Monthly Archives: January 2010

Roubini Says US Economy is Not Out of the Woods

America don’t shout Alleluia just yet. Economy numbers are misleading. New York University Professor Nouriel Roubini nick-named Dr. Doom says fourth quarter growth is misleading.  Roubini says growth “very dismal and poor” because growth  which supplanted by government spending and incentives.

“The headline number will look large and big, but actually when you dissect it, it’s very dismal and poor,” Roubini told Bloomberg Television in an interview at the World Economic Forum’s annual meeting in Davos, Switzerland. “I think we are in trouble.”

Roubini says as incentives from the stimulus expires growth will slow down from 5.7% to a depressing 1.5%.

He says US economy will not fall into recession it will feel like it as unemployment will climb above 1o %.

“It’s going to feel like a recession even if technically we’re not going to be in a recession,” he said.

Bloomberg News

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Gallup Finds Obama Numbers Evenly Split at 47%

Days after President Obama’s State of the Union Address the latest Gallup Inc poll finds the American people is evenly split at 47% approve and 47% disapprove. Based on a three-day average.

Many commentators found the speech angry and defiant. Most thought the president would be more conciliatory  and interpretive. The main theme of the message jobs, jobs and more jobs. He announced a jobs bill that would contain tax credits for hiring workers and breaks for buying new equipment.

Republican say the plans don’t go far enough. They want president keep the Bush tax cuts that expire in 2011 to stay indefinitely

Gallup

President Obama Finally Meet the Republicans on Their Turf

Nearly nine months ago President Obama has his first and only meeting with members of the GOP and he was hostile and unreceptive. On Friday it was more of the same. The president invited to the 2010 House of Representatives Republican Retreat in Baltimore.

Reuters has more.

The Recession is Officially Over

Very Good news for the US Economy and The Obama Administration the recession is over.  The economy grew at 5.7 percent in the 4th quarter  a rate larger and faster than expected. The growth however is unsustainable. Unemployment at 10 %. Consumer spending is very weak.

Many analysts predict gross domestic product will expand at a rate closer to 2.5 to 3 percent in the current quarter and 2.5 percent or less for the year.

Roughly two-thirds of the quarter’s growth came from increased manufacturing as businesses drew down their stockpiles of goods at a slower rate. But companies will eventually let those inventories fall again unless consumers — who account for about 70 percent of the economy — spend more.

Unlike past rebounds driven by the spending of ordinary shoppers, this one appears to hinge on spending by businesses, foreigners and — until it runs out — government stimulus.

To drive down the jobless rate by just 1 percentage point this year, the economy would have to grow by 5 percent for the whole year. No one thinks that will happen.

AP via Yahoo Finance

Seven Banks Are Shut Down by the FDIC

Seven banks across the country closed by Federal Deposit Insurance Corporation Friday. The banks closed and sold off because the banks were not  financially sound. The banks did not meet capital requirements.

First Regional Bank, in Los Angeles closed. The bank had $2.2 billion assets and $1.9 billion in deposits. First Regional has 10 branches and 3 specialty offices. The branches will reopen as branches of First Citizens Bank and Trust based in Raleigh,NC. In 2009 First Citizens bought failed Temecula Valley Bank.

First National Bank based in Carrollton,GA in suburban Atlanta was shut down regulators on Friday. Community and Southern Bank a newly charter bank acquires the assets of First National Bank . The 11 banks branches re-open as community and Southern Bank  a bank chartered to buy failed banks.

A second Georgia bank Community Bank and Trust,Cornelia. The bank had $1.2 billion in assets and $1.1 billion in deposits; Community Bank and Trust had 36 branches in west and northwest Georgia and Eastern Alabama. The bank has been sold to SCBT the parent company of South Carolina Bank and Trust based in Columbia.

Florida Community Bank of Immokalee, Fla., with $875.5 million in assets and $795.5 million in deposits; Marshall Bank of Hallock, Minn., with $59.9 million in assets and $54.7 million in deposits; and American Marine Bank of Bainbridge Island, Wash., with $373.2 million in assets and $308.5 million in deposits.

Florida Community Bank was sold to Premier American Bank and  open as branches of Preimer American.

