Thursday, June 30, 2011

It's The Economy Stupid: Jobless Claims

Okay, shock!  Initial Jobless Claims came in higher than economists expected, 428K versus economist’s estimates of 420K, but is was less than the prior period of 429K.  So 1,000 people went to work, sort of.  The math is not an exact count, and is subject to revisions, so who knows.

 

And the QE2 sets sail today.  We think, sort of.  QE2 is the Fed’s Quantitative Easing #2 where the Fed bought a whole bunch of Treasury securities to keep interest rates low to help the economy.  I think it is safe to say that it has not been a tremendous success…

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

Street Address:

301 Main Street

Baton Rouge, LA 70802

Mailing Address:

P.O. Box 44154 Capitol Station

Baton Rouge, LA 70804-4154

Physical Location:

One American Place, 7th Floor

Corner of North Street & 4th Street

Exit 1D I-110 North Street / Capitol Park / Downtown

 

Tuesday, June 28, 2011

It's The Economy Stupid: Consumer Confidence

Consumer Confidence Falls to 58.5 from the previous periods 60.8.

 

Not exactly shocked by that piece of information given the fact that consumer spending was down. 

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

 

It's The Economy Stupid: Housing

Home prices rose 2 months in a row.  Barely.

 

S&P Case Shiller Home Price Index  138.84, previous month was 138.16.

 

Home prices rose in 11 of the 20 markets included in the index.

 

And of course this is only an index comprised of 20 markets.

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

Street Address:

301 Main Street

Baton Rouge, LA 70802

Mailing Address:

P.O. Box 44154 Capitol Station

Baton Rouge, LA 70804-4154

Physical Location:

One American Place, 7th Floor

Corner of North Street & 4th Street

Exit 1D I-110 North Street / Capitol Park / Downtown

 

Monday, June 27, 2011

It's The Economy Stupid: Income and Spending

Personal Income was up +0.3%, which is down from the prior period’s +0.4%.

 

Personal Spending was a no-go.  No growth.  +0.0%, which is down from the prior period’s +0.4%.

 

So Personal Income is not growing much, and as a result Personal Spending is not growing.  Sounds like individuals are acting in a practical manner given their lack of increases in income. 

 

Now, if only the government would do the same…

 

 

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

 

Friday, June 24, 2011

It's The Economy Stupid: GDP

GDP up 2.0% versus last month’s 1.9%

Personal Consumption up 2.2% versus last month’s 2.2%

Durable Goods Orders up 1.9% versus last month’s revised -2.7%

 

So, the economy grew a little, consumers spent very little, and orders for big stuff grew. 

 

It’s better than a poke in the eye with a sharp stick.

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

 

Thursday, June 23, 2011

It's The Economy Stupid: Jobless Claims

Low and behold, Initial Jobless Claims increased!  And Continuing Jobless Claims increased! 

 

MORE unemployed people.

 

This sure ain’t good.

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

Street Address:

301 Main Street

Baton Rouge, LA 70802

Mailing Address:

P.O. Box 44154 Capitol Station

Baton Rouge, LA 70804-4154

Physical Location:

One American Place, 7th Floor

Corner of North Street & 4th Street

Exit 1D I-110 North Street / Capitol Park / Downtown

 

It's The Economy Stupid: Poll Shows Obama's Fortunes Tied To Economy

AP poll: Economic worries pose new snags for Obama

By JIM KUHNHENN, The Associated Press – 4 hours ago

Thursday, June 23, 2011

 

WASHINGTON (AP) — Increasingly troubled by the economy, more Americans are convinced the country is headed in the wrong direction and fewer approve of President Barack Obama's economic stewardship. The sentiments pose a new complication for the president's re-election hopes and create an obstacle to a recovery that relies in part on public perceptions.

 

For the first time this year, less than 50 percent of respondents to an Associated Press-GfK poll say Obama deserves re-election. The new poll shows a virtual split of 48-47 in favor, raising a new hurdle for the president as economic concerns strip away the gloss he briefly gained in May after the death of Osama bin Laden.

