Reuters: Housing sales plunge …

posted at 12:45 pm on March 4, 2010 by Ed Morrissey

Reuters takes the opportunity today to break out its favorite adverb in reporting what should be depressingly predictable economic news.  This time, the news service puts “unexpectedly” in its headline to describe a sharp decline in the resale market, thanks to their reliance on the same forecasters that have gotten most of their predictions wrong (via DogSoldier):

Pending home sales unexpectedly plunge

WASHINGTON (Reuters) – Contracts for pending sales of previously owned homes unexpectedly fell in January, a survey showed, brought down in part by harsh weather in the U.S. Northeast.

The National Association of Realtors said its Pending Home Sales Index, based on contracts signed in January, fell 7.6 percent to 90.4 from an upwardly revised 97.8 in December.

Analysts expected the market to gain 1% instead of drop.  They blamed “harsh weather” for their incorrect forecasting, but January ended five weeks ago.  Weathermen are notorious for incorrect predictions, but they have an excuse — they have to predict the weather before it arrives.  If the “harsh weather” was really that much of a factor, why did Reuters’ Commission of Constantly Surprised Experts not consider it when making their predictions?

Reuters isn’t the only outlet playing the cold card.  The Washington Post also blames recent economic bad news on the weather:

Just when you thought the mess from the February snowstorms was over, it has started to obscure a clear understanding of how the economy is doing.

There has been a string of disappointing data in the last two weeks, including rising numbers of unemployment claims and hints of a new dip in the housing market. A report on the jobs market in February, due Friday, would normally help provide clarity on whether the economic recovery remains on track — but not this month, as forecasters expect a large but uncertain loss of jobs because of the February snowstorms. …

The details of the report suggest that even apart from the snow, the expansion has included less-than-gangbuster growth. Nine of the 12 Fed districts reported that conditions were improving, “but in most cases the increases were modest,” and conditions were described as “mixed” by three of the Fed’s regional banks.

Indeed, the weakest results were reported by the Federal Reserve Bank of Richmond, which encompasses an area stretching from South Carolina to Maryland, where “economic activity slackened or remained soft in most sectors, due importantly to especially severe February weather in that region.”

The disappointing economic figures in recent weeks have included surprising increases in the number of new jobless claims and weak numbers on both new- and existing-home sales in January.

Heavy snow will interfere with construction projects, and the mid-Atlantic storms also took its toll on retail business … for a week.  It’s not out of the question to see some minor impact on economic data from that region caused by the smothering snowstorm.  However, the mid-Atlantic storm didn’t hit the entire country.

The truth is that we’re only slightly recovering from the economic collapse, and that the government policies put in place by Obama are holding back an actual recovery.  In every other post-WWII recession, we would have seen both economic and job growth long before now.  The pricing signals from massive government spending and massive statist programs have scared capital out of the market, and without that, the engine of job creation cannot roar back to life.  Once one understands that, none of these results are “unexpected” at all.


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You keep using that word… I don’t think it means what you think it means…

Wolftech on March 4, 2010 at 12:47 PM

Maybe it was because of all the snow storms that this country has had the last month.

Brat4life on March 4, 2010 at 12:48 PM

Nationalize the housing industry!

Let me be clear, As I have always said,

If you like your home, you can keep your home.

daesleeper on March 4, 2010 at 12:49 PM

It’s too sunny to shop for a house.

kahall on March 4, 2010 at 12:49 PM

Use an “un”-word; be banned for life!

ya2daup on March 4, 2010 at 12:49 PM

Swimming in De Nile. People short on money aren’t buying homes, film at 11.

Dark-Star on March 4, 2010 at 12:49 PM

Breaking!…………

Unexpectedly warm and sunny weather devastate umbrella manufacturers.

BacaDog on March 4, 2010 at 12:49 PM

I blame Bush and global warming caused by Republican ‘deregulation of the banks’ and Reagan and Milton Friedman.

Good Lt on March 4, 2010 at 12:49 PM

I can’t wait till tomorrow. Unexpectedly unprecedented!

Enoxo on March 4, 2010 at 12:50 PM

Contracts for pending sales of previously owned homes, unexpectedly (Damn it), fell in January

I think this is what they really mean.

PappaMac on March 4, 2010 at 12:50 PM

You keep using that word… I don’t think it means what you think it means…

Wolftech on March 4, 2010 at 12:47 PM

That is because the government is full of ROUS.

Patrick S on March 4, 2010 at 12:51 PM

So I guess a line of credit based on my home’s value is out of the question now?

Mr. Joe on March 4, 2010 at 12:51 PM

This is pretty pathetic reporting. They will do ANYTHING to advance Obama’s agenda and shield the democrats from criticism of their job and economy-ruining policies.

