Page Perry's Market Monitor - August 28, 2009
There have been various developments over the past several weeks which investors may consider relevant in allocating their resources or evaluating alternatives that are available to them. Some of the more significant developments include, but are not limited to, the following:
• The Dow Jones Industrial Average opened the week at 9506 and, on Monday, moved up 3 points.
• On Tuesday, the Dow Jones Industrial Average rose 30 points.
• On Wednesday, the Dow Jones Industrial Average gained 4 points.
• On Thursday, the Dow Jones Industrial Average rose 37 points.
• On Friday, the Dow Jones Industrial Average fell 36 points and closed the week at 9544.
• Reader’s Digest filed for bankruptcy protection.
• The American Academy of Family Physicians is projecting a shortage of 40,000 family physicians by 2020.
• While many state and local governments are cutting back on law enforcement officers, several states are actually closing prisons in an effort to cut costs. It appears that public safety is being compromised by the current economic situation.
• Research firm Real Capital Analytics reports that approximately $83 billion of commercial real estate (office, retail, industrial and apartment properties) have defaulted on their loan obligations or experienced bankruptcy or foreclosure this year.
• New York State has sued Charles Schwab for improper sales of auction rate securities.
• The Federal Deposit Insurance Corporation reports that the number of troubled banks has grown to 416.
• Industrial production in the U.S. increased slightly last month. It is the first increase since early 2008.
• The U.S. Postal Service has offered $15,000 buyouts to up to 30,000 employees.
• The inspector general of the SEC reported that the Commission has “historically been slow to act” when it comes to dealing with credit-ratings agencies.
• Bank regulators closed three more banks on Friday leaving the total number of banks closed this year at 84.
• CNBC reports that U.S. companies are hoarding record amounts of cash because of serious concerns about the economy.
• Pennsylvania remains in the midst of a serious battle over the state budget. As a result citizens are losing vital services.
• New home sales were almost 10% higher in July than they were in June.
• Orders for durable goods rose to their highest level in two years during July.
• The Federal Reserve has been ordered to identify companies receiving aid from its emergency aid programs. The Fed apparently plans to appeal. The Fed continues to exhibit “transparency” at its finest. The unfortunate truth is that too much of government adheres to the view that what the public doesn’t know can’t hurt it.
• The Mortgage Bankers Association reports that 13.2% of mortgages on homes with one to four units were delinquent on their mortgages during the second quarter.
• The Federal Deposit Insurance Corporation’s reserve fund is at its lowest level since 1993.
Page Perry’s Market Monitor is published periodically to give investors an overview of certain recent developments impacting the economy and/or the investment markets.
