Dienstag, 31. Juli 2012

Mish on Capital Account: Discussion of Social Media Panic in Italy, Soaring Yields in Spain, and the Upcoming 20th Euro Summit, Bound to be Another Failure

I had the pleasure of being back on Capital Account with Lauren Lyster on Monday for a discussion of social media panic in Italy, soaring yields in Spain, and the end of the line for Greece.

I come in at about the 18 minute mark, but positioned the video to automatically start play at the 17:15 mark, which is the start of the segment.

That way you can hear a brief introduction from Lauren.



For detailed information about the discussion in the above video, please see...


Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List


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Necklace makes another treasury appearance


My Caribbean Sea Blues Necklace has made another appearance on Etsy, this time in a treasury entitled Blossoms Up by Lorraine ofTrinity Designer Jewellery. Enjoy the beauty of her selections ! Be sure to follow the link to the treasury, because I still haven't figured out how to get a screen cap of all four rows of a treasury :-(

Source: http://ambrosianbeads.blogspot.com/2010/05/necklace-makes-another-treasury.html

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The bacon that bonds us

A tasty sandwich we affectionally named the South Franklin bacon and gorgonzola burger. (Scott Beveridge photo)


Call us good friends who have been bonding this winter over bacon.


The cheaper and greasier the bacon on the plates the better for this group of six I have been joining regularly for dinner at the tables  that have switched weekly among our homes.


"Let's have bacon-wrapped shrimp next," one guest said last Sunday, deciding the next menu without argument. "Yes, let's do it."


Our parties began at my house over a cheesy bacon and potato soup.


We also decided in advance that these dinners must also include an activity, and mine featured a rather complicated playing cards game that died on delivery.


Next up it was bowling after dinner of lasagna and a most-excellent spinach salad with warm bacon dressing.


It should have been bowling first and then dinner because all that food, including our devouring an entire large loaf of garlic bread, sat like a lead balloon in my stomach while I bowled gutter ball after gutter ball. Two games were enough to burn us out.


Sunday we regrouped at a different house for bacon burgers with gorgonzola cheese and fresh-cut baked potatoes.


"They were tasty," one friend said.


I couldn't tell because, without realizing it at first, I was coming down with a cold that had begun to numb my taste buds. So I cannot attest to the quality of that last meal, even though it gets props for the effort it received.


But I'm still laughing at the silly cook who prepared the bacon on his stove while wearing a deer head mask.


Then it should come as no surprise that the activity of that day involved watching NASCAR.


The semi-anonymous cook frying bacon for the burgers. (Scott Beveridge photo)

Source: http://scottbeveridge.blogspot.com/2012/03/bacon-that-bonds-up.html

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On the Scene Footage: March Midwest Tornadoes

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The fungus among us

Autumn microcosm in a northern French wood
Learning to identify edible mushrooms has been one of those things that has floated about on my personal to-do list for many years.
Still, for starters I do know which one of these was the shamen's 'shroom of choice...

Source: http://microcosmic.blogspot.com/2007/10/fungus-among-us.html

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240 Weekly Lost Podcast ? A Documentary On Lost Podcasting Community

Weekly Lost Podcast A Documentary On Lost Podcasting Community Be sure to RSVP for the LOST Series Finale Party! Click Here To Download In this episode, I interview Alex, from AudiblyLost.com who is currently in the filming stage of a documentary on the lost podcasting community. Don’t forget to give us a call on our [...]

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196 Weekly Lost Podcast ? 316 Review

Weekly Lost Podcast Ep 196 – Season 5 Ep 6 – 316 Review Click Here To Download Wondering where episodes 189, 190, 191, 192 and 193 are? We release a few episodes of the Weekly Lost Podcast in the free feed each month. However, our gspn.tv Plus Members get every single episode of this podcast [...]

