More weak U.S. economic data puts cracks in weather theory

Comments (22)
sabrefencer wrote:

its the weather, not the economy, stupid..ask

Feb 18, 2014 10:19am EST  --  Report as abuse
mickey58 wrote:

How wonderful that we can blame the weather for all the problems. So when the weather improves all is well again.

Feb 18, 2014 11:21am EST  --  Report as abuse
Earthtourist wrote:

Can’t the limitless-greed markets understand that not just ‘poor’ weather, but atrocious weather was not a mere five minute phenomenon, but it has not stopped being atrocious since 3 months past. It does not suggest Armageddon for the US economy! What a bunch of nerds these doomsday-sayers are.

Feb 18, 2014 1:26pm EST  --  Report as abuse
jeschoettgen wrote:

They lost me at the end when the article stated high housing demand was causing the industry not being able to keep up making prices rise and hurting the market. Well boys what is it, high demand or low demand? It seems to me you can not have a good housing market with low demand, but tell me how high demand can make for a bad market as far as the building industry is concerned? That is like not wanting to go swimming because the water is too wet.

Feb 18, 2014 1:32pm EST  --  Report as abuse
Kahnie wrote:

Banks need to lend. More importantly, people need to get jobs that are more than minimum wage so they can afford houses and cars. When and only when that happens, will the housing industry gain momentum. The wealthy and uber wealthy can only sustain the auto market and housing market in the short run. The country is still mired in rough times, regardless of what the “great economic gurus” say about the economy. We need jobs and good paying jobs. We need to improve and fix our infrastructure. We need to make safe the oil tanker cars on the railroad. Until we do projects like that, we will be mired in this catastrophe of a middle-class morass.

Feb 18, 2014 1:58pm EST  --  Report as abuse

The spigot of free money from the Fed has been turned a tad lower, and the institutional property building based on near free money for the investor class slows down. A predictable result from the fake economic paradigm that Wall Street created. Is it possible that foolish Fed manipulation has as much impact as the weather?

Feb 18, 2014 2:05pm EST  --  Report as abuse

@Kahnie, so true, but one party will not let the country move forward and invest in these things, as they are playing a political strategy to promote partisanship in order to make Obama look bad, because he ran on Bi-partisanship. Makes one sick to one’s stomach that elected officials will not do what is right for the country, just to score possible political victories.

Feb 18, 2014 2:55pm EST  --  Report as abuse
dixiedog44 wrote:

The Fuhrer will not allow this. Nancy Pigloser will spin it as an increase in opportunity. Lyin’ Jay Carney will come up with excuses why it is all due to Bush, but Oliarcare will soon boost the economy. It has to take an upturn at sometime, then he will strut and say “See, I told you so. Oliarcare was the operating factor”. The weather should soon get warmer and milder and Oliar will tell the public how his global warming policy is already paying dividends. If this administration was a movie, it would win the Academy Award for Comedy. Dofus Joe Biden would win the “best athletic supporter” award and “lurch” Kerry would win the sound effects award for his senseless vocals. “Who cares” Hillary would win the best imitation of a sec state with a special commendation for kind words to surviving family members of murdered embassy personnel.

Feb 18, 2014 3:15pm EST  --  Report as abuse
gcf1965 wrote:

“heightening concerns that recent signs of weakness in the economy reflect deeper problems than the severe weather…” – You don’t say? Wow, who had this light bulb moment to dispel the excuse so many of us knew was a crock from the first day they used it?

Feb 18, 2014 3:16pm EST  --  Report as abuse
gcf1965 wrote:

@Kahnie “people need to get jobs that are more than minimum wage” I agree, and to do this a couple of things must happen: 1. People need to realize the concept of reward for value added. Those wanting $15/hr for flipping burgers are so far removed from reality its not funny. Being able to bring value to any organization comes through education (yes, skilled trades can make a good wage), wise choices, and hard work. 2. Understanding that no one owes you anything and that if you make minimum wage, you probably bring min. wage contributions…maybe, to teh organization.

Feb 18, 2014 3:22pm EST  --  Report as abuse
gcf1965 wrote:

“Makes one sick to one’s stomach that elected officials will not do what is right for the country,” – so true, but hopefully enough people will wake up in Nov. and rid us of the two-faced, hypocritical, corrupt, lying, race-baiting, America-hating, economically ignorant, and vote-buying liberals on obama’s payroll like Reid, Pelosi, Waters, Shumer, McCain, Boxer, Feinstein(possibly the dumbest person in government), etc.

Feb 18, 2014 3:26pm EST  --  Report as abuse
gcf1965 wrote:

To add to my response to Kahnie, 3. We need an administration and congress that has a clue about what promotes job growth, realizing that handouts are NEVER going to kick start the economy, no matter how much of my money they give away in vote buying schemes.

Feb 18, 2014 3:30pm EST  --  Report as abuse
Loucleve wrote:

Think it’s the weather? nope…It’s across every region…………Riddle us this Batman… if weather was to blame, then why did the “West” region plunge the most? In fact, why did The West plunge the most on record? Too much sunny dry weather not good for sales?

