Q1 2013 real GDP was revised downward to 1.8% from 2.4%. This is fairly bad news, as fourth quarter 0.4% GDP already showed a stagnant economy. The revisions were so extensive it is like reading a different report. Consumer spending was the biggest downward revision followed by significantly less exports than originally reported.
Just when you think they all got completely away with it, along comes one government regulator, the CFTC. The U.S. Commodity Futures Trading Commission issued a settlement with MF Global. The firm settlement consisted of full restitution of the $1 billion customer money lost plus a $100 million fine. Yet the CFTC also filed civil charges against former CEO Jon Corzine along with another MF Global executive, Edith O'Brien.
Pending Home Sales increased by 6.7% in a month. This is the highest monthly increase since May 2011 according to the National Association of Realtors. Pending home sales have increased 12.1% from a year ago. Pending home sales are also back to December 2006 housing bubble year levels.
The April 2013 S&P Case Shiller home price index shows a 12.1% price increase from a year ago for over 20 metropolitan housing markets and a 11.6% change for the top 10 housing markets from April 2012. This is the highest yearly gain since March 2006.
The Bank for International Settlements has demanded Central Banks stop their quantitative easing in hopes of a global economic recovery. All that has happened is a stock market love affair while the real economy languishes. BIS has issued their annual report demanding nations deleverage, which is codespeak for austerity.
Every day we have outrage after outrage against the U.S. worker and middle class. There is so much economic injustice, it's hard to keep up. Yet some stories are so outrageous you'll swear out loud and scare the dog. Such is the story of McDonald's workers being paid by debit cards instead of checks, forced to do so. An McDonald's ex-employee just sued over it:
The NAR reported existing home sales jumped 4.2% from last month and inventories are still a very tight 5.1 months of supply for May 2013. Existing homes sales have increased 12.9% from a year ago. Volume was 5.18 million against April's 4.97 million annualized existing home sales.
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