The NAHB Housing Market Index was unchanged at 58 in April.
Housing starts fell a sharp -8.8% in March, to a 1.089 million annual rate, far below expectations.
Redbook reports that last week’s retail sales growth plunged to 0.5% on a year-ago basis, from the previous week’s already-soft 1.1%.
Industrial production fell -0.6% in March, for the second month in a row. Capacity utilization in the nation’s factories fell to 74.8%.
The Empire State Manufacturing Survey surged in April, rising from 0.62 to 9.56.
The University of Michigan’s Consumer Sentiment Index fell -1.3 points to 89.7 in April.
Foreign demand for long-term US securities rose by $72.0 Billion in February.
Consumer prices rose 0.1% in March, both at the headline and core rate. On a year-over-year basis, the CPI is up 0.9% overall, and 2.2% less food and energy.
Initial weekly jobless claims fell 13,000 to 253,000. The 4-week average fell 1,500 to 265,000. Continuing claims fell 18,000 to 2.171 million.
The Bloomberg Consumer Comfort Index rose 1.0 point to 43.6 in the latest week.
The Fed’s balance sheet rose $15.7 billion last week, with total assets of $4.5 trillion. Reserve bank credit rose $4.4 billion.
The Fed reports that M2 money supply fell by $33.7 billion in the latest week.
Hillary Clinton admits not only to a tax increase but a 1 Trillion dollar tax increase. To spend on the debt? Well, no. New spending! Freeloader spending!
If you know how government works, they’ll admit to $1 trillion in new taxes and claim its what they’ll spend, but my guess is the real spending will end up being 4 to 5 times that much. And that in the land of $18 Trillion debt. Check out this interview. Whatever happened to “no new taxes”?
Daily News: So on taxes, that I did call for among other things, a surcharge on incomes over $5 million, 30% minimum, the Buffett rule, over a million…
Clinton: Over a million. Yeah, right.
Daily News: …and then to carried interests, a change in capital gains that would reward people for holding for six years or more, I believe it is. How much revenue do you foresee coming off that and what will be the impact on growth?
Clinton: Well, I have connected up my proposals for the kind of investments I want to make with the taxes that I think have to be raised. So on individual pieces of my agenda, I try to demonstrate clearly that I have a way for paying for paid family leave, for example, for debt-free tuition. So I would spend about $100 billion a year. And I think it’s affordable, and I think it’s a smart way to make investments, to go back to our economic discussion, that will contribute to growing the economy.
Now I’m well aware that this is a heavy lift. I understand that. But I think connecting what I’m asking for to the programs, to the outcomes and results that I’m calling for give me a stronger hand, and that’s how I’m going to go at it.
Daily News: So if I understand you correctly, if you look at your proposals for college costs and for family leave, for infrastructure investments…
Clinton: Well, that’s a little bit different, because infrastructure investment, I’m still looking at how we fund the National Infrastructure Bank. It may be repatriation. That’s one theory, or something else. It’s about $100 billion a year.
Daily News: A hundred billion a year, so that comes out to about a trillion dollars…
Clinton: Over ten.
Daily News: …over ten years.
Meanwhile, never mentioned, is what happens to an already hurting economy when government decides it can spend money better than those who earn it? Well the same thing that happens in any planned economy. People who earn the money quit doing so since it simply isn’t worth it. When marginal rates rise to the point that if you spend your time earning more, most of it goes out in taxes, well then you put together a plan to maximize what you get to keep and you don’t commit to any extra earning that will be mostly taxes.
Does the government spending drop when the planned tax revenues drop?
Have you ever seen it do so? Do you have any idea of how we’ve amassed the $18 trillion dollar debt we have?
So yeah, let’s elect this criminal crackpot and economic illiterate and finally pull the flush chain. Let’s just let it all go down the drain.
What a political season we’re being subjected too. And idiot on the right and two socialist crackpots on the left.
Meanwhile, the apparent hot topic is whether or not North Carolina has the right to have men use a men’s room and not the women’s room.
The Fed’s Beige Book reports today that US economic growth remains modest to moderate, though the labor market continues to grow.
March retail sales fell a disappointing -0.3%, though sales less autos rose 0.2% and sales less autos and gas rose 0.1%.
Producer Prices for Final Demand fell -0.1% in March. Prices less food and energy fell -0.1%, and prices less food, energy, and trade services were unchanged. On a year-over-year basis, PPI-FD is down -0.1%, Prices less food and energy are up 1.0%, and prices less food, energy, and trade services are up 0.9%.
Business inventories fell -0.1% in February, but a -0.4% drop in sales kept the stock-to-sales ratio at a high 1.41.
The Atlanta Fed Business Inflation Expectations outlook for the next 12 months dipped -0.1% to 1.7% in April.
The MBA reports that mortgage applications, driven by interest rate drops, rose 10.0% last week, with purchases up 8.0% and refis up 11.0%.
Increased costs for Medicare and especially net interest payments drove the Treasury’s budget deficit in March to $-108.0 billion. The deficit-to-date is 4.9% higher than April 2015.
Import prices rose 0.2% in March, while export prices were unchanged. On a year-over-year basis, import prices are down -6.2% and export prices were down -6.1%.
The NFIB’s Small Business Optimism Index fell -0.3 points to 92.6 in March.
Redbook reports that last week’s retail sales growth rose to a still-weak 1.1% on a year-ago basis, from the previous week’s 0.6%.
First, the University of Missouri, where the SJWs, with the help of a professor who didn’t think much of the 1st Amendment and was fine with committing battery to deny it, is having a rough year. Consequences from this bit of nonsense have really hit the bottom line:
Following a drop in students applying for housing, the University of Missouri will not be placing students in two dorms for the fall 2016 semester.