Mord on March 4, 2010 at 12:52 PM

It’s that stupid tax credit they came up with. Just like the ‘Cash for Clunkers’ distorted the car market, they’ve distorted an already reeling housing market. They can’t keep their grubby hands off of anything.

skree on March 4, 2010 at 12:52 PM

Drink! (seems like I have a drink every day now, with this drinking games.)

Unemployment numbers come out tomorrow. Bold prediction, Reuters/AP story will contain the word “unexpectedly”.

rbj on March 4, 2010 at 12:52 PM

That is because the government is full of ROUS.

Patrick S on March 4, 2010 at 12:51 PM

ROUS? I don’t believe they exist…

Wolftech on March 4, 2010 at 12:52 PM

If stuff I was responsible for producing kept “unexpectedly” going the opposite way for 1/10th as long as these “experts” economic predictions have been I’d be part of the unemployment statistic.

wildcat84 on March 4, 2010 at 12:53 PM

I blame Bush and global warming caused by Republican ‘deregulation of the banks’ and Reagan and Milton Friedman.

Good Lt on March 4, 2010 at 12:49 PM

Your satire is too razor-thin. They actually believe this kind of stuff.

John the Libertarian on March 4, 2010 at 12:55 PM

Where is all of this “unexpected” voter anger coming from?

Mord on March 4, 2010 at 12:55 PM

I will now add revised as revised downward because if the numbers ever get revised upwards it is very prominent.

Was Orwell on the money or what?

jukin on March 4, 2010 at 12:55 PM

You want really potential bad news?

Please do not let this be true.

Mr. Joe on March 4, 2010 at 12:56 PM

I wish these experts would give us a list of everything that they DON’T expect so that we can know exactly what is about to happen.

LASue on March 4, 2010 at 12:56 PM

OT: Radar is reporting Chief Justice John Roberts Is Considering Stepping Down for “Personal Reasons”

NOT GOOD if true.

A Drudge ‘top court source’ says it’s not true.

Good Lt on March 4, 2010 at 12:56 PM

NOT GOOD if true.

A Drudge ‘top court source’ says it’s not true.

Good Lt on March 4, 2010 at 12:56 PM

Let’s hope so. If there was one thing we didn’t need right now…

Dark-Star on March 4, 2010 at 12:59 PM

If people need something, a snow storm may cause them to delay the purchase, but they will still purchase it after the storm is over.

It’s been 5 weeks since the storms were over.

MarkTheGreat on March 4, 2010 at 1:01 PM

The truth is that we’re only slightly recovering from the economic collapse, and that the government policies put in place by Obama are holding back an actual recovery. In every other post-WWII recession, we would have seen both economic and job growth long before now.

In the recession of the early 1980s, the unemployment rate continued to increase for about a year after the end of the second contraction in GDP. We’re only one or two quarters into the turnaround this time.

http://www.applet-magic.com/rec1980.htm

Jimbo3 on March 4, 2010 at 1:01 PM

What will they blame when the weather turns warmer and the housing and job numbers continue to fall? The blame Bush meme seems to have lost it’s lustre after more than a year.
Personally, I’m already looking past Porkulus, housing and Ob+amacare and waiting for Cap and Trade to raise gasoline to $7.00/gallon. Whee!

SKYFOX on March 4, 2010 at 1:01 PM

Not a lot of banks will give you a loan….if you don’t have an income to pay the loan back.

PappaMac on March 4, 2010 at 1:02 PM

SKYFOX on March 4, 2010 at 1:01 PM

Talk about killing the economy. I’m glad I have a garden to at least grown some food.

PappaMac on March 4, 2010 at 1:03 PM

The truth is that we’re only slightly recovering from the economic collapse…

That’s not true at all.

the government policies put in place by Obama are holding back an actual recovery.

Holding back? More like creating the Second Great Depression.

“Those who cannot learn from history are doomed to repeat it.”
–George Santayana

Rae on March 4, 2010 at 1:07 PM

I thought George Soros said Obama saved the economy?

Dr Evil on March 4, 2010 at 1:08 PM

We’re only one or two quarters into the turnaround this time.

Jimbo3 on March 4, 2010 at 1:01 PM

What flavor was your kool-aide?

MarkTheGreat on March 4, 2010 at 1:09 PM

People are afraid of going out to purchase anything b/c of these storms which–due to global warming– are very unpredictable and intense. Since no one wants to be caught in one of these storms we get this unexpected decline.

Dick Turpin on March 4, 2010 at 1:11 PM

You keep using that word… I don’t think it means what you think it means…

Wolftech on March 4, 2010 at 12:47 PM

Heh.

