Lower construction spending is another sign of very weak real estate market and underemployed stagflation plagued economy
Sam Adelton
Nov. 1, 2006

Market expects flat constriction spending while last month it was up by 0.3%. The lower construction spending report is significant because that shows the mood of the economy. The builders are scared no doubt but they have tried to lure customers with lower prices and incentives. The tactics has worked last month. They were able to clear some of the inventories.

But these homebuilders know their industry faces extinction. Homes are seen more closely as cars. Let us face the fact. The prime value of real estate is location. Best locations are not available. Most desirable townships are not allowing new developments fearing cost of new school systems and damage to their environment.

The new homes are built in remote less than desirable areas. As a result, the new homes are more looked upon as new cars.

After providing all that incentives, the builders understand they cannot sustain the sales. The population growth is there but the underemployment in the economy will not allow selling homes and condos at that price levels.

The lower construction spending is another sign of very weak real estate market and underemployed stagflation plagued economy

Lower construction spending is another sign of very weak real estate market and underemployed stagflation plagued economy
Sam Adelton
After providing all that incentives, the builders understand they cannot sustain the sales. The population growth is there but the underemployment in the economy will not allow selling homes and condos at that price levels.
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Market expected Conference Board Consumer Confidence at 109.5 but it came 4% short – another confirmation of recession
Sam Adelton
The stock market will be hurt the worst. While rates will remain comparatively high, the growth and earnings will collapse.
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Chicago Purchasing Managers index shows the economy is headed for a deep recession and most pundits and Fed are all wrong
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The Chico PMI just says the recession has started within the umbrella of stagflation. It is expected now to turn into deflation driven deep recession if not depression.
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The jump in Conference Board Consumer Confidence shows temporary cheer in the mind of people on gas prices and stock market
Ratan Sen
The jump in Conference Board Consumer Confidence is interesting. People are relived at what they see in gas stations. They are happy to see the Dow going up steadily.
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Chicago purchasing managers' report will show a sharp decline – a long-term negative for the economy
Marla Guthrie
The Chicago PMI expected to come at 58 down from 62.1 last month. The trend is downwards and the effects are clear from auto and housing sectors....
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Employment Cost Index will show deceleration is rise – another sign of underemployment driven stagflation
Alan Hersey
The most prominent signs of stagflation comes from the inadequate rise in wages while employment is kept at a very level. That is exactly what is happening now.
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