Friday, July 24, 2009
even as rising unemployment increases the odds they will need to rely on them to get by, a new survey released Tuesday shows.
Forty-nine percent of employed adults interviewed in a nationwide poll conducted for Country Financial said they wouldn't be able to pay their bills on time if they went more than a month between jobs.
Half of those surveyed said they would tap their savings to cope with a shortfall in income if they lost their jobs, according to the poll results. Another 16 percent said they would use their retirement accounts, while 8 percent said they'd need bank loans and 7 percent would rely on credit cards. (more)
You might have seen that we at Crossroads FX tend to trade in a very systematic way, using signals of our proprietary trading system without asking too many questions. But you know, from time to time patterns emerge where you cannot resist.
If you take a look at a 300min chart of the EUR/USD Future, everything looks like "normal business". The Euro is trading well above the green buy line in bullish territory, and the line of least resistance is safely pointing to the upside, predicting higher prices in the near future. (more)
Retail sales of electricity in the industrial sector continue to decline, having fallen by 12 percent during the first quarter of 2009 compared with year-ago levels. Total consumption of electricity is projected to fall by 2.0 percent for the entire year of 2009 and then rise by 0.8 percent in 2010.
“Chinese economy bounces back,” says one headline in the International Herald Tribune.
“JPMorgan profit soars despite downturn,” says another.
The average reader or TV viewer will go no further. “Ah,” he says to himself, “good news; the worst is over. China is a green shoot as big as the Amazon. And JPMorgan is a leader in the financial sector. If the financial sector is doing well, the whole world economy must be doing well.”
But here at the Daily Reckoning, we can’t help ourselves. If we see a silver lining, we look for the cloud. We see garbage... we look for the rat... (more)
A “perfect storm” of fiscal deficits, rising bond yields, “soaring” oil prices, weak profits and a stagnant labor market could “blow the recovering world economy back into a double-dip recession,” he wrote in a research note today. “It is getting more likely unless a clear exit strategy from the massive monetary and fiscal stimulus is outlined even before it is implemented.”
Roubini, chairman of Roubini Global Economics and a professor at NYU’s Stern School of Business, predicted that the global economy will begin recovering near the end of 2009. The U.S. economy is likely to grow about 1 percent in the next two years, less than the 3 percent “trend,” he said. (more)
Last week, Merrill Lynch, that storehouse of economic sagacity, announced that the recession was over. Even the bearish NYU economist Nouriel Roubini was reported as saying "the worst is behind us." However, wishing earnestly for something does not make it so.
Admittedly, the financial meltdown that threatened in late 2008 appears to have been contained. In addition, the Fed's actions in the credit markets have held interest rates down and turned the yield curve positive. The credit markets also have started to ease. In addition, the federal government's injection of trillions of dollars into the economy has "boosted confidence" for those too short-sighted to know the consequences. This welcome news has provided impetus to equities. (more)
July 24 (Bloomberg) -- U.S. stock futures fell, indicating the Standard & Poor’s 500 Index will slump after climbing to an eight-month high, as Microsoft Corp., American Express Co. and Amazon.com Inc. posted disappointing quarterly results.
Microsoft retreated 6.9 percent on lower profit and sales than analysts estimated. American Express slipped 5 percent after saying earnings decreased as the recession made it harder for cardholders to keep up with payments. Amazon.com lost 6.6 percent following price cuts that caused the online retailer’s revenue to miss projections.
S&P 500 futures expiring in September declined 0.4 percent to 965.20 at 9 a.m. in Tokyo. Dow Jones Industrial Average futures dropped 29 points, or 0.3 percent, to 8,962. U.S. stocks surged yesterday, sending the Dow above 9,000 for the first time since January, as EBay Inc., Ford Motor Co. and AT&T Inc. beat estimates and home resales increased more than forecast. (more)
Resales have risen for three straight months for the first time in more than five years.
The increase was higher than expected. Economists surveyed by MarketWatch expected sales to rise to 4.85 million. Sales are down 0.2% on a year-on-year basis.
The housing market appears to be healing, said Lawrence Yun, NAR's chief economist.
Inventories of unsold homes are still elevated and putting pressure on prices. And the damage from the housing bubble's collapse is still having an impact. Distressed properties accounted for 31% of sales in June. (more)