Jaibones on March 4, 2010 at 1:11 PM

The leading indicators for the leading indicators look bad.

http://www.consumerindexes.com/index.html

Kralizec on March 4, 2010 at 1:12 PM

We’re only one or two quarters into the turnaround this time.

Jimbo3 on March 4, 2010 at 1:01 PM
What flavor was your kool-aide?

MarkTheGreat on March 4, 2010 at 1:09 PM

GDP first turned postive in the US in Q3 2009.
http://www.tradingeconomics.com/Economics/GDP-Growth.aspx?Symbol=USD

Jimbo3 on March 4, 2010 at 1:15 PM

A lot of homes that are foreclosed here in AZ are snatched up by the realtors who hope to flip them for money. Houses are sitting empty, weeds are growing… banks aren’t lending. The City of Phoenix is laying off 500+ employees because of budget problems. Employers won’t hire because they don’t have confidence in what Obama is doing with the economy. I don’t see things getting better here for a long while.

GrannySunni on March 4, 2010 at 1:17 PM

Next headline:

GLOBAL WARMING KILLING ECONOMY – Peolsi vows to save the planet!

GarandFan on March 4, 2010 at 1:20 PM

We’re only one or two quarters into the turnaround this time.

Jimbo3 on March 4, 2010 at 1:01 PM

What flavor was your kool-aide?

MarkTheGreat on March 4, 2010 at 1:09 PM

Mark, yeah I guess he missed the memo that Obama’s economic data is produced like the CRU climate data.

Jimbo That GDP you’re touting is a hoax. Its not real private sector growth at all.

dogsoldier on March 4, 2010 at 1:22 PM

It’s only “unexpected” to liberals who don’t understand that statist policies kill growth and recovery.

In the words of a famous philosopher, “Duh.”

Pablo Snooze on March 4, 2010 at 1:22 PM

i couldn’t go to the bathroom the other day….must be the weather

dangitt on March 4, 2010 at 1:22 PM

It’s the President, stupid!

search4truth on March 4, 2010 at 1:26 PM

Jimbo3 on March 4, 2010 at 1:15 PM

I’ll wait for the revised numbers because there are always revised numbers.

Cindy Munford on March 4, 2010 at 1:26 PM

retail sales mysteriously went up despite the snow….
these guys dont have a clue
As diana olick of CNBC noted home sales, first looks are done online now

they borrowed future sales like they did with cash for clunkers…

ginaswo on March 4, 2010 at 1:29 PM

Jimbo3 on March 4, 2010 at 1:15 PM

Except that if you take out the Government spending increases, the REAL economy is still net negative growth.

Only thing growing is the government… and they are putting it on our kids credit card.

Romeo13 on March 4, 2010 at 1:30 PM

Only thing growing is the government… and they are putting it on our kids credit card.

Romeo13 on March 4, 2010 at 1:30 PM

That trend will stop at the state and local level. In IL’s recent primary election, all property tax rate propositions failed badly (2 to 1 against). One was for schools one was for parks. People’s appetite for taxes is OVER.

Chris Christie is showing the way forward.

WashJeff on March 4, 2010 at 1:33 PM

They got it wrong. It’s not the weather. IT’S BUSH’S FAULT!

WE “INHERITED” THIS!!!!!!!!!!!!!!!!!!!!!!!!!

Opposite Day on March 4, 2010 at 1:33 PM

USSR version 2.0

For them it was factory and grain production falling “unexpectedly” for us it is housing. Same game though- trying to hide the abyss that is opening up below our feet.

journeyintothewhirlwind on March 4, 2010 at 1:34 PM

My 5th grade daughter blamed her poor grades on the cold weather too….. she lives with her mother in Hawaii!

when will adults be in charge?

roflmao

donabernathy on March 4, 2010 at 1:34 PM

It’s been over a year now that Obama and his merry band of Democrats have been trying to destroy our country from within. The economic news continues to be bad, and gets worse all the time.

So, when are these “experts” going to begin to actually expect the bad news?

UltimateBob on March 4, 2010 at 1:40 PM

The truth is that we’re only slightly recovering from the economic collapse…

Denninger: How Long Before You Wake Up, Politicos?

So let’s cut the crap – we are in a Depression right now. We are pretending we are not, just like you can pretend you didn’t really lose your job so long as your credit card does not reach its limit. We have been in that depression for about 18 months and there is no evidence that we will exit it, as we have yet to find a way to pull back the deficit spending without an instantaneous collapse in the economy.

Rae on March 4, 2010 at 1:44 PM

Patrick S on March 4, 2010 at 12:51 PM

My name is Barack Hussein Obama, choo killed my hopenchange, prepare to die!

