HOUSING PRICES DOWN ANOTHER 1%: U.S. Consumer Confidence Deteriorated in December

COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary

EDITOR’S COMMENT: Optimism expressed by economists is being consistently banged, four months in a row now, by the hard facts. The reports are getting better while the facts get worse. Housing prices dropped again — a sign that nobody believes the government or market conditions are going to correct the gross inequity caused by the transfer of wealth from the consumer sector to the finance sector. Without addressing that issue, re-stocking the ability of mainstream America to pay for anything and providing real jobs, real training and real hope, where is the surprise here? But they keep saying it is a surprise.

In plain English, the capital on Wall Street is sitting there because it was stolen. It needs to be returned to the people and companies and institutions from which it was stolen. There is not enough money in the world to buy our way out of this without turning our currency into a very bad joke. Investors were set up for a private sting operation, followed by the same MO used on homeowners and prospective homeowners. These are all transactions that would never have been consummated if the truth was known. They are transactions that never should have occurred.  To leave investors and homeowners holding the bag is not just unfair — it is STUPID POLICY. If you want to turn the economy around then put things back to where they were before the theft.

This is what we do when provide litigation support to lawyers and their clients who are fighting off fraudulent foreclosure proceeding, fraudulent auctions with fraudulent bids and fraudulent issuance of new titles. It is a step by step process that is working but it is working very slowly. We can either spend the next 30 years trying to make things right or we can be bold and change the way things are done and say out loud what everyone already knows — this was caused by a massive worldwide scheme based in deception and the U.S. firms were at the heart of it. If a body has cancer of the liver, nobody would seriously consider putting a band-aid over a non-existent wound on the shoulder and say they are doing something about it. Yet that is exactly what we are doing in this financial crisis which is STILL unfolding.

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By REUTERS

Consumer confidence in the United States unexpectedly deteriorated in December, while prices of single-family homes fell almost double the expected pace in October, tempering growing optimism on the economy’s recovery.

The latest data was at odds with other signs suggesting the recovery was accelerating.

The Conference Board, an industry group, said its index of consumer attitudes slipped to 52.5 in December from an upwardly revised 54.3 in November.

The median of forecasts from analysts polled by Reuters was for a reading of 56.

Consumers’ labor market assessment worsened. The “jobs hard to get” index rose to 46.8 percent in December from 46.3 percent last month, while the “jobs plentiful” index dropped to 3.9 percent from 4.3 percent.

“U.S. consumers are still worried about high unemployment, housing market stagnation and the generally meager growth they’ve seen so far,” said Kathy Lien, director forcurrency research at GFT in New York.

A separate report on Tuesday showed the Standard & Poor’s/Case-Shiller composite index of 20 metropolitan areas declined 1 percent in October from September on a seasonally adjusted basis.

It was the fourth monthly decline and steeper than the 0.6 percent decrease economists expected. The fall pushed the index 0.8 percent below its year-earlier level, the first year-on-year drop since January.

Some economists cautioned against reading too much into one month’s figures and said the surprising drop in consumer confidence did not signal a meaningful shift in the outlook for spending.

Optimism about the outlook for the economy has grown in recent weeks after reports on jobless claims, durable goods and consumer spending suggested the economy perked up a bit in the fourth quarter and appears to be entering the new year with a relatively decent amount of momentum.

Economists also expect a tax cut deal recently signed into law by President Obama to lift growth next year by as much as 1 percentage point. The economy is also getting monetary support from the Federal Reserve’s planned purchases of $600 billion in government debt.

Despite the consumer confidence data, American retail sales rose in the week before Christmas as shoppers hurried to finish their gift-buying, putting holiday sales on track to hit the high end of estimates.

Data released on Tuesday by the International Council of Shopping Centers and Goldman Sachs showed retail sales rose 4.8 percent for the week ended Dec. 25 compared to the year-earlier period, helped in part by shoppers who could shop all day on Christmas Eve, which was a day off for many given that Christmas fell on a Saturday this year.

One Response

  1. If you are upside $200,000 and assume home appreciation of 3% per the expected to break even point is approximately 33 years. By then, most of us will be dead. I think it is time this dead ass government wakes up to reality and stop the cover up!

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