Category Archives: Obama taxes

Obamacare nightmare unaffordable, Higher premiums and deductibles, Job losses part time jobs, School closes, MIT economist Jonathan Gruber lack of transparency and stupidity of American voter allowed Obamacare to be passed

Obamacare nightmare unaffordable, Higher premiums and deductibles, Job losses part time jobs, School closes, MIT economist Jonathan Gruber lack of transparency and stupidity of American voter allowed Obamacare to be passed

“If you’ve got health insurance we’re going to work with you to lower your premiums by $2,500 per family per year.”…Barack Obama

“Blue Cross and Blue Shield of New Mexico has requested rate increases averaging 51 percent for its 33,000 members. The proposal elicited tart online comments from consumers.”

““Our enrollees generated 24 percent more claims than we thought they would when we set our 2014 rates,” said Nathan T. Johns, the chief financial officer of Arches Health Plan, which covers about one-fourth of the people who bought insurance through the federal exchange in Utah. As a result, the company said, it collected premiums of $39.7 million and had claims of $56.3 million in 2014. It has requested rate increases averaging 45 percent for 2016.”…NY Times July 3, 2015

“Nearly half of U.S. companies are reluctant to hire full-time employees because of the ACA. One in five firms indicates they are likely to hire fewer employees, and another one in 10 may lay off current employees in response to the law.

Other firms will shift toward part-time workers. More than 40 percent of CFOs say their companies will consider switching some jobs to less than 30 hours per week or targeting part-time workers for future employment.”…Duke University Fuqua School of Business December 11, 2013

“We are being lied to on a scale unimaginable by George Orwell.”…Citizen Wells

 

 

 

Obamacare sticker shock.

Well there should have been.

First clues?

The biggest liar ever to occupy the White House was pushing it and the IRS is involved.

For 2016 there will be a penalty up to $ 695 per uninsured household member.

But that may be the good news.

In June of 2015 MIT economist Jonathan Gruber, a paid Obama consultant, explained out Obamacare was passed.

“lack of transparency”
“the stupidity of the American voter”

Obamacare reality shock.

Citizen Wells has been reporting about the rising premiums and impact on jobs from Obama care.

From Citizen Wells August 8, 2015.

“Blue Cross now seeking 34.6% rate hike in NC for ACA plans

Insurer is scrapping June request for 25.7% increase

Blames Affordable Care Act for driving up costs”

https://citizenwells.com/2015/08/08/nc-blue-cross-raises-obamacare-premiums-34-6-percent-obama-lies-healthcare-dies-affordable-care-act-driving-up-costs-replaces-june-request-of-25-7-aca-customers-use-expensive-services-for-chronic/

From Citizen Wells March 10, 2015.

“‘Over the last six months, of the net job creation, 97 percent of that is part-time work,’ said Keith Hall, a senior researcher at George Mason University’s Mercatus Center. ‘That is really remarkable.’”Hall is no ordinary academic. He ran the Bureau of Labor Statistics, the agency that puts out the monthly jobs report, from 2008 to 2012. Over the past six months, he said, the Household Survey shows 963,000 more people reporting that they were employed, and 936,000 of them reported they’re in part-time jobs.” ‘That is a really high number for a six-month period,’ Hall said. ‘I’m not sure that has ever happened over six months before.’ “”
“How, then, to explain what’s happened since January? Back to the McClatchy article and Hall, the former BLS chief:

“Hall speculated that the implementation of the Affordable Care Act, shorthanded as Obamacare, might be resulting in employers shifting workers to part-time status to avoid coming health care obligations.”

https://citizenwells.com/2015/03/10/5-2-million-full-time-employments-lost-obamas-first-year-part-time-jobs-created-job-myths-lies-exposed-media-lies-whitehouse-lies-obamacare-created-more-full-times-jobs-let-the-drug-testing/

From Zero Hedge October 26, 2015.

“What was supposed to be affordable remains painfully unaffordable for the lowest rung of the employment pyramid.