Laura in Maryland on March 4, 2010 at 1:45 PM

Jimbo3 on March 4, 2010 at 1:15 PM
Except that if you take out the Government spending increases, the REAL economy is still net negative growth.

Only thing growing is the government… and they are putting it on our kids credit card.

Romeo13 on March 4, 2010 at 1:30 PM

–You’re wrong about Q4 2009: Government spending only increased 0.1% versus a total increase of around 5-6%. Inventory restocking contributed about 4%.

http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm

Jimbo3 on March 4, 2010 at 1:47 PM

Every home owner in America knows the truth. This is a crisis of solvency, not a liquidity crisis. The Fed is just delaying the inevitable. Housing prices will sink like a stone when rates go up.

Note to Team Obama, there is no paradox of thrift. Spending ain’t helping here.

I’m not happy and I vote.

Angry Dumbo on March 4, 2010 at 1:47 PM

Snow job.

Rae on March 4, 2010 at 1:54 PM

Jimbo3 on March 4, 2010 at 1:47 PM

GDP allegedly improves while unemployment worsens. Perhaps you can explain that too.

docdave on March 4, 2010 at 1:55 PM

Once one understands that, none of these results are “unexpected” at all.

megadittoes.

ted c on March 4, 2010 at 1:55 PM

I’m holding out for something happening expectedly

Like the Choke On This Health Care Reform Legislation currently under debate in the House….

juanito on March 4, 2010 at 1:56 PM

Jimbo3 on March 4, 2010 at 1:47 PM
GDP allegedly improves while unemployment worsens. Perhaps you can explain that too.

docdave on March 4, 2010 at 1:55 PM

–Unemployment is a lagging indicator. Look at what happened in the 1980s. Companies don’t generally hire until they’re confident that growth will continue.

Jimbo3 on March 4, 2010 at 1:57 PM

we have yet to find a way to pull back the deficit spending without an instantaneous collapse in the economy.

Rae on March 4, 2010 at 1:44 PM

Not to worry, China is going to help us down that road…soon.

belad on March 4, 2010 at 1:59 PM

Can’t wait till Obooba is reported to have unexpectedly low electoral college results, and is unpresidented.

Akzed on March 4, 2010 at 1:59 PM

Just when you thought the mess from the February snowstorms was over, it has started to obscure a clear understanding of how the economy is doing.

Great… the deteriorating economy is now being blamed on
Man Made Global Warming.

We got “the buck stops at the Presidents desk” for 8 years under Bush….now it is everybody’s fault but Obama’s.

Well Obama is always talking about the “consensus of the leading economist”…here is some of that consensus and it is not good if Obama continues down the liberal,job killing,debt ridden path of “Hope and Change”:


Economists: Another Financial Crisis on the Way
Nonpartisan Group Led by Nobel Winner Calls for Stronger Financial Reforms

By MATTHEW JAFFE
March 2, 2010 —
http://abcnews.go.com/print?id=9990828

The report warns that the country is now immersed in a “doomsday cycle” wherein banks use borrowed money to take massive risks in an attempt to pay big dividends to shareholders and big bonuses to management and when the risks go wrong, the banks receive taxpayer bailouts from the government.


“Risk-taking at banks,” the report cautions, “will soon be larger than ever.”

Of course there is a big difference in setting regulations to make sure that banks/mortgage companies don’t indulge in the sub-prime like schemes that helped destroy our economy compared to the regulations that force out the private sector and allow the government to take to over control.

But Obama and his right hand man Rahm will never let a crises go to waste.

“Hope and Change baby!!!!….Hope and Change!!!!”.


How about the Chamber of Commerce:

U.S. Chamber warns of ‘double-dip’ recession because of Dem policies
By Ian Swanson – 01/12/10 09:44 AM ET
http://thehill.com/business-a-lobbying/75401-us-chamber-warns-of-double-dip-recession

U.S. Chamber of Commerce President Tom Donohue warned the U.S. faces a double-dip recession because of the taxes and regulations under consideration by the Democratic Congress and President Barack Obama.

“Congress, the administration and states must recognize that our weak economy simply could not sustain all the new taxes, regulations and mandates now under consideration. It’s a sure-fire recipe for a double-dip recession, or worse,” Donohue said in a speech providing the Chamber’s outlook for 2010.

Of course the fact that Obama’s crack financial staff has been wrong about pretty much every single forcast it has offered up makes it no surprise that Obama’s policies are making our situation worse and not better:


Mean Street: It’s Official — Obamanomics Isn’t Working

http://blogs.wsj.com/deals/2009/10/26/mean-street-its-official-obamanomics-isnt-working/tab/print/

You likely missed it. But Thursday’s Congressional testimony from Obama Council of Economic Adviser Chief, Christina Romer was the big story. She officially admitted what many of us already knew: Obamanomics isn’t working.
The $787 billion Obama stimulus package that was supposed to keep U.S. unemployment at under 8% will not only fail to keep it under 10%. But by mid-2010 “fiscal stimulus will be contributing little to further growth.”

