Commentary Shrinking Bottom Line

first_img Share in Data, Government, Origination, Secondary Market, Servicing May 31, 2013 411 Views Agents & Brokers Attorneys & Title Companies Bureau of Economic Analysis Company News Home Prices Home Values Investors Lenders & Servicers Profits Service Providers 2013-05-31 Mark Liebermancenter_img Commentary: Shrinking Bottom Line Lost in the kerfluffle over the “”unexpected downward revision””: of first quarter GDP growth–2.4 percent annualized compared with the originally reported 2.5 percent–was the companion release of first quarter corporate profits, a disappointing drop from the fourth quarter.[IMAGE]First quarter pre-tax profits, as reported by the Bureau of Economic Analysis (BEA), came in at $1.969 trillion, down 2.2 percent from the fourth quarter (but up 3.6 percent from the first quarter a year ago). After-tax first quarter profits were off 2.0 percent. Along with the drop in profits, dividends fell, although the decline from the fourth quarter was exaggerated because of special dividends paid before year-end, when businesses were uncertain whether end├â┬ó├óÔÇÜ┬¼├óÔé¼┼ôof-year fiscal cliff negotiations would result in higher taxes on dividends.While BEA’s method of calculating and reporting corporate profits differs from reports found, say, in corporate annual reports or on tax returns, that the methodology is consistent from year to year speaks to trends if not to actual results. And the trend was clearly not a good one.According to BEA, profits fell for both financial and non-financial corporations in the first quarter. For financial corporations, it was the fourth quarterly decline in profits in the last five quarters; for non-financial firms, it was the second decline in the last five quarters.The slip in financial corporation profits comes at a particularly critical time for the financial sector, as housing-so heavily dependent on lending institutions–is in the midst of a nascent recovery, and that recovery is causing concerns that we may be on the cusp of yet a new housing bubble.Recent data shows home prices rising at the fastest pace since the housing bubble burst. At the national level, though, the relatively rapid increase in prices doesn’t automatically suggest a new “”bubble”” since prices (adjusted for inflation) are down from their peak. There are, according to Dean Baker of the Center for Economic Policy Research, “”serious grounds for concern in many local markets.”” Baker, who gained credibility as one of the first economists to spot the bubble said prices in some markets are “”rising at an extraordinary pace.”” Indeed, the “”Case-Shiller Home Price Index””: report for March showed a sustained year-over-year price gain of 20 percent or more in Phoenix–for the last seven months–while five other cities have had double-digit annual percent increases for at least the last five months in a row. The Case-Shiller data for March showed, in addition to Phoenix, two cities with a year-over-year price gain of more than 20 percent: Las Vegas (20.6 percent) and San Francisco (22.2 percent).To be sure, there is nothing magic about a 20 percent annual price increase that automatically suggests a bubble. Prices in Phoenix peaked in June 2006 following 18 straight months of yearly price gains of 20 percent or more and nine straight months in which the Case-Shiller data showed three-year price gains of over 80 percent. Prices peaked in Las Vegas in August 2006 after 24 straight months of three-year price gains of more than 80 percent. In San Francisco, prices peaked after 15 straight months in which prices grew 50 percent or more over three years.According to Baker, “”the most rapid price increases are occurring at the lower end of the market. In Las Vegas the price of homes in the bottom third of the market have risen by more than 40 percent over the last year. In the last three months they have increased at almost a 70 percent annual rate.”” And, he said, the pattern is similar in Phoenix, “”where prices for homes in the bottom third of the market rose by just under 40 percent over the last year and have risen at just under a 50 percent annual rate over the last three months.””Adding to the concern is that economic fundamentals are not tracking the higher prices. In all three cities–Phoenix, Las Vegas and San Francisco–household employment is falling, not rising.Many low- and moderate-income people saw their dreams destroyed when the last bubble collapsed. It would be too cruel to see the same mistake repeated just a few years later.While the increase in house prices might not track economic fundamentals, there is one economic truth that will continue: Businesses base hiring–and firing–decisions on a simple calculation of revenue or profit per employee. As profits become losses, employment will decline; put another way, the decline in employment in Phoenix, Las Vegas and San Francisco suggests business challenges in those cities with the prospect housing could follow._Hear Mark Lieberman on P.O.T.U.S. Radio (Sirius-XM 124) next Friday at 8:45 a.m. and again at 1 p.m. Eastern._*_Want to write an opinion piece for publication on our site? Send your submission to_* “”””:mailto:MReportEditor@TheMReport.comlast_img read more

How to choose the shoes and hats chain store experience sharing

for entrepreneurs, want to make money, to open a shoe shop, do a good job in the preparatory work, a good business can earn a lot of money. What is the preparatory work of the shoes and hats chain store location is one of the most important preparations. Next, look at the shoes and hats chain how to choose it!

in the shop before to do market research, know the relevant circumstances of the local population, so that it can determine the shoes store management etc.. How to open the shoes and hats chain store to investigate the local population, quantity, density, aging and so on need to be taken into account, the analysis of good data to help determine the location. read more

Big face chicken is suitable for you to join

you know the big face chicken? Small when I was in college to know the chicken head, a consumer is his reputation to deeply shocked. Chicken joined the big face for you?

no doubt food and beverage franchise project is the most popular investment projects on the market. Sufficient funds to invest in luxury hotels to join, not enough money to invest in specialty snacks. Big face chicken is tailored for small entrepreneurs entrepreneurial projects. Set a small investment, quick returns and good prospects for a large chicken face a lot of achievements in grassroots entrepreneurs dream of getting rich. If you want to join in the catering industry in their fists, please pay attention to the big face chicken. read more

