Skip to comments.Housing, Employment, GDP and CNBC with Rick Santelli
Posted on 11/29/2012 12:06:05 PM PST by whitedog57
I was interviewed this morning by CNBCs Rick Santelli on the FHA. Here is my interview. So little time, so much to discuss.
So, if real Personal Consumption Expenditures only rose 1.4%, what drove the 2.7% increase in real GDP? Residential construction and Federal government spending.
Real federal government consumption expenditures and gross investment increased 9.5 percent in the third quarter, in contrast to a decrease of 0.2 percent in the second. National defense increased 12.9 percent, in contrast to a decrease of 0.2 percent.
But real residential fixed investment increased 14.2 percent, compared with an increase of 8.5 percent.
While Personal Consumption Expenditures were dismal, employment remains dismal as well. Initial jobless claims printed at 393,000, still above December 2011 levels.
And U6 unemployment/underemployment remains stubbornly high at 14.6%. Not great news for housing.
But as I mentioned to Rick Santelli, there is a possibility of house prices prices tanking up to 10% in 2013 because of the foreclosures hitting the market. As many as 1.25 million of Americas least cared for homes are headed for auction after a year-long probe into foreclosure practices kept them off the market. Sales of repossessed properties probably will rise 25 percent this year from 1 million in 2011, according to Moodys Analytics Inc. Prices for the homes could drop as much as 10 percent because they deteriorated as they were held in reserve during investigations by state officials resolved in February, according to RealtyTrac Inc.
We entering December and I didnt want to depress Mr Santelli by mentioning that the Kansas City Fed Composite Index printed at its lowest level since July 2009.
And dont forget about the fiscal cliff and the staggering increase in taxes just after Christmas!!!!
Its beginning to look a lot like Christmas
(Excerpt) Read more at confoundedinterest.wordpress.com ...
The Obama administration juiced the Q3 numbers by increasing government spending by 9.5% to make the economy look better before the election. Then they cheated their way back into office with the fraudulent election in the swing states.
No wonder millions of citizens no longer care.
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