As for President Obama’s big promise last January to create 3.5 or 4 million new American jobs. Forget it.

“Unemployment is unlikely to end 2010 much below its current levels.”

But pay no attention to rising unemployment (remember the numbers are not including the people who have dropped out of the work force,reduced to part time,reduced to working one week on/one week off, or the people who are now taking the second phase of unemployment benefits)….
..deteriorating housing market….
……credit lines still frozen……
……..rampant fraud in TARP,the Stimulus,and the Bailout money……
………debt levels like this country has never seen….
…………and taxes going up…..

Pay no attention at all to the reality and just follow the sheep who say “the stimulus is working”….”Obama saved us!!!”.

…But have faith…the “adults” are in charge….

(On failure of the Stimulus)
“The figures we worked off of in January were the consensus figures and most of the blue chip indexes out there,” Biden said. “We misread how bad the economy was,

VP Joe Biden on ABC’s This Week,
July 5,2009


“Yes We Can!!!!!”

Baxter Greene on March 4, 2010 at 1:59 PM

Nationalize the housing industry!

Let me be clear, As I have always said,

If you like your home, you can keep your home.

daesleeper on March 4, 2010 at 12:49 PM

Funny! Sad, but funny.

Alana on March 4, 2010 at 2:11 PM

GDP first turned postive in the US in Q3 2009.
http://www.tradingeconomics.com/Economics/GDP-Growth.aspx?Symbol=USD

Jimbo3 on March 4, 2010 at 1:15 PM

Oh dear…

What, in your opinion, is the least accurate series and which is the most accurate?

John Williams: The big three, CPI, GDP, and unemployment series that are so closely followed and are so important politically do tend to get the bulk of the manipulation. Of those three, the GDP is the least accurate, followed by CPI, and then unemployment.

Rae on March 4, 2010 at 2:15 PM

So, when are these “experts” going to begin to actually expect the bad news?
UltimateBob on March 4, 2010 at 1:40 PM

Never. That would be way too simple for “experts” — and of course suicidal.

rrpjr on March 4, 2010 at 2:18 PM

This AM Stuart Varney brought to the fore the lower amount of shares being traded than were from a year ago. Some folks are trading but not near as many as before.

Tom

marinetbryant on March 4, 2010 at 2:18 PM

Drink! (seems like I have a drink every day now, with this drinking games.)

Thank G-d it’s Lent, or otherwise I’d be in rehab.

sabu on March 4, 2010 at 2:21 PM

Want depressing news?

You haven’t seen the half of what happened though – not yet. It appears that AIG – the company we have bailed out (thus far) to the tune of some $100 billion plus, in fact isn’t done. It appears they may have written credit protection on Greece. If this allegation by the German equivalent to The New York Times is true Americans are going to be asked to pay billions of dollars – or more likely, hundreds of billions (since Greece is almost certainly not the only place – try Spain, Portugal, Ireland, etc) to bail out a bunch of FOREIGN NATIONS.

Here.

I think our politicians better take a page out of Gov. Christie’s book and man up now. Because if we’re on the hook for Europe’s debt and our politicos have been wasting their time on health care reform, the townhalls will seem like tame tea parties in contrast.

piglet on March 4, 2010 at 2:30 PM

You’re wrong about Q4 2009: Government spending only increased 0.1%
Jimbo3 on March 4, 2010 at 1:47 PM

Yeah it increased to account for what total percentage of the GDP? Its close to 3%. We are still really in negative territory.

You need to look more closely at the methodology and realize this data is fudged to make the current administration look good. ( Like the way they hide the true unemployment numbers. Or do you believe that horse manure too?)

dogsoldier on March 4, 2010 at 2:34 PM

As Obama wanted….Government is growing….the private sector is shrinking….

Honey, They Shrunk the Private Sector

Meanwhile, the federal government keeps growing and growing.
http://pajamasmedia.com/blog/honey-they-shrunk-the-private-sector/

A look at what has happened to the nation’s inflation-adjusted gross domestic product (GDP), the value of all goods and services produced in the economy, during the last six quarters is sadly instructive. Comparing the fourth quarter of 2009 with the second quarter of 2008, we see that:


* Even after six months of “recovery,” the economy as a whole has shrunk by almost 2%.


* Uncle Sam’s level of annualized consumption and “investment” has grown by 8.5%.


* Despite the incessant pleadings of poverty by most state and local governments, their consumption and “investment” have hardly changed.

