The Atlanta Fed's macroblog provides commentary on economic topics including monetary policy, macroeconomic developments, financial issues and Southeast regional trends.
- BLS Handbook of Methods
- Bureau of Economic Analysis
- Bureau of Labor Statistics
- Congressional Budget Office
- Economic Data - FRED® II, St. Louis Fed
- Office of Management and Budget
- Statistics: Releases and Historical Data, Board of Governors
- U.S. Census Bureau Economic Programs
- White House Economic Statistics Briefing Room
January 25, 2006
Hard Landing? Still Waiting
Thomas Palley is right: "Foreign flight" (a shock to the United States ability to borrow savings from abroad) is very different from "Consumer burnout" (a slowdown in US demand growth). In both the foreign flight and the consumer burnout scenarios, the US economy slows and the dollar falls. But in the foreign flight scenario, as Palley notes, the fall in the dollar and rise in US (market) interest rates triggers the US slowdown, while in the consumer burnout scenario, the US slump triggers dollar weakness. Foreign flight would combine dollar weakness with higher US (market) interest rates, consumer burnout combines dollar weakness with lower interest rates.
This morning's news brings this observation on the "consumer burnout" front, from Bloomberg...
Sales of previously owned homes fell in December for a third straight month, evidence that housing demand was starting to falter at the end of a record year, economists said before a private report today.
Sales of existing homes fell to a 6.87 million annual pace last month, the slowest since March, from 6.97 million in November, according to the median of 59 forecasts in a Bloomberg News survey. Sales haven't fallen for three straight months since 2002. They are down from a record 7.35 million rate in June.
Higher home prices and borrowing costs will curtail demand this year after home sales reached a fifth straight record in 2005, according to real estate industry forecasts.
... and this on the "foreign flight" business, from MarketWatch:
Treasury prices closed at their lows Tuesday, keeping yields higher, after lukewarm response to an auction of 20-year Treasury Inflation-Protected Securities re-inforced worries that there is not enough demand for this month's heavy fixed-income supply...
The weak response played into fears that an exceptionally plentiful amount of government and corporate bonds issuance this month is weakening demand and driving up borrowing costs.
On the bright side though, a full 56.1% of the bids came from indirect bidders, a category that includes foreign central banks. That result should help soothe concerns that foreigners may be backing away from U.S. assets.
Place your bets.
TrackBack URL for this entry:
Listed below are links to blogs that reference Hard Landing? Still Waiting:
- Introducing the Refined Labor Market Spider Chart
- Shrinking Labor Market Opportunities for the Disabled?
- Are Long-Term Inflation Expectations Declining? Not So Fast, Says Atlanta Fed
- What Occupational Projections Say about Entry-Level Skill Demand
- A Closer Look at Changes in the Labor Market
- Should We Be Concerned about Declines in Labor Force Growth?
- Labor Report Silver Lining? ZPOP Ratio Continued to Rise in September
- The ZPOP Ratio: A Simple Take on a Complicated Labor Market
- What Do U.S. Businesses Know that New Zealand Businesses Don't? A Lot (Apparently).
- 5-Year Deflation Probability Moves Off Zero
- February 2016
- January 2016
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- Business Cycles
- Business Inflation Expectations
- Capital and Investment
- Capital Markets
- Data Releases
- Economic conditions
- Economic Growth and Development
- Exchange Rates and the Dollar
- Fed Funds Futures
- Federal Debt and Deficits
- Federal Reserve and Monetary Policy
- Financial System
- Fiscal Policy
- Health Care
- Inflation Expectations
- Interest Rates
- Labor Markets
- Latin America/South America
- Monetary Policy
- Money Markets
- Real Estate
- Saving, Capital, and Investment
- Small Business
- Social Security
- This, That, and the Other
- Trade Deficit
- Wage Growth