Headlines today continue to be somewhat frightening. The total number of jobs in the economy has now fallen to where it was just before the turn of the millennium, which means all the new jobs created in the 21st century have now been lost. We're back at 20th century levels now, according to the Business Insider.
The effect of this on Main Street is being keenly felt as Bloomberg reports that a record 33.6 million Americans are now on Food Stamp programs. (11.5% of our total population). The loss of jobs, along with the loss of access to credit, has severely curtailed the average person's purchasing power, making necessities like food more and more difficult to afford.
Bloomberg also reports that the number of Commercial properties in default has now doubled since January, with a total of $108 billion now in default. This is no surprise. When credit dries up properties cannot roll over their financing easily any longer. Then, as people lose purchasing power, the decrease in sales affects all commercial activity when small business tenants fail and fall by the wayside. You will see more and more "For Rent" signs on empty storefronts and office buildings. In the short term realtors representing these distressed property owners will be busy marketing, but lack of demand for sales and leasing will continue to crush this market like a slow vise.
International trade is way down. Naked Capitalism reports that shipping levels at key ports have fallen another 10% as demand from China begins to falter. Shipping rates are plummeting, with container fees off over 40%. Total trade traffic is off by 27 million fewer containers from 2008 levels. The American Trucking Tonnage index has now also fallen to year 2000 levels, so all the "growth" of the 21st century has been lost.
Apartment vacancy rates have reached a national 22 year high as bloomberg reports: "Job losses and falling wages are shrinking the pool of potential renters, defying forecasts that prospective homebuyers would rent rather that purchase as house prices decline." People who can't sell are renting their homes, yet tenants are thinning out as the cost of moving is still a great burden to those struggling just to pay bills and put food on the table. I have long argued that the old model of credit check, first month rent, security deposit, and a one year lease that is so common will come under more and more stress. Landlords who adapt and offer incentives to make it easier for new tenants to get into a rental will survive. Those that don't will see their vacancy rates continue to increase.
MSN Money has finally admitted that the nation's real unemployment rate is already at Depression era levels of 20%. In fact, more and more mainstream media outlets are finally realizing the true nature of our economic downturn, just as Joe Biden revealed in his interview last week. The damage was consistently underestimated by all but the intelligent bloggosphere. This is par for the course. The Nov 24, 1930 headline of Barron's foolishly read: "The End of the Business Retreat?" Now a Barrons financial editor is finally admitting we are heading into another depression that could prove to be as long and painful as that of the 1930s.
These were just a few news bytes from reality this morning. I hope your world is better than these headlines.
The effect of this on Main Street is being keenly felt as Bloomberg reports that a record 33.6 million Americans are now on Food Stamp programs. (11.5% of our total population). The loss of jobs, along with the loss of access to credit, has severely curtailed the average person's purchasing power, making necessities like food more and more difficult to afford.
Bloomberg also reports that the number of Commercial properties in default has now doubled since January, with a total of $108 billion now in default. This is no surprise. When credit dries up properties cannot roll over their financing easily any longer. Then, as people lose purchasing power, the decrease in sales affects all commercial activity when small business tenants fail and fall by the wayside. You will see more and more "For Rent" signs on empty storefronts and office buildings. In the short term realtors representing these distressed property owners will be busy marketing, but lack of demand for sales and leasing will continue to crush this market like a slow vise.
International trade is way down. Naked Capitalism reports that shipping levels at key ports have fallen another 10% as demand from China begins to falter. Shipping rates are plummeting, with container fees off over 40%. Total trade traffic is off by 27 million fewer containers from 2008 levels. The American Trucking Tonnage index has now also fallen to year 2000 levels, so all the "growth" of the 21st century has been lost.
Apartment vacancy rates have reached a national 22 year high as bloomberg reports: "Job losses and falling wages are shrinking the pool of potential renters, defying forecasts that prospective homebuyers would rent rather that purchase as house prices decline." People who can't sell are renting their homes, yet tenants are thinning out as the cost of moving is still a great burden to those struggling just to pay bills and put food on the table. I have long argued that the old model of credit check, first month rent, security deposit, and a one year lease that is so common will come under more and more stress. Landlords who adapt and offer incentives to make it easier for new tenants to get into a rental will survive. Those that don't will see their vacancy rates continue to increase.
MSN Money has finally admitted that the nation's real unemployment rate is already at Depression era levels of 20%. In fact, more and more mainstream media outlets are finally realizing the true nature of our economic downturn, just as Joe Biden revealed in his interview last week. The damage was consistently underestimated by all but the intelligent bloggosphere. This is par for the course. The Nov 24, 1930 headline of Barron's foolishly read: "The End of the Business Retreat?" Now a Barrons financial editor is finally admitting we are heading into another depression that could prove to be as long and painful as that of the 1930s.
These were just a few news bytes from reality this morning. I hope your world is better than these headlines.