Here is the actual math as experienced by both the abovementioned Mr. Sewell of Golden Corral restaurants, and his mostly minimum-wage employees.

He employs 1,800 people at the 26 Golden Corral franchises he owns in six Southern and Midwestern states, and previously offered insurance only to his salaried management staff. In January, when the employer mandate took effect, he made the same insurance plan, with a bigger employer contribution, available to all employees working an average of 30 or more hours a week.

Running the math on his plan — a typical one for the restaurant industry — illustrates why a number of low-wage workers are falling through gaps in the Affordable Care Act.

The annual premium for individual coverage through the Golden Corral Blue Cross Blue Shield plan is $4,800. Mr. Sewell pays 65 percent for service workers, leaving them with a monthly cost of $140.

The health care law defines affordable employer-sponsored insurance as that priced at 9.5 percent or less of an employee’s annual household income for individual coverage. (Because employers do not know how much money their workers’ relatives make, there are several “safe harbors” they can use for compliance, including basing their calculation on only their own employees’ wages.) Mr. Sewell’s insurance meets the test, but $65 per biweekly paycheck is more than most of his workers are willing — or able — to pay for insurance that still carries steep out-of-pocket costs, including a $2,500 deductible.

And this is where Obamacare’s employee mandate fails for a vast majority of US workers.”

Read more:

http://www.zerohedge.com/news/2015-10-26/latest-obamacare-fiasco-most-low-income-workers-cant-afford-affordable-care-act

From the Times Free Press October 14, 2015.

“Tennessee county closes schools, cites Obamacare as reason

Classes in a small, financially struggling school district in northern Tennessee have been canceled until officials can find a way to generate more revenue.

Clay County Director of Schools Jerry Strong said the school board made the decision Thursday night after struggling with budget concerns for three years. He said the district doesn’t have enough money to pay for partially unfunded government mandates.

“Clay County’s inability to generate the revenue to offset the mandates is what’s caused this to come to a head,” he said. “The straw that broke the camel’s back was really the Affordable Care Act for us and it has made it very difficult for us to have our employees properly covered and meet the mandates of the law.”

Read more:

http://www.timesfreepress.com/news/local/story/2015/oct/14/tennessee-county-closes-schools-cites-obamacare-reason/330504/

From the Washington Post July 3, 2014.

“We are seeing more part-time jobs because employers can’t afford to pay the Obamacare premiums for employees who work more than 30 hours a week. How many Americans will leave the workforce for good? How much lower will the labor force participation rate drop? In other words, how much more dependency will the Obama presidency create?”

Read more:

http://www.washingtonpost.com/blogs/post-partisan/wp/2014/07/03/the-insiders-this-months-jobs-headlines-dont-tell-the-true-story/

From Zero Hedge June 26, 2015.

“America’s Obamacare Nightmare Is Just Beginning”

“So, the debate will intensify over the primary issue: costs. In every state, the fundamental components of state health-care costs—the demographics, the underlying costs of care delivery and the competitiveness of the markets—are juiced up by expensive federal benefit mandates and individual and group insurance rules and regulations. These all drive costs skyward. As my Heritage colleagues have demonstrated, this regulatory regime forces young people to pay up to 44 percent more in premiums. Washington’s subsidies simply try to hide the true costs of the law; they don’t control them.

The law remains unworkable. The complicated insurance subsidy program itself has been a mess. H&R Block reported that about two thirds of subsidy recipients had to repay money back to the government because they got bigger than allowable subsidies. With the individual mandate, the administration has been granting lots of exemptions to insulate most of the uninsured from any penalty. That’s rather predictable; after all, even candidate Barack Obama argued that an individual mandate was unfair and unenforceable.

As for the employer mandate—another fractured cornerstone of Obamacare—the administration has delayed it for one year. Even liberal supporters now want to repeal it, fearing damage to the labor markets.

And what about those big “savings” from the Medicare payment reductions? They were earmarked to help cover the costs of the insurance subsidies. Yet the Medicare Actuary and the CBO have both routinely dismissed the massive Medicare payment cuts as either unrealistic or unsustainable.”

