Originally posted by liveandletlive
First-time homebuyers and investors are snapping up those homes and taking advantage of low mortgage rates. These buyers can also take advantage of a tax credit of 10 percent of the sales price, up to $8,000, if the sale is completed by the end of November.
The tax credit is so important to some buyers that they are adding a clause to their contracts, allowing them to back out if the sale doesn't close by Nov. 30. However, economists note that bargain-priced foreclosures and low mortgage rates are making a big contribution to the sales boom.
Like cash for clunkers, when the free money dries up, so do the buyers!
The Commerce Department said retail sales climbed 2.7 percent after declining 0.2 percent in July. It was the biggest monthly advance since January 2006 and well above expectations on Wall Street for a 2 percent gain.
"Retail sales show the recovery is here. This wasn't just autos, it wasn't just gasoline. This was the U.S. consumer getting out of their foxhole," said T.J. Marta, market strategist at Marta on the Markets in Scotch Plains, New Jersey. "This is indisputably a good number."
Originally posted by Zosynspiracy
You don't understand.......ALL THE MONEY these new home owners are going to spend on these fancy televisions, carpet, etc. IS DEBT! That's the entire problem. Have you ever heard of the term "reinflating the bubble"? You think these people are going to go out and pay cash for all this stuff. No it's all going to be financed just like their house.
Credit card debt is quickly eroding in the U.S., a good sign for the American consumer's personal financial health.
Also, while paying down consumer debt -- particularly excessive debt -- is a good thing, the very fact of Americans getting their budgets in order will present another hurdle for the U.S. economic recovery.
That's because in addition to cutting debt, the U.S. economy needs at least selected consumers to spend in order to stimulate the economy. But simultaneously saving more while buying at a robust rate is a dilemma. There's scant economic theory to suggest a nation can successfully pull that trick off. If PIMCO Global Strategic Advisor Richard Clarida's analysis is correct, the "new normal" is a U.S. GDP growth rate in the recovery stage of about 2 percent -- far below the 5 percent to 7 percent rate the U.S. typically registers early in a recovery.
Economic Analysis: Without question, Americans remain in belt-tightening mode, something you'd expect during a recession, but this cycle's pronounced slump, with its large job losses and accompanying financial crisis, has taken economizing to levels not seen in decades. While Americans are bringing their debt down to more serviceable levels, they're also concerned about the U.S. economy's health -- a view that, historically, means delayed consumer purchases.
Originally posted by Zosynspiracy
reply to post by SLAYER69
You can post as many mainstream news articles as you want. It won't change anything, least of all my opinion friend.
Originally posted by allprowolf
new to ats, but how can there be a recovery when every month the loss of jobs keeps growing? how can there be a recovery when the dollar bill keeps losing its worth throughout the world. yes sure the housing data looks good
The idea of a jobless recovery seemed strange to economists at first.
After most every modern recession, once the economy began expanding and gross domestic product rose again, employers began adding jobs a few months later.
Then came the recession of 1990-91. As that downturn ended, says economist Erica Groshen, statistics from the labor market didn't make sense. The economy was growing, but the jobs weren't coming back. "The real question was, 'Well, is some of the data wrong in some way?' " remembers Groshen, who works at the Federal Reserve Bank of New York.
Sure enough, the data back then were correct. Unemployment continued to rise for another year after the economy stopped shrinking. The same pattern appeared after the recession of 2001.
Groshen asked the library to research the phenomenon. That led to an unsettling find: The first documented use of "jobless recovery" appears in The New York Times in the mid-1930s, in the Great Depression.
Originally posted by David9176
Definitely smoke and mirrors.
Look around. Do you see people's lives getting better? I DON'T. I see people struggling everywhere.
It's a farce.
Originally posted by GreenBicMan
Here is, among many others, one of the most convincing arguments.
Historically the market will gain an "x" percentage every 10 years.
Everytime in history when we have had 10 years (as this occurance now from 1999-2009) that we do not - the next ten years will make up for those losses and also gain you "x" percentage for that 10 years.
I believe it is 20% compounded every 10 years. But it could be something else, I am forgetting right now and do not want to misquote.