3000 yuan for business

is now talking about entrepreneurship, a lot of people think of is very large funds, however, not every entrepreneur can have a strong entrepreneurial capital. So, only 3000 yuan, how to start? Do you have the right entrepreneurial opportunities? 3000 yuan for entrepreneurship? Let’s analyze it.

in the face of this problem, there are usually two voices:

a voice is: if you are not ready to go out of business is very dangerous, 3000 yuan, even the election of a project is not enough money, you want to venture, too naive blind! Don’t be so hypocritical good! You do not have money, do not have a good entrepreneurial skills, you do not have contacts, you do not have the channel resources, how do you start? Please practice the internal strength, accumulate good funds, waiting for the best time, and then officially started. read more

The Ministry of finance to seek ten priorities for the implementation of livelihood

Over the years, our province has been practicing the small finances do big people "concept, every year for the people’s livelihood expenditure of more than 75%. In November 27th, the reporter learned from the Provincial Department of finance, next year the provincial government will continue to implement a number of practical livelihood projects in the province, to ensure that the number of people’s livelihood project more conform to the public opinion, close to the people, the Provincial Department of Finance on the basis of investigation preliminary screening 13 livelihood facts, solicit public opinions and suggestions the people of all nationalities, and to choose the urgent need for the government 10 practical arrangements for the implementation of the priority.2016

"food basket" project intends to build 5000 building energy-saving solar greenhouse, new construction and renovation of 10 agricultural and livestock products market. To strengthen the market price supervision and inspection, crack down on price violations, maintaining market price order.

for this year the public to pay more attention to the two child policy in our province also intends to implement the national universal two child in the family planning policy of Huimin engineering, improve the policy of maternity insurance for urban workers, adjust and improve family planning special family support gold standard.
read more

went to ear training attachment and achieved remarkable results

November 1st –11 month 29 days, 15 cadres in our city people club system received a month of training positions in Guangzhou City

11 1 –11 on day 29, 15 cadres in our city people club system received a month of training positions in Guangzhou city. By listening to lectures, training, work practice counterparts in the exchange and investigation form, so that all students have a deeper understanding and thinking, the testing exercise successfully completed the task of training, all the students with new ideas, new ideas, new power has made new improvement in different degree, and at the same time write a new chapter for the Guangzhou and Xining exchanges and cooperation between the two cities a new round of. read more

Closing of the four session of the twelve National People’s Congress

– approved by the government work report, "13th Five-Year" plan, the NPC Standing Committee work report by   –   charity law; Xi Jinping signed a presidential decree to be published in
March 16th, the twelfth session of the National People’s Congress after the closing of the fourth meeting, representatives of the Great Hall of the people. (reporter Pan Yulong photo)  

twelfth session of the National People’s Congress of the successful completion of the agenda of the fourth session of the morning of the closing of the Great Hall of the people on the morning of 16. The Congress approved the report on the work of the government, "13th Five-Year" plan, the NPC Standing Committee work report; through charity law, the state president Xi Jinping signed forty-third zhuxiling be published. read more

Chengdong district offices will be revoked in the region’s 15 villages under the unified rhyme home

told reporters, as the Xining city "the city’s grassroots reform pilot area", this year, the district will revoke the office of the streets, build a new community service by reducing the level of management, promote decentralization, strengthen grassroots power and integration of basic resources, improve service efficiency, enhance service, management, community coagulation function.

at the same time, to promote the integration of urban and rural construction in the region this year also made a bold decision, the region’s 15 villages out of the office of the streets, all placed under the unified management of rhyme home town, and actively explore the new rural community construction and the reform of the household registration system, peasant household registration reform will lose the land for urban residents account "so, the realization of employment is not to leave without leaving home, away from home, into the factory is not the city, local people". (author: get the boat benevolence green measure) read more

Huangzhong county eight petal lotus in the Qinghai plateau exudes cultural fragrance


plateau in early spring, bronze processing sound tingle broke Chen Jia Tan cultural tourism industry park quiet process technicians holding a knife, carefully carved a totem and texture on the copper buddha.

Chen Jia Tan cultural tourism industrial park is located in rouchard town in Huangzhong County of Qinghai province. Because the famous Tibetan Buddhist temple is located in the town of Kumbum Monastery. In recent years, relying on the local farmers in Huangzhong, silver and copper with painting, Duitou, Tibetan carpets, murals, sculptures, carved, inlaid silk culture industry of ancient Tibetan Buddhist culture and folk custom development, and give the title "eight petal lotus" culture and art reputation. read more

City Forestry Bureau held chuangxianzhengyou activity summary commendation meeting

In September 17th, the city forestry bureau Party committee held a grand global chuangxianzhengyou activity summary commendation meeting

9 month 17 days, city forestry bureau Party committee held a grand global chuangxianzhengyou activity summary commendation meeting. Bureau Party committee, the Secretary of the grass-roots party organizations, Party members and the masses on behalf of a total of 72 people attended the meeting, deputy secretary and Secretary of the Party committee Comrade Zhang Jiqing chaired the meeting, deputy director general of bureau Party committee, comrade Li Hongyan on behalf of the bureau Party committee as "the Xining Municipal Forestry Bureau chuangxianzhengyou activity report", the meeting commended the people park Party branch 8 chuangxianzhengyou advanced grassroots party organizations and 27 outstanding member of the Communist party. read more