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Fairfax Underground
Welcome to Fairfax Underground, a project site designed to improve communication among residents of Fairfax County, VA. Feel free to post anything Northern Virginia residents would find interesting.
Welcome to Fairfax Underground, a project site designed to improve communication among residents of Fairfax County, VA. Feel free to post anything Northern Virginia residents would find interesting.
US Stock Market and Economy On Track for Record Highs
Posted by:
Econ 101
()
Date: November 27, 2012 10:50AM
Last week, the Dow Jones Industrial Average, the S&P 500 and the Nasdaq ended the week up more than 3%, racking up five straight days of gains. The Dow closed above 13,000 for the first time since the election.
Two broad measures of the U.S. economy are due out this week. The first comes on Wednesday, when the Federal Reserve releases its latest snapshot of economic conditions across its 12 districts. Last month, the Beige Book showed that economic activity had expanded at a modest pace
An estimate of the nation's gross domestic product, the broadest measure of the nation's economic health, is due out on Thursday. A first estimate, released in October, showed the economy had grown at a 2% rate, thanks to an increase in defense spending, an improving housing sector and stronger consumer spending.
This week, investors also get a feel for the pulse of the American consumer, a key gauge during this time of the year, when retailers are in the midst of the holiday shopping season. Consumer spending drives about 70% of the U.S. economy and in play this week are consumer confidence, personal income and spending numbers.
Last month, consumer confidence rose to its highest level in four years, boosted by improvements in the job market.
Economists are expecting reports on the housing markets to boost markets again this week. Investors will have data to digest on housing prices from the Case-Shiller 20-city index, mortgage rates, and pending home sales.
The housing market has been a bright spot in an otherwise slowly recovering economy. In the last month, existing home sales, home prices and new construction showed upticks. The nation's extremely favorable mortgage rates also sank even lower last week, setting records for both the 30-year and 15-year fixed rate loans.
Investors will also get a look at U.S. manufacturing this week from reports on durable orders and the Chicago purchasing managers index.
Two broad measures of the U.S. economy are due out this week. The first comes on Wednesday, when the Federal Reserve releases its latest snapshot of economic conditions across its 12 districts. Last month, the Beige Book showed that economic activity had expanded at a modest pace
An estimate of the nation's gross domestic product, the broadest measure of the nation's economic health, is due out on Thursday. A first estimate, released in October, showed the economy had grown at a 2% rate, thanks to an increase in defense spending, an improving housing sector and stronger consumer spending.
This week, investors also get a feel for the pulse of the American consumer, a key gauge during this time of the year, when retailers are in the midst of the holiday shopping season. Consumer spending drives about 70% of the U.S. economy and in play this week are consumer confidence, personal income and spending numbers.
Last month, consumer confidence rose to its highest level in four years, boosted by improvements in the job market.
Economists are expecting reports on the housing markets to boost markets again this week. Investors will have data to digest on housing prices from the Case-Shiller 20-city index, mortgage rates, and pending home sales.
The housing market has been a bright spot in an otherwise slowly recovering economy. In the last month, existing home sales, home prices and new construction showed upticks. The nation's extremely favorable mortgage rates also sank even lower last week, setting records for both the 30-year and 15-year fixed rate loans.
Investors will also get a look at U.S. manufacturing this week from reports on durable orders and the Chicago purchasing managers index.
Re: US Stock Market and Economy On Track for Record Highs
Posted by:
Foggy Memories
()
Date: November 27, 2012 12:46PM
Econ 101 Wrote:
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> Consumer spending drives about 70% of the U.S. economy
I like how this is treated like consumer spending magically grew into the largest factor of our economy. As if it just happened as a result of greater consumer spending, and not the fact that all the other factors are now over in China and India.
Just imagine how much more powerful our economy could be if that consumer spending was supporting a domestic production economy.
I still remember when supporting unions and buying American was republican dogma. How easily people can be led down a path they don't even understand.
-------------------------------------------------------
> Consumer spending drives about 70% of the U.S. economy
I like how this is treated like consumer spending magically grew into the largest factor of our economy. As if it just happened as a result of greater consumer spending, and not the fact that all the other factors are now over in China and India.
Just imagine how much more powerful our economy could be if that consumer spending was supporting a domestic production economy.
I still remember when supporting unions and buying American was republican dogma. How easily people can be led down a path they don't even understand.
Re: US Stock Market and Economy On Track for Record Highs
Posted by:
Hay Zeus
()
Date: November 27, 2012 01:50PM
Econ 101 Wrote:
-------------------------------------------------------
>
> An estimate of the nation's gross domestic
> product, the broadest measure of the nation's
> economic health, is due out on Thursday. A first
> estimate, released in October, showed the economy
> had grown at a 2% rate, thanks to an increase in
> defense spending, an improving housing sector and
> stronger consumer spending.
