An Update On Consumer Frugality: Americans Staying Home More, Reading Books - Zero Hedge
While people did spend more on luxury items and things to help them improve their mood during these tumultuous times, there was still very much a frugal ‘stay at home’ cocooning theme in the spending report. For example, there was less spending activity on sports events (-0.7%), amusement parks (-0.3%) and movie theaters (-4.2%). Instead, people spent more money on books (+2.1%), cable (+0.9%) and television sets (+0.7%). Games and toys were up 1.4% — family fun for everyone! While there was more money for fast food outlets, grocery spending was more robust during the month (+1%). People cut back on their travel, that is for sure too — rails down 1.5% and airline spending was flat. Hotels were cut back by 4.4%.
Mortgage Rates: Only One Way to Go – The Big Picture
In fact, based on what happened following the similar technical pattern that developed in the early 1990s, we may well be on the cusp of a secular rise in the cost of mortgage-related financing costs. Another reason, perhaps, to bet against a near-term recovery in house prices.
The Impact of California’s Biggest Tax Revolt – KPBS
As California struggles to pinch together the funds to cover one huge budget shortfall after another, as state services are strangled to the point that entire programs are on the chopping block and state workers are furloughed, some say now may finally be the time to re-evaluate Proposition 13.
Foreclosures now are just ‘tip of the iceberg’ – The Mortgage Insider
Meanwhile, he says, redefaults on loan modifications are “sabotaging” government efforts…
FHFA Extends Refinance Program – Calculated Risk
I’d think that most homeowners that qualified for HARP would have already refinanced – and I expect the refinance boom will slow significantly in 2010, so I’m not sure this matters.
The Home Depot Misery Index – Truthout.org
After a few moments of silence, he looked up at me again and continued.
“I came out of school with a degree in Political Science – lot of good that did me – then I went back and got an MBA, a Masters in Business Administration. Finally got a good job at Northern Trust Bank. Five weeks before I would’ve been vested for my pension, they fired me. After that, forget about it…age discrimination, a guy in his fifties, forget about it…damned banks…”
Chart of the day: The USA’s lost decade – Felix Salmon
At some point retail sales and tax levels will stabilize, but it will not be at a level that will support rising wages for public unions, or even current benefits promised to public workers via defined benefit pension plans.
A major war is coming between the union parasite “haves”, and the non-union “have-nots”, the latter already forced to live in the real economy.
