Items of Interest:
Surging U.S. Savings Rate Reduces Dependence on China -- Government data today showed that the household savings rate rose to 6.9 percent in May, the highest since December 1993, as personal spending increased less than incomes. The rate in April 2008 was zero.
Most of the rise in income in May was due to one-time government stimulus payments to seniors, said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts.
Americans’ newfound frugality is pinching airlines such as Chicago-based UAL Corp., which is cutting staff amid dwindling demand for leisure travel. Donations to charities dropped last year for the first time since 1987, and they’re in danger of declining further in 2009...
David Goldman / Inner Workings:
The Rise in the Savings Rate Has Only Begun -- In a recent post entitled, “The Stealth Deterioration in Asset Quality,” I argued that the rise in the US savings rate had only begun. That implies falling consumption, a weak housing market, and an L-shaped recession as far as the eye can see...
Catherine Rampell / Economix:
Savings Rates Rising Toward Mediocrity
Five Reasons Housing Market Still Hasn't Recovered Yet -- What happened to the housing recovery?
Despite hopes that the market would begin showing signs of life this spring, the latest housing data suggests otherwise. Instead, the sector remains stubbornly moribund—trapped in a spiral of declining prices, increasing mortgage rates, unemployment and several unforeseen factors...
- Credit Availability
- Price Pressures
- Short Sales
S. Fitch & M. Woolsey / Forbes: The Other Shoe Is Dropping in Real Estate
Appraisals: The Latest Housing Battlefield Heats Up -- The National Association of Home Builders has joined the National Association of Realtors in the fight to roll back the Home Valuation Code of Conduct. Actually, I’m not sure they want to roll back the HVCC so much as they want to dictate the methodology that appraisers currently use to arrive at a value for a house. I’ll get back to that in a moment...
appraisals improperly using distressed sales as comps were causing contracts to fall out due to faulty valuations...
Industry Players Bring the Heat over HVCC
Dave Schuler / Outside The Beltway: China to Block Hummer Acquisition?Ed Morrissey / Hot Air: China doesn't want Hummers — Perhaps the true death knell …James Downie / FP Passport: Chinese Hummer still too dangerous to the environmentJohn Pomfret / Washington Post: No Hummer Sale to China?
Arun Irizarry / Gawker: The Government Might Do Something About This “Global Warming” ThingAlex Steffen / Worldchanging: U.S. House Acknowledges Planetary Atmosphere!Yale Environment 360: U.S. House of Representatives Passes Historic Bill Limiting CO2 EmissionsDavid Corn / MoJo Blog Posts: When Is a Climate Bill Not a Climate Bill? — As I noted earlier …Josh Harkinson / MoJo Blog Posts: Climate Bill Passes the HouseKate Galbraith / Green Inc.: Climate Bill Passes HouseJohn M. Broder / The Caucus: Obama Lobbies Lawmakers on Energy BillSteve J. / RADAMISTO: THE WORLD IS ENDING AGAIN!
Nate Silver / FiveThirtyEight:Cap-and-Trade, State-by-State — Regional considerations tend to loom larger in debates over environmental policy than in other sorts of affairs. Some states consume more energy than others. Some states have more carbon-intensive economies than others. Some states are more or less likely…
Alan Viard / The American: The Cap-and-Trade Giveaway
Investor's Business Daily: The Cap-and-Trade Bill is an Economic Disaster
Bradford Plumer / New Republic: Last-Minute Frenzy Before Climate Vote
Conor Clarke / Atlantic: What Waxman-Markey Will Do To The Economy
Four banks fail, bringing 2009 tally to 44 -- Four banks in Georgia, Minnesota and California were closed by regulators Friday, as the ongoing credit crisis continued to claim victims...
Bank Failures #43 & #44: MetroPacific Bank, Irvine, CA, Horizon Bank, Pine City, Minnesota
Deflation dogs Japan with sharp fall in prices — Japan's consumer prices fell 1.1 per cent in the year to May, the steepest drop since records began in 1970, with slack household consumption increasingly blamed as the country's second bout of deflation deepens
Your Money: Et Tu, AARP? Good Guys Cut 401s, Too -- The AARP saving cash by cutting the match to its 401(k) plan is akin to the Teamsters hiring nonunion labor...
- It's Tough to Corral Those 'Financial WMDs' - Floyd Norris, New York Times
- It Will Take Time To Beat Our Addiction to Credit - Doug Kass, TheStreet
- How Wall Street Will Ruin the Environment - Robert Bryce, Daily Beast
- JPMorgan Is the New King of Wall Street - Colin Barr, Fortune
- The Family Doctor: A Remedy for Healthcare Costs? - Catherine Arnst, BW
- Health Care Faces the Dreaded 'R' Word - Michael Kinsley, Washington Post
- Bernanke Flubs Tryout, and Summers Smiles - Caroline Baum, Bloomberg
- Americans Take Pay Cuts, Furloughs on the Chin - The Economist
- Amazon Taps Its Inner Apple - Adam Penenberg, Fast Company
- The Tale of Two Baracks - Paul Krugman, New York Times
- Why Isn't the Obama Stimulus Plan Stimulating? - Bruce Bartlett, Forbes
- Inflation is the Real Threat to Sustained Recovery - Alan Greenspan, FT
- Soros Goes Long as World Bank Shorts Recovery - William Pesek, Bloomberg
- A Global Recovery for a Global Recession - Joseph Stiglitz, The Nation
- Bernanke May Be Fed Up with All the Aggravation - John Crudele, NY Post
- Ben Bernanke Faces Down His Inquisitors - Bernhard Warner, Slate
- Ken Lewis is Not Off the Hook - Lauren Tara LaCapra, The Street
- After Bernie Madoff: Are Investors Safer? - Ben Levisohn, BusinessWeek
- The Dangers of Fannie Mae Health Care - John Calfee, Wall Street Journal