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Necklace makes another treasury appearance


My Caribbean Sea Blues Necklace has made another appearance on Etsy, this time in a treasury entitled Blossoms Up by Lorraine ofTrinity Designer Jewellery. Enjoy the beauty of her selections ! Be sure to follow the link to the treasury, because I still haven't figured out how to get a screen cap of all four rows of a treasury :-(

Source: http://ambrosianbeads.blogspot.com/2010/05/necklace-makes-another-treasury.html

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Artistic Coaching Explained... And Two More Free Spots Left!

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Market Soars on "Whatever It Takes" Mush From Draghi; Another "Saved Again" Moment

ECB President Mario Draghi commented in a speech today that the ECB was "ready to do whatever it takes" within its mandate to preserve the single currency.

I have to ask, is that even news? Apparently it it to the stock market which has gapped up over a percent. Bond yields in Spain also reacted to the non-news.

Yield on the 10-year Spanish bond fell all the way (drum roll please) to 6.95%. Is that really anything to be giddy about?

Let's take a look at additional Draghi comments as reported in the Financial Times article Draghi hints at return of ECB bond buying
The euro strengthened on Thursday after Mr Draghi said the ECB was ?ready to do whatever it takes? within its mandate to preserve the single currency. ?Believe me, it will be enough,? Mr Draghi told a conference in London.

?To the extent that these premia have to do not with factors inherent to my counter party, they come into our mandate, they come within our remit, Mr Draghi said. ?To the extent that the size of the sovereign premia hamper the functioning of the monetary policy transmission channels, they come within our mandate.?

?The ECB appears to be keen to increase the threat of the SMP being woken from its hibernation period,? Mr Wattret wrote in a note. ?Are the latest comments a signal that the ECB?s strategy is changing and the SMP is about to be used? Or is it merely a threat to act, designed to put some two-way risk back into markets?

?Our inclination is towards the latter conclusion, though today?s comments from Mr Draghi suggest the former now looks more plausible.?

The comments from the ECB president may also increase speculation about other ?unconventional? measures the central bank could take. This week Ewald Nowotny, head of Austria?s central bank, said there were arguments for equipping the eurozone?s forthcoming bailout fund with a banking licence so it could tap the ECB for more funds if needed ? although he also said the idea was not being actively discussed by the ECB.
Saved Again? Not

How long this round of "we are saved" euphoria lasts over non-comments remains to be seen, but I suspect not long.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List


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The Three Essential Elements to Starting a Creative Business

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Dad's hot dogs

Crescent-wrapped hot dogs like those my dad used to prepare. (Scott Beveridge photo)


By Scott Beveridge


WEBSTER, Pa. ? One of us made the mistake of telling our father - the "chef" of the family - that we really liked the crescent-wrapped hot dogs he had prepared in the 1960s for supper.


He responded by baking the Pillsbury Crescent Dogs so often that we finally had to complain that we kids had become sick of them.


Jim Beveridge worked the kitchen like a sergeant of a mess hall, preferring to fix meals that were easy, quick, cheap and dirty. The cheaper the better. I mean he stocked up on Jiffy Mix cake mixes like there was no tomorrow. On a good day back then those cakes mixes sold for a quarter apiece.


The cooking around our house often fell to him or dinner was going to be late to the table.


As a steelworker whose job schedule was known as "working the swing shift," he was home in the late afternoon and evening more often than not because his week was divided into his punching the time clock for three different 8-hour shifts. Our mom's day job as a secretary/bookkeeper kept her in the office weekdays until 5 p.m.


My father took to the crescent dogs after seeing a cooking demonstration about them on the The Mike Douglas Show, the father-of-all daytime television talk shows. In between groundbreaking interviews of such stars of their time as John Lennon and Yoko Ono, the show often featured easy recipes for housewives to prepare.


In time he discovered Hamburger Helper. When Betty Crocker expanded that line to include Tuna Helper, the two skillet dishes became our version of surf 'n' turf.


A group of my friends earlier this year wanted to try these crescent rolls after I told them this story, having never heard of the delicacy. They really liked them, too. For the sake of room on the Internet, I won't rehash the recipe here because there are plenty of them already posted across the web.


