Featured in Richard Suttmeier’s Stock Strategies Blog on EQUITIES Magazine Website
Richard Suttmeier’s latest post,” Signs that the Recession Continues”, discusses job creation, economic recovery, FHA loan exposures, and the Strategic Default becoming the American craze.
This morning’s payroll report shows a continued problem with job creation. Nonfarm Payrolls declined 190,000 with the unemployment rate reaching an historic 10.2%. Most important is that hours worked stayed anemic at just 33.0 hours. The underemployment rate is 17.5% Moreover, FHA Mortgage Exposures balloon to problematic levels. Later this month, the FHA will disclose that their level of reserves has fallen below the federally mandated level for the first time in its 75-year history.
In contribution to signs of the Recession pressing on, more and more Americans are walking away from their homes. The trend is known as Strategic Default, where the homeowner loses their job and stops making mortgage payments because they owe more than the home is worth. Such a strategy destroys one’s credit score, but many can stay in the home until the bank comes knocking on the door. Sources indicate that there were 588,000 Strategic Defaults in 2008; double the total of 2007.
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About Richard Suttmeier:
Richard Suttmeier’s latest blog analyzes earnings from Intel, the most important technology stock, JP Morgan Chase, the most important “too big to fail” bank, and break-out’s for Comex copper and Nymex crude oil.
Richard Suttmeier is the chief market strategist for ValuEngine.com. Richard is an industry leader on the housing market and banking system and writes a newsletter covering The Great Credit Crunch. He produces a List of Problem Banks by name. He produces daily and weekly briefings covering the US Capital markets. Richard Suttmeier’s ValuEngine Four In Four video is available on forextv.com.
About EQUITIES Magazine:
Since 1951, EQUITIES has served both retail and institutional investors by examining industry trends, analyzing strategies and opportunities, and profiling financial leaders and emerging public companies. Its global audience increased dramatically after the launch of its European and digital versions, as well as its website, which provides free real-time market quotes and a free customizable, real-time portfolio-management interface. EQUITIES is also one of a select group of publications available on the Apple iPhone.
