Housing

Construction Spending And The Housing Quagmire

by Wolf Richter •  • 4 Comments

Among the “good” economic news today was private residential construction, up 2%, confirming trends in building permits and housing starts. Construction creates lots of jobs and contributes significantly to GDP. Everyone, from the President down to local politicians, wants it to grow. It gets them reelected. But for homeowners, banks, and tax payers, these trends are costly.

Bailing out Zombies, Again

by Wolf Richter •  • Comments Off on Bailing out Zombies, Again

The government forks over another $13.8 billion to Fannie Mae and Freddie Mac to cover their losses for the last quarter. The regular drumbeat of bailout billions handed to these zombies barely enters the nation’s consciousness anymore, but it adds up: $184.8 billion since 2008. And there is no end in sight. Supercommittee, where art thou?

Economic Devil Is In The Details

by Wolf Richter •  • Comments Off on Economic Devil Is In The Details

According to last week’s GDP number, the economy has been growing supposedly at a rate of 2.5% in the third quarter—thanks largely to the inexplicable American consumer, the toughest creature out there. But there are some pernicious trends and unpleasant zigzags that point the opposite way.

Obama’s Refi: Special Tax For People Who Can’t Do Math

by Wolf Richter •  • Comments Off on Obama’s Refi: Special Tax For People Who Can’t Do Math

President Obama’s expansion of a mortgage refinancing program is a way for underwater homeowners to reduce their monthly payments. That would save them some money, he said, “…and it gets those families spending again.” But there is an insidious hook buried inside….

Tough Day For Our Calamity Economy

by Wolf Richter •  • Comments Off on Tough Day For Our Calamity Economy

The ugly numbers speak volumes on how the Fed’s policies hurt the real economy. But those policies enable Congress and the White House to run up ruinous budget deficits that make those of the Eurozone look benign.

That’s inflation—not jobs, wages, or GDP.

Snapshot Of Our Calamity Economy

by Wolf Richter •  • Comments Off on Snapshot Of Our Calamity Economy

The economy is going back to hell, but stock markets are surging. Nothing new. It always ends in tears. But this time, the Fed’s money-printing strategy will make things only worse. Today’s horrid numbers show us why.

The Bailout Continues

by Wolf Richter •  • Comments Off on The Bailout Continues

Fannie Mae—you already forgot all about it, didn’t you?—well, it just reared its ugly head again with its Q2 earnings report. Here is the most important number:
$5.1 billion in new bailout money from the U.S. Treasury—the eleventh quarter in a row it has received bailout money. That brings the total bailout money it received so far to $104.8 billion, with no end in sight.