Lots Of People Didn’t Get The Memo That We’re On The Road To Recovery

If today’s news cycle is anything to go by, it looks like lots of people didn’t get the memo telling them we’re on the road to recovery (a technical snafu, perhaps?)….

“U.S. Homebuilder Confidence Unexpectedly Fell in June” (Bloomberg):

Confidence among U.S. homebuilders fell unexpectedly in June, indicating that a recovery from the housing slump will be slow to develop.

The National Association of Home Builders/Wells Fargo index of builder confidence decreased to 15 this month from 16 in May, the Washington-based NAHB said today. A reading below 50 means most respondents view conditions as poor.

“Treasury: Lending by Bailout Banks Fell in April” (Associated Press):

The Treasury Department says the value of loans held by the 21 largest institutions getting federal bailout support fell in April, the fifth decline in six months.

The department’s monthly report of lending activity says that average loan balances at the 21 institutions totaled $4.34 trillion in April, down 0.8 percent from March.

Treasury has been issuing reports to track lending activity at banks that received capital from the $700 billion bailout fund. While activity has fallen in five of the past six months, the administration says the declines would have been even more severe without the government support.

“Citigroup CEO: Accept New World of Tighter Credit” (Associated Press):

Citigroup Inc. Chief Executive Vikram Pandit says borrowers should accept a new world of tighter credit as financial institutions recover from months of bad loans, failed banks and foreclosed homes.

Pandit spoke Monday at the three-day National Summit, which is expected to draw about 3,000 attendees to Detroit over three days. The goal of the summit is to craft a plan to keep the U.S. competitive in manufacturing, energy, technology and the environment.

He anticipates less credit that is more expensive even as financial markets show signs of recovery. He also expects more corporate restructurings across different industries.

“Is the Housing Bust About to Take Manhattan?” (Reuters):

New York City real estate prices are looking increasingly shaky as instability in two of the city’s sexier submarkets — second homes in the Hamptons, and new condos in Manhattan — register the latest signs of a housing downturn.

“U.S. Credit Card Defaults Rise to Record in May” (Reuters):

U.S. credit card defaults rose to record highs in May, with a steep deterioration of Bank of America Corp’s lending portfolio, in another sign that consumers remain under severe stress.

“US ECON: May Empire State Mfg Index Falls 5 Points to -9.41″ (Reuters):

Washington, June 15 - The New York Federal Reserve Bank’s Empire State Manufacturing Index unexpectedly dropped nearly five points in June to -9.41, a sign that manufacturing is still contracting in New York, although at a slower pace compared to Q4 2008 and Q1 2009. Economists were expecting a slight improvement to -4.50 from the -4.55 reported in May. The index has been in negative territory since May 2008.

“IMF Says Worst Not Over” (Reuters):

The head of the IMF questioned on Monday debate about when to roll back stimulus spending, saying the world economy had yet to weather the worst of a recession that claimed a record number of European jobs.

“Idaho, US Rails Clogged With Cars Due to Recession” (Associated Press):

A growing number of idled boxcars and locomotives are filling the sidings in Nampa, reflecting the nationwide economic downturn and Union Pacific Railroad’s decreased business.

“It’s just a big visual manifestation of what’s going on in our economy right now,” Union Pacific spokeswoman Zoe Richmond told the Idaho Press-Tribune. “With consumer spending going down, our shipments have gone down.”

“Even Amish Getting Laid Off In Recession” (Chicago Sun-Times):

“Nowhere in U.S. Amish history has a down economy affected the Amish so much,” said Steven Nolt, a professor at Goshen College who has studied the Northern Indiana Amish and written books about them. “It’s a pivotal time for them.”

Time for a new memo…?

Subscribe by RSS Subscribe by Email