Marshall Bank sold to United Valley Bank, based in Cavalier, N.D.,

Columbia State Bank, based in Tacoma, Wash., is assuming the assets and deposits of American Marine Bank.

Yahoo Finance News

Los Angeles Times

WXIA-TV “11 Alive News”

America’s Fastest Growing Cities of 2010

As the recession is officially is over  business Week magazine has listed five fastest growing cities in the US.  The survey by Gadberry Group of Little Rock,AR.  Gadberry Group criteria including areas larger than 10,000 occupied households that met requirements for growth rate, household income, length of residence, and other factors.

Here are top five of the fastest growing cities in  America:

Fastest Growing Cities by State

Arizona: Buckeye
Number of households: 18,112
Pct. Chg: +10% since 2008 (+261% since 2000)
Average household income: $52,927 (–6% since 2000)

Why: Buckeye is one of the fastest-growing suburbs in Arizona and has seen a large influx of Asian residents, especially Vietnamese, according to Gadberry. While many new housing units are planned, the price of real estate in Buckeye has dropped nearly 12% since 2008, according to Trulia, and thousands of properties are in the foreclosure process.

California: Lincoln
Number of households: 21,997
Pct. Chg: +10% since 2008 (+250% since 2000)
Average household income: $90,608 (+16% since 2000)
Why: Lincoln, a suburban development 30 miles from Sacramento, is the fastest-growing suburb of California and the third fastest-growing town in the U.S. New office buildings, shopping centers, housing developments, and custom home properties have gone up in recent years as a part of the local development plan, according to ZipRealty.

Georgia: Braselton
Number of households: 13,929
Pct. Chg: +8% since 2008 (+118% since 2000)
Average household income: $113,664 (+67% since 2000)
Why: Gadberry Group noted Braselton, a suburb of Atlanta, as a remarkable high-growth area due to increases not only in population, but also average income and average household net worth ($532,628). Companies operating here such as Sears Logistics, Tractor Supply, Mitsubishi, and Progressive Lighting have helped to generate jobs.

Indiana: Avon
Number of households: 11,521
Pct. Chg: +8% since 2008 (+73% since 2000)
Average household income: $97,355 (+35% since 2000)
Why: Avon has experienced rapid growth since the 1990s due to its convenient location 10 miles from Indianapolis, where health care, social services, and education are the leading industries, according to Simply Hired.

Iowa: Urbandale
Number of households: 16,402
Pct. Chg: +8% since 2008 (+44% since 2000)
Average household income: $93,655 (+12% since 2000)
Why: Urbandale, within an hour’s drive from Kansas City and Minneapolis, has a lower unemployment rate than the national average. The insurance and finance industries are major employers.

Some of the communities on the list have been hardest by housing crisis including Summerlin South community in the Las Vegas metro area,and Ft. Mill,SC in the Charlotte,NC area.

“If you live by migration, you also die by migration,” says Kenneth Johnson, senior demographer at the University of New Hampshire’s Carsey Institute. “It doesn’t guarantee continued growth.”

Yahoo Business

Business Week

Oregonians Pass Major Tax Increases

While California rebelled against the politicians tax increases, their friends in Oregon have passed major tax increases which will send jobs to Washington, Idaho, Utah, Colorado, Texas and Lower cost of living will go up.

Measure 66 and 67 has passed handily. Supporters calls it Tax fairness .Critics says jobs will go away. Measure 66 was ahead 54 to 46 percent. Measure 66 raise a 2 percent on people earning $250,000 and higher.  Measure 67  raises the corporate income tax from $10 to $150  if your business shows a loss.

Supporters excited about the win.
“We’re absolutely ecstatic,” said Hanna Vandering, a physical education teacher from Beaverton and vice president of the statewide teachers union. “What Oregonians said today is they believe in public education and vital services.”

Critics were disappointed  to say the least.

“It’s disappointing and discouraging,” said Pat McCormick, spokesman for Oregonians Against Job-Killing Taxes. “The tone and tenor was often venomous, trying to pit the haves against the have-nots.”

He said the business community now must figure out “how to participate in a system that’s largely disconnected from us.”

Supporters says the will close a $725 budget shortfall.

Oregonian