However, my favorite hot dogs prepared by my father were cooked in beer. (Vegans do not try this at home)


He'd put hot dogs in a skillet, cover them in Iron City and boil them until they swelled and the liquid began to disappear. Then he tossed in a couple tablespoons of butter to brown the hot dogs.


It was a feast de la Resistance, Appalachia style.

Source: http://scottbeveridge.blogspot.com/2012/06/dads-hot-dogs.html

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Power | Flying drones ?fuelled? by shining ground-based lasers on their solar cells

Laser-Fueled Drones May Never Have to Land "Working with wireless power specialists LaserMotive, Lockheed Martin has successfully completed preliminary tests of a new laser refueling system that extended the flight time of its Stalker unmanned aerial drone to over 48 hours. That not only represents about a 2,400 percent increase in flight duration, but the [...]

Source: http://www.richardbanks.com/trends/2012/07/13/power-flying-drones-fuelled-by-shining-ground-based-lasers-on-their-solar-cells/

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Sailor girl and Sailor boy


sailor girl, originally uploaded by 'Playingwithbrushes'.

Given the fact that I've been neglecting my scanning lately, when I find something cute and stitchy in my Interweb travels I have to share with you. Two cuties to stitch, from a vintage colouring book, courtesy of Playing with Brushes' Flickr.

Source: http://stitchybritches.blogspot.com/2008/10/sailor-girl-and-sailor-boy.html

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Super Tuesday: Most Viewed GOP Videos This Season

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Storage | Storing a bit of data in a single molecule

Bits Stored on a Single Molecule Could Lead to Petabyte SSDs "The project, undertaken at the Karlsruhe Institute of Technology, saw researchers embed a magnetized iron atom into an organic molecule made up of 51 atoms. The idea is that the organic shell protects the information stored in the central atom, while its magnetization allows [...]

Source: http://www.richardbanks.com/trends/2012/07/13/storage-storing-a-bit-of-data-in-a-single-molecule/

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Red Gem Ring


Red Gem Ring, originally uploaded by ambrosianbeads.

I started this little ring a few weeks ago to submit to the Embellishing the Runway Flickr group. This was supposed to go with the crazy long-legged design challenge. The red garment was spectacular...weirdly awesome in a way...and I thought the ring would be a nice touch. Here it is finally, better late than never !

Source: http://ambrosianbeads.blogspot.com/2011/10/red-gem-ring.html

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Botany Bay




Kent that is, not Australia

Source: http://microcosmic.blogspot.com/2007/08/botany-bay.html

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233 Weekly Lost Podcast ? The Substitute Review

Weekly Lost Podcast The Substitute Review Click Here To Download In this episode, Stephanie and I do the weekend review of Season 6 Episode 4 of Lost! Complete show notes for this episode’s weekend review can be found at http://gspn.tv/lost233. Don’t forget to give us a call on our listener line. It’s open and ready [...]

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The bacon that bonds us

A tasty sandwich we affectionally named the South Franklin bacon and gorgonzola burger. (Scott Beveridge photo)


Call us good friends who have been bonding this winter over bacon.


The cheaper and greasier the bacon on the plates the better for this group of six I have been joining regularly for dinner at the tables  that have switched weekly among our homes.


"Let's have bacon-wrapped shrimp next," one guest said last Sunday, deciding the next menu without argument. "Yes, let's do it."


Our parties began at my house over a cheesy bacon and potato soup.


We also decided in advance that these dinners must also include an activity, and mine featured a rather complicated playing cards game that died on delivery.


Next up it was bowling after dinner of lasagna and a most-excellent spinach salad with warm bacon dressing.


It should have been bowling first and then dinner because all that food, including our devouring an entire large loaf of garlic bread, sat like a lead balloon in my stomach while I bowled gutter ball after gutter ball. Two games were enough to burn us out.


Sunday we regrouped at a different house for bacon burgers with gorgonzola cheese and fresh-cut baked potatoes.


"They were tasty," one friend said.


