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Market keeps falling: Just a lot of yucky vibes - after yesterday's big drop, Dow is down another 30 points in early trading. Maybe it's one of those buying opportunities.
Grim mood: Nearly two-thirds of Americans believe the economy has yet to hit bottom, according to a WSJ/NBC News poll, up sharply from 53 percent in January.
Republicans, meantime, are gaining ground on a number of issues that have traditionally been advantages for Democrats. More Americans now think the GOP would do a better job on the economy--an advantage the party last held briefly in 2004 but has not enjoyed consistently since the mid-1990s. On one of the Democrats' core issues, Social Security, just 30% now think the party would do a better job than the GOP, compared to 26% who favor the Republicans. That margin was 28 points in 2006.
Summing up economic woes: From NYT editorial:
It is increasingly plain to see that the Fed has all but played its hand, and the economy is still in deep trouble. The economy's central problem is not lack of money to hire workers or make loans or rates that are too high. It is lack of hiring and lack of lending, despite cash cushions at many corporations and big banks and rates that are already very low. As long as the economy is weak and getting weaker, employers will be reluctant to hire new workers and banks will be reluctant to lend to small businesses. As long as hiring and lending are constrained, consumers will be reluctant to spend, and the economy will be weak.
Strong earnings for GM: It's the biggest quarterly profit in six years and sets the stage for an expected initial public offering. (Reuters)
Drop in foreclosures: July filings in California fell 3 percent from the previous month and 38 percent from July 2009, according to RealtyTrac. That's one filing per 200 households; in Nevada it's one out of 82.
About that bank Waters lobbied for...: Turns out that OneUnited Bank, which is at the center of the ethics inquiry involving the L.A. Democrat, provided its chairman a Porsche and a house on the Pacific Coast Highway in Santa Monica - even though the guy has a record that includes arrests and allegations of drug use. Water's husband has a stake in OneUnited. From the LAT:
In the Florida market, OneUnited's last two reviews by the Federal Deposit Insurance Corp. produced ratings of "substantial non-compliance" with federal laws that require financial institutions to lend to local communities -- the lowest rating possible. OneUnited has made just three home loans over the last 31 months in economically hard-hit Miami-Dade and Broward counties, said Kenneth H. Thomas, an independent banking consultant. He said that of the deposits raised at OneUnited's two Florida branches, less than 10% has been loaned back to the community. Typically, 50% is needed to meet the federal requirements.
Burkle close to deal: The L.A. billionaire would agree not to launch a proxy fight against Barnes & Noble and would also withdraw a lawsuit against the book retailer. In return, the company would expand its nine-member board by up to three additional directors chosen by Burkle, who holds a 19 percent stake. Barnes & Noble is up for sale.(NYT)
Council panel delays LAX decision: A vote on the airport's concessions deal won't happen until Sept. 9, and Councilman Bill Rosendahl is ticked off by all the delays. "I've been nothing but frustrated by the back-channel crap that's been going on here," he said. Several of the losing bidders are contesting the recommendations made by airport officials. (LAT)
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.