Read more:

http://www.zerohedge.com/news/2015-06-26/guest-post-americas-obamacare-nightmare-just-beginning

If I were the new president, the first thing I would do is immediately disconnect the IRS from our healthcare system and then begin methodically to dismantle Obamacare concurrently with providing basic healthcare services for lower income Americans.

Of course not requiring employers to provide health care combined with a real job creating environment would go a long way to fixing our jobs and economy crisis.

 

 

 

 

 

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Obama media lies on September jobs report, Election year spin hides horrible jobs situation and economy, Janet Yellen questions job strength, Federal Reserve publishes labor market conditions index

Obama media lies on September jobs report, Election year spin hides horrible jobs situation and economy, Janet Yellen questions job strength, Federal Reserve publishes labor market conditions index

“11.4%: What the U.S. unemployment rate would be if labor force participation were back to January 2008 levels.” …James Pethokoukis, American Enterprise Institute, June 2013

“Approximately 1 million more people could only find part time employment since Obama took office in January 2009.”…Citizen Wells August 2013

“Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.”…George Orwell, “1984″

 

If you are making investment decisions based on what you are reading in the mainstream media, you had better read the following.

The normal pro Obama media has outdone itself.

Why?

It is an election year and Obama is in trouble.

The recent stated unemployment rate of 5.9 percent was compared as the best since 2008.

What they did not tell you is the following reported at Citizen Wells on October 3, 2014.

“There were 315,000 more people not in the labor force in September. That is far more than the 248,000 jobs that were added.

The labor force participation rate at 62.7 percent is 3 percent higher than when Obama took office.

They are comparing the current unemployment rate to 2008. The rate was 5.8 percent in July 2008. However, the participation rate then was 66.1 percent.

That is 3.4 percent higher than today.

You do the math!

Also, there were 45,000 more people in September , not in the labor force who want a jobs now.

And don’t forget this from the Labor Dept.

“The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) was little changed in September at 7.1 million. These individuals, who would have preferred full-time employment, were working part time because their hours had been cut back or because they were unable to find a full-time job.”

https://citizenwells.wordpress.com/2014/10/03/september-unemployment-rate-lowest-since-2008-248k-jobs-added-truth-is-more-people-dropped-out-of-labor-force-than-jobs-added-participation-rate-down-3-percent-since-jan-2009-excessive-part-time/

That is bad enough.

But it gets worse.

Straight from the US Labor Dept.

The unemployment rate for blacks is 11 percent. It was 10 percent in July 2008.

The lowest labor force participation rate during the 8 years of George Bush was 65.8 percent.

It is currently 62.7 percent with this great Obama economy.

The highest number of people unemployed over 27 weeks during the 8 years of George Bush was 2,610,000.

The highest number under Obama was 6,770,000. It is currently 2,954,000 and would be higher if so many people had not dropped out of the labor force.

When Obama took office in January 2009 there were 5,708,000 million people not in the labor force who want a job now. There are currently 6,349,000 people in that category.

There are 12 million more people not in the labor force than when Obama took office in 2009.

From the Greensboro News Record October 3, 2014.

“For example, there were 7.1 million people working part-time jobs last month even though they would prefer full-time work. That figure is up from just 4.6 million before the recession.

And there are 3 million people who have been out of work for more than six months. That figure has declined steadily in the past three years but is still more than double its precession total.”

Read more:

http://www.news-record.com/news/u-s-jobless-rate-falls-to–year-low-of/article_d51fda54-4b05-11e4-b8be-001a4bcf6878.html?TNNoMobile

Janet Yellen has been raising concerns about the validity of the jobs data for months.

From Market Watch October 1, 2014.

“Starting next week, a new indicator may roil the markets

The Federal Reserve will publish a new monthly gauge of the health of the labor market, called the labor market conditions index, beginning next Monday, the central bank announced Wednesday.

