There have been various developments over the past several weeks which investors may consider relevant in allocating their resources or evaluating alternatives that are available to them. Some of the more significant developments include, but are not limited to, the following:
- Business bankruptcies rose 17% in the quarter ended June 30, 2008 the sharpest rise in two years.
- Five of the six largest credit unions in the United States have reported mortgage related losses totaling $5.7 billion.
- Gasoline prices have fallen to $3.674 per gallon on average, down approximately 10% from July 17’s record high of $4.114.
- Detroit’s Big Three car makers have begun lobbying Congress for up to $50 billion in federally guaranteed loans.? Airfares have risen more this summer than at any time in the past 25 years. On average, fares have risen between 12-15%.
- Almost every major auto maker saw sales in the U.S. drop in August. Overall, in August, U.S. sales of automobiles fell 15.5% compared with August 2007.
- The Federal Reserve reported that business across most of the U.S. was “slow” in August.
- Job cuts announced by U.S. employers in August jumped 12% over August 2007.
- Lender GMAC Financial Services announced that it would close all of its 200 retail offices and lay off 5,000 employees.
- The International Air Transport Association projected that airlines, collectively, would report approximately $5.2 billion in losses in 2008, almost $3 billion higher than projected.
- The Labor Department announced that new applications for unemployment insurance rose by 15,000 last week.
- The Labor Department reported that new applications for unemployment insurance rose to a seasonally adjusted 444,000.
- The number of people continuing to receive unemployment benefits rose to 3.44 million people for the week ending August 23.
- The Labor Department reported that productivity rose at 4.3% annual rate during the second quarter of 2008, higher than economists expected. Most of the nation’s retailer struggled in the recent back-to-school season.
- Wal-Mart posted higher August sales.
- The U.S. lost more job than forecast in August. Payrolls fell by 84,000.
- In August, jobless rates jumped to 6.1% the highest rate in five years.
- Goldman Sachs’ chief U.S. economist reported that the economy “is close to stagnating.”
- Well known investor, Mario Gabelli, chief executive officer of GAMCO Investors stated, “The concern over the earnings outlook for 2009 is well-founded.”
- The total number of homes in foreclosure has reached 2.75% while the total number of loans with one or more payments overdue has reached 6.41%.
Page Perry’s Market Monitor is published periodically to give investors an overview of certain recent developments impacting the economy and/or the investment markets.