Category: Economy (Page 5 of 12)

      Some signs point to an improving economy

      August 10, 2012 /

      Things were starting to look pretty grim earlier this summer as job growth slowed and manufacturing activity slowed down, but now we’re starting to see some signs of life in the economy.

      After a spring and summer of weak economic indicators, a flurry of fresh data suggest key sectors of the economy might be gaining traction, just as the battle for the White House enters the final round.

      The long-moribund housing market has bustled to life, with prices and new-home construction rising in recent weeks. Hiring, so weak earlier this year, picked up last month. And on Thursday, the government reported an acceleration of a downward trend in the number of people seeking unemployment insurance, as well as a sharp improvement in U.S. exports.

      The housing news is key, as we were never going to have significant GDP or job growth without reaching a bottom in the housing market as Warren Buffett explained many times.

      Economy, Real Estate

      Another Euro deal

      June 29, 2012 /

      Stocks surged in the United States and around the world today as markets reacted to the latest news out of Europe. We’ve had so many deals and false starts, but it looks like serious progress might be at hand in Europe.

      By the end of a vital two-day summit here, European diplomacy had played out like soccer, with Spain and Italy — the two nations headed to the Euro 2012 finals — emerging victorious and the Germans returning home in shock.

      After a marathon 14 hours of talks, Berlin unexpectedly agreed to concessions clearing the way for a deal that could help both Madrid and Rome in their desperate efforts to stave off economic collapse.

      The agreement, while conditional on the creation of a regulatory body, addressed the core of the questions facing Europe: Who will cover the tab for its 2½-year-old debt crisis, and how?

      Under the terms of the deal, troubled euro-zone countries would have more options for aid, including using a pool of European rescue funds to directly recapitalize ailing banks. That, in turn, would spare governments the humiliation of having to ask for aid themselves to channel to domestic banks, sidestepping the kind of intrusive financial inspections imposed on Greece, Ireland and Portugal.

      The big change has to do with the decision to directly fund the troubled banks. Check out the whole article for the story, but it looks like Germany will cave here.

      Economy, Finance, General Business

      Senate protects sugar subsidies

      June 24, 2012 /

      Watch this video, and you’ll learn how sugar is one of the biggest health problems we face in this country.

      But, the new farm bill passed in the Senate leaves sugar subsidies in place.

      The Senate on Thursday completed a five-year, half-trillion-dollar farm bill that cuts farm subsidies and land conservation spending by about $2 billion a year but largely protects sugar growers and some 46 million food stamp beneficiaries.

      The 64-35 vote for passage defied political odds. Many inside and outside of Congress had predicted that legislation so expensive and so complicated would have little chance of advancing in an election year.

      Senate Republican leader Mitch McConnell called it “one of the finest moments in the Senate in recent times in terms of how you pass a bill.”

      Is there a better example of what’s wrong with our politics?

      Economy, General Business

      More good news for the auto bailout

      June 1, 2012 /

      On a day when we heard about disappointing job numbers, the Obama administration got some good economic news for car sales numbers. The news was particularly good for Chrysler, which had another huge month with 30% year-over-year growth in May.

      It marked a 12th consecutive month of sales gains of more than 20% for the company, which has gained about two percentage points in U.S. market share to nearly 11%. Total sales were 150,041.

      And it comes as Chrysler prepares later this month to roll out its key new car introduction for the year, the Fiat-based Dodge Dart, above, that it aims to get the company back into the small-car game. Dart is an enlarged, Americanized version of Fiat’s sporty Alfa Romeo Giulietta.

      All the company’s brands — Chrysler, Jeep, Dodge, Ram and Fiat — posted year-over-year gains in May. Fiat was up most, 128% to a record month as the tiny 500 finally gains some traction.

      But the Chrysler brand was heroic — up 81%, as the 200 sedan zoomed 87% and the big 300 rocketed 140% for its best May since 2007.

      The administration would be wise to emphasize this news at a time when the unemployment rate is getting plenty of attention.

      Economy, General Business

      Factories keep humming

      January 18, 2012 /

      Here’s more good economic news.

      U.S. factory output surged in December by the most in any month in 2011, offering the most visible evidence yet that manufacturing is roaring back from the recession’s depths even as declining prices at the wholesale level shows inflation remains in check, according to two reports out Wednesday.

      Stronger demand for business equipment, vehicles and energy drove the 0.9% increase in manufacturing output, the biggest monthly increase since December 2010. And a larger portion of U.S. factories were operating, the Federal Reserve said Wednesday in a report on the nation’s industrial production.

      Overall output of the nation’s factories, mines and utilities grew 0.4% in December although warm weather dampened demand for energy produced by utilities.

      Industrial output is now less than 5% below its pre-recession peak, reached in September 2007. It has increased more than 14% since hitting a recession low in June 2009.

      We’re seeing improvement in the job numbers as well, so hopefully we’re now on a positive business cycle.

      Economy, General Business

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