"Broad money supply (M3) surged $59 billion to a record $9.898 Trillion (week of August 22). Year-to-date, M3 has expanded at a 6.8% rate, with M3-less Money Funds expanding at a 8.3% pace. M3 has expanded $273 billon over the past 14 weeks, or 10.5% annualized."
August 31 – Bloomberg (James Cordahi and Andy Critchlow): “Dubai’s economy is booming, thanks to record oil prices and surging real estate values. The Dubai Financial Market has more than tripled in value in 12 months. Each week brings more news of record profits for companies and announcements of yet another gigantic construction project. The $1 billion Burj Dubai, for example, is planned to be the world’s tallest building at more than 800 meters (2,625 feet) when it’s completed in 2009.” **(my company delivered $160K job to Saudi Arabia, our first! D)
Bubble Economy Watch:
September 1 - Dow Jones: “U.S. home prices surged an average 13.4% during the 12 months ended June 30, reflecting the largest yearly jump in 25 years,
The Office of Federal Housing Enterprise Oversight, which regulates Fannie Mae and Freddie Mac, said Thursday that U.S. house price growth doesn’t look like it will slow anytime soon. ‘On the contrary, house price inflation continues to accelerate as some areas that have experienced relatively slow appreciation are picking up steam,’ OFHEA Chief Economist Patrick Lawler said… ‘There is no evidence here of prices topping out.’”
September 1 – MarketNews: “The following is the text released…by Monster.com for its monthly index of employment for August: U.S. Online Job Demand Surges in August, Lifting Monster Employment Index to Highest Level Ever. Sharp Rise in Online Recruitment Activity Nationwide Indicates Continued Labor Market Strength as Fall Hiring Season Approaches… Index jumps 8 points to a record-high level of 142; up dramatically from July and 30 points higher compared to a year ago…” **(IF GREENSPAN stops rate increases there will be a stiff price to pay)
‘Capital continues to flow into the commercial and multifamily real estate markets on both the debt and equity sides,’ noted Douglas Duncan, MBA chief economist
I will not address the markets, economy, “money,” or Credit during the week of our nation’s most tragic natural disaster.
And, like many, I am appalled by our federal government’s response to a disaster that was anything but unpredictable.
Especially considering the amount of money and resources devoted to national defense and homeland security, this week was a national disgrace. Doug Noland
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