Relevant and even prescient commentary on news, politics and the economy.

Manufacturing and housing – turn even hotter

Two leading sectors of the economy – manufacturing, and housing – turn even hotter Last month I wrote that both the manufacturing and housing sectors were “on fire.” If anything, this month they turned white hot, with both construction spending and ISM manufacturing data at levels not seen in years. The overall ISM manufacturing reading […]

Real Estate Insanity…working off the excess inventory?

by Tom aka Rusty Rustbelt Real Estate Insanity So my son and me are thinking about buying a intercoastal waterfront homes in Ohio and fixing it up this summer. He would live in half and we would rent the other side. Given the number of foreclosures this should be an easy deal, right? Wrong. The […]

ECB Rates Policy is Clogged in Key Periphery Markets

by Rebecca Wilder ECB Rates Policy is Clogged in Key Periphery Markets How the Euro area (EA) will grow, according to Mario Draghi: The outlook for economic activity should be supported by foreign demand, the very low short-term interest rates in the euro area, and all the measures taken to foster the proper functioning of […]

Housing Bubbles: Less Frothy but Europe is Behind

by Rebecca Wilder Housing Bubbles: Less Frothy but Europe is Behind Wolfgang Muenchau’s article in the Financial Times, There is no Spanish siesta for the Eurozone, inspired me to update my post on housing bubbles around the world (really just Europe and the US). He argues that Spain’s bubble was much more extreme, and that […]

Rent Control, Redux

by Mike Kimel Rent Control, Redux There’s been a small dustup on rent control lately on the blogosphere. Peter Dorman has been pointing out that the theory everyone knows may not fit the facts. I myself covered the topic before here. Its worth a read, I think, but here’s the takeaway Now, I haven’t been […]

Lifted from comments

Lifted from comments on the housing situation by Spencer…Housing vs. Household formation. Of course the point also being…what is going to be the source of growth for US citizens? kharris comments and adds another contributing factor on the housing market: …Banks already have pretty nearly all the housing assets they care to have, thank you […]

Random Notes 3 June 2011

Buce has been on fire recently, so I’ll probably have to do a post about why this post is so off-target, though his conclusion is correct (short version: he’s been misled). If I’m reading this morning’s SIFMA Brief correctly, Moody’s—whose rating skills Robert has discussed at length—(1) may downgrade US debt if we spend too […]

Industrial Production and Housing Starts

Industrial production and housing starts were reported today. It has been well covered elsewhere, but I though I would make a couple of comments. Compared to other cycles this recovery in industrial production continues to be moderate. It is stronger than in the weak recoveries, but compared to the depth of the downturns the rebound […]