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DOW FALLS 100 AND SPAIN PROTESTS AUSTERITY
TBI ^ | 9-25-2012 | Sam Ro

Posted on 09/25/2012 1:43:13 PM PDT by blam

DOW FALLS 100 AND SPAIN PROTESTS AUSTERITY: Here's What You Need To Know

Sam Ro
September 25, 2012

AP Images

Market volatility picked up amid some mixed signals from the economy.

First the scoreboard:

Dow: 13,458, -100.2, -0.7%
S&P 500: 1,441, -15.2, -1.0%
NASDAQ: 3,117, -43.1, -1.3%

And now the top stories:

* After the U.S. markets closed yesterday, global economic bellwether Caterpillar shook the earth by cutting its earnings guidance for 2015. "Our goal hasn't changed but the economy has," said management.

* However, more evidence suggests the U.S. housing market is recovering. According to S&P Case-Shiller, home prices rose 1.2% year-over-year in July. This was much higher than the 1.05% increase economists were looking for.

* With bullish housing data mounting, the debate seems to be less about whether the housing market has bottomed. Rather, it seems to be whether it will contribute materially to economic growth. The bulls argue that it offers the shot in the arm needed to boost consumer confidence and spending. The bears think that housing just doesn't contribute enough to offset all of the other global economic concerns.

* In a separate report, the Conference Board said consumer confidence surged to 70.3 this month from 61.3 a month ago. This was much higher than the 63.1 expected by economists.

* Markets turned negative just before 1PM as images from the Spanish austerity protests started crossing. And the selling just intensified into the close.

(snip)

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: austerity; dow; economy; spain

1 posted on 09/25/2012 1:43:20 PM PDT by blam
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To: blam

The complain in Spain comes mainly from the pain........................


2 posted on 09/25/2012 1:47:46 PM PDT by Red Badger (Anyone who thinks wisdom comes with age is either too young or too stupid to know the difference....)
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To: blam

Notice how they don’t show pictures from Greece anymore...


3 posted on 09/25/2012 1:55:30 PM PDT by Viennacon
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To: blam
So we got a 230-some one-time bounce from QE3 - $40B monthly ad infinitum.

Dali was right!

4 posted on 09/25/2012 1:55:45 PM PDT by P.O.E. (Pray for America)
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To: blam

If they like to protest austerity then make it more.


5 posted on 09/25/2012 1:55:55 PM PDT by Berlin_Freeper (God Bless America!)
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To: blam
The bears think that housing just doesn't contribute enough to offset all of the other global economic concerns.

Yeah. Like people having no jobs which means no money which means no credit which means no house.
6 posted on 09/25/2012 1:56:12 PM PDT by nhwingut (Sarah Palin 12... No One Else)
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To: blam
With all the problems of the Euro it still holds its own against the dollar. Go figure. (Or is the dollar?)

A few months ago it was around $1.36 to one Euro, it sank to $1.23; and in the last couple of weeks it's up to $1.29.

7 posted on 09/25/2012 2:00:14 PM PDT by WilliamofCarmichael (If modern America's Man on Horseback is out there, Get on the damn horse already!)
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To: WilliamofCarmichael

Your just comparing two failing fiat currencies in death spirals


8 posted on 09/25/2012 2:02:56 PM PDT by GeronL (http://asspos.blogspot.com)
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To: blam

Gas and food prices have sky rocketed and the damnable Obamugabe worshipping media give him a pass.

I am holding off any big purchases...if Obamugabe wins, I will stop spending on things I want because of the coming Taxmageddon.

Home prices giving the economy a boost? Bull crap. Not with this commie occupying our house.


9 posted on 09/25/2012 2:04:14 PM PDT by SoFloFreeper
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To: SoFloFreeper

Housing is not up!!!!!!!


10 posted on 09/25/2012 2:14:20 PM PDT by rxtn41
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To: Berlin_Freeper

I’d go and protest austerity but I’m too cheap to buy the bus ticket...


11 posted on 09/25/2012 2:16:58 PM PDT by Buckeye McFrog
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To: blam

“However, more evidence suggests the U.S. housing market is recovering. According to S&P Case-Shiller, home prices rose 1.2% year-over-year in July. This was much higher than the 1.05% increase economists were looking for.”


