Pension News: DC Double Dipping and $174k at 59
(Thanks to Bob Wright for the second article.)
Professor Mark J. Perry's Blog for Economics and Finance
The Census Bureau reported today on third quarter financial results for the U.S. manufacturing sector, with the following highlights:
Current Intrade odds have Romney's chances down to 40.2% and Gingrich's chances up to 36.5%, which is the smallest-ever Romney-Gingrich gap at 3.7%.
The New York Federal Reserve updated its "Probability of U.S. Recession Predicted by Treasury Spread" last week with treasury yield data through November 2011, and the Fed's recession probability forecast through November 2012 (see chart above). The NY Fed's Treasury model uses the spread between the yields on 10-year Treasury notes (2.01% in November) and 3-month Treasury bills (0.01%) to calculate the probability of a U.S. recession up to twelve months ahead (see details here) using the spread between those two yields (1.42% in November).
Don Harrison, the owner of Harrison Construction company in Marietta, Ohio, tried to expand his booming construction business by hiring 12 new workers so that he could accept more new contracts. He explains his situation below:
At the national level, retail gas prices have fallen by 17% from the April high of about $4 per gallon to the current national average of about $3.28 (red line in chart above), according to price data from GasBuddy.com. In Albuquerque, New Mexico, gas prices have fallen about 25% from the April peak and are currently the lowest in the country at $2.80 per gallon (see blue line and national gas price heat map here).
"When you buy a house, you’re not just committing to a mortgage. You are also promising to pay the future property taxes on that house. What drives those local property taxes are the future costs of paying state and local workers and retirees, particularly retirees’ pensions and health care. These costs are going in one direction: up.
|North Dakota County||October Jobless Rate|
According to a release today from The National Association of Realtors, the Housing Affordability Index reached a new all-time record high of 197.8 in October (see chart above). Based on the hypothetical purchase of the median-priced home of $161,600 in October, financed at the average mortgage rate of 4.32% (with a 20% down payment), the median family income of $60,871 was 197.8% of the $30,768 income required to qualify for the financing and the $641 monthly payments (principal and interest).