Economic Update

[Adam in CO]

Last Week in the News

Driven by big jumps in energy and food costs, the Consumer Price Index rose 0.4% in February, the Labor Department said March 16. The increase was larger than the 0.3% gain analysts had forecast. Core consumer inflation, which excludes volatile food and energy prices, was milder, rising just 0.2%, exactly what economists had been expecting.

The Producer Price Index -- which measures prices before they reach consumers -- surged 1.3% in February, more than double the 0.5% rise economists anticipated. Even excluding sharp increases in food and energy prices, core wholesale inflation rose 0.4%, the biggest increase since November.

The current account deficit -- which is the broadest measure of the trade deficit because it covers not only trade in goods and services but also investment flows between countries - decreased to $195.8 billion during the fourth quarter of 2006 from a revised $229.4 billion in the third quarter, the Commerce Department said March 14. For all of 2006, the deficit totaled $856.7 billion, an 8.2% increase over 2005's gap of $791.5 billion.

Retail sales nudged up 0.1% in February, as adverse winter weather kept already cautious shoppers away from the malls, the Commerce Department said March 13. The latest retail sales figures were weaker than the 0.3% analysts predicted. A bright spot was auto sales, which climbed 0.9%.

Mortgage rates for the week ended March 15 showed no change from the previous week.

This week look for updates on housing permits and housing starts on March 20.

[NEOCON1]

Wood sales are good

[usetosellhummer]

My paycheck cleared the bank

I've still got money to burn. Although gas prices at $3.19 for regular are no fun here.

[bparker]

I hear we are about to see a huge onslaught of repos over the next 5 years.

I even got a invite from Donald Trump as he is traveling and speaking about this very "opportunity" that we are about to see due to our economy being so bad.
(if you want to see the invite from the Don himself, I will scan it and post - I also have two tickets to attend but I will not so they are up for grabs if anyone wants them)

My mom's really good friend has been in realestate for about 25 years and owns a large Coldwell Banker outfit and has predicted the same. She said we are about to see a huge number (compariably from the past) loose thier houses.

And the fed historically likes to do too little, too late. Hopefully they are paying attention.

[Adam in CO]

Agreed. We have been facing a major foreclosure problme here as it is. Highest in the nation until recently and triple the national average. However, these are the people who weren't credit worthy to begin with. Wait till the credit worthy ones can't get out of their ARMs in the next few years because they have no equity, didn't save any money that they should have been with a lower mortgage payment, or live in a depreciating area. I think something 3.25 trillion in ARMs comes up this year alone. It will be bad. Thank god I never have to represent someone trying to sell a home.