 

What's more, four out of five now believe the economy is in poor shape, with 36 percent calling it "very poor," a new high in AP-GfK polling.

 

The survey findings track with recent independent data that show a dip in consumer confidence, and they reflect the May uptick in unemployment and a stubbornly depressed housing market. Amid anemic hiring, high gas prices and financial turmoil in Europe, Americans are increasingly interested in saving — not spending — their money, adding yet another constraint to the economic recovery.

 

Yet, 16 months before the November 2012 elections, Obama also is perceived favorably by 56 percent of respondents and 52 percent approve of his job performance overall. Despite the overwhelming sentiment that the national economy is in poor shape, more than three of five of those polled rated the financial situation of their own households as good. And, echoing previous findings, about three-quarters of the survey participants said it is unrealistic to expect noticeable results on the economy in one term.

 

For Obama, the poll results are a mixed appraisal. In many ways they show him returning to the public ratings he faced before bin Laden's death created a spike of approval. As such, they indicate a certain resilience — an ability to hold steady even as economic indicators worsen.

 

But the new AP-GfK poll also reveals trouble spots for Obama.

 

It shows a sharp spike in concern about unemployment. Overall, 86 percent call it extremely or very important, the highest level since just before the 2010 elections. Nearly four in 10 expect there to be an increase in the number of people unemployed in the country over the next year, while just 23 percent say they expect unemployment to drop. In previous AP-GfK polling, those figures had been about even.

 

Obama has hit new unwelcome highs — in public disapproval over his handling of the economy in general and unemployment in particular — according to the poll. In addition, more disapprove of his handling of health care and the federal budget deficit than in the past.

 

The erosion of approval is primarily among women. Last month, 57 percent said they felt he deserved re-election, a figure that dipped to 48 percent this month. The decline came almost entirely among white women, just 37 percent of whom say Obama deserves re-election in the new poll. He also lost support among self-described independents, from 62 percent approval last month to 43 percent now, his lowest since June 2010.

 

With the economy clearly looming as the top political issue in his re-election, the president has been traveling every week for months to campaign battleground states to promote job initiatives. He acknowledges the sluggishness of the recovery, illustrated by May's uptick in unemployment.

 

The price of gasoline at the pump has declined a bit recently though it is still nearly 90 cents higher on average than a year ago. White House officials are also monitoring the precarious fiscal situation in Greece, where a default by the government could send damaging financial tremors across world markets.

 

"I just think that he's not doing his job the way he should be," said Mary Perrine, a grandmother of three from West Lafayette, Ind., who said she has struggled to pay her bills.

 

Obama faced 59 percent disapproval on his handling of the economy and on unemployment. The steepest decrease was among respondents with incomes above $50,000. In May, 53 percent approved of his efforts to fight unemployment; in June, 36 percent approved.

 

"I kind of sit on the fence about it," Paul Fenger, a Cottonwood, Minn., farmer said about Obama's job performance.

 

"I think he is trying to do a good job, but the information isn't getting out, and Congress — the Republicans and Democrats — aren't working together."

 

Obama may have to count on the likes of John Holdnak, a Florida Department of Education administrator, who didn't vote for him in 2008 but believes "he has really stepped up to do this job."

 

Does Obama deserve re-election? "I don't know yet. A lot of things can happen now and between the election that could be his fault. At this particular juncture, he hasn't done anything in my mind not to be re-elected," said Holdnak, one of the survey participants.

 

The poll was conducted June 16-20 by GfK Roper Public Affairs and Corporate Communications. It involved landline and cellphone interviews with 1,001 adults nationwide and had a margin of sampling error of plus or minus 4.1 percentage points.

 

Associated Press Polling Director Trevor Tompson, Deputy Polling Director Jennifer Agiesta and AP News Survey Specialist Dennis Junius contributed to this report.

 

On the Net:

http://www.ap-gfkpoll.com

Wednesday, June 15, 2011

It's The Economy Stupid: Greece Is The Word

Dow Jones is down 175.44 points to 11900.22.  Greece is the word.  Grappa for everyone.  I am sure the Greek bond holders are ready for a round of grappa right about now.  So, how long before Germany says NO to more (worthless) Greek paper?