I couldn't tell because, without realizing it at first, I was coming down with a cold that had begun to numb my taste buds. So I cannot attest to the quality of that last meal, even though it gets props for the effort it received.


But I'm still laughing at the silly cook who prepared the bacon on his stove while wearing a deer head mask.


Then it should come as no surprise that the activity of that day involved watching NASCAR.


The semi-anonymous cook frying bacon for the burgers. (Scott Beveridge photo)

Source: http://scottbeveridge.blogspot.com/2012/03/bacon-that-bonds-up.html

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'Call Me Maybe' is Your College Roadtrip Theme Song

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Montag, 30. Juli 2012

Saturday Quotable

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What's Hot in Ghana, Malaysia, Peru and More

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Frank Lloyd Wright's laboratory wasn't built for comfort

The dining room chairs Frank Lloyd Wright designed for his home in Oak Park, Ill, weren't built for comfort, but rather to create an illusion the space was taller than it appeared. (Scott Beveridge photo)

By Scott Beveridge

OAK PARK, Ill. ? Frank Lloyd Wright built his first studio in such a manner to impress upon potential clients that he stood out from all competing architects.

Wright positioned its front porch across the street from a row of tidy Victorian-era houses in order for him to frown down on those buildings when greeting prospective customers at his front door, a tour guide said today at the Oak Park, Ill., home and studio of one of the best architects America ever produced.

"This is where he could look across the street and say, "I don't do that. Those are stick houses,'" said Monte Levinson, a retired physician leading about a dozen visitors today through this complex Wright began building in 1889 for his family and business.

Levinson presented himself as a Wright devotee, spitting out anecdotes with perfect accuracy and in rapid fire, often focusing more on them than the architectural details of this national landmark house built in the seaside style at the corner of Chicago and Forest avenues.

He's read the newer books: "Loving Frank," a historical novel by Nancy Horan about Wright's unfortunate mistress who was the love of his life; and Roger Friedland's "The Fellowship: The Untold Story of Frank Lloyd Wright and the Taliesan Fellowships," stories that have spawned even greater interest in the architect's remarkable life.

"He was absolutely a difficult man," Levinson said, while standing in Wright's former office, an octagonal room adorned with the architect's signature oak furnishings and art-glass windows. "He was a curmudgeon."


Wright's customers were forbidden from entering the drafting room and kept waiting in the adjoining foyer.


"He would not ask you what you wanted. He'd tell you what your needs were."


In private Wright berated city planners for ignoring nature in their designs and then would play the role of a contrarian in public.
Levinson leads tourists through Wright's office in Oak Park, Ill. (Scott Beveridge photo)

The hero of this story, though, was Catherine Wright, the rejected first wife of this builder and mother of his six children for whom Wright erected this two-story house constructed with Chicago brick and wooden shingles painted brown.


She was a suffragette who gave many civic lectures on the responsibility of the wealthy to care about the less fortunate and earned a master's degree in social work after Wright left her in 1909 for Mamah Borthwick Chaney.


Wright and Chaney fell in love while he built a nearby house on East Avenue for the Chaneys while they, too, were still married.

That house still stands today, albeit in need of attention in an otherwise well-kept suburban Chicago neighborhood speckled with either Wright designed or inspired houses.

However, Mamah Chaney met an untimely death in 1914 during a murderous rampage at Taliesen East, the house Wright built for her in Wisconsin.

Wright designed 1,200 buildings in his lifetime and 125 of them were produced in this studio, Levinson said. He built a debated 460 of those designs, including 30 around the corner from his studio.
Frank Lloyd Wright chose a seaside-style of construction for his first home, using it to experiment in organic and prairie-school architecture. (Scott Beveridge/O-R)

The home and studio grew from a $5,000 loan from Wright's boss, Louis Henry Sullivan, a renowned Chicago architect. To get the money Wright made a promise to continue working for Sullivan, only to sneak behind his back and build four "bootleg" houses in Oak Park, Levinson said.

