Economic Reports 03/14/07

Summary: Overnight European markets pummeled down 1.5% plus..

Subprime bites everyone, no exemption even for the taxman...

H&R Block will post additional $29 M in pretax losses from subprime mortgages and delay Q3 regulatory filings...

The Current Account deficit slims in Q4 on lessened domestic demand, but still sets a new record...

Foreign purchases of treasuries up in a flight to safety, net inflows and direct investment both down.

Olly Olly Oxen Free... No amount of lipstick can make it look pretty... and no amount of statistical smoke and mirrors can hide it...

Import and Export prices continue to skyrocket, as YoY ag and industrial supplies reflect a true annual inflation rate of around 14%...

Current Account Q4 -$195.8B vs Q3 -$229.4B Full Report

Inside the number: In Q4, a slimming on lessened domestic demand & lower energy prices -14.6%, equal to 5.8% of GDP down from 6.9%.

For fiscal 2006 a record $856.7M and 6.5% of GDP.

Foreign purchases of U.S. Treasuries in Q4 up to $29.7 B vs $4.9 B in Q3. Foreign direct investment in Q4 down to $29.4 B vs $61.6 B in Q3.

Net capital inflows in Q4 down to $164.6 B vs $229.7 B in Q3.

Import Prices Feb +0.2% vs prior -0.9% Full Report

Inside the number: Import prices ex oil falling -0.1% vs prior 0.0%. Foods & feeds +0.2% the 8th straight rise.

YoY Durable industrial supplies & materials +10.1%; ex fuels +8.1%. YoY Unfinished metals +25.2%; foods, feeds & beverages +7.7%

Export Prices Feb. +0.7% ex-ag. +0.6% vs prior +0.3%.

Ag prices +16.9% in the last 12 months. YoY Durable industrial supplies & materials +17%

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