The report is an attempt to dig deeper into labor market trends beyond the standard monthly unemployment rate measure.

Fed Chairwoman Janet Yellen and her allies have argued that the improvement in the unemployment rate over the past year has overstated the strength of the labor market. How much slack remains in the economy is a key factor in how patient the central bank can be before lifting off short-term interest rates from zero.”

Read More:

http://blogs.marketwatch.com/capitolreport/2014/10/01/starting-next-week-a-new-indicator-may-roil-the-markets/

From “1984” by George Orwell.

“But actually, he thought as he re-adjusted the Ministry of Plenty’s figures, it was not even forgery. It was merely the substitution of one piece of nonsense for another. Most of the material that you were dealing with had no connexion with anything in the real world, not even the kind of connexion that is contained in a direct lie. Statistics were just as much a fantasy in their original version as in their rectified version. A great deal of the time you were expected to make them up out of your head. For example, the Ministry of Plenty’s forecast had estimated the output of boots for the quarter at one-hundred-and-forty-five million pairs. The actual output was given as sixty-two millions. Winston, however, in rewriting the forecast, marked the figure down to fifty-seven millions, so as to allow for the usual claim that the quota had been overfulfilled. In any case, sixty-two millions was no nearer the truth than fifty-seven millions, or than one-hundred-and-forty-five millions. Very likely no boots had been produced at all. Likelier still, nobody knew how many had been produced, much less cared. All one knew was that every quarter astronomical numbers of boots were produced on paper, while perhaps half the population of Oceania went barefoot. And so it was with every class of recorded fact, great or small. Everything faded away into a shadow-world in which, finally, even the date of the year had become uncertain.”

 

Greensboro News Record AP article Employment statistics show hiring is strong, August 29, 2014, Orwellian extrapolation, 11.5 million more not in labor force since Jan 2009, Could step up hiring?

Greensboro News Record AP article Employment statistics show hiring is strong, August 29, 2014, Orwellian extrapolation, 11.5 million more not in labor force since Jan 2009, Could step up hiring?

“Over the last six months, of the net job creation, 97 percent of that is part-time work,”…Keith Hall, former BLS chief

“The Times of the nineteenth of December had published the official forecasts of the output of various classes of consumption goods in the fourth quarter of 1983, which was also the sixth quarter of the Ninth Three-Year Plan. Today’s issue contained a statement of the actual output, from which it appeared that the forecasts were in every instance grossly wrong. Winston’s job was to rectify the original figures by making them agree with the later ones. As for the third message, it referred to a very simple error which could be set right in a couple of minutes. As short a time ago as February, the Ministry of Plenty had issued a promise (a ‘categorical pledge’ were the official words) that there would be no reduction of the chocolate ration during 1984. Actually, as Winston was aware, the chocolate ration was to be reduced from thirty grammes to twenty at the end of the present week. All that was needed was to substitute for the original promise a warning that it would probably be necessary to reduce the ration at some time in April.”…George Orwell, “1984”

 

“Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.”…George Orwell, “1984″

 

 

There were 11.5 million more people not in the labor force in July 2014 than there were in January 2009 when Obama took the White House.

Of course there are going to be fewer layoffs.

There are fewer people working, payrolls have already been cut to the bone and there are more part time jobs.

The labor force participation rate has dropped 2.8 percent.

I expect the AP to take the questionable data and spin it in Orwellian fashion.

For example:

“When employers hold onto their workers, it suggests they are more confident in the economy and could step up hiring.”

Could?

Pigs could fly if properly equipped.

I was disappointed to find the following headline over the AP regurgitated article in the Greensboro News Record.

“Employment statistics show hiring is strong”

Here is the same article on the internet from CBS 46 Atlanta.

“The number of Americans seeking unemployment benefits slipped 1,000 last week to a seasonally adjusted 298,000, a low level that signals employers are cutting few jobs and hiring is likely to remain strong.

The four-week average, a less volatile measure, dropped to 299,750, the Labor Department said Thursday. That’s just 6,000 higher than four weeks ago, when the average fell to the lowest level in more than eight years.