Wright used this house as a laboratory, designed similar to a spin wheel to maximized the size of rooms that jut out from a central fireplace. It was here where he experimented with organic design techniques that made it appear the rooms flowed seamlessly to and from the outdoors.


While pocket doors were fashionable during this era, Wright shed them in order to allow the eye to travel throughout the first floor of his house. Widows were arranged high on walls so visitors would gaze out to trees rather than neighboring houses.

Paint colors for the walls were limited to those of the autumn, including olive green and Wright's favorite, Cherokee red.


He included built-in couches in the living room, something he would include in many more houses to follow, including Pennsylvania's beloved Fallingwater in the Laurel Highlands.


"He wanted people to sit where he told them to sit," Levinson said.


In the dining room it didn't matter if the chairs were comfortable for seating. Wright designed them with seats too low for sitting and backs so tall they would have given his dinner guests leg cramps.


More importantly the furniture design, Wright believed, made the ceiling above the table appear taller, Levinson said.

Wright was an illusionist. At 5-feet, 6-inches tall, he wore two-inch heels to make himself look taller, Levinson explained, before embarking to the second floor to show off two opposing rooms with vaulted ceilings that hover over the first floor like giant lunchboxes.


The property is owned by the by the Frank Lloyd Wright Preservation Trust, which was established to acquire and care for the site. Advance tour reservations are suggested.

Source: http://scottbeveridge.blogspot.com/2012/06/frank-lloyd-wrights-laboratory.html

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Superior 140 : 7 kitten motifs

It's time for some DOW tea towels. I love to stitch a kitteh, and these ones are so sweet they will give you the proverbial toothache! Little kittys doing household tasks, we can never get enough of them. Neither it seems could Superior brand transfers, for I have a lot of transfers from that particular company that feature cats.


Kitty is ironing, hanging out the washing (wearing roller skates no less), singing at church, sweeping the floor, mending clothes, having a tea party, and on a tricycle doing the shopping. All the time she has a little friend doggy or a stuffed toy to help her. The relationship between cats and dogs in transfer-land always amuses me, as it has little relation to real life cat-dog interaction. Unless of course, in this transfer below, the doggy is about to come and nip her on her posterior. That would be like my animals - Lola can't see a cat bottom go past without chasing it.

Of course, like all good homemakers, she's providing tea for all (that's one of my founding principles, "tea for all") and little stuffed teddy, kitty and bunny are happy to play along. As the pattern says, these are meant to be for days-of-the-week towels, but they'd look cute on children's quilts or bed linen as well. Whilst I don't want to muscle in on the Vogart hyperbole, in my opinion:
These darling designs are quick and easy to sew, and a choice of gay, bright colours will make your towels come alive and add fun to your modern kitchen. Children will love their own towels stitched with Miss Kitten and her friends, and a set will make washing hands no longer a chore! Just stitch these designs and instantly you will become more attractive, and they will bring good fortune and friends into your life. Your home will be beautiful, your children, beaming with health, rosy cheeked and perfectly scrubbed and well behaved, and your husband will cherish the perfect homemaker that he married.
Ooops, think I'm getting carried away now.... help me!......argh....

Source: http://stitchybritches.blogspot.com/2008/06/superior-140-7-kitten-motifs.html

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What's Hot in Ghana, Malaysia, Peru and More

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Social Media Panic in Italy: "Enough of this Agony; Give Us Back the Lira"

Black Monday messages on Facebook and Twitter have gone viral in Italy as people have had enough of austerity, job losses, and uncertainty. La Stampa reports on Panic in the Network.

What follows is a Mish-revised translation of select ideas and quotes from the article. My specific comments are in brackets.
Black Monday breaks early in the morning on websites across the world and social networking spreads alarm. "Withdraw money from bank accounts" is the appeal of Andrew to Facebook friends.

Pseudo-analysis on the alleged benefits of a return to the lira go around the net. "Enough of this sad agony. Bring back the old money", Paul insists.

