Tuesday, June 22, 2010

Here we go again?

The market has been bouncing around a bit as of late but many of the horoscope readers --- I mean technical traders had drawn a line in the sand with the S&P500 at 1103. Once that number was breached the markets hit an air pocket and fell sharply. Hal9000 is running things still and we're just along for the ride.

The markets were shaken by the sharp dip in housing sales which fell 2% in May. To be clear this number was terrible, but the National Assoc. of Realtors saw it slightly differently "May Shows a Continued Strong Pace for Existing-Home Sales". The dip in May is clearly do the hangover from the tax credit expiration (remember what happened to car sales for a few months after the cash for clunkers deal expired) but the greater question will be what does it mean if sales are slowing going into the historically strong Spring/Summer selling season?

If sales continue to dip we could be talking about a double dip in housing before the end of the year.

Coming to a city near you - All employees outsourced to India and China!!!
Okay, that's a bit of a stretch but this city is taking the first baby steps in that direction.

"The city of Maywood will lay off all city employees and begin contracting police services with the Los Angeles County Sheriff's Department effective July 1, officials said.

In addition to contracting with the Sheriff's Department, the Maywood City Council voted unanimously Monday night to lay off an estimated 100 employees and contract with neighboring Bell, which will handle other city services such as finance, records management, parks and recreation, street maintenance and others. Maywood will be billed about $50,833 monthly, which officials said will save $164,375 annually.

"We will become 100% a contracted city," said Angela Spaccia, Maywood's interim city manager."

Interesting turn of events...

FYI - if you're flying a Boeing 767 in the next few days... The FAA seems pretty concerned about some cracks forming around the engines.

"Structural cracks discovered recently on at least two American Airlines Boeing 767 jetliners, including one jet that air-safety regulators believe easily could have lost an engine, are prompting concerns that some of the problems may turn out to be more widespread.

Over the past two weeks, American, with oversight from the Federal Aviation Administration, has checked the bulk of its wide-body 767 fleet to look for possible cracks in critical components that attach engines to the wings. On Monday, the FAA said problems were found on three planes."

Boeing is disputing the findings on one of the planes, but if it's 2 out of 56 planes or 3 out of 56 those are not odds that I like playing. Boeing has sold almost 1,000 767's since 1982 so there's a good chance that if you're getting on a plane tonight it could be a 767.

On that happy note have a cocktail, sit back and enjoy the flight!

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