by Calculated Risk on 10/17/2005 03:59:00 PM

Jakob Nielson provides an interesting summary of Weblog Usability: The Top Ten Design Mistakes.

The readers make this blog for me. I've met many great people via the comments or email and any feedback and/or suggestions is appreciated.

Here are Nielson's Ten Mistakes:

1. No Author Biographies - Guilty. I do provide a short blurb on my background.

2. No Author photo - Guilty. No one wants to see my ugly mug!

3. Nondescript Posting Titles - OK, I try to make the subject clear although I sometimes group several disparate ideas into one post.

4. Links Don't Say Where They Go - Guilty. I'll try to be more clear.

5. Classic Hits are Buried - Guilty. Some of my older posts might be of interest to new readers.

6. The Calendar is the Only Navigation - mostly Guilty. Unless you know when I wrote a post or the subject (and use search), it is hard to find previous material.

7. Irregular Publishing Frequency - OK, I post fairly frequently.

8. Mixing Topics - OK, although I jump between economic topics, I think they are fairly related. For the most part, I've dropped my comments on politics (except as related to economics).

9. Forgetting That You Write for Your Future Boss - No problem for me.

10. Having a Domain Name Owned by a Weblog Service - Guilty.

Apparently my site isn't very usable. Any and all comments and suggestions are welcome!

by Calculated Risk on 10/16/2005 09:52:00 PM

UPDATE2: Dr. Thoma provides excerpts and commentary on Krugman's The Big Squeeze

My most recent post is up on Angry Bear, Housing: Ready for the Fall

Real prices for the US housing market almost certainly fell in Q3 2005. Real prices are an excellent leading indicator for nominal prices. In the early '90s housing bust in California, real prices peaked in Q2 1990 and nominal prices in Q1 1991 (according to the OFHEO House Price Index and adjusted by CPI less shelter from the BLS). This is a common pattern for housing busts.

And on the UK 'bust', Joshua sent me this story: High street 'heading for a Christmas Armageddon'

Retailers are facing an "Armageddon" this Christmas, with high street sales at their weakest for two decades, according to one of the industry's most senior analysts.

Verdict Research, headed by Richard Hyman, will tomorrow forecast that retail sales in value terms will rise by just 2.1pc in the last three months of 2005, compared with 3.3pc growth a year earlier.

The sluggish growth figures follow a year of weak sales and rising costs. "It's going to be worse than last year and it's worse by a lot," said Mr Hyman.

He described the scenario as "retail Armageddon", adding: "This has been the most difficult and challenging year in modern times, no question about it. And what we are seeing is not cyclical, it is much more fundamental."

UPDATE: More on the UK: Brown 'ignoring signs of slowdown'

Chancellor Gordon Brown has been criticised by a leading think tank for failing to heed warning signs about a slowdown in the UK economy.

The Ernst & Young Item Club said Mr Brown could not blame external events such as high oil prices for the weakening growth rate, which it forecast to be around 1.6% this year, rather than the Treasury's Budget estimate of 3% to 3.5%.

Item's chief economic adviser Professor Peter Spencer said the UK economy was "on increasingly shaky ground" and could not rely on consumer spending and interest rate cuts to bolster growth.

He said: "The Chancellor is blaming the UK economic slowdown on the recent spike in oil prices and the weakness of the European economy, but this is unrealistic.
...
He added that the UK's problems were home-grown and stemmed from a booming housing market and strong consumer spending, which has propped up the UK economy until now.
...
He added: "The prospects for the business sector are still excellent and we have assumed a modest rise in exports and investment next year that would allow interest rates to remain on hold. However, if business fails to respond rates will be cut again in the New Year."

by Calculated Risk on 10/14/2005 12:04:00 PM

UPDATE: Dr. Altig's take: The CPI Report: Very Interesting

UPDATE2: Also see Dr. Hamilton's take: Inflation's back?

The BLS reported:

The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.2 percent in September, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The September level of 198.8 (1982-84=100) was 4.7 percent higher than in September 2004.

Reader Gary Evans suggested I look at some of the components. Here are a few:
Fun CPI numbers (over last 12 months):

All items	4.69%
Energy	35.14%	8% of CPI
Medical Care	3.93%	6.1% of CPI
Food	2.52%	14.3% of CPI
Shelter	1.95%	32.7% of CPI

Thank goodness shelter (the largest component in the index) is holding CPI down.

For more fun, see Barry Ritholtz: Look Ma, No Inflation!

by Calculated Risk on 10/13/2005 08:17:00 PM

Back in April I offered a challenge: Pick the start of the next recession. The contest is still open.

