January News Factoids

THE ECONOMY: U.S. home prices fell in October for the tenth consecutive month, posting their largest monthly drop to date. The record 6.7 percent drop in the Standard & Poor's/Case-Shiller home price index also marked the 23rd consecutive month prices either grew more slowly or declined. The previous record decline was 6.3 percent, recorded in April 1991. — Associated Press

U.S. housing construction dropped by 25% in 2007, the largest drop in 27 years.

U.S. inflation is at a 17-year high. — AP Radio News January 2008

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Faux News: Oil did NOT go to $100 a barrel as reported on 1/2/2008. There was one (1) trade at that price, by a lone day-trader for a thousand barrels (the minimum). Period. He/she lost about $600 on the resale, but it may have been worth it, given how the Media Cartel ran with the factoid.

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STOCKS: The Dow Jones Industrial Average lost 306 points Thursday January 17, cancelling all gains of 2007 (down to the level of a year ago), then fell another 129 points on Friday January 18 to $12,030.29. The S&P 500 index fell $16.06 (1.20%) to $1,317.19, while the Nasdaq composite index dropped $17.07 (0.73%) to $2,329.83.

Stock markets worldwide plummeted Monday January 21 (while the US stock exchanges were closed for the M.L.K. holiday), and again the next day.

The Federal Reserve Bank reduced interest rates by three-quarters of a base point early on January 22. The stock market opened with the Dow down another 400 points (below the highs of 2000). Although the Dow rebounded, the close was below 12,000 points – the lowest in 16 months.

Copyright 2008 by G.E. Nordell, all rights reserved