Wall Street Journals’s Arian Campo-Flores reports on housing crisis and how it has hit Florida especially hard. He reports Florida’s residents are looking to presidential candidates for specific remedies. Florida, California, and Nevada (=Las Vegas) have been the worst impacted housing markets in the USA. In other words, the bubble and greed was the maximum in these states. So the voters in these states are clearly going to use their vote to get their woes addressed. In my view, Florida’s voters should not expect any of the Republican candidates to solve their problems housing and employment problems.
It has been three years since the beginning of the most intense phase of the financial crisis in the late summer and fall of 2008, and more than two years since the economic recovery began in June 2009.
There have been some positive developments: The functioning of financial markets and the banking system in the United States has improved significantly. Manufacturing production in the United States has risen nearly 15 percent since its trough, driven substantially by growth in exports; indeed, the U.S. trade deficit has been notably lower recently than it was before the crisis, reflecting in part the improved competitiveness of U.S. goods and services. Business investment in equipment and software has continued to expand, and productivity gains in some industries have been impressive.
Nevertheless, it is clear that, overall, the recovery from the crisis has been much less robust than we had hoped. Recent revisions of government economic data show the recession as having been even deeper, and the recovery weaker, than previously estimated; indeed, by the second quarter of this year–the latest quarter for which official estimates are available–aggregate output in the United States still had not returned to the level that it had attained before the crisis. Slow economic growth has in turn led to slow rates of increase in jobs and household incomes. Continue reading
This afternoon, Congress approved a compromise to reduce the deficit and avert a default that would have devastated the economy. Speaking from the Rose Garden, President Obama thanked the American people for reaching out to their elected officials during the debate, and stressed that this compromise guarantees more than $2 trillion in deficit reduction, and will ensure that as a nation we live within our means, while still making key investments in things that lead to new jobs, like education and research. Continue reading
US Nonfarm payroll employment rose by 117,000 in July,
following 2 months of little change. The unemployment rate was
9.1 percent in July and has shown little definitive movement
since April. Private-sector employment increased by 154,000 over
Health care employment rose by 31,000 in July, as both
hospitals and ambulatory care services added jobs. Retail trade
employment increased by 26,000. In the manufacturing sector,
employment expanded by 24,000, with gains in motor vehicles and
semiconductors. Mining employment grew by 9,000 over the month
and was up by 140,000 since the most recent low in October 2009.
Employment in professional and technical services continued to
trend up in July; this industry has added 246,000 jobs since a
recent low in March 2010. Employment in temporary help services
was flat over the month and on net has changed little in 2011.
Other private-sector industries showed little or no change in July. Continue reading