CPI May; Foreclosures; Consumer Sentiment
Summary: CPI headline reads, CPI comes in a bit hot, but the Fed doesn't mind as Core inflation is benign...
under the sheets... John Q minds the malignant double digit stagflation accelerating to 13.4% in the last six months.
Headline reads foreclosures up 7%, under the sheets...
the 29th straight Yoy increase, up 48% Yoy as repossessions doubled and California REO's cracked the $10 billion barrier.
U of Mich Consumer Sentiment headline reads, Consumer Sentiment dips again, under the sheets... the lowest reading since June 1980.
CPI-U May +0.6% vs +0.2% Full Report
Inside the number: Core CPI May +0.2% vs +0.1%. Annual rate for last 3 months: food +5.9%; transport +8.7%; energy +28.2%.
Table 1 the last year: bakery +10.5%; dairy +11%; oils +12.8%; household energy +11.9%; gasoline +20.8%; personal computers -13%; non durables less food, beverages & apparel +12.6%
Table 2 the last six months: bakery +15.5%; dairy +2.1%; oils +18.9%; household energy +20.3%; gasoline +14.4%; personal computers -6.1%; non durables less food, beverages & apparel +13.4%
We gently repeat one of our mantras: Do not go out, stay at home, don't eat, surf the web, its getting better all the time.
RealtyTrac Foreclosures May +7% at 248K Full Report
Inside the number: Yoy +48%; 1 in 483 US homes in foreclosure, the highest since the index started. 3rd straight monthly increase and 29th straight Yoy increase.
Nevada per capita leader 1 in 118; +24%; Yoy +72%; California volume leader 1 in 183; +11%; Yoy +81%; Arizona 1 in 201; +12%; Yoy +119%; Florida 1 in 228; +6%; Yoy +72%
California & Florida account for 9 of the top 10 cities;
#1 Stockton, CA; 1 in 75; #2 Cape Coral, FL; 1 in 79; the only city outside CA & FLA in the top ten: Las Vegas, NV.
30% of all home sales this year, will be foreclosures.
Lenders took possession of 73,794 houses in May, more than doubling the 28,548 REOs in May 2007. That pushed total REOs to more than 700,000.
According to ForeclosureRadar, In May, Lenders, took back $10.4 Billion in California loans
as a result of foreclosure activity and discounted 86% of all foreclosures taken to sale with an average discount of 28%.
Mich Sentiment-Prel. Jun 56.7 vs 59.8 Full Report
Inside the number: Richard Curtin, the Director of the Reuters/University of Michigan Surveys of Consumers:
"Consumers are painfully aware that their living standards are shrinking
under the weight of higher food and fuel prices and see little hope for improvement any time soon.
For consumers to increase their savings as well as cope with the higher costs of food and fuel
will require a prolonged shift in budgets away from discretionary spending.
While higher prices have had a devastating impact, smaller income gains, mostly due to fewer work hours, also had a negative impact.
While it is still unlikely, a somewhat deeper downturn in spending can no longer be easily dismissed."
The Nattering One muses... the "perfect storm" that is now likely, is exactly what we have been nattering about,
credit has run out, wages are negative, layoffs will mount as the service based economy worsens, corporate profits will tank,
$5 a gallon gas and double digit stagflation will worsen, real estate, bonds & stocks will continue to decline,
and the speculative commodities bubble will burst, lets see how much longer "the band plays on".
under the sheets... John Q minds the malignant double digit stagflation accelerating to 13.4% in the last six months.
Headline reads foreclosures up 7%, under the sheets...
the 29th straight Yoy increase, up 48% Yoy as repossessions doubled and California REO's cracked the $10 billion barrier.
U of Mich Consumer Sentiment headline reads, Consumer Sentiment dips again, under the sheets... the lowest reading since June 1980.
CPI-U May +0.6% vs +0.2% Full Report
Inside the number: Core CPI May +0.2% vs +0.1%. Annual rate for last 3 months: food +5.9%; transport +8.7%; energy +28.2%.
Table 1 the last year: bakery +10.5%; dairy +11%; oils +12.8%; household energy +11.9%; gasoline +20.8%; personal computers -13%; non durables less food, beverages & apparel +12.6%
Table 2 the last six months: bakery +15.5%; dairy +2.1%; oils +18.9%; household energy +20.3%; gasoline +14.4%; personal computers -6.1%; non durables less food, beverages & apparel +13.4%
We gently repeat one of our mantras: Do not go out, stay at home, don't eat, surf the web, its getting better all the time.
RealtyTrac Foreclosures May +7% at 248K Full Report
Inside the number: Yoy +48%; 1 in 483 US homes in foreclosure, the highest since the index started. 3rd straight monthly increase and 29th straight Yoy increase.
Nevada per capita leader 1 in 118; +24%; Yoy +72%; California volume leader 1 in 183; +11%; Yoy +81%; Arizona 1 in 201; +12%; Yoy +119%; Florida 1 in 228; +6%; Yoy +72%
California & Florida account for 9 of the top 10 cities;
#1 Stockton, CA; 1 in 75; #2 Cape Coral, FL; 1 in 79; the only city outside CA & FLA in the top ten: Las Vegas, NV.
30% of all home sales this year, will be foreclosures.
Lenders took possession of 73,794 houses in May, more than doubling the 28,548 REOs in May 2007. That pushed total REOs to more than 700,000.
According to ForeclosureRadar, In May, Lenders, took back $10.4 Billion in California loans
as a result of foreclosure activity and discounted 86% of all foreclosures taken to sale with an average discount of 28%.
Mich Sentiment-Prel. Jun 56.7 vs 59.8 Full Report
Inside the number: Richard Curtin, the Director of the Reuters/University of Michigan Surveys of Consumers:
"Consumers are painfully aware that their living standards are shrinking
under the weight of higher food and fuel prices and see little hope for improvement any time soon.
For consumers to increase their savings as well as cope with the higher costs of food and fuel
will require a prolonged shift in budgets away from discretionary spending.
While higher prices have had a devastating impact, smaller income gains, mostly due to fewer work hours, also had a negative impact.
While it is still unlikely, a somewhat deeper downturn in spending can no longer be easily dismissed."
The Nattering One muses... the "perfect storm" that is now likely, is exactly what we have been nattering about,
credit has run out, wages are negative, layoffs will mount as the service based economy worsens, corporate profits will tank,
$5 a gallon gas and double digit stagflation will worsen, real estate, bonds & stocks will continue to decline,
and the speculative commodities bubble will burst, lets see how much longer "the band plays on".
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