“The downward trend … is now clear and strong,” said Ian Shepherdson, an economist at Pantheon Macroeconomics. Shepherdson forecasts that employers added 250,000 jobs this month.

Applications are a proxy for layoffs. When employers hold onto their workers, it suggests they are more confident in the economy and could step up hiring.

The applications data is the latest sign that the job market is steadily healing. Employers have added an average of 230,000 jobs a month this year, up from an average of 195,000 in 2013. Average job gains since February have been the best in eight years.

The unemployment rate ticked up to 6.2 percent in July from 6.1 percent in June. But that was because more Americans began looking for work. Most didn’t immediately find jobs, but the rising number of job seekers suggests that people are growing more confident about their prospects.”

Read more:

http://www.cbs46.com/story/26392282/applications-for-us-unemployment-aid-slip-to-298k

CBO raises 2014 budget deficit by 14 billion, Lowers GDP from 3.1 to 1.5 percent, Red ink to rise in coming years if Washington doesn’t change current laws, Lower tax revenue

CBO raises 2014 budget deficit by 14 billion, Lowers GDP from 3.1 to 1.5 percent, Red ink to rise in coming years if Washington doesn’t change current laws, Lower tax revenue

“The number of people receiving health coverage through public exchanges under President Obama’s health-care overhaul will total roughly 25 million by 2018, will add more than $1 trillion to the federal deficit over the next decade and could very well create a small contingent of workers unwilling to work for fear of losing federal medical aid.”
“One of the CBO’s most intriguing estimates is that by 2017 there will be 2 million fewer full-time jobs on the market than there would have been without Obamacare, and that figure could climb to 2.5 million by 2024.”…Market Watch February 4, 2014

“What do you think a stimulus is? It’s spending – that’s the whole point! Seriously.”…Barack Obama

 

“Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.”…George Orwell, “1984″

 

 

From Market Watch August 27, 2014.

“CBO forecasts $506 billion budget deficit for 2014”
“The Congressional Budget Office on Wednesday raised its estimate of the federal government’s budget deficit for the current fiscal year as it slashed its growth forecast, and warned red ink was due to rise in coming years if Washington doesn’t change current laws.

In an update of budget and economic projections for 2014 to 2024, the nonpartisan CBO said the U.S. government’s deficit for fiscal 2014 will be $506 billion, or 2.9% of gross domestic product. The new estimate is $14 billion more than the agency’s prior estimate for the year, issued in April.

The new estimate is largely a result of lower-than-expected revenues for the year — particularly receipts of corporate taxes. CBO now estimates that all revenues will be 0.9% below its projection in April. Corporate tax revenues will be $315 billion in 2014, compared to a prior estimate of $351 billion, CBO said.”
“The agency lowered its projection of GDP growth for the year, to 1.5% from 3.1%, “reflecting the surprising economic weakness in the first half of the year.””
“But there are fiscal pressures on the horizon. The CBO said deficits will start to rise again after 2015, and approach $1 trillion in 2024.”

Read more:

http://www.marketwatch.com/story/cbo-forecasts-506-billion-budget-deficit-for-2014-2014-08-27?dist=countdown

 

State employment rates lower in 2014 than 2007, Pew Charitable Trust Aug 19, 2014, Employment rates for 25 to 54 year olds lower, 3.7 percent drop, Safety net programs strained

State employment rates lower in 2014 than 2007, Pew Charitable Trust Aug 19, 2014, Employment rates for 25 to 54 year olds lower, 3.7 percent drop, Safety net programs strained

“11.4%: What the U.S. unemployment rate would be if labor force participation were back to January 2008 levels.” …James Pethokoukis, American Enterprise Institute, June 2013

“For now, the absence of young adults from the housing market continues to put a dent in the homeownership rate, which dropped to 64.8% in the first quarter, compared with 65.2% in the fourth quarter of 2013, according to U.S. Census statistics. The rate was as high as 69.2% in the fourth quarter of 2004. For those younger than 35, the rate has fallen noticeably faster. It slipped to 36.2% in the first quarter, from 36.8% in the fourth. The homeownership rate for this group was as high as 43.6% in the second quarter of 2004.”…Market Watch May 12, 2014

“Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.”…George Orwell, “1984″

 

 

From the  Pew Charitable Trust August 19, 2014.