* What remains, i.e., the private sector, is 3% smaller.

Meanwhile, the past year and a half has been a great period to be a federal government employee. While the private sector has shed almost 6.4 million jobs on a seasonally adjusted basis during that time, federal non-postal employment has leaped by over 150,000, a stunning increase of over 7.5%. Two-thirds of the increase occurred during the first eleven full months of the Obama administration, even though the severity of the recession was drop-dead obvious well before he took office. Even higher federal employment is on the horizon.

….But….But ….But Obama said he was all about jump starting businesses, creating jobs,and helping out the backbone of this country which is the individual business owner.

….must have been an expiration date on that also.

…There are smart people out there that know what made this country strong and what it will take to return us to prosperity…unfortunately they have totally different ideas than the Obama administration:


Chamber of Commerce Says Private Sector, Not Government, Will Create Jobs

Thursday, October 15, 2009
By Penny Starr, Senior Staff Writer

(CNSNews.com/Penny Starr)

(CNSNews.com) – At an event Wednesday to launch its ‘Dream Big’ campaign to promote the American free enterprise system, U.S. Chamber of Commerce President Tom Donohue said that people, not government, will create the jobs needed for economic recovery.


“The government can support a few jobs in the short-run, but over the long-run only the private sector, powered by free enterprise, can keep America working,” Donohue said in his prepared remarks.

“We believe it is imperative to remind, educate, and persuade our fellow citizens and leaders that it was a free enterprise system based on individual initiative, hard work, and personal responsibility – operating with free trade, free capital markets, and reasonable taxes and regulations – that created the greatest economy the world has ever known,” he said.


“It’s free enterprise that will put America back to work,” Donohue said.

Hopefully we can head back in this direction with a resounding message of “No” to the Socialist policies of Obama and his liberal entourage come Nov. 2010.

Baxter Greene on March 4, 2010 at 2:36 PM

We must be standing on the precipice of a recovery.

Barnestormer on March 4, 2010 at 2:37 PM

So, when are these “experts” going to begin to actually expect the bad news?

Oh, I’d say just as soon as a Republican Takes the White House again. Then all news even good news will be reported as bad news. :)

crash1211 on March 4, 2010 at 2:41 PM

the government policies put in place by Obama are holding back an actual recovery. In every other post-WWII recession, we would have seen both economic and job growth long before now. The pricing signals from massive government spending and massive statist programs have scared capital out of the market

Ed, where do find these expert opinions- from your single source at the Heritage Foundation? Sounds like the grumblings of conservative armchair economists.

If you were to ask a giant of capitalism such as Warren Buffet or Jamie Diamond, or even the average corporate CEO, virtually no one would tell you that government policy has ‘scared capital out of the market’. That’s pretty absurd.

Our post-industrial economy has failed to rebound because consumer and corporate balance sheets are damaged- the private sector isn’t spending. General Electric, PG&E, and Warren Buffet’s vast array of corporations haven’t been ‘scared’ into passivity because of government action. Barron’s ran an article last weekend that discussed a lot of empirical evidence to this effect. Not that I don’t like the idea of clinging to the hope that the government is to blame for all our problems, but in reality it’s not so simple. (If anything, the government is to blame for under-regulating derivatives and other exotic financial instruments that Buffet had predicted would sow financial ruin, and in fact did.)

bayam on March 4, 2010 at 2:52 PM

These results sould be EXPECTED when you have an administration continually invests in “creating the illusion of prosperity” with borrowing from future sales to infuence people to make actual purchases.

All this should have been EXPECTED when the chit chat around the capitol was about how everyone in the administration was enraptured the the economic theories espoused in the book “Animal Spirits”….

http://www.amazon.com/Animal-Spirits-Psychology-Economy-Capitalism/dp/0691142335

…notice how the market ($24.95 $16.95 for this book has now collapsed.

This crap is indicative of the boomer’s perpetual paradigm is one how “this time its different!” Dot.com bubble/ BadgesProfits? We don’t need no stinkin badges profits. Home prices are an eternal one-way escalator only going up, hello? What goes up must come down! Ridiculously over leveraging against fictious assets compensated by accounting gimmicks or hidden inside derivitives which not even the inventors of can explain.

Over and over again the boomers have sashayed along through life living off the circumstances of properity created by their parents via wisdom & practices they reject outright. Thta could go on only so long, now the chickens have come home to roost.

It really is spectrum wide the idiocy promulgated by them as enlightened, evolved wisdom. 9yr olds needd sex ed as is our very presence for over 65 millenia proves that humans can’t figure out this task on their own. That self-esteem is the equivilent of actual confidence derived from accomplishment through trial & error. Or the silly non-sense that, of course 2 dykes can teach a boy how to be a man, or a pair of twinks can desribe and explain fully how to cope with PMS. Up is down, white is black, regression back into the stone-age is called progressivism, why its just all so clear to me now! How could I have been so blind?