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

Street Address:

301 Main Street

Baton Rouge, LA 70802

Mailing Address:

P.O. Box 44154 Capitol Station

Baton Rouge, LA 70804-4154

Physical Location:

One American Place, 7th Floor

Corner of North Street & 4th Street

Exit 1D I-110 North Street / Capitol Park / Downtown

 

It's The Economy Stupid: Greece is the word

Greece is the word.  Again.  This time with violence.  The Euro is looking a little trashy.  Market trading down on all the news, good and bad.  Perhaps more bad than good. 

 

Stay classy Bernanke!

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

 

It's The Economy Stupid: CPI

Okay, any way you look at it, the Consumer Price Index is creeping up.  Inflation?

 

Consumer Price Index   +3.6%, economists’ estimates +3.4%, the prior period number was 3.2%

 

And for those of you who don’t eat, and live in a cave:

 

Consumer Price Index Ex Food and Energy    +1.5%, economists’ estimates +1.4%, the prior period number was 1.3%

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

 

Tuesday, June 14, 2011

Don't shoot the messenger

I didn’t make this one up, I’m just passing it along

 

 

Another Presidential Ticket

 

Rumor has it that Congressman Anthony Weiner is going to run for President.

He has chosen Attorney General Eric Holder as his running mate.

Get your Weiner-Holder bumper stickers early, before they are all gone.

 

 

 

 

 

FW: Brutal

Begin forwarded message

 

 

Subject: brutal lol

 

The FBI had an opening for an assasin. After all the background checks, interviews, and testing were completed, there were 3 finalists; two men and a woman.

 

 

For the final test, the FBI agents to took one of the men to a room with a large, metal door and handed him a gun. "We must know that you will follow your instructions, no matter what the circumstances. Inside the room, you will find your wife sitting in a chair...kill her!!" The man said, "You can’t be serious! I could never shoot my wife!" The agent said, "Then you’re not the right man for this job. Take your wife and go home."

 

 

The second man was given the same instructions. He took the gun and went into the room. All was quiet for about 5 minutes. The man came out with tears in his eyes, "I tried, but I can’t kill my wife." The agent said, "You don’t have what it takes. Take your wife and go home."

 

Finally, it was the woman’s turn. She was given the same instructions, to kill her husband. She took the gun, went into the room, shots were heard, one right after another. They heard screaming, crashing, and banging on the walls. After a few minutes, all was quiet. The door opened slowly, and there stood the woman, wiping sweat from her brow. "This gun is loaded with blanks”, she said. "I had to beat him to death with the chair!"

 

 

 

IT'S THE ECONOMY STUPID: PPI and Retail Sales

Producer Price Index +7.3% versus economists consensus of +6.8%, prior period number was +6.8%

Producer Price Index Ex Food & Energy +2.1% versus economists consensus of +2.1%, prior period number was +2.1%

 

SO DON’T EAT OR DRIVE A CAR AND YOU ARE OKAY

 

Advance Retail Sales -0.2% versus economists consensus of -0.5%, prior period number was +0.5%

 

SO CONSUMERS ARE SPENDING LESS, BUT NOT AS LESS AS ECONOMISTS PREDICTED?  IS THAT GOOD OR BAD???

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

 

Friday, June 10, 2011

FOR ALL MY FAMILY & FRIENDS

FOR ALL MY FAMILY & FRIENDS:

 

My life has a superb cast but I can't figure out the plot.

~ Ashleigh Brilliant

Thursday, June 9, 2011

News Flash

News reports are saying that there is another Weiner wiener picture.

 

It’s hard to say that with a straight face.

 

ABC News: Rep Weiner Scandal, Calls For Ouster Heighten As Alleged New Photo Emerges

Tuesday, June 7, 2011

LIFE

HOW TO STAY YOUNG

1. Actually tell the people that you love that you love them, and at every opportunity.

2. Surround yourself with what you love.  Family, friends, pets, keepsakes, music, plants, hobbies, art, whatever. 

3. Laugh often, long and loud.  Laugh until you gasp for breath.  Add a little happiness to every day.

4. Throw out nonessential numbers.  This includes age, weight and height.  Let the doctors worry about them.  That is why you pay ‘them’.

