Renegade Economists Podcast 92
As broadcast on the almighty 3CR on Wed June 3rd, 2009.
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Rebuilding Post Bushfires: Daryl Taylor & Steb Fisher from the Kinglake community discuss issues effecting the bushfire ravaged community in this grass roots recovery operation. Radiothon next week – save your bikkies.
“Why (cant the) world’s resource be internationalized, since raw materials represented the world’s basic needs? They should belong to and serve everybody” Dwight D Eisenhower
Australia dodges recession – Chris Zappone
UPDATE Australia has dodged a recession, with data out today showing the economy expanded in the first three months of the year.
Gross domestic product for the March quarter grew a seasonally adjusted 0.4 per cent from the previous three months, the Australian Bureau of Statistics said, bouncing back from a revised 0.6 per cent decline in the final three months of last year.
Analysts had expected the Australian economy to have risen 0.2 per cent in the first quarter, with many revising their predictions to growth from a contraction after yesterday’s surprisingly good trade figures for the period.
Gavin Putland writes in the Recession we had to deny:
The bounce in employment in Apr.’09 probably represents a pull-forward of activity due to the anticipated expiry of the First Home Owners’ Boost — in which case the unexpected extension of the boost … will presumably spread the activity into the second half of the year. On account of this stimulus, positive GDP growth for Q2 of 2009 is not out of the question. But a contraction in Q1 looks inevitable.
Stocks were up yesterday…the Dow rose 196 points. – Bill Bonner
What were investors thinking?
“Home prices fell more than forecast,” reports Bloomberg. They’re still going down at a 19% rate. Unemployment is still rising too.
The state with the biggest economy in the nation is going broke. So is the nation’s biggest manufacturer. Profits are falling. And the government is racing to put in place a form of state-sponsored socio- capitalism much like Mussolini’s Italy…or Peron’s Argentina.
These do not sound to us like ideal conditions for a bull market.
Home Foreclosures and Durable Orders Rise
Mortgage Defaults at Record
Mortgage Bankers Association’s index that tracks mortgage application volume declined 14% in the week ending on May 22 from the previous week and fell 28.5% from a year ago period.
A record 12% of borrowers are behind on their payments or in foreclosure according to the MBA.
Delinquent rate at the end of the first quarter increased to 9.12% from 7.88% at the end of the fourth quarter.
Loans entering in foreclosures increased to 1.37% of all loans outstanding. Foreclosure and delinquency rates are at record since record keeping began in 1972.
Total number of homes entering in foreclosure process increased to 3.85% of all mortgages, up from 3.3% at the end of the fourth quarter last year.
The Gentrification Game film comp: The War On Creativity
Speed Renting – June 23, the Comfortable Chair on Lygon St, Brunswick
Remember: Keys Wallet, sunnies, iPod and an understanding of modern warfare
Santigold (King Britt rmx) – Anne