{"id":197707,"date":"2008-01-16T17:38:00","date_gmt":"2008-01-16T22:38:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/01\/16\/economics-update-539\/"},"modified":"2008-01-16T17:38:00","modified_gmt":"2008-01-16T22:38:00","slug":"economics-update-539","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/01\/16\/economics-update-539\/","title":{"rendered":"Economics Update"},"content":{"rendered":"<p><a href=\"http:\/\/www.marketwatch.com\/news\/story\/consumer-prices-rise-03-december\/story.aspx?guid=%7B9CCA8A4F-8017-448D-A8BB-2BF56DF8D2BB%7D\">Consumer prices rise by the highest amount since 1990<\/a>, though it should be noted that the inflation numbers have become far less reflective of reality due to &#8220;creative massaging&#8221; since then.<\/p>\n<p><a href=\"http:\/\/picasaweb.google.com\/msaroff\/Moo\/photo#5156198232159099106\"><img decoding=\"async\" src=\"http:\/\/lh3.google.com\/msaroff\/R45--TNXGOI\/AAAAAAAAARw\/qwzs1eNVTJ0\/s800\/wizardofid2007112223228.gif\" \/><\/a><\/p>\n<p>H\/t to <a href=\"http:\/\/bigpicture.typepad.com\/comments\/2008\/01\/bureau-of-weigh.html\">The Big Picture<\/a> for finding the cartoon.<\/p>\n<p><a href=\"http:\/\/calculatedrisk.blogspot.com\/2008\/01\/ambac-cuts-dividend-takes-54-billion.html\">Bond Insurerer Ambac Cuts Dividend, and declares loss<\/a>, they are bleeding to death.<\/p>\n<p>[on edit, added the following]<br \/><a href=\"http:\/\/money.cnn.com\/2008\/01\/16\/real_estate\/bc.apfn.s.p.ratingsrevis.ap\/index.htm?postversion=2008011608\">Standard &amp; Poors raises the assumed losses on 2006 subprime bonds from 14% to 19%<\/a> when it makes ratings on financial instruments, such as CDOs.  They are in the process of reviewing their models for <span style=\"font-weight: bold;\">all outstanding mortgage backed debt<\/span>.  (The end result won&#8217;t be pretty)<\/p>\n<p>Then we have a report from <a href=\"http:\/\/calculatedrisk.blogspot.com\/2008\/01\/jp-morgan-home-equity-delinquencies.html\">JP Morgan saying that home equity delinquencies are high<\/a>  In fact, they are <span style=\"font-weight: bold;\">higher than they would have expected at the bottom of a recession<\/span>, which implies that the way down is still pretty scary, and <a href=\"http:\/\/money.cnn.com\/2008\/01\/16\/news\/companies\/jpm_earnings\/index.htm?cnn=yes\">their profits fell 34%<\/a>.<\/p>\n<p>On the good news side, <a href=\"http:\/\/money.cnn.com\/2008\/01\/16\/markets\/oil_eia\/index.htm?postversion=2008011611\">oil prices have fallen below $90\/bbl<\/a>, because traders expect to see a moderation in demand because of an economic slowdown.<a href=\"http:\/\/money.cnn.com\/2008\/01\/16\/news\/companies\/jpm_earnings\/index.htm?cnn=yes\"><br \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Consumer prices rise by the highest amount since 1990, though it should be noted that the inflation numbers have become far less reflective of reality due to &#8220;creative massaging&#8221; since then. H\/t to The Big Picture for finding the cartoon. Bond Insurerer Ambac Cuts Dividend, and declares loss, they are bleeding to death. [on edit, &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1261,973,1004,1265],"tags":[],"class_list":["post-197707","post","type-post","status-publish","format-standard","hentry","category-bubble","category-economy","category-finance","category-housing-crash"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/197707"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=197707"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/197707\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=197707"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=197707"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=197707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}