Mizzou will be closing the Respect and Excellence halls (ironic names, given the circumstances) in order to utilize dorm space “in the most efficient manner” to keep costs down.
In March, the university announced that it saw a sharp drop in admissions for the coming school year, and will have 1,500 fewer students. This will lead to a $32 million budget shortfall for the school, prompting the need to close the dorms in order to save money.
“Dear university community,” wrote interim chancellor Hank Foley in an email to the school back in March. “I am writing to you today to confirm that we project a very significant budget shortfall due to an unexpected sharp decline in first-year enrollments and student retention this coming fall. I wish I had better news.”
You see, those who are looking for a college have alternatives. And when they see a college or university that they perceive, right or wrong, to be out of control, they are likely to take their business elsewhere. Afterall, they’re paying the bill. So, take note all you institutions of higher learning who tend to fold like a wet paper box when a few students protest, you too may end up closing a couple of dorms if it goes the way of Mizzou. Fair warning.
Oh, and speaking of alternatives, New York government has decided to be “wonderful” with other people’s money and has hiked the minimum wage to $15 (over a time period). That’s double the wage of today. White Castle, an NY institution, isn’t taking that well since it will have a very heavy impact on their profitability (they make a 1 to 2% profit after expenses, including labor). White Castle’s CEO says there are few alternatives. If it was about price increases only, they’d have to increase their prices by 50%. He’s pretty sure that’s a no-go because of competition for dining out dollars. So, what’s he left with?
In the hyper-competitive restaurant industry, margins are slim — Richardson says that, in a typical year, White Castle hopes to achieve a net profit of between 1 and 2 percent — and if labor costs go up, many restaurants will turn toward labor-cost-cutting automation or business models that don’t require many employees. That means a lot of kids won’t get that first job. After decades of baggage check-in kiosks at airports, ATMs, and self-check-out lines at the supermarket, is it really so hard to imagine automation replacing the kid behind the counter at burger joints?
And what is lost to more young, inexperienced and thereby low-wage workers?
“We know that Millennials aren’t thinking they’ll stay at White Castle for 30 years,” Richardson says. “We view it as the start of the path. That’s true if you stay at White Castle or move on to something else. The skills you gain, you can take to the next role: learning how to apply for and get a job, learning how to show up, learning a work ethic, making a paycheck, and having fun.”
But this is about more than wages — White Castle has offered benefits and retirement programs for decades. It’s about the opportunity to work, to take the first step up the ladder of life, to get started.
“Out-of-work kids who don’t have an opportunity to work get in trouble. We want to offer kids jobs, offer kids work,” Richardson says. “There’s dignity in that.”
Somehow, though, the concept of starter jobs that pay low wages (and with the minimum wage, it’s usually more than they are worth) has become lost in all of this and we see government stepping in to make them “career” jobs for some idiotic and economically unsound reason. The result is predictable, although it will likely be hidden. You won’t see numbers because the numbers in question are those who are never hired because the wage floor is too high. And they’re going to be the “out-of-work” kids who don’t get that first chance to experience a job and what it takes to succeed.
Instead an alternative will do the work. A kiosk will greet the customer, takes his order and money and do so at a price point well below a $15 an hour worker. This isn’t rocket science and the math isn’t hard at all – $15 times 0 hours equals what?
Chain stores that reported sales today are reporting weaker sales for March than February.
Initial weekly jobless claims fell 9,000 to 267,000. The 4-week average rose 3,500 to 266,750. Continuing claims rose 19,000 to 2.191 million.
The Bloomberg Consumer Comfort Index fell -0.2 points to 42.6 in the latest week.
The Fed’s balance sheet rose $1.2 billion last week, with total assets of $4.484 trillion. Reserve bank credit fell $-1.0 billion.
The Fed reports that M2 money supply rose by $69.3 billion in the latest week.
Or, the definition of politics today (and how Margret Thatcher defined socialism). Today’s “wonderful” people? Well they’re all in California. Example one:
San Francisco on Tuesday became the first city in the United States to approve six weeks of fully paid leave for new parents — mothers and fathers, including same-sex couples, who either bear or adopt a child.
California is already one of only a few states that offer paid parental leave, with workers receiving 55 percent of their pay for six weeks, paid for by employee-financed public disability insurance. The new law in San Francisco, passed unanimously by the city’s Board of Supervisors, mandates full pay, with the 45 percent difference being paid by employers.
That’s right friends, the price of being nice means charging employers 45% more for paid family leave just for the privilege of doing business in San Francisco. Isn’t that just “wonderful”?
Well of course it is … just ask the clueless:
The United States, which guarantees up to 12 weeks of unpaid parental leave, is the only developed country that does not guarantee all new parents paid parental leave. Expectant mothers get 18 weeks of paid leave in Australia, 39 weeks in the UK, and 480 days in Sweden.
That’s right, they do it in … say it with me, Europe! You know, the group of countries, all of which were they states in the US, would be poorer than Mississippi. That’s what we want, isn’t it boys and girls!
It is the responsibility of others to pay for our choices! Because, you know, it’s the fault of the employer its employees get pregnant and miss work. They should pay them for that time. And what the heck, they can just socialize the payment by raising their prices, can’t they?
And, of course, they can socialize even more with California’s new $15 minimum wage. Because everyone knows that employers ‘owe’ employees a “living wage”. However, don’t forget members of California’s various governments up to their necks in giving away other people’s money – employers still have choices, and you can believe when they are feasible and affordable, they will exercise them.
When that happens, Cal Pols, you can hold a math quiz with everyone who finds themselves looking for work because employers took their business elsewhere or automated.
“What’s $15 dollars times zero hours?
Oh, wait, I forgot … government run schools.