All that is new is not better on the basis of being new alone. Sure new data, science and experience need to be calculated into demonstrably proven practices, but boomers have incorporated the claivoyance of their last acid trip in ’69 as realities to be entered into balance sheets today!

Archimedes on March 4, 2010 at 2:53 PM

Hey no problemo, all congress has to do is pass a housing bill and BAM! the problem is solved.
It’s like passing a jobs bill will solve unemployment.
A cap and trade bill will change the weather.
A health care bill will cure the sick.

They are drunk with power and think that only they, with their effete attempts at legislation can do good. What they miss is that every FN problem we have now is directly related to their laws, taxes and regulation. They should be tarred and feathered.

When are this dilrods gonna learn that it is a free market left to its own devices that create economic growth and provide treatment for the sick.

What? Were they not paying attention when the USSR tried this stuff and it failed?

For the love for all that is holy.

TheSitRep on March 4, 2010 at 3:05 PM

As Obama wanted….Government is growing….the private sector is shrinking….

Honey, They Shrunk the Private Sector

Meanwhile, the federal government keeps growing and growing.

Nothing more than right wing drivel promoted by most of the people who fully supported Bush’s massive deficit spending that put us in

a massive hole to begin with.

The only serious discussion on Wall Street is whether the current stimulus was adequate, or if we need another round of spending to fill what the private sector is failing to do.

bayam on March 4, 2010 at 3:07 PM

Jimbo3 on March 4, 2010 at 1:47 PM

Real federal government consumption expenditures and gross investment increased 0.1 percent
in the fourth quarter, compared with an increase of 8.0 percent in the third. National defense decreased
3.5 percent, in contrast to an increase of 8.4 percent. Nondefense increased 8.3 percent, compared with
an increase of 7.0 percent. Real state and local government consumption expenditures and gross
investment decreased 2.0 percent, compared with a decrease of 0.6 percent.

From your own link… in TWO quarters… Defense up 11.9%… Non defense up 15.4%… State and LOCAL gov decreased…

And that does not include TARP, which is off budget… or the Cash for Clunkers… as it used tarp money… or the GM bailout…. or any of the free money the fed is giving the banks.

Romeo13 on March 4, 2010 at 3:18 PM

Romeo13 on March 4, 2010 at 3:18 PM

Excuse me… math challenged… defense up 4.5% in two quarters… not 11.9 at I stated…

Romeo13 on March 4, 2010 at 3:22 PM

Lolly, lolly, lolly get your adverbs here……

rock the casbah on March 4, 2010 at 3:33 PM

Once one The One understands that, none of these results are “unexpected” at all.

DrW on March 4, 2010 at 3:41 PM

So I guess a line of credit based on my home’s value is out of the question now?

Mr. Joe on March 4, 2010 at 12:51 PM

not so, joe.

there at HELOC’s available. but combined liens can’t exceed 80%, and it has to be your principle res.

DrW on March 4, 2010 at 3:46 PM

Nationalize the housing industry!

Let me be clear, As I have always said,

If you like your home, you can keep your home.

daesleeper on March 4, 2010 at 12:49 PM

I’m sure that will be the case as long as there is not some more “deserving” family that needs a home.

kringeesmom on March 4, 2010 at 3:53 PM

I must say I was ….. flabergasted at the unexpected news.

I sold real estate for a few years and in a good market with lots of ready buyers and very little inventory the Buyers will call you at midnight, or on Christmas or… to go see a new listing… I’m sorry I don’t buy the too much snow excuse.

kringeesmom on March 4, 2010 at 3:58 PM

GDP first turned postive in the US in Q3 2009.
http://www.tradingeconomics.com/Economics/GDP-Growth.aspx?Symbol=USD

Jimbo3 on March 4, 2010 at 1:15 PM

Thanks to bogus data and bogus data gathering, but then you already knew that.

MarkTheGreat on March 4, 2010 at 4:00 PM

Inventory restocking contributed about 4%.

http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm

Jimbo3 on March 4, 2010 at 1:47 PM

It wasn’t inventory restocking, it was more an end of inventory draw down. Inventories are still at record low levels.

Do you always believe whatever the DNC tells you to believe?

MarkTheGreat on March 4, 2010 at 4:03 PM

I think our politicians better take a page out of Gov. Christie’s book and man up now. Because if we’re on the hook for Europe’s debt and our politicos have been wasting their time on health care reform, the townhalls will seem like tame tea parties in contrast.

piglet on March 4, 2010 at 2:30 PM

And to think, the liberals and RINO’s are still trying to tell us that TARP prevented a depression. At best it delayed it a few months.

