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United States Economy

US Fed charts path to normal

After a prolonged 7 years of extremely accommodating, near-zero interest rates in the United States, the Federal Reserve has today tightened interest rates to between 0.25 and 0.5 per cent. Today’s historic move is the first increase in almost a decade, and came as no surprise to anyone with the

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United States Economy

Security is owning . . . but not in a bubble.

Ask any real estate agent and they will tell you security is owning your own home!!. Ask America’s Generation X and they are likely to tell you something very different. The U.S. Federal Reserve Board’s Survey of Consumer Finances (SCF) for 2010 has reported what could be unprecedented levels of

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Australian Economy

Is the Eurozone Crisis really over?

A plan announced on Thursday to address the Eurozone debt crisis has bouyed markets around the world. But questions remain if it will go anywhere near fixing the problem. Eurozone leaders have formed an agreement with private banks and insurers to accept a 50 percent loss on Greek’s bonds. Long

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United States Economy

U.S. housing market enters “Depression Territory” : CNBC

According to the Zillow Home Value Index, the current housing crisis in the U.S. has surpassed that of the 25.9% decline observed during the Great Depression. The Index recorded a fall of 25.9% between 1928 and 1933. Since the peak of the U.S. bubble in June 2006, prices have now

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United States Economy

U.S. House Prices start to Double Dip

A surprise sharp decline in house prices in the United States has analysts calling the start of the double dip for the already depressed U.S. housing market. The S&P/Case Shiller home price index for a composite of 20 U.S. cites plunged 1.3 percent in the month of October, the biggest

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United States Economy

Economy slowdown “somewhat more pronounced than previously anticipated” : OECD

OECD Chief Economist, Pier Carlo Padoan has said “Recent high-frequency indicators point to a slowdown in the pace of recovery of the world economy that is somewhat more pronounced than previously expected” and that policy makers may need to extend or bolster stimulus programs. This comes as governments around the

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Australian Housing

Jeremy Grantham on Bubbles

The Financial Times has an interview with Jeremy Grantham, founder and chief strategist at GMO, on bubbles. Mr Grantham has identified over 34 bubbles over the years based on the 40 year event based from price and volatility. At present 32 of the 34 bubbles have moved back to trend

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United States Economy

Builder’s lobby group says we need to build more houses

The Housing Industry Association (HIA) has this week released a report showing Australia’s housing “shortage” will quadruple if we don’t act now and increase the number of homes being constructed. The group has called for another 466,000 homes to be built by 2020, with the “shortage” currently at 109,000 homes.

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United States Economy

702 U.S. banks on FDIC trouble list at risk of default

The FDIC on Wednesday has indicated there are 702 banks on the FDIC trouble list which is in danger of defaulting. This is the highest level in 16 years. Last year 140 banks failed in the US, with another 20 this year. The FDIC Chairwoman, Shella Bair says this pace

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United States Economy

U.S. Government gets set for 2nd wave : unlimited aid to Freddie & Fannie

The U.S. government has removed the US $400 billion dollar cap and extended support to 2012 for Fannie Mae and Freddie Mac in preparation for the second wave. Fannie Mae and Freddie Mac together guarantee almost half of all mortgages in the USA. The timing of the announcement, done during

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United States Economy

U.S. Youth Unemployment hits 53.4%

While U.S. unemployment has hit a 26 year high of 9.8%, spare a thought for young Americans aged between 16 and 24 who are not studying – more than half are unemployed. The New York Times reports for this group, getting a job and moving out of the family home

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United States Economy

U.S. unemployment rate worst in 26 years

While economists were only expecting the lost of 180,000 jobs in the U.S., figures just released show in September 263,000 payroll jobs were axed, pushing U.S. unemployment up to a 26 year high of 9.8%. » U.S. job losses accelerate to 263,000 in September – Market Watch, 2nd October 2009.