Feb 18, 2014 3:50pm EST  --  Report as abuse
Mott wrote:

Blame weather.. blame Obama or other.. it doesn’t matter because the trade balance over $4T over two decades due to WTO/free-trade imports and the interest payments near $400B/year, are the real termites that are set to bring this house down.

Feb 18, 2014 4:34pm EST  --  Report as abuse
brotherkenny4 wrote:

How many houses do we need, and why do they continue to get larger?

A home builder can buy land, build the houses, and sell the houses providing the financing rather than a bank. The builder would make the interest, which is far more than the profits on the build. Typically people pay more in interest on a house than they do for the entire house. Builders profits are small, but bankers profits are large. However, there is no law against private contracts between a home seller and home buyer and the seller makes the interest. I have done this myself, both as a seller and a buyer. Granted, real estate agents and lawyers will try to disuade you from doing this, supposedly because it’s risky (risky to their nice income they make for doing virtually nothing).

Feb 18, 2014 4:36pm EST  --  Report as abuse

Kahnie…..very well written.

Feb 18, 2014 4:43pm EST  --  Report as abuse

@gcf1965, please man, stop with the ‘vote-buying’ BS, you know it is a load of bull, doing the right thing for your constituents is not ‘vote buying’. It is just as much a fantasy as the whole ‘liberal media’ conspiracy. BTW, McCain (nor any of the others for that matter) is on ‘obama’s payroll’. Just by using that term ‘obama’s payroll’, shows just how out of touch with reality you are. They are paid by the government. I understand the point you trying to make, and it is despicable, as hate normally is. Also calling racists out for being racists is not ‘race-baiting’ if you do not want to be called a racist, then do not act like one. Not one of those you mentioned, and I doubt anyone in government, is ‘America hating’. Just goes to show where you are coming from, filled with hate for those that have different ideas for how to help the country then you, by calling them ‘America-hating’.

You are right about one thing though, people do need some sort of education/job training to get a good job. Remember the days of ‘on the job’ training? Notice you do not see that much more, because companies would rather outsource to other countries with cheaper wages. That is one reason why job training was a very large component of the ‘Jobs’ bill Obama proposed way back in 2011, and we all know how far that got in Congress because of the GOP.

Like I said before, putting party before country.

Feb 18, 2014 4:58pm EST  --  Report as abuse
cheeze wrote:

As I read all these comments, it makes me think of how history repeats itself, and the news of how North Korea is torturing its citizens. As America divides itself amongst its citizens over haves and have nots the patriotic feelings of being an American are slowly fading away. This makes me wonder if the US has the will power and might to defend itself when we are no longer strong enough. both economically and socially compromised, people are over taking the country in a growing society that expects handouts. This change in culture in my opinion does not match the same will to succeed that was installed in past generations and what helped the US become the greatest country in the world. Countries like China could become a problem in the future as they build bigger Armys and have more resources to expand and defeat weaker countries. A little off topic, but something to ponder as we watch weakness putter along.

Feb 18, 2014 5:22pm EST  --  Report as abuse

@cheeze, People, except of course for that small % of criminals/complete deadbeats, are not ‘expecting handouts’. What people like myself expect, are some counter balances to the ‘profits at all cost’ mentality of capitalism. If you do not have this counter balance you turn into what we have become, a borderline oligarchy with large amounts of income inequality and many people working hard but still living below poverty level. I do not care what the job, ditch-digger, burger flipper, whatever, there is no reason that if you work a full time schedule that you should then make so little that you would need benefits to keep your and/or your family above the poverty line.

Feb 18, 2014 5:59pm EST  --  Report as abuse
auger wrote:

Home builders are still competing with unsold bank inventory, which is coming to market to greet the early spring buyers. The banks sat on these for many years, and the existing house market seems to be improving. They won’t keep paying on them longer than they think is necessary

Feb 18, 2014 7:20pm EST  --  Report as abuse
74LS08 wrote:

It’s an ObamaCare Stupid….

Wait another 3 month and every economist in the country will finally “get it”.

Feb 19, 2014 12:02am EST  --  Report as abuse

“Year of break out growth?” What world are these journalists and “economists” living in? This is a good example of what happens when journalists who never studied economics write stories for editors who never studied economics and consult “business economists” working for the PR departments of large financial institutions despite also never studying economics at the professional level.

Every trained macroeconomist in the country knows that that economy is in a deep economic malaise and that its production and employment is falling further and further below that of which the economy is capable.

The real economists also know that the indicators mentioned above are insignificant to the point of being irrelevant; those that count are those such as real per capita GDP and labor force participation rates. Our problem is that our Federal Reserve decision makers are stuck in the past with solutions that Keynes and Hayek suggested for the UK of eighty years ago instead of those that Stigler and Lindauer suggest for today. (sort of like the physicians of today who still prescribe leeches for high blood pressure – as was common in the 30s – instead of pharmaceuticals)

A good place for Reuters journalists and editors and their “economists” to START their educations would be “Inflation, Unemployment, and Government Deficits” – that’s Lindauer’s version for the layman of his epic for economists “The General Theories of Inflation, Unemployment, and Government Deficits.” It is not nice to mislead readers with inaccurate information.

Feb 19, 2014 9:25am EST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.