Are Springleaf Mortgage Loan Trust 2011-1 bonds safer than U.S. Treasuries? Yes, according to Standard & Poor’s. Bloomberg reports: “Standard & Poor’s is giving a higher rating to securities backed by subprime home loans, the same type of investments that led to the worst financial crisis since the Great Depression, than it assigns the U.S. government.”
Daily Archives: August 31, 2011
Stuck In Neutral
Private nonfarm employment growth slowed in August, according to ADP. “Today’s ADP National Employment Report suggests that the trend in employment moderated somewhat in August at a pace below what would be consistent with a stable unemployment rate.” That’s in keeping with the recent slippage in economic activity generally, and so it’s not terribly surprising. Today’s numbers suggest that we should moderate our expectations for this Friday’s employment report from the government.
Are Consumer Confidence Indices Useful As Leading Indicators?
Consumer confidence fell to its lowest level in more than two years, the Conference Board reports. That’s a discouraging sign for the economy. No one’s really surprised, given the various ills weighing on the economy, although some analysts doubt that such measures are all that valuable. “Consumer confidence usually is not a good indicator of spending,” Edward Meir, MF Global senior commodities analyst, tells AP. “People may say they don’t feel great but they still spend.”