect of poverty not in some country in depressed Europe, but in the US itself. The bad news: in the period from 2009 to 2011, 31.6% of Americans were in poverty for at least two months, "a 4.5 percentage point increase over the prerecession period of 2005 to 2007.
"It's a very straightforward result," UCSD professors Joseph Engleberg calmly states, hospitalizations rise on days when shares fall, and "people are hospitalized disproportionately for mental conditions." Equity-market losses appeared to induce 3,700 market-related hospitalizations a year in California, which implies visits add roughly $650 million a year to U.S. health-care costs when data from the most-populous state are extrapolated nationally - another additional cost of QE? The findings, Bloomberg reports, show a one-day drop in equities of around 1.5% is followed by about a 0.26% increase in hospital admissions on average over the next two days.
2013 already saw violent unrest in some of the most stable countries in the world like Singapore and Sweden, all underpinned by absolute disgust for the status quo. Whether today or tomorrow, this year or next, there will be a reckoning. The system is far too broken to repair, it must be reset. It’s simply absurd to look at the situation objectively and presume this status quo can continue indefinitely... that this time is different… that we’re somehow special and immune to universal principles.
87-year-old Lew Manchester has just returned from a 3-week trip touring Buddhist temples in Laos and cruising the Mekong Delta in Vietnam. His 61-year-old daughter Lee lives year-round in the basement of her friend’s Cape Cod cottage, venturing into the winter cold to get to the bathroom. As Bloomberg reports, Lew is making the most of his old age. Lee is paring back and lightening her load as she looks ahead to her later years. Both worked all their lives, both saved what they could. “Timing is everything and my dad’s timing with jobs, real estate and retirement benefits was better,” said Lee. A rising tide of graying baby boomers is less secure financially and has a lower standard of living than their aged parents.
During 2013, America continued to steadily march down a self-destructive path toward oblivion. As a society, our debt levels are completely and totally out of control. Our financial system has been transformed into the largest casino on the entire planet and our big banks are behaving even more recklessly than they did just before the last financial crisis. We continue to see thousands of businesses and millions of jobs get shipped out of the United States, and the middle class is being absolutely eviscerated. Due to the lack of decent jobs, poverty is absolutely exploding. Government dependence is at an all-time high and crime is rising. Evidence of social and moral decay is seemingly everywhere, and our government appears to be going insane. If we are going to have any hope of solving these problems, the American people need to take a long, hard look in the mirror and finally admit how bad things have actually become.
According to a recent survey by the Pew Research Center, just 33% of Americans think their children will have a better life than they did. On the other hand, 62% believe their children will be worse off. They’re likely to be right. The typical American family has seen its real income (adjusted for inflation) fall for 5 consecutive years now, and it earns less in real terms that it did in 1989.
"If you repeat a lie often enough, people will believe it." Sadly, that appears to be the approach that the Obama administration and the mainstream media are taking with the U.S. economy. They seem to believe that if they just keep telling the American people over and over that things are getting better, eventually the American people will believe that it is actually true. And of course the reality of the matter is that we should have seen some sort of an economic recovery by now. Those running our system have literally been mortgaging the future in a desperate attempt to try to pump up our economic numbers. The federal government has been on the greatest debt binge in U.S. history and the Federal Reserve has been printing money like crazed lunatics. All of that "stimulus" should have had some positive short-term effects on the economy. Sadly, all of those "emergency measures" do not appear to have done much at all.
With the government shutdown which apparently had zero impact on the economy, moments ago the Census Bureau released not one but two New Home Sales reports together due to the delay in data reporting. The data showed that while in September new home sales declined from 379K to 354K annualized, or the lowest since early 2012, the subsequent rebound sent New Home Sales to 444K, or a 90K increase, +25.4%, in one month was the biggest month over month jump since May 1980! What was less noted is the prior revisions, with June revised 0.9% lower, July down 4.4%, and August revised by a whopping 10% lower. So what caused the October surge? Possibly it was pent up demand, because as the first chart below shows, an unbroken trendline suggests a modest decline in sales data net of the prior downward revisions. However, what was most likely the reason for the increase is that the Median new home sales price tumbled to $245,800, down from $257,400 and well below the recent highs of $279,300. In fact, this was the lost median new price in one year. Supply - meet demand, and equilibrium price.