“Lowest Level” Of Existing Home Sales Since The National Association Of Realtors “Started Tracking The Numbers In 2001.” “[T]he National Association of Realtors said an index that measures sales contracts signed on existing homes plunged 30 percent in May, more than twice what analysts had forecast, to the lowest level since the group started tracking the numbers in 2001.” (Dina ElBoghdady, “U.S. Housing Market Remains Fragile Despite Low Mortgage Rates,” The Washington Post, 7/2/10)
The Housing Crash “Wound” Has Not Healed. “’The tax credit was like a Band-Aid over the housing market,’ said Mark Vitner, a senior economist at Wells Fargo Securities. ‘Now that the Band-Aid has been ripped off, we've found that the wound has not quite yet healed.’” (Dina ElBoghdady, “U.S. Housing Market Remains Fragile Despite Low Mortgage Rates,” The Washington Post, 7/2/10)
And The Construction Sector Is Still Fragile. “The construction sector, meanwhile, remains weak. Spending on all types of building declined 0.2% in May from April, and was down 8% from May 2009, the government said Thursday.” (Don Lee and Alejandro Lazo, “Economic Rebound May Be Losing Ground, Data Show,” Los Angeles Times, 7/2/10)
Factory Orders Suffered Their Biggest Drop In Over A Year. “Orders to U.S. factories declined broadly in May after nine straight months of gains. The Commerce Department says orders for manufactured goods decreased by 1.4 percent in May. It was the biggest drop since March 2009.” (“Factory Orders Fall 1.4 Percent In May,” The Associated Press, 7/2/10)
LEADING TO A CRISIS OF CONFIDENCE IN OBAMA’S POLICIES
Rasmussen Poll: “Just 25% Of Voters Nationwide Believe The Economic Stimulus Package Created Jobs And Voters Are Counting On Decisions Made By Business Owners More Than Government Officials To Create The Jobs Needed By The Nation.” (“29% Say Stimulus Plan Helped The Economy, 43% Say It Hurt,” Rasmussen Reports, 7/2/10)- 43% Believe Stimulus Hurt Economy; A Wide Margin Favor Tax Cuts Over Further Government Spending. “The new survey found that just 29% believe last year’s economic stimulus plan has helped the economy while 43% believe it hurt. Not surprisingly, there is little appetite for another round. By a 69% to 15% margin, voters believe tax cuts is a better way to create jobs rather than more government spending.” (“29% Say Stimulus Plan Helped The Economy, 43% Say It Hurt,” Rasmussen Reports, 7/2/10)
Stimulus Projects Have Not Encouraged The Private Sector To Hire More Workers. “But seventeen months later, those stimulus jobs, along with temporary government positions created for the 2010 census, are among the few bright spots in a dismal employment market. The nation's unemployment rate is 9.7% and companies have shown little willingness to hire. Private-sector employers added just 41,000 jobs in May, out of a total of 431,000 jobs created.” (Alan Samuels, “With Federal Stimulus Funds Running Out, Economic Worries Grow,” The Los Angeles Times, 6/30/10)
And Liberal Columnist Bob Herbert Says That Obama And The Democrats Have Not Been Focused On Jobs. “Mr. Obama and the Democrats have wasted the once-in-a-lifetime opportunity handed to them in the 2008 election. They did not focus on jobs, jobs, jobs as their primary mission …” (Bob Herbert, Op-Ed, “Wrong Track Distress,” The New York Times, 6/28/10)
- “Now We’re Paying A Fearful Price” Because Dems Didn’t Focus On Jobs. “Job creation was the trump card in the hand held by Mr. Obama and the Democrats, but they never played it. And now we’re paying a fearful price.” (Bob Herbert, Op-Ed, “Wrong Track Distress,” The New York Times, 6/28/10)
AND A DISCOURAGING JOBS REPORT FOR JUNE
June’s Employment Numbers Are A Blow To Obama’s Agenda Of Job Creation. “U.S. private payrolls rose only modestly in June and overall employment fell for the first time this year as thousands of temporary census jobs ended, indicating the economic recovery is failing to pick up steam.” (Lucia Mutikani, “Payrolls Fall, Private Hiring Below Forecasts,” Reuters, 7/2/10)- With The Stimulus Floundering, Obama Has Been Trying To Blame His Predecessor. “Public unhappiness with the economy, especially after a record $787 billion package of spending and tax cuts, is eroding Obama's popularity. Obama, has tried to put the blame on policies of the previous administration.” (Lucia Mutikani, “Payrolls Fall, Private Hiring Below Forecasts,” Reuters, 7/2/10)
- June’s Report Was Worse Than Economists’ Predictions And Shows Less Growth Than Is Needed For A Recovery. “The median forecast from economists and economic forecasting firms was that the nation would add 110,000 private-sector jobs. The economy needs to add about 130,000 to 150,000 jobs a month just to keep pace with new workers entering the market. The labor pool is already packed with 15 million Americans looking for work.” (Michael Powell, “U.S. Economy Shed 125,000 Jobs in June; Rate Is 9.5%,” The New York Times, 7/2/10)
- Markets Are Skeptical That The Gains We Have Seen Can Be Sustained. “And it is not clear that even this can be sustained. Many see consumers tapped out, states readying plans to lay off tens of thousands, and now a declining stock market, and they wonder where the economy will derive the fuel for a robust takeoff.” (Michael Powell, “U.S. Economy Shed 125,000 Jobs in June; Rate Is 9.5%,” The New York Times, 7/2/10)
- “That's Unlikely To Happen Any Time Soon. Economic figures out Thursday pointed to a broad economic slowdown in the U.S., from less manufacturing growth to elevated claims for jobless benefits and declines in home construction and pending sales. . . The private-sector jobs gains of 83,000 were less than the 110,000 that were expected and followed a small 33,000 increase in May.” (Luca Di Leo and Tom Barkley, “U.S. Sheds Jobs,” Dow Jones Newswire, 7/2/10)
Read more: http://www.gop.com/index.php/briefing/comments/warning_signs_ahead/#ixzz0t1JQFsF5
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