June 26th, 2009
The savings rate is expected to hit nearly 10 percent soon. It had been around 5.5 percent in April and has steadily risen since then.
Why aren't people
spending more? With Americans clearly saving more money now than in months past,
most are still extremely timid about spending and investing. Experts are unsure
how or what can change that.
The Dow bounced back later in the week after
a very rocky start. Thursday saw the Dow Jones rebound and gain over 2 percent of its
value.
What's in store for the future? Well, with the end of the quarter
coming on Tuesday, many experts believe we will see another week ending in
positive territory for the major markets as portfolio managers are eager to
burnish their numbers for the quarter.
Oil still sits at just under $70 a
barrel. The Dow has remained stagnant since its nearly 3-month rally indicating
that the experts on Wall Street feel the economic recovery isn't quite here yet.
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June 19th, 2009
Texas cities Austin, San
Antonio, Dallas and McAllen have not seen any economic
growth so far this year. They were considered focal areas of the massive
real estate bubble of the past few years. Once skyrocketing home prices in
these Texas cities are to blame for a slow recovery.
Texas is not
alone, however. Several key California cities will also have a difficult time in
rebounding from the economic troubles. Fresno, Modesto, Salinas, Bakersfield,
Stockton and Los Angeles all also saw collapses in housing markets in the past
couple of years.
There are many indicators nationwide that home prices
might be stabilizing again; however in many cities in Texas and California will
likely take years for their economies to turn around.
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June 12th, 2009
While down a bit from
expectations, the increase marks the multi-month high and the strongest showing
since September of 2008. Over the past three months, the confidence reports have
shown an increase proving perhaps that the economy is set to
rebound.
This report , however, also gauges inflation expectation, which has risen to its highest in months.
The five-year inflation outlook rose to just above 3 percent this month, the
highest since October of last year. While the confidence numbers are are
promising, the fact that inflation is still set to increase is worrisome to some analysts. Concern
continues to grow that the federal government may not be doing enough to to help
spur recovery.
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June 09th, 2009
Volume trading for the day was light, making the market susceptible to quick changes in direction. Fewer traders on the
market floor are normally not a good thing, but yesterday it was partially
responsible for the positive nudge sending the market closing in positive
territory.
Prices recovered late in the day as trading wound down.
Investors made the most of the day late in the day. The bulk of the trading was
done in the last hour of trading. The rally signaled the market is still
trying to decide how to proceed after it has seen substantial yet rather
reserved gains over the past three months.
Confusion dominates the market
still as many are left questioning exactly when the market will decidedly
rebound from this recession.
By day's end on Monday, the Dow finished up
nearly 0.1 percent. Every little bit helps as each day seen in the green and not the
red helps.
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June 05th, 2009
Despite the increased percentage of unemployed,
layoffs leveled off somewhat last month with employers only eliminating 345,000
jobs. That number marks the lowest slash in work force numbers since last
September, nearly eight months ago.
The ease in layoff numbers point to a
likely loosening the recession has had on the country even though overall
unemployment percentage was up. It's the fourth straight month the layoff pace
has slowed.
It's definitely not easy to get a job these days in America
and that fact has only been continued into the month of May. Government
officials have pledged to help bring down the high numbers by helping the
unemployed with new training.
The U.S. economy has lost nearly 6 million
jobs dating back to September 2007. The slowing of layoffs will still do
little to cause companies to begin hiring again until they feel secure that the
economy is improving.
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June 03rd, 2009
The huge inventories of
crude reported earlier in the year had steadily pushed the price of crude down
over several months to near all-time lows.
While signs have pointed that
the global demand for energy has rebounded substantially, there is little
confidence the trend will continue or that a full rebound is likely right
now.
Most analysts feel the recent increase in oil value is inflated and
will likely flatten and decrease in the near future. High energy prices could
end up severely slowing an economic recovery. It's doubtful oil will rise above $70 now.
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June 01st, 2009
It will stand as the
largest industrial bankruptcy in history. As GM enters bankruptcy protection, the U.S. government has vowed to provide the necessary billions it will
need in aid. It will also need protection for the taxpayers' investments
without interfering with normal operations.
GM President Fritz Henderson
will hold a news conference today following an address from President Barrack Obama
at the White house.
Late Sunday the federal government said it
would provide an additional $29 billion in aid to General Motors in an attempt
to assist its restructuring. The process will likely take upwards of 90 days,
and if successful, will allow GM to emerge as a much more profitable and viable
company with a much leaner workforce and fewer number of plants. The
company plans, however, on cutting nearly 35 percent of its workforce and its stock on will likely see huge losses this week.
The government should refrain from intervening in day-to-day
management of GM, and will management to make critical decisions. Some analysts are hopeful GM
will come out of this crisis a much more profitable and better-restructured
company.
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