"In 2000 we had the lira. We were producing more, exporting more, and children were living better, the results of monetary sovereignty" says Magdi Cristiano Allam on Twitter.

"We are on the brink of the abyss and the top EU cazzeggiano [slang for F* around]," accuses Ivan.

The tones on social networks are apocalyptic: "This is not a crisis, it's the end of capitalism." On the forum of the economics of printing a black player sees: "Folks, we begin to pray, after Greece's up to us. We are at the end titles, to every man for himself."

Then there are the usual conspiracy theories regarding the IMF, ECB, Germany, the White House, U.S. investment banks, the Bilderberg and the Trilateral Commission. All guilty of "working for the failure of Italy and Spain." "We must defend ourselves from the American speculation, but Merkel holds us hostage," Roberto tweets.

Everyone looks to Mario Draghi: The "ECB needs to intervene at once" says David Sassoli MEP [Member of European Parliament].

"We're towards the end of the line like Greece and Spain?" Asks Matthew.

The stubborn "spread" climbs the ranking of most used words in the blogosphere. [Presumably spread refers to interest rate differentials between Italy and Germany]

Catherine accuses the government, political parties, unions, and banks. "It takes courage," writes Catherine on the Facebook page of La Stampa. Catherine then rattles off a recipe based on "Electoral Law, priority to industry, limiting immigration, elimination of environmental bulls**t, and zero bureaucracy."

Small investors are bewildered: "If I buy U.S. government bonds and Italy out of the Euro, those are always in dollars, right?" asks Stephanie C. on Facebook.
Schools May Not Reopen After Summer Break

Please note that Italian provinces warn cuts may close schools
Italian regional authorities may not be able to open schools after the summer break if spending cuts planned in the government's latest spending review are carried through, the head of the Union of Italian Provinces (UPI) said on Monday.

"With these cuts we won't be able to guarantee the opening of the school year," UPI President Giuseppe Castiglione told reporters in Rome.

Piero Lacorazza, president of the province of Potenza in southern Italy, said the comment was "not an exaggeration", adding that "half of the provinces are in serious financial difficulty".
More Panic in Brussels Than on Social Media

In case you missed it, please consider Ten Major Italian Cities On Verge of Financial Collapse

Also note a Time-Lapse Interactive Graph Shows Stunning Rise in Anti-Euro Sentiment in Italy.

In terms of sheer panic, I bet eurocrats in Brussels are in a bigger state of panic than what you saw on Twitter.

Here is a thought of mine that is worth repeating:

Eventually, there will come a time when a populist office-seeker will stand before the voters, hold up a copy of the EU treaty and (correctly) declare all the "bail out" debt foisted on their country to be null and void. That person will be elected.

Beppe Grillo may be just that person.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List


Source: http://feedproxy.google.com/~r/MishsGlobalEconomicTrendAnalysis/~3/qsAOZUAfB10/social-media-panic-in-italy-enough-of.html

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Political Videos of the Week: Gingrich Out and More

Source: http://feedproxy.google.com/~r/youtube-trends/~3/hEHZCk1eBrM/political-videos-of-week-gingrich-out.html

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Was just looking...

at this lovely blog, and this post has a pic of some of these Vogart patterns, stitched and original. Just gorgeous!

Source: http://stitchybritches.blogspot.com/2008/06/was-just-looking.html

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Vintage embroidery - Mexico


Vintage embroidery- Mexico, originally uploaded by Vintage LOVE.

How wonderful is this? I found this pic on Vintage Love's Flickr.

I must apologise for the lack of posts of late, having to take down all the Vogart ones knocked the wind out of my sails, so to speak, but I'll be back soon with some cute patterns!

Source: http://stitchybritches.blogspot.com/2008/09/vintage-embroidery-mexico.html

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Austerity Hits Cisco Systems as 1,300 Layoffs Coming; Chipmaker Renesas Cuts 5,000 Jobs; Investigating Mass layoffs

For the second consecutive year, Cisco Systems is in Austerity Mode, looking to shed 1,300 employees.
Cisco Systems is to lay off around 1,300 workers, as part of the company's ongoing austerity programme aimed at saving $1bn a year.

