Calculated Risk with a triple header of good news this morning. Home prices are accelerating to the downside rapidly. Remember the hundreds of billions of your tax dollars that your Obamanista Keynesian friends threw at the housing market in 2009 in order to save us? Home prices are now 1.6% below the March 2009 low. They pissed away all of your money for nothing. It’s gone. Home prices will continue to go down until they reach their natural level. The Federal government has proved once again that they are clueless, stupid and wasteful with your tax dollars. Based on my scientific assessment of the chart below, I’d conclude we have a fucking long way to fall.
More good news on the trade front. The deadly combination of moronic consumers buying shit on credit again and higher oil prices led to a surge in our trade deficit to an annualized $555 billion. That isn’t close to our previous high of $700 billion, but give us time. When oil reaches $150 a barrel, we’ll give $700 billion another run for its money. Who says we can’t borrow and spend our way to prosperity. It didn’t work the first time, but I’m sure it might work the next time. Deficits don’t matter.
The trifecta of good news was that unemployment claims went back up to 397,000 last week. These are levels reached during the 2001 and 1991 recessions. Don’t these dumb companies know we are in a recovery? Obama tells them every day. They are being un-American by firing people. Maybe Congress can legislate that companies can no longer fire people. I’m going to get on the horn to Boner with that idea.
I’m sure CNBC is all over these stories like white on rice or a priest on an altar boy.
CoreLogic … January Home Price Index (HPI) which shows that home prices in the U.S. declined for the sixth month in a row. According to the CoreLogic HPI, national home prices, including distressed sales, declined by 5.7 percent in January 2011 compared to January 2010 after declining by 4.7 percent in December 2010 compared to December 2009. Excluding distressed sales, year-over-year prices declined by 1.6 percent in January 2011 compared to January 2010 and by 3.2 percent in December 2010 compared to December 2009. Distressed sales include short sales and real estate owned (REO) transactions. This is the sixth straight month of year-over-year declines, and the seventh straight month of month-to-month declines. The index is now 1.6% below the previous post-bubble low set in March 2009.
[T]otal exports of $167.7 billion and imports of $214.1 billion resulted in a goods and services deficit of $46.3 billion, up from $40.3 billion in December, revised. January exports were $4.4 billion more than December exports of $163.3 billion. January imports were $10.5 billion more than December imports of $203.6 billion.
In the week ending March 5, the advance figure for seasonally adjusted initial claims was 397,000, an increase of 26,000 from the previous week’s revised figure of 371,000. The 4-week moving average was 392,250, an increase of 3,000 from the previous week’s revised average of 389,250.