Tuesday, December 6, 2016

Wednesday December 7 2016 Housing and Economic stories


Americans Not In The Labor Force Soar To Record 95.1 Million: Jump By 446,000 In One Month - (www.zerohedge.com)  So much for that much anticipated rebound in the participation rate. After it had managed to post a modest increase in the early part of the year, hitting the highest level in one year in March at 63%, the disenchantment with working has returned, and the labor force participation rate had flatlined for the next few month, ultimately dropping in November to 62.7%, just shy of its 35 year low of 62.4% hit last October. This can be seen in the surge of Americans who are no longer in the labor force, who spiked by 446,000 in November, hitting an all-time high of 95.1 million.

As Auto Lending Rises, So Do Delinquencies - (www.cnbc.com) Regulators are airing "significant concern" about the millions of Americans who are falling behind on their car loans, even as auto lending continues to boom at a near record pace. On Wednesday, the Federal Reserve Bank of New York noted increasing distress among auto borrowers with shaky credit, as subprime delinquencies rose in the third quarter. In the third quarter, 2 percent of subprime auto loan balances became at least 90 days delinquent, up from 1.6 percent in the third quarter of 2014.

Since 2014 The US Has Added 571,000 Waiters And Bartenders And Lost 34,000 Manufacturing Workers - (www.zerohedge.com) As another month passes, the great schism inside the American labor force get wider. We are referring to the unprecedented divergence between the total number of high-paying manufacturing jobs, and minimum-wage food service and drinking places jobs, also known as waiters and bartenders. In October, according to the BLS, while the number of people employed by "food services and drinking places" rose by another 18,900, the US workforce lost another 4,000 manufacturing workers. This is the fourth consecutive month of declining manufacturing workers, and the 7th decline in the past 10 months.

Government Bond & Mortgage “Meltdown” Crushes NIRP - (www.wolfstreet.com) The situation in government bonds – variously labeled with “bloodbath,” “rout,” “carnage” “meltdown,” or similar propitious terms – continued on Thursday. Already in November – so not counting the “carnage” today – the Bloomberg Barclays Global Aggregate Total Return Index lost 4% or $1.7 trillion, according to Bloomberg, “the deepest slump since the gauge’s inception in 1990. ”While global stocks rallied in November, the gains – $635 billion – were outright puny compared to the $1.7 trillion wiped out in the much larger bond markets. On Thursday it got worse. It started in Europe where government bonds got crushed after speculation surfaced that the ECB might not keep buying bonds until hell freezes over, that in fact it might begin tapering its QE program as soon as next year. The markets were aghast.

 Global Bonds Suffer Worst Monthly Meltdown as $1.7 Trillion Lost - (www.bloomberg.com) The Bloomberg Barclays Global Aggregate Total Return Index lost 4 percent in November, the deepest slump since the gauge’s inception in 1990. Treasuries extended declines Thursday along with European bonds on speculation that the European Central Bank will consider sending a signal that stimulus will eventually end. The reflation trade has been driving markets since Donald Trump’s election victory due to his promises of tax cuts and $1 trillion in infrastructure spending. Calling an end to the three-decade bond bull market is no longer looking like a fool’s errand: the Federal Reserve is expected to raise interest rates again -- and do so more often than once a year, inflationary expectations are climbing and there are hints global central banks may buy less sovereign debt going forward. 


Treasuries Drop Before Jobs Data as Oil Gains; Dollar Declines - (www.bloomberg.com)
Dollar Slips Before Jobs Data as Oil Trades Near $50; Bonds Drop - (www.bloomberg.com)
Oil Trades Near $50 After OPEC Deal as Focus Moves to Execution - (www.bloomberg.com)
Asian Stocks Rise Most in Three Weeks on Oil Deal as Bonds Drop - (www.bloomberg.com)

Traders Are Betting that Volatility Is About to Spread - (www.bloomberg.com)
Markets swing violently against Italy without clear idea of outcome - (www.reuters.com)
Bonds Vulnerable Whether the News From Europe Is Good or Bad - (www.bloomberg.com)

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