Economy grows in 3Q, signals end of recession

[daggerkobe]

http://www.google.com/hostednews/ap/article/ALeqM5gNiyJ905Ho0Ur96V2TQhsBX19lGwD9BKQC8O0

WASHINGTON — The economy grew at a 3.5 percent pace in the third quarter, the best showing in two years, fueled by government-supported spending on cars and homes. It's the strongest signal yet that the economy has entered a new, though fragile, phase of recovery and that the worst recession since the 1930s has ended.

Going forward, many analysts expect the pace of the budding recovery to be plodding due to rising unemployment and continuing difficulties by both consumers and businesses to secure loans.

"This welcome milestone is just another step, and we still have a long road to travel until the economy is fully recovered," said Christina Romer, President Barack Obama's chief economist. "It will take sustained, robust ... growth to bring the unemployment rate down substantially. Such a decline in unemployment is, of course, what we are all working to achieve."

The much-awaited turnaround reported Thursday by the Commerce Department ended the streak of four straight quarters of contracting economic activity, the first time that's happened on records dating to 1947.

OBAMA

[buztah]

Perfect timing for a report to sucker in the public before a nice market correction. These Wall Street boys are truly sharks.

[wtf]

the over 9% unemployed must be ecstatic with this news while lining up for benefits

and more good news!



Oct. 29 (Bloomberg) -- About 18.8 million homes stood empty in the U.S. during the third quarter as banks seized properties from delinquent borrowers and new home sales fell in September.

The number of vacant properties, including foreclosures, residences for sale and vacation homes, rose from 18.4 million a year earlier and 18.7 million in the second quarter, the U.S. Census Bureau said in a report today. The record high was in the first quarter, when 18.95 million homes were vacant. The homeownership rate, meaning households that own their own residence, stood at 67.6 percent.

The worst U.S. housing crash since the Great Depression has led to a record number of foreclosures and shaved almost a third off property values. The S&P/Case-Shiller Index of 20 cities in August was 29 percent below its 2006 high, after rising for four consecutive months.

“We are bumping along the bottom of the housing market,” said James Lockhart, vice chairman of WL Ross & Co. and the former director of the Federal Housing Finance Agency. “There is the potential for another swing down.”

Sales of new U.S. homes fell 3.6 percent in September to an annual pace of 402,000, the Commerce Department said yesterday. That was lower than the 440,000 median forecast of 75 economists surveyed by Bloomberg News.

Vacancy Rate

The percentage of all U.S. homes empty and for sale, known as the vacancy rate, rose to 2.6 percent from 2.5 percent in the second quarter. It hit an all-time high of 2.9 percent in the first and fourth quarters of 2008, the Census Bureau said.

There were 130.3 million homes in the U.S. in the third quarter, according to the report. In addition to the 2 million empty properties for sale, the report counted 4.6 million vacant homes for rent and 4.6 million seasonal properties that are only used for part of the year.

Foreclosures are included in a part of the Census Bureau that also includes vacation homes intended for year-round use and homes that are unoccupied because they are under renovation or tied up in legal proceedings. There were 7.7 million such properties empty in the first quarter, up from 7.5 million a year earlier, the report said.

Foreclosures could also be counted as vacant homes for sale or rent, or as owner-occupied properties if lenders have not yet evicted previous owners, the federal agency said.

Job Losses

Companies have shed more than 7 million jobs since the recession began in December 2007, cutting demand for homes and eroding the consumer spending that makes up about 70 percent of the world’s largest economy. In September, the unemployment rate rose to 9.8 percent, the highest in more than a quarter century.

U.S. foreclosure filings climbed to a record in the third quarter as lenders seized more properties from delinquent borrowers, according to RealtyTrac Inc. in Irvine, California. A total of 937,840 homes received a default or auction notice or were repossessed by banks, a 23 percent increase from a year earlier, the data company said.

U.S. banks in the second quarter held $34 billion of properties acquired through foreclosure, including repossessed homes and condominium projects gone bust, according to the Federal Deposit Insurance Corp. in Washington. That’s almost double the $18.9 billion of real estate a year earlier.

[Fishhead]

False alarm

But, sportsbettors are kicking butt in the NFL this year and that has to be good for many local economies.

[Rixsaw]

would have ended a long time ago if they legalize gambling throughout the US. The Native Americans should try to reclaim some of their territories to open more casinos in the metro areas.

[curinator]

Rofl, "The economy grew at a 3.5 percent pace in the third quarter, the best showing in two years, fueled by government-supported spending on cars and homes." That says it all right there. Gotta love when the GDP rate rises due to more "fake" money. I'd love to see the outlook for the economy if the Federal Reserve were to be audited.

[Sam Odom]

[daggerkobe]

Even when the last recession ended back in 2001, unemployment continued to grow for another 2 years.

So it's no surprise that unemployment will continue to grow. But that's how much damage that idiot Dumbya did with his $1 Trillion War and deregulation of banks allowing them to take on mounds of subprime risk. How that fuker isn't in jail is a mystery.

