by Calculated Risk on 1/05/2010 12:01:00 PM

From MarketWatch: Ford December U.S. sales up 32.8% to 184,655 units

From CNBC: Ford December Sales Jump 23.3%

Ford Press Release.

We need to see the details to see why the two reports are different, but this is based on an easy comparison; in December 2008 U.S. light vehicle sales fell sharply to 10.3 million (SAAR) following the financial crisis.

I'll add the other major reports as updates to this post.

UPDATE: From MarketWatch: Chrysler Dec. U.S. sales fall 3.7% to 86,523

UPDATE2: GM posts 6.1% decline in December U.S. sales

UPDATE3: Toyota Dec. U.S. auto sales up 32% to 187,860

Once all the reports are released, I'll post a graph of the estimated total December sales (SAAR: seasonally adjusted annual rate) - usually around 4 PM ET.

by Calculated Risk on 1/05/2010 09:49:00 AM

From the NAR:

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in November, fell 16.0 percent to 96.0 from an upwardly revised a 114.3 in October, but is 15.5 percent higher than November 2008 when it was 83.1.

On the extended and expanded tax credit:

[Lawrence Yun, NAR chief economist] projects an additional 900,000 first-time buyers will qualify for the extended tax credit in addition to about 2 million who have already purchased; 1.5 million repeat buyers also are expected to benefit from the credit.

The extended and expanded tax credit was estimated to cost taxpayers $10.8 billion, but based on Mr. Yun's numbers, the tax credit will cost close to $17 billion (way over the initial estimate and just like the first tax credit, most buyers who receive the tax credit would have bought anyway).

by Calculated Risk on 1/05/2010 08:40:00 AM

The WSJ reports: Personal Bankruptcy Filings Rising Fast

Overall, personal bankruptcy filings hit 1.41 million last year, up 32% from 2008, according to the National Bankruptcy Research Center ...

Click on graph for larger image in new window.

This graph shows the non-business bankruptcy filings by year.

Note: Data from Administrative Office of the U.S. Courts, 2009 is estimated using media reports of data from the National Bankruptcy Research Center.

The annual rate is at about the same level as prior to when the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) took effect. There were over 2 million bankruptcies filed in Calendar 2005 ahead of the law change.

"I can't see over the top of the files on my desk," said Cathleen Moran, a bankruptcy attorney at Moran Law Group in Mountain View, Calif., likening it to the rush of clients before the revised law went into effect.

Click on cartoon for larger image in new window. And a repeat: Cartoon from Eric G. Lewis, a freelance cartoonist living in Orange County, CA.

by Calculated Risk on 1/04/2010 11:55:00 PM

From Bloomberg: Krugman Sees 30-40% Chance of U.S. Recession in 2010 (ht many thanks!)

“[A recession] is not a low probability event, 30 to 40 percent chance,” [Paul] Krugman said today in an interview in Atlanta, where he was attending an economics conference. “The chance that we will have growth slowing enough that unemployment ticks up again I would say is better than even.”

On the recession probabilities, I think Professor Krugman is warning policy makers about complacency, similar to his Monday column: That 1937 Feeling.

My guess is the U.S. will see sluggish growth in 2010, but will avoid a recession. However I do think the unemployment rate ticking up from the current 10% is a high probability event.

by Calculated Risk on 1/04/2010 08:42:00 PM

Commentary from surferdude808:

Since August 7, 2009, each week an Unofficial Problem Bank List has been posted to Calculated Risk. The Unofficial Problem Bank List is an attempt to mirror the number of problem banks the FDIC reports each quarter.

The FDIC does not disclose the institutions on its Problem Bank List and CAMELS ratings are confidential. For the most part, institutions on the FDIC Problem Bank List have a CAMELS rating of 4 or 5. Normally, problem institutions or those with a CAMELS rating of 4 or 5 are subject to a safety & soundness formal enforcement action by their respective primary federal supervisor (Federal Reserve, FDIC, OCC, or OTS).

Since the last crisis, much to the consternation of the federal supervisory agencies, they are required to make all formal enforcement actions public. Historically, there is a high positive correlation between a safety & soundness formal enforcement action and a CAMELS rating of 4 or 5. This relationship is the basis for the Unofficial Problem Bank List, which is comprised of institutions operating under a safety & soundness formal enforcement action, and some institutions that have made public announcements that lead us to believe a formal enforcement action is likely.

With the passage of the year, we thought it would be of interest to analyze how the Unofficial Problem Bank List has changed since it was first published. The list had 389 institutions on August 7, 2009 and it finished the year at 575. During the past five months, there have been 277 additions and 91 deletions.

There are four ways to be removed from the list – failure, voluntary dissolution, merger with another institution (without FDIC assistance), or improvement in condition whereby the action is terminated. Of the 91 deletions, 74 are from failure, 9 are from termination of the enforcement action, and 8 are from an unassisted merger.

Of the 389 institutions on the August 7, 2009 list, 325 are still on the