MarkTheGreat on March 4, 2010 at 4:06 PM

Ed, where do find these expert opinions- from your single source at the Heritage Foundation? Sounds like the grumblings of conservative armchair economists.

bayam on March 4, 2010 at 2:52 PM

As everybody knows, only economists who work for the DNC can be trusted.

/end virulent liberal mode

MarkTheGreat on March 4, 2010 at 4:09 PM

Nothing more than right wing drivel promoted by most of the people who fully supported Bush’s massive deficit spending that put us in a massive hole to begin with.

bayam on March 4, 2010 at 3:07 PM

I love it when people who defend Barry’s 2trillion dollar deficit attack Bush’s 400billion.

And they also conveniently forget the role the Democrats played in forcing Bush to spend that much.

MarkTheGreat on March 4, 2010 at 4:11 PM

Romeo13 on March 4, 2010 at 3:18 PM

I think lying is a pre-requisite for getting your DNC troll badge.

MarkTheGreat on March 4, 2010 at 4:13 PM

Because, ya know, you find, sell, offer, finance, counter offer, accept, and close on a house, within a month.

What excuse is the dumbest President in history going to offer next month?

MNHawk on March 4, 2010 at 4:17 PM

bayam on March 4, 2010 at 3:07 PM

Whatever excuse, the f’ing ret 0bama supporters will buy it.

MNHawk on March 4, 2010 at 4:19 PM

I’ve never heard of cold weather interfering with the smell of money. If the housing market wasn’t sick the houses would be selling.

scrubjay on March 4, 2010 at 4:28 PM

It’s the President, stupid!

search4truth on March 4, 2010 at 1:26 PM

WINNER!!!

TN Mom on March 4, 2010 at 4:47 PM

Jimbo3 on March 4, 2010 at 1:47 PM
Real federal government consumption expenditures and gross investment increased 0.1 percent
in the fourth quarter, compared with an increase of 8.0 percent in the third. National defense decreased
3.5 percent, in contrast to an increase of 8.4 percent. Nondefense increased 8.3 percent, compared with
an increase of 7.0 percent. Real state and local government consumption expenditures and gross
investment decreased 2.0 percent, compared with a decrease of 0.6 percent.
From your own link… in TWO quarters… Defense up 11.9%… Non defense up 15.4%… State and LOCAL gov decreased…

And that does not include TARP, which is off budget… or the Cash for Clunkers… as it used tarp money… or the GM bailout…. or any of the free money the fed is giving the banks.

Romeo13 on March 4, 2010 at 3:18 PM

–You can’t add the federal nondefense and federal national defense numbers and have all the federal spending. The net federal spending was up .1 of a percent: http://www.bea.gov/newsreleases/national/gdp/2010/pdf/gdp4q09_2nd.pdf

Jimbo3 on March 4, 2010 at 4:57 PM

It wasn’t inventory restocking, it was more an end of inventory draw down. Inventories are still at record low levels.

Do you always believe whatever the DNC tells you to believe?

MarkTheGreat on March 4, 2010 at 4:03 PM

From the release (it looks like restocking to me):

The acceleration in real GDP in the fourth quarter primarily reflected an acceleration in private
inventory investment

Jimbo3 on March 4, 2010 at 4:59 PM

Jimbo3 on March 4, 2010 at 4:57 PM

Uh, thats from yer own link.

You are quoting ALL Government spending, Fed, State and Local.

Romeo13 on March 4, 2010 at 5:06 PM

–You can’t add the federal nondefense and federal national defense numbers and have all the federal spending. The net federal spending was up .1 of a percent: http://www.bea.gov/newsreleases/national/gdp/2010/pdf/gdp4q09_2nd.pdf

Jimbo3 on March 4, 2010 at 4:57 PM

Please read what you just wrote!!!

Fed Gov Defense spending + Fed Gov NON Defense spending… pretty much covers everything they should be spending… you know, that whole budget thing???

Romeo13 on March 4, 2010 at 5:08 PM

It just goes to show how we all need to expect the “unexpected.”

MJBrutus on March 4, 2010 at 8:51 PM

The acceleration in real GDP in the fourth quarter primarily reflected an acceleration in private
inventory investment…

Jimbo3 on March 4, 2010 at 4:59 PM

I love it when pretend lawyers try to pretend to be economists as well.

Deceration is also a form of acceleration.

The above statement would be satisfied by companies who had been not buying anything, and letting their inventories fall, now buying enough to keep their inventories steady.

Which is what I said in the first place.

MarkTheGreat on March 5, 2010 at 9:41 AM