August 11 Economic News

No major US economic indicators were released Monday the 11th. Here are major economic news stories from Monday and overnight into Tuesday morning.

Capital Commerce: When the Housing and Credit Crisis Will End

Our model suggests new home inventories will have to fall below 7 months supply (from 10 months currently) before home prices begin to rise again. Unfortunately, this could take longer than anticipated given the current state of credit markets.... We believe improvement in corporate bond and mortgage markets is a crucial prerequisite to breaking the negative feedback loop between housing, the financial system, and the broad economy.

Drill, Drill, Drill Is on a Roll, Roll, Roll

Let me return to my theme that the plunge in oil prices is solving the economy’s problems. In today’s stock market trading, while overall prices are up 100 points, retailers and banks are the leading sectors...
As oil and gas pump prices descend, homeowners will have more extra cash to pay their mortgages on time. This means the mortgage bonds owned by banks are worth more. Hence the oil drop solves the credit crunch as well as the housing decline.

Image via Wikipedia

China's consumer inflation drops to 10-month low

BEIJING, Aug 12 (Reuters) - China's consumer price inflation fell in July to a 10-month low of 6.3 percent, providing welcome relief to policy makers looking to switch tack from battling price pressures to aiding a slowing economy.

Japan wholesale inflation hits 27-year high


French July Inflation Holds at 12-Year-High on Rising Energy, Food Costs

Inflation in France held at the fastest pace in at least 12 years in July, led by rising food and oil costs.

One-Third of U.S. Homeowners Owe More Than Houses Are Worth, Zillow Says

Almost one-third of U.S. homeowners who bought in the last five years now owe more on their mortgages than their properties are worth, according to Zillow.com, an Internet provider of home valuations.

U.S. Retools Economy, Curbing Thirst for Oil

The U.S. economy is starting to figure out how to curb its appetite for energy. Consumers are buying fewer SUVs and more energy-saving washing machines; with shipping costs surging, companies are rethinking overseas production. And evidence is emerging that the changing behavior of consumers and businesses may be making a dent in the oil market.