Grrroowwwrrrrlllll...
Stocks plunged in early trading Wednesday after a stronger-than-expected rise in consumer inflation fueled Wall Street's fear that interest rates will keep climbing.
Investors were disappointed by a Labor Department report that its consumer price index swelled 0.6 percent in April, ahead of forecasts of a 0.5 percent gain. But core CPI -- without food and energy -- also grew a faster-than-anticipated 0.3 percent, adding to worries that soaring oil prices will begin to lift prices elsewhere
May 17, 2006
Stocks Tumble; CPI Data Fuels Rate Fears
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8 comments:
the content on this blog makes me frown, whereas the pictures make me smile
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The content on this blog is reality (with just a bit of Keith's opinion), and nobody would be smiling if everyone faced it. But no, we'll pull a South Park and smell our own farts of rosy economic forecasts while burying our heads in the sand. All economists are convinved everything is great, until they're not. All hail itulip and Robert Shiller.
Yesterday, New Yorkers voted on school budgets. Most districts in my area voted a resounding NO. People can't afford their property taxes. Towns are taxing homeowners based on bubble valuations and a lot of people can't afford it. People who bought more house then they could afford are getting killed. Many seniors on fixed income have no way to cover the extra expense and will have to sell. Rents are going up because of the tax increases. It's difficult to find anybody that is not adversely affected by the housing bubble..............................
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Well put broker albit I am one who has not bitten more house than he can afford, I bought in 1993. But will sit here and tell you my property taxes have gone thru the roof, all i did was put a small addition to my home 16x21 family room and bedroom, and the assessors could not wait to get in....raised my taxes in less than 4 years from $1200, to $2600 a year.....and it hurts my wallet!
Seniors do not have kids and they will always vote against school taxes. They forget who will be paying social security. It is hard to increase school taxes in Florida without a scam like the lottery.
nikki:
If you read Robert Shiller's book he predicts a housing crash but doesn't expect a collapse of the U.S. economy. Most economists (myself included) believe the country will weather the downturn okay.
I found this article illustrative of how people are covering the rising cost of just about everything one needs on a daily basis, like food and fuel:
NEW YORK (Reuters) - Visa USA, the largest U.S. credit card association, on Tuesday said its cardholders spent $318.2 billion in the first quarter, 17.4 percent more than a year earlier
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in other words, they are charging it to make ends meet...this can't end well. I bet the coming months will be showing a slowdown in consumer spending.
Fire up them interest rates, yahoo!
Moman:
Your an economist, what are you basing a downturn on housing but the economy will be ok stuff on?
Over 20% of the GDP is is based on nonsense housing.
Over 70% of people own one or more homes, it will not be like dot bomb crash, where not many were hit.
We have 9 trillion in debt.
Interest rates are gonna have to go much higher or the Japanese and Chinese will pull their dollars.
The supply of housing is at all time highs, remember supply and demand?
If you ask me this is the perfect storm, the perfect 1987 style crash, with a Japanese leftover twist. I am basing this on the facts above!
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