“Percentage-point Change in Employment Rate, CY 2007 to FY 2014”

StateEmployment

“In 2007, leading up to the Great Recession, 79.9 percent of people ages 25 to 54 in the United States had a job. In the 12 months ending June 2014, five years after the recession ended, only 76.2 percent of people in that age group were working.

The latest rates show a slight improvement from fiscal 2013, when 75.9 percent of people in their prime working years had a job nationally. At that time, employment rates were below prerecession levels in 35 states.

Still, at 3.7 percentage points lower than before the recession, the employment to population ratio for prime-age workers shows that the U.S. labor market remains weak. This finding has significant budgetary consequences for states:

Without paychecks, people pay less income tax and tend to buy less, reducing sales and business income tax revenue.
Unemployed people frequently need more services, such as Medicaid and other safety-net programs, increasing costs at a time when state governments may have less tax revenue.
A state-by-state comparison of calendar year 2007 with fiscal 2014 shows:

No state reported employment rate gains for 25- to 54-year-olds.
29 states had statistically significant decreases.
The largest decline in the employment rate was in New Mexico, where 69.9 percent of prime-age workers had jobs in fiscal 2014 — 9.2 percentage points lower than in 2007.
Among the least affected were Vermont and Nebraska, which recorded the smallest observed changes in their current employment rates of 83.3 and 85.2 percent, respectively.
Although unemployment figures receive more media attention, the employment rate is a preferred index for many economists because it provides a sharper picture of changes in the labor market. The unemployment rate, for example, fails to count workers who stopped looking for a job. By focusing on 25- to 54-year-olds, trends are less distorted by demographic effects such as older and younger workers’ choices regarding retirement or full-time education.”

Read more:

http://www.pewtrusts.org/en/multimedia/data-visualizations/2014/fiscal-50#ind3

 

Thanks to commenter bob strauss.

 

Gallup poll reveals high inflation and struggling economy, July 13, 2014, Almost 60 percent paying more for groceries gasoline, 42 percent paying more for healthcare

Gallup poll reveals high inflation and struggling economy, July 13, 2014, Almost 60 percent paying more for groceries gasoline, 42 percent paying more for healthcare

“If you’ve got health insurance we’re going to work with you to lower your premiums by $2,500 per family per year.”…Barack Obama

“We can’t drive our SUVs and eat as much as we want and keep our homes on 72 degrees at all times… and then just expect that other countries are going to say OK”…Barack Obama

 

“Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.”George Orwell, “1984″

 

I am certain you have been reading the horse poop about the improving economy, lower unemployment rate and low inflation.

I am also certain that informed readers and certainly frequenters of Citizen Wells have dismissed the Orwellian brainwashiong attempts.

Here is more evidence of what you already know and have experienced.

From Gallup July 11, 2014.

“Consumers Spending More, Just Not on Things They Want
Groceries, gasoline top list; leisure, travel, dining out at bottom”

“Slightly less than half of all Americans (45%) report spending more than they did a year ago, while 18% report spending less. A closer look at these numbers reveals Americans’ increased spending is on household essentials, such as groceries, gasoline, utilities, and healthcare, rather than on discretionary purchases.

The Items Americans Spend Money on, Summer 2014

At the other end of the spectrum, roughly one-third of Americans report spending less on discretionary items such as travel (38%), dining out (38%), leisure activities (31%), consumer electronics (31%), and clothing (30%). More than half of Americans say they are spending about the same for rent or mortgage, household goods, telephone, automobile expenses other than fuel, personal care products, and the Internet.