> This week, investors also get a feel for the pulse
> of the American consumer, a key gauge during this
> time of the year, when retailers are in the midst
> of the holiday shopping season. Consumer spending
> drives about 70% of the U.S. economy and in play
> this week are consumer confidence, personal income
> and spending numbers.
>
> Last month, consumer confidence rose to its
> highest level in four years, boosted by
> improvements in the job market.
>
> Economists are expecting reports on the housing
> markets to boost markets again this week.
> Investors will have data to digest on housing
> prices from the Case-Shiller 20-city index,
> mortgage rates, and pending home sales.
>
> The housing market has been a bright spot in an
> otherwise slowly recovering economy. In the last
> month, existing home sales, home prices and new
> construction showed upticks. The nation's
> extremely favorable mortgage rates also sank even
> lower last week, setting records for both the
> 30-year and 15-year fixed rate loans.
>
> Investors will also get a look at U.S.
> manufacturing this week from reports on durable
> orders and the Chicago purchasing managers index.
Home prices are rising because money is cheap. We're probably creating another housing bubble. At some point interest rates will have to rise and home prices could fall as people will not be able to afford as much house.
Why is defense spending factored into the economy? If part of the economic growth is attributed to defense spending then why not just make it a larger part of the economy? That was sort of the model the old Soviets used and it didn't end well.
-------------------------------------------------------
>
> An estimate of the nation's gross domestic
> product, the broadest measure of the nation's
> economic health, is due out on Thursday. A first
> estimate, released in October, showed the economy
> had grown at a 2% rate, thanks to an increase in
> defense spending, an improving housing sector and
> stronger consumer spending.
> This week, investors also get a feel for the pulse
> of the American consumer, a key gauge during this
> time of the year, when retailers are in the midst
> of the holiday shopping season. Consumer spending
> drives about 70% of the U.S. economy and in play
> this week are consumer confidence, personal income
> and spending numbers.
>
> Last month, consumer confidence rose to its
> highest level in four years, boosted by
> improvements in the job market.
>
> Economists are expecting reports on the housing
> markets to boost markets again this week.
> Investors will have data to digest on housing
> prices from the Case-Shiller 20-city index,
> mortgage rates, and pending home sales.
>
> The housing market has been a bright spot in an
> otherwise slowly recovering economy. In the last
> month, existing home sales, home prices and new
> construction showed upticks. The nation's
> extremely favorable mortgage rates also sank even
> lower last week, setting records for both the
> 30-year and 15-year fixed rate loans.
>
> Investors will also get a look at U.S.
> manufacturing this week from reports on durable
> orders and the Chicago purchasing managers index.
Home prices are rising because money is cheap. We're probably creating another housing bubble. At some point interest rates will have to rise and home prices could fall as people will not be able to afford as much house.
Why is defense spending factored into the economy? If part of the economic growth is attributed to defense spending then why not just make it a larger part of the economy? That was sort of the model the old Soviets used and it didn't end well.
Re: US Stock Market and Economy On Track for Record Highs
Posted by:
interest deduction
()
Date: November 27, 2012 01:57PM
Hay Zeus Wrote:
-------------------------------------------------------
> Home prices are rising because money is cheap.
> We're probably creating another housing bubble. At
> some point interest rates will have to rise and
> home prices could fall as people will not be able
> to afford as much house.
Not to mention the fact that the mortgage deduction is on the table during the "fiscal cliff" talks.
http://dealbook.nytimes.com/2012/11/26/mortgage-interest-deduction-once-a-sacred-cow-is-seen-as-vulnerable/
If the deduction is tinkered with and interest rates go up, the 2006/2007 housing bubble will be a tiny one compared to what is coming.
-------------------------------------------------------
> Home prices are rising because money is cheap.
> We're probably creating another housing bubble. At
> some point interest rates will have to rise and
> home prices could fall as people will not be able
> to afford as much house.
Not to mention the fact that the mortgage deduction is on the table during the "fiscal cliff" talks.
http://dealbook.nytimes.com/2012/11/26/mortgage-interest-deduction-once-a-sacred-cow-is-seen-as-vulnerable/
If the deduction is tinkered with and interest rates go up, the 2006/2007 housing bubble will be a tiny one compared to what is coming.
Re: US Stock Market and Economy On Track for Record Highs
Posted by:
Derpster
()
Date: November 27, 2012 01:58PM
How are they "record highs" when they're all lower than in the past? lol