Economic Situation Update

Last updated 10/15/09

Welcome to CDN’s economic situation update.  We constantly add information to this article as the economic situation changes.

Newest updates:

• Consumer Price Index up seasonally-adjusted .2 percent for September
• Real average hourly earnings fell .1% from August to September and real hourly weekly earnings down by 1.9% since last December
• Prices increase by .6% for non-fuel imports (merchandise and food) on dollar’s weakness – follows previous .3% increase (rate increasing)
• Congressional Oversight Panel Says Administrations Mortgage Help… not that good
• FDIC Chair Set to Warn Senate Banking Committee About Recovery

In this post you will find:

• Opinion Polling Results
• Information from the Bureau of Labor Statistics (employment/unemployment/jobs data)
• Links to relevant articles on the economy
• Actions our government is taking that will impact the economy
• What’s happening in the global economic theater

Opinion Polling Results

Gallup:

• Job creation index flat from September (10-11-09)
• Consumer spending down 30% from year-ago levels and down roughly 5% from last month (10-11-09)
• Consumer confidence flat (10-11-09)

Rasmussen Reports:

• 49% believe the economy will be stronger in five years, down from 58% in July and 64% in March (10-09-09)
• 72% tax hikes for incomes under $250,000 (10-11-09)
• Consumer confidence falls for 6th day in-a-row
• 62% oppose another stimulus
• 36% believe Obama’s plan has helped economy
• 53% oppose more regulation of corporations

Government Stats

• Consumer Price Index up seasonally-adjusted .2 percent for September
• Real average hourly earnings fell .1% from August to September
• Prices increase by .6% for non-fuel imports on dollar’s weakness
• FDIC fund balance now negative reserving for expected losses in next 12 months
• 8% of all residential mortgages now seriously delinquent – commercial mortgages starting to show trouble
• More than 70% of U.S. GDP is from personal spending
• $12 trillion in personal net worth destroyed in last 7 months
• Unemployment increases to 9.8% in October
• Current employment numbers show that no new jobs are being created (over 263,000 jobs disappeared in last month)
• Real earnings to be released on October 15th (key to gauging deflation vs. inflation)

Links on the Economy

• FDIC Chair Set to Warn Senate Banking Committee About Recovery (10-13)
• Congressional Oversight Panel Says Administrations Mortgage Help… not that good (10-12)
• Employment reality
• California is leading indicator for housing
• Is the Next Depression here?
• FDIC under water
• Americans saving more

Recent Actions on the Economy

• Congress considering second stimulus
• Bernanke likely to win second four year term as head of Federal Reserve
• Trade deficit narrows on weak demand for imported oil and weak sinking dollar

Global Economic News

• Canada and Australia add jobs as U.S. continues to lose them – stunning echos from 1930
• Dollar being attacked by mid-east and Russia…
• Central Asian banks buy up greenbacks to support the free-falling dollar – a week dollar means no one to sell to