Almost certainly a false uptick based on Waypoint going on a buying spree.

http://www.nytimes.com/2012/04/03/business/investors-are-looking-to-buy-homes-by-the-thousands.html?pagewanted=all&_moc.semityn.www

Those houses are going to come right back onto the market in a few months and then what’s going to happen to prices?


12 posted on 09/25/2012 2:17:18 PM PDT by RatSlayer
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To: rxtn41
Housing is not up!!!!!!!

Care to explain this one?

13 posted on 09/25/2012 2:18:38 PM PDT by Wyatt's Torch (I can explain it to you. I can't understand it for you.)
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To: SoFloFreeper

And most of the housing bump is the banks liquidating thier forclosures after sitting on them for 2 years.


14 posted on 09/25/2012 2:19:49 PM PDT by CJ Wolf
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To: Wyatt's Torch

If they changed the word “ Austerity “ maybe people would like it.Obama Admin do it all the time


15 posted on 09/25/2012 2:21:04 PM PDT by molson209
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To: RatSlayer
Those houses are going to come right back onto the market in a few months and then what’s going to happen to prices?

Not exactly. Investors have been been buying foreclosures and renting them for the last 18 months or so and have been making a killing as demand for rentals is huge.

Another datapoint on housing is that housing starts are up 15+% over last year and eclipsed 700K starts for the first time since 2008.

16 posted on 09/25/2012 2:22:14 PM PDT by Wyatt's Torch (I can explain it to you. I can't understand it for you.)
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To: RatSlayer

It all comes down to a ‘timing’ game. Ubama needs some positive economic news just before the election, and there are forces (think Soros and friends) who will do what they can to manipulate indicators. Meanwhile, I hope Romney is good friends with the Bush family.


17 posted on 09/25/2012 2:29:17 PM PDT by Lancey Howard
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To: blam

Yep, the Dow is down 75 one-hundredths of one percent (0.75%). WAGD! [We’re all going to die.] WAD!

So the Fed will ride to the rescue as promised with tons more fresh money for government employees.


18 posted on 09/25/2012 3:57:36 PM PDT by familyop ("Wanna cigarette? You're never too young to start." --Deacon, "Waterworld")
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To: Wyatt's Torch

Before long, renters will be out of money, too. The trend will probably continue for a couple of decades, as we Baby Boomers croak in earnest and leave a population of younger folks without jobs and children (bond collapse followed by interest rate hikes followed by haircuts for pensioners, too, followed by repudiations, currency adjustments, and so on).


19 posted on 09/25/2012 4:03:36 PM PDT by familyop ("Wanna cigarette? You're never too young to start." --Deacon, "Waterworld")
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To: familyop; SoFloFreeper; rxtn41; RatSlayer; Wyatt's Torch; CJ Wolf
Posted six days ago:

GARY SHILLING: Here's Why There's No Housing Recovery And Prices Will Collapse Another 20% (Oops!)

"In fact, he expects prices to drop another 20 percent from here and doesn't think we will see a bottom in the market for another several years."

20 posted on 09/25/2012 5:18:07 PM PDT by blam
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To: blam

On the flip side, Ivy Zelman, the best housing analyst on Wall Street (Forbes listed her as the most accurate analyst for any sector) called the bottom earlier this year and is calling for 965,000 starts next year. Inventory (including shadow inventory, new home and existing) has been declining for months and some are at historic lows. Builders are running out of existing finished lots in A and B locations are are purchasing raw land to develop. Demographics are driving the demand as household formation rebounded to 1.1 million last year after being down more than 50% of the 50 year average. Census estimates of 15-17 million new households between 2010 and 2020. Based on 600k starts for 2010, 650k starts for 2011 and 750k starts this year we are going to need 1.6 million new homes (including multi family) to meet that 15 million minimum. BTW the 60 year average for housing starts is 1.5 million so its right in line with historical demographic trends.


21 posted on 09/25/2012 5:38:12 PM PDT by Wyatt's Torch (I can explain it to you. I can't understand it for you.)
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To: familyop

The interesting thing this that average rents exceed average mortgage payments in the same areas. The Echo Boom will be the prime demographic driver of the economy after you “Baby Boomers croak...” ;-)


22 posted on 09/25/2012 5:41:57 PM PDT by Wyatt's Torch (I can explain it to you. I can't understand it for you.)
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To: blam
Markets Are Getting Slammed In Asia
23 posted on 09/25/2012 5:43:25 PM PDT by blam
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