The firm said the cuts were being implemented to simplify its operations and adjust to changing economic conditions around the world.

The job cuts represent around 2% of Cisco Systems' 65,000 strong workforce.

Last year the firm, the world's largest maker of computer networking equipment, had shed 10,000 posts.

Cisco warned that growing economic uncertainty was creating an environment in which it was becoming increasingly difficult to clinch business deals.
Chipmaker Renesas Cuts 5,000 Jobs

The BBC also notes Chipmaker Renesas Cuts 5,000 Jobs
Renesas Electronics, the world's fifth biggest chipmaker, has announced a restructuring plan that will lead to at least 5,000 job cuts.

It is getting rid of half its 19 plants and cutting 12% of its workforce.

The plan is part of an agreement to get financial help from creditor banks and its three top shareholders: NEC, Hitachi and Mitsubishi Electric.
Investigating Mass layoffs

According to BLS data, Mass layoffs, defined as termination of 50 or more employees simultaneously, have actually been declining and are at the lowest point since 2007.

However, corporations did not exactly go on a hiring spree in the recovery and thus have been running lean.

Should the economy go into a recession (I think we are back in one), companies may have to take it to the chin in profits or in layoffs. I suspect  both.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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Detail



Near the Tour de Hassan, Rabat Morocco

Source: http://microcosmic.blogspot.com/2008/01/detail.html

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231 Weekly Lost Podcast ? What Kate Does Review

Weekly Lost Podcast What Kate Does Review Click Here To Download In this episode, Stephanie and I the weekend review of “What Kate Does.” Complete show notes for this episode can be found at http://gspn.tv/lost231. Don’t forget to give us a call on our listener line. It’s open and ready for your call 24hrs a [...]

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Stitch-a-long #3


summer SAL, originally uploaded by stitchinwitch3.

So much stitching goodness! Click on the photo for a closer look. And I shamefully admit I haven't even started yet.

Source: http://stitchybritches.blogspot.com/2008/07/stitch-long-3.html

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"Actual" New Home Sales First 6 Months of 2012 vs. Prior Years; Reflections on the Housing Recovery

New home sales unexpectedly plunged today, with the biggest drop in over a year.
New U.S. single-family home sales in June fell by the most in more than a year and prices resumed their downward trend, suggesting a set back for the budding housing market recovery.

The Commerce Department said on Wednesday sales tumbled 8.4 percent to a seasonally adjusted 350,000-unit annual rate, the lowest rate in five months. The percent decline was the largest since February 2011.

May's sales pace was revised up to 382,000 units from the previously reported 369,000 units, taking some of the sting from the report.

Economists polled by Reuters had forecast sales at a 370,000-unit rate last month. Compared to June last year, new home sales were up 15.1 percent.
Actual New Home Sales

Reader Tim Wallace provides a look at actual new home sales, six-month running totals, not seasonally adjusted, not annualized, vs. prior years.



click on chart for sharper image

Reflections on the Housing Recovery

Even with today's reported decline, new home sales have likely bottomed on an annual, cumulative-total basis.

However, don't expect much in terms of recovery.

Debt overhang is immense, and student debt is particularly problematic. Lack of jobs coupled with high student debt is capping family formation. Kids out of college are deep in debt and holding off getting married, starting families, and therefore buying houses.

Moreover, home sizes will trend lower and price recovery will be anemic because of boomer demographics. Retired boomers looking to downsize have few buyers able or willing to buy.

Bank-owned real estate (REOs) and shadow inventory are hugely underestimated. That too will pressure prices and sales.

The good news is home sales will add to GDP.

The more realistic news is structural headwinds are immense, demographics are poor, and job prospects for college graduates are poor. The bottom in new home sales may be in, just don't expect anything close to a normal housing-led recovery, because it's not going to happen.

 Mike "Mish" Shedlock
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