Wednesday, July 8, 2009

Apartment Vacancies in U.S. Reach 22-Year High, Reis Reports

July 8 (Bloomberg) -- U.S. apartment vacancies

rose to their highest in 22 years in the second quarter as job losses cut tenant demand and more units came to market.

Vacancies climbed to 7.5 percent from 6.1 percent a year earlier, New York-based real estate research firm Reis Inc. said today. The last time landlords had so much empty space was in 1987, when vacancies reached 7.6 percent as the Standard & Poor’s 500 Index plummeted 23 percent in the last three months of that year. (more)

Wall Street Journal, July 8, 2009

FREE PDF download click here

World's Biggest Oil Reserves In S Dakota, E Montana

The U.S. Geological Service issued a report in April ('08) that only scientists and oil men knew was coming, but man was it big. It was a revised report (hadn't been updated since '95) on how much oil was in this area of the western 2/3 of North Dakota; western South Dakota; and extreme eastern Montana ..... check THIS out:
The Bake is the largest domestic oil discovery since Alaska 's Purdah Bay, and has the potential to eliminate all American dependence on foreign oil. The Energy Information Administration (EIA) estimates it at 503 billion barrels.. Even if just 10% of the oil is recoverable... at $107 a barrel, we're looking at a resource base worth more than $5.3 trillion. (more)

US lurching towards 'debt explosion' with long-term interest rates on course to double

In a 2003 paper, Thomas Laubach, the US Federal Reserve’s senior economist, calculated the impact on long-term interest rates of rising fiscal deficits and soaring national debt. Applying his assumptions to the recent spike in the US fiscal deficit and national debt, long-term interests rates will double from their current 3.5pc.
The impact would be devastating by making it punitively expensive to finance national borrowings and leading to what Tim Congdon, founder of Lombard Street Research, called a “debt explosion”. Mr Laubach’s study has implications for the UK, too, as public debt is soaring. A US crisis would have implications for the rest of the world, in any case. (more)

Get Ready for 14 Percent Unemployment

The June "Jobs" report issued by the Bureau of Labor Statistics (BLS) on July 2 caused shock and dismay. Payrolls declined by 467,000 jobs, more than the 345,000 lost in May, and much more than the 363,000 that economists had predicted. The only reason that the reported unemployment rate rose by only 0.1 percentage points (to 9.5%) in June was that many jobless people became discouraged and stopped looking for work.

As bad as the BLS report was, it should not have come as a surprise. The deteriorating employment situation could have been predicted as early as April 29, when the "Gross Domestic Product: First Quarter 2009 (Advance)" report was issued by the Bureau of Economic Analysis (BEA). (more)

Peter Schiff: An Obama Speech, Debt and China

Celente Nails It AGAIN - Ghost Malls Coming

BISMARCK, N.D. - Hundreds of anxious shoppers watched as city officials used power saws to cut 2-by-4s during Home Depot Inc.’s ribbon-cutting ceremony for its 102,700-square-foot building center in Bismarck. Less than three years later, the home improvement retailer shuttered the underperforming store, leaving a big orange empty eyesore on the outskirts of town.

The building, sitting derelict and silent on acres of asphalt, is now listed for sale at $10.5 million. But there’s been little interest in the near windowless warehouse-like building that occupies a lot the size of a dozen football fields. (more)