Wealthy Americans Feel Economic Pinch, survey Says

Economic crisis excuses no one! As evident, the present economic woes have also affected the rich people in America according to CNBC survey. The usual routines of wealthy Americans have laso been affected as they travel less, spend less and drive less.







Vacations are taking a hit because of the economy; 68 percent said they’re traveling or planning to travel less and 31 percent said they’re continuing to travel as before.

Further, a majority don’t believe the economy will get better soon; 63 percent rate the economy as “poor” and 43 percent said they believe that the economy will get worse over the next year. Only 27 percent said the economy will remain about the same and 21 percent believe it will actually improve.

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Home Prices Falling Fast

In America, home prices are sharply falling, with a drop of 7.7 percent in the first quarter of this year. With the sales slowdown, National Association of Realtors found a mix changes in houses sold.

Many of these same markets were also among the hardest hit by the subprime implosion, which forced many lower priced homes back on the markets, again dragging down NAR's results.

That helped put many California and other Sun Belt cities, with their toxic combinations of both high prices and heavy proportions of subprime mortgages, among the biggest losers.

In California, Sacramento prices plummeted 29.2% to $258,500 compared with last year and Riverside prices fell 27.7% to $287,100. Prices in Las Vegas fell 20.2% to $247,600 and those in Phoenix dropped 15.4% to $222,200.

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Stock A Bargain Under $10?

If the current stocks in US stock markets or in the global market costs under $10, what will this mean? Is it mean bargaining the stocks or there are variety of reasons behind it? What does this really mean?




One way to tell a stock is headed for the bargain bin is that it continues to make “lower highs.” In order for it to become a good buy, says Greg Womack, president of Womack Investment Advisers, something has to break that cycle. Ford stock recently tried to break out of its downtrend but snapped back below its 200-day moving average.

When it comes to the auto industry, “Hold your nose, wait three to five years, and you’ll have a winner!” Womack says.

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Fed Report: Economy Is Generally Weak

The sky-high price of energy and food have contributed to Fed latest report that the economy is generally weak. US economy has not been yet fully recovered from the economic crisis that hit the country months ago, now, another turmoil for US economy to survive.

Over the past week, Federal Reserve Chairman Ben Bernanke and his Fed colleagues have been sounding an ever-louder alarm against inflation. Given those concerns, Bernanke has signaled that the Fed's rate-cutting campaign, started last September to bolster the weak economy, is probably over for now.

Many economists predict the Fed will leave its key rate at 2%, a four-year low, when it meets next, on June 24-25.

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US Housing Market Sees Signs of Turnaround

The US housing market has been struggling from crisis as reflected in its current economic situation. However, the National Association of Realtors sees future positive activity in housing market, as prices drove sharply lower.


"Bargain hunters have entered the market en masse, especially in areas that have seen double-digit price declines," said the association's chief economist, Lawrence Yun.

Regions of the country that have seen sharp price declines, such as the West, are now seeing a sales recovery, he added.

Economists polled by Reuters before the report were expecting pending home sales to decline 0.5 percent.

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US Fed To Tackle Inflation Concerns

US Federal Reserve to talk about how to counter inflation to moderate the recent increasing prices, while it hopes not to boost interest rates.

A failure to deliver on its implicit promise of tighter monetary policy could lead to increased financial market volatility and derail the tentative calm that aggressive Fed action has managed to inspire.

Futures markets have already begun pricing in chances of an interest rate hike as early as September, a prospect that many analysts think is far-fetched given the still-shaky state of housing and finance.

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Lehman Considers Raising Up Capital

As part of its plan to deleverage its business, Lehman Brothers company is considering possible raise up of its capital from $3 to $4 billion.


New capital may be raised by issuing common shares, diluting existing shareholders, and would probably be announced in conjunction with its quarterly results due the week of June 16, the Journal said.

Lehman's market value is about $18.7 billion, based on Monday's closing stock price of $33.83, Reuters data shows.

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Housing Woes Affect Mid-class Homeowners Too!

Even the American affluent Middle Class Homeowners are likewise suffering from the housing crisis. They too, are affected despite economic advantages. The negative trend in housing market is getting worse everyday!



Nearly a year after the mortgage meltdown became front-page news, the Schneiders’ travails reflect how the nation’s housing woes have moved beyond subprime borrowers in working-class neighborhoods and into the realm of upper-middle-class homeowners.

Last week, a new report showed that house prices nationwide were off 14.1 percent from a year ago, while the Commerce Department said sales of new homes remained near their lowest levels since 1991.

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