All of this suggests that the increasing cost of essential items is further constraining family budgets already hit hard by the Great Recession and still reeling from a stagnant economy. This is the first time Gallup has measured household spending in this way, so it is unclear whether the current patterns are typical, or if the results on discretionary spending are better now than during the recession. Gallup’s daily measure of consumer spending has been significantly higher the last two years than in 2009 through 2011 — although this could be partly the result of higher spending on essentials.”

“These results paint a picture of consumers straining against rising prices on daily essentials to afford summer travel, dining out, and discretionary household purchases — the kinds of purchases that ordinarily keep an economy humming. And while the two-thirds of Americans who plan to travel this summer is the highest level Gallup has measured since 2006, nearly one-third plan to spend just one night or less away from home, meaning it is not much of a vacation.

Those who do intend to travel this summer expect to spend more in all travel categories — transportation, food, lodging, and entertainment — than last year, further pressuring their already-strained budgets. Most will take their own cars despite relatively high gas prices. If there was any doubt that the U.S. economy is still struggling to get back on its feet, the results of this poll reinforce that reality. Because consumer spending is the lifeblood of a healthy economy, these findings suggest that discretionary spending still has a ways to go before it will fuel the kind of economic growth Americans have been hoping for.”

GallupSpending2014

Read more:

http://www.gallup.com/poll/172532/consumers-spending-not-things.aspx

 

NAR May 2014 existing home sales report, All but million dollar plus homes sales down, Wealthy propping up US housing market, Housing recovery only for the richest

NAR May 2014 existing home sales report, All but million dollar plus homes sales down, Wealthy propping up US housing market, Housing recovery only for the richest

“For now, the absence of young adults from the housing market continues to put a dent in the homeownership rate, which dropped to 64.8% in the first quarter, compared with 65.2% in the fourth quarter of 2013, according to U.S. Census statistics. The rate was as high as 69.2% in the fourth quarter of 2004. For those younger than 35, the rate has fallen noticeably faster. It slipped to 36.2% in the first quarter, from 36.8% in the fourth. The homeownership rate for this group was as high as 43.6% in the second quarter of 2004.”…Market Watch May 12, 2014

“Nearly half of U.S. companies are reluctant to hire full-time employees because of the ACA. One in five firms indicates they are likely to hire fewer employees, and another one in 10 may lay off current employees in response to the law.

Other firms will shift toward part-time workers. More than 40 percent of CFOs say their companies will consider switching some jobs to less than 30 hours per week or targeting part-time workers for future employment.”…Duke University Fuqua School of Business December 11, 2013

“Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.”…George Orwell, “1984″

 

 

 

From the NAR Summary of May 2014 Existing Homes Sales Statistics.

NAR05-2014-summary-2014-06-23 NARmay2014

http://www.realtor.org/sites/default/files/reports/2014/embargoes/ehs-06-23/ehs-05-2014-summary-2014-06-23.pdf

From Zero Hedge June 23, 2014.

“Guess Who Is Propping Up The US Housing Market”
“Needless to say, what the chart showed was the symptomatic, and schizophrenic, breakdown of US housing into two camps: the housing market for the 1%, those costing $750K and above, where the bulk of transactions are mostly between non-first time buyers, and typically take place as all cash transactions, and the market for “everyone else” which continues to deteriorate.

Moments ago the NAR released its May data, which on first blush was widely lauded as bullish: the topline print came at a 4.9% increase, rising from 4.65MM to 4.89MM, above the 4.74MM expected. Great news… if only on the surface. So what happens when one drills down into the detail? As usual, we focused on the last slide of the NAR breakdown, located at the very end of the supplementary pdf for good reason, because what it shows is hardly as bullish.”
“Housing recovery? Maybe for the richest, and even they are far less exuberant about purchasing $1MM+ mansions. For everyone else, enjoy “plunging” hedonically-adjusted LCD TV prices. Everything else is, well, noise.”

Read more:

http://www.zerohedge.com/news/2014-06-23/guess-who-propping-us-housing-market