I called it: "The Mug's Game Challenge"

NOTE: Here are the original rules. Unfortunately the comments disappear after a certain amount of time, so I will not be able to feature any comments from April. But I did keep all the entries (some are probably already wrong).

Here is a simple contest to predict the start of the next recession. The rules:

1) Enter a month and a year in the comments at any time right up to the recession being announced (one entry per person). Please feel free to state your reasons. I will feature those comments for the winners.

NOTE: You do not need to enter now. I am still waiting before I make my prediction. But early entries will be rewarded. I will update the contest every month as a reminder.

2) Scoring:

A) The Starting Month: The official starting month will be determined by the NBER. This usually occurs several months after the recession starts.

B) A pick will be considered correct if it is within +/- 2 months of the NBER determination (a 5 month window centered on the month picked). It is VERY difficult to pick the exact month, and being within a couple of months is quite an achievement.

C) All correct picks will be ranked by the number of months prior to the recession that the pick was entered. As an example, say the recession starts in Oct 2005: If someone correctly picks any month August 2005 through December 2005 (+/- 2 months) during April 2005, they will be rated a "6". This rewards picking the recession early.

All correct picks will be featured when the recession is announced and ranked by earliest picks.

Earlier I offered some thoughts on leading indicators for recessions. Several people have suggested other leading indicators to me. No one wants a recession, but we might as well have some fun!

Good luck to all!

UPDATE: Prize? The winners get their names mentioned, their comments featured, the admiration of their peers, and a free subscription to Calculated Risk!

Here are the picks from April:
Aug 2005 Kirk Spencer, wharf rat
Sep 2005 Vernon Bush
Oct 2005 BE, David Bennett
Nov 2005 David Yaseen, Fernando Margueirat, steve kyle, Nguyen Khuu
Jan 2006 Yusef Asabiyah, dryfly, Frank, redfish
Feb 2006 Mish, E.Robinson
Mar 2006 Colin H, ChasHeath, Alan Greenspend, Movie Guy, F.Hagan
Apr 2006 battlepanda
May 2006 Ken Houghton, navin
Jun 2006 DOR
Aug 2006 Jason Wright
Mar 2008 dilbert dogbert
Jul 2008 jl
Nov 2008 Elaine Supkis
March, 2011 Paul
NEVER Larry Kudlow's doppelganger

UPDATE: October Picks:
Sep 2005: Alexis
Nov 2005: OldVet
Dec 2005: reason, calmo, fatbear
Jan 2006: DF
Feb 2006: Tom Marney, Stormy, Ryanonthebeach, cariboo kid, semper fubar
Mar 2006: Vader, Fester
Apr 2006: Andrew, Dean
May 2006: Michael Cain
Jun 2006: Alex Norman
Jul 2006: Dr. Z, psh, David J
Sep 2006: Prudent Investor
Oct 2006: Kevin, Nanoking
Nov 2006: Uncle Jack, Tanta
Mar 2007: eightnine2718281828mu5
Aug 2007: OEE
Sep 2007: John Bott
Oct 2007: Nicholas Weaver
Jul 2008: op
Aug 2008: Lord
NEVER: dali lama
Posters can take the same month.

by Calculated Risk on 10/13/2005 03:32:00 PM

The NC Times reports: North County median home prices decline slightly

Median prices for existing North County homes eased downward in September, according to the monthly report from the North San Diego County Association of Realtors.

Single-family detached homes sold for a median price of $620,000 in September, down 2.8 percent from August's year-to-date high of $637,750.

This is a small one month decline and may not be a trend. Perhaps of more immediate interest is the market dynamics of price reductions and rising inventories:

More sellers appear to be lowering their asking price to reflect those conditions, said Kurt Kinsey, broker/owner of Blue Pacific Realtors.

Often, these properties are being sold by "flippers," people who buy homes with an eye to selling them for a quick profit, said Kinsey, whose firm specializes in Carlsbad and Oceanside real estate. Kinsey estimated that 20 percent of sellers in Carlsbad are flippers, and perhaps half that percent in Oceanside.

"There are as many homes for resale in Carlsbad as in Oceanside, which has more than double the population," Kinsey said.

Added to this abundance of resales are new homes being sold in Carlsbad in developments such as Bressi Ranch, La Costa Greens and Calavera Hills, Kinsey said. That gives Carlsbad buyers a strong bargaining position.
...
Jerry Kalman, a Realtor in the Fallbrook/Bonsall area, reported that September was notable for "an unusually high number of homes that were repriced lower and that eventually sold for less than their original listing price."