5. Keep your cheerful friends.  The negative, grouchy ones pull you down.

6. Keep learning.  Learn more about technology, investing, gardening, whatever.  Never let the brain idle.  ‘An idle mind is the devil’s workshop.’  And the devil’s name is probably either Dementia or Alzheimer’s.

7. Enjoy the simple things.

8. The tears happen.  Endure, grieve and move on.  We all heal on our own time line, but we heal.  The only person who is with us our entire life is ourselves.  Be ALIVE while you are alive.

9. Cherish your health.  If it is good, work to preserve it.  If it is unstable, improve it. If it is beyond what you can improve, get help.

10. Don’t take guilt trips. Take a trip to the mall, to the beach, to another country, but NOT to where the guilt is.  What’s done is done.  You can’t make it not happened.

It's The Economy Stupid: Dallas Fed's Richard Fisher

Dallas Federal Reserve Bank President Richard Fisher:

 

38% of all the jobs created in the United States since 2008 were created in the Dallas Fed district.  That’s Texas, parts of New Mexico and parts of Louisiana. 

 

Yes, that’s right, 38% of all jobs created in the recovery.

 

Fisher specifically mentioned two points.  First, Texas has no personal income tax, and second, Texas enacted tort reform.  He also pointed out that Texas has a long record of entrepreneurship; reasonable, stable corporate tax structure; a reasonable, stable state regulatory structure; a legislature that only meets once every 2 years; and a relatively better real estate market.

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

 

Friday, June 3, 2011

Ouch!

Stocks fell, dragging the Dow Jones Industrial Average to its longest streak of weekly losses since 2004, as slowing job growth added to signs the economy is

weakening. The euro rose as European officials worked toward a second Greek bailout.

 

Dow Jones -97.29 @ 12151.26

S&P 500 -12.77 @ 1300.17

Russell 3000 -8.21 @ 777.81

NASDAQ Comp -40.53 @ 2732.78

 

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

Street Address:

301 Main Street

Baton Rouge, LA 70802

Mailing Address:

P.O. Box 44154 Capitol Station

Baton Rouge, LA 70804-4154

Physical Location:

One American Place, 7th Floor

Corner of North Street & 4th Street

Exit 1D I-110 North Street / Capitol Park / Downtown

 

It's The Economy Stupid: Jobs, or lack there of...

 

Change In Nonfarm Payrolls  +54K, but the economists estimate was +165K, and the previous number was 244K

Change  In Private Payrolls  +83K, but the economists estimate was +170K, and the previous number was 268K

Unemployment Rate 9.1%, but the economists estimate was 8.9%, and the previous number was 9.0%

 

The downward trend in economic numbers continues.  These are just lousy numbers. 

 

No matter how much lipstick you put on a pig, it’s still a pig.

 

 

Thursday, June 2, 2011

Jobs?

Initial Jobless Claims (422K) came in slightly higher than economist

expected (417K) but less than the previous month (424K) Continuing
Jobless Claims (3711K) crept higher, coming in higher than economist
expected (3675K) and higher than the previous month (3690K)

Okay, so can the economy improve if people keep losing jobs?  I mean, I guess theoretically we all can't lose our jobs.

John Broussard
Assistant State Treasurer
Chief Investment Officer

Wednesday, June 1, 2011

It's The Economy Stupid

ADP Employment Change  +38K,  Economist’s Estimate was for +175K, and the Prior Period was +179K


So the economy created a couple of new jobs.  Hmm, let’s see if we can say something positive.  Well, at least it’s still positive! 


Sorry, not much to work with. 

It's The Economy Stupid

MBA Mortgage Applications   -4.0%    Prior number +1.1%
Challenger Job Cuts Year On Year   -4.3%   Prior number -4.8%


So housing continues to looked troubled.  But statistically speaking, the job cuts number improved!  We are losing jobs at a slower rate!  Okay, that really doesn’t sound much better.