[Chi_archie]

there won't be enough jobs for a long time, i'm not sure what will bring back enough jobs really. companies are starting to do well with less workers. Many other jobs are still being outsourced. Blue Collar jobs are becoming extinct.

the numbers we read about in the paper will go down, just as a function of the term of people's unemployment claims running out and such. But i'm not sure we'll see many new jobs created over the next 2 years

[MilfDriller]

dagger is an idiot.

[buztah]

the over 9% unemployed must be ecstatic with this news while lining up for benefits

and more good news!



Oct. 29 (Bloomberg) -- About 18.8 million homes stood empty in the U.S. during the third quarter as banks seized properties from delinquent borrowers and new home sales fell in September.

The number of vacant properties, including foreclosures, residences for sale and vacation homes, rose from 18.4 million a year earlier and 18.7 million in the second quarter, the U.S. Census Bureau said in a report today. The record high was in the first quarter, when 18.95 million homes were vacant. The homeownership rate, meaning households that own their own residence, stood at 67.6 percent.

The worst U.S. housing crash since the Great Depression has led to a record number of foreclosures and shaved almost a third off property values. The S&P/Case-Shiller Index of 20 cities in August was 29 percent below its 2006 high, after rising for four consecutive months.

“We are bumping along the bottom of the housing market,” said James Lockhart, vice chairman of WL Ross & Co. and the former director of the Federal Housing Finance Agency. “There is the potential for another swing down.”

Sales of new U.S. homes fell 3.6 percent in September to an annual pace of 402,000, the Commerce Department said yesterday. That was lower than the 440,000 median forecast of 75 economists surveyed by Bloomberg News.

Vacancy Rate

The percentage of all U.S. homes empty and for sale, known as the vacancy rate, rose to 2.6 percent from 2.5 percent in the second quarter. It hit an all-time high of 2.9 percent in the first and fourth quarters of 2008, the Census Bureau said.

There were 130.3 million homes in the U.S. in the third quarter, according to the report. In addition to the 2 million empty properties for sale, the report counted 4.6 million vacant homes for rent and 4.6 million seasonal properties that are only used for part of the year.

Foreclosures are included in a part of the Census Bureau that also includes vacation homes intended for year-round use and homes that are unoccupied because they are under renovation or tied up in legal proceedings. There were 7.7 million such properties empty in the first quarter, up from 7.5 million a year earlier, the report said.

Foreclosures could also be counted as vacant homes for sale or rent, or as owner-occupied properties if lenders have not yet evicted previous owners, the federal agency said.

Job Losses

Companies have shed more than 7 million jobs since the recession began in December 2007, cutting demand for homes and eroding the consumer spending that makes up about 70 percent of the world’s largest economy. In September, the unemployment rate rose to 9.8 percent, the highest in more than a quarter century.

U.S. foreclosure filings climbed to a record in the third quarter as lenders seized more properties from delinquent borrowers, according to RealtyTrac Inc. in Irvine, California. A total of 937,840 homes received a default or auction notice or were repossessed by banks, a 23 percent increase from a year earlier, the data company said.

U.S. banks in the second quarter held $34 billion of properties acquired through foreclosure, including repossessed homes and condominium projects gone bust, according to the Federal Deposit Insurance Corp. in Washington. That’s almost double the $18.9 billion of real estate a year earlier.

True true, Dubya. And how many idiots will actually drink the kool aid and buy (long term) securities at these levels?

[dmtrader]

I never quite understood economic indicators based on spending. Job growth is the only indicator that matters, and we are long way off from seeing any meaningful uptick in jobs.

[jjgold]

We are in a deep recession
this is a Obama con

[smarmy]

Let's see how the economy is when the "clunkers for cash" and mortgage bailouts aren't included in the quarter.

[buztah]

Coach, can citizens magically write off their debt and even show it as profit? Try that the next time a creditor sends you a bill. What a phucking joke Obama is.

[Dave Head]

This thread should have been placed in "politics & economics"

[QB_Disruptor]

Let's see how the economy is when the "clunkers for cash" and mortgage bailouts aren't included in the quarter.

Exactly.
The entire growth they are claiming is from govt. smoking crack. It's like a guy who is strung out for awhile. He is looking all sickly wondering the streets eating out of dumpsters. One day he scores a big fat sack of crack and smokes for a few hours and starts singing a new tune. Guy feels like a million bucks. But is he any better off?

[daggerkobe]

I never quite understood economic indicators based on spending. Job growth is the only indicator that matters, and we are long way off from seeing any meaningful uptick in jobs.

Consumer spending drives economic recoveries. The by-product of consumer spending is job growth.

Just look at Cash 4 Clunkers..... about 25,000 jobs were saved & created for the automotive industry thanks to the program.

[maersksealand]

You need to find a forum for Obamatards , here you will just embarass yourself with this kind of "news".

[InThisMoment]

I got up at 6am (which I never do) to take someone to the airport. I was amazed at the number of cars on the road. They were headed to work. I would say 95-99% of them turned off at the exits to the air force base and the naval base.

Good thing the government is propping up the employment with jobs that create exactly nothing except to protect us from mythical evil forces.

Whatever happened to created something worthwhile for a living? Welcome to the nanny state.