American economy Tanking fast, Government Anti Business

[Dolphin]

In no particular order, some snippets from the IBD tonight:



1. January new-home sales dropped 10.2% to an annualized rate of 309,000. You have to unwind the clock clear back to 1963 to see the new-home sales rate this low.

2. Durable goods sales in January dropped 5.2% vs. Decemeber, and are down 26.4% from January 2008.

3. New jobless claims are at 667,000, a 26-year high.

4. Ongoing jobless claims hit 5 million for the first time since WWII.

All reported figures are worse than economists' expectations.

5. The FDIC now sees 252 "Problem banks." Taken together, they have $159 billion in assets deemed to be "of high risk failure," and this is up 47% from Q3/2008 and more than three times as high as a year ago. If even half this amount of assets need to be backstopped by the FDIC, the FDIC will have to get more money from Congress.

6. The Obama administration's proposals for health care torpedoed the sector today, especially health insurers and managed care companies, but also drug & biotech companies. Since this came as a surprise, the selling in the sector was rather strong. Since this sector is considered one of the two "recession resistant" sector plays (one is consumer staples, the other health care/drugs/biotech) and these sectors are overweight in many portfolios now, the market will likely assess whether to rotate out completely or simply sell off down to "in line" sector allocations.

[E_]

Saw some new home ads on TV this AM that were about 80k less than a year ago for the same homes.

[Dolphin]

Economy shrinks even more than expected in 4Q
Economy shrinks at faster-than-expected 6.2 percent pace in fourth quarter, worst in 26 years

* Jeannine Aversa, AP Economics Writer
* Friday February 27, 2009, 8:54 am EST

* Yahoo! Buzz
* Print

WASHINGTON (AP) -- The economy contracted at a staggering 6.2 percent pace at the end of 2008, the worst showing in a quarter-century, as consumers and businesses ratcheted back spending, plunging the country deeper into recession.

The Commerce Department report released Friday showed the economy sinking much faster than the 3.8 percent annualized drop for the October-December quarter first estimated by the government last month. It also was considerably weaker than the 5.4 percent annualized decline economists expected.

Looking ahead, economists predict consumers and businesses will keep cutting back spending, making the first six months of this year especially rocky.

The new report offered grim proof that the economy's economic tailspin accelerated in the fourth quarter under a slew of negative forces feeding on each other. The economy started off 2008 on feeble footing, picked up a bit of speed in the spring and then contracted at an annualized rate of 0.5 percent in the third quarter.

[Dolphin]

Saw some new home ads on TV this AM that were about 80k less than a year ago for the same homes.

Look, Home values are Just SMOKE at this point The public is being DUPED and the media smoke is hiding the REAL Issues

remember, Home values are relevant if you can make the payment. Homes are where you live and raise your family's. Not to be an investment to use as collateral tp borrow for non essentials. You may think the value of your home is important but what IS Important is the Health of the company you get your paycheck from

[Dolphin]

Found and Old movie early this AM playing on the AMC network next to RFD. Guess I need to chill cause I am not a Movie Guy


The movie is ( Fathom )

Raquel Welch is Hotter than I remember and as Good Looking as any current day babe Looks wise, Not acting ???

Lots of water, boating scenes with a lovely bikini outfit

[E_]

Saw some new home ads on TV this AM that were about 80k less than a year ago for the same homes.

Look, Home values are Just SMOKE at this point The public is being DUPED and the media smoke is hiding the REAL Issues

remember, Home values are relevant if you can make the payment. Homes are where you live and raise your family's. Not to be an investment to use as collateral tp borrow for non essentials. You may think the value of your home is important but what IS Important is the Health of the company you get your paycheck from

I agree with that, Julie is worried about ours dropping low for us selling it and that is a valid thing when you think of the money we have put in to it but on the other side I think it is great that homes are hitting a more reasonable range. In fact I think prices of homes, stock, etc. have been WAY over inflated for years. Its about time things did a level set.

[Dolphin]

Every thing Has to Cycle It is just How tough are You ?????

[katie]

Raquel Welch is Hotter than I remember and as Good Looking as any current day babe Looks wise, Not acting ???