Things I'm not so thankful for - Record Economic Contraction
Now that we're distracted by the upcoming holiday season, the real news breaks about where our economy is right now. In the toilet.
"Economists have said they believe the weakness in the July-through-September quarter is a harbinger of further weakness ahead. Growth in the current quarter is on track to fall at a 4% annual rate.
'As bad as the third quarter was, the fourth quarter will undoubtedly be worse,' economists at RBS Greenwich Capital wrote to clients.
Business and consumer activity ground to a halt between mid-September and mid-October. "
Apparently it's our fault...again...
"As with the initial estimate, the story behind the weakness in the third quarter was all about the sudden drop-off in consumer spending. Read full government report.
Consumer spending declined 3.7% in the third quarter, revised from a 3.1% decline. This is the first drop in consumer spending in 17 years and the largest in 28 years."
But, not to be outdone by the worst, biggest or most dangerous decline, the WSJ reports that home sales are at a, dare I say, historic low.
"For the third quarter, the national index posted a 16.6% decline in home prices from a year earlier, worse than the 15.1% drop posted in the second quarter.
The indexes showed prices in 10 major metropolitan areas fell 18.6% in September from a year earlier and 1.9% from August. The drop marks the 10-city index's 12th-straight monthly report of a record decline.
In 20 major metropolitan areas, home prices dropped 17.4% from the prior year, also a record, and 1.8% from August. None of the regions was able to stave off a decline from August to September.
For the sixth-straight month, no region was able to avoid a year-over-year price drop. Phoenix and Las Vegas again posted the largest drops, falling 31.9% and 31.3%, respectively. Miami, Los Angeles and San Diego didn't fare much better, with declines of 28.4%, 27.6% and 26.3%, respectively."
But this comment worries me, I don't want the corporations to be angry because you know who'll get the sharp end of their stick.
"Corporate profits kept retreating in the third quarter. Profits after taxes fell by 3.0% to $1.302 trillion, after sliding 0.4% in the second quarter and 7.7% during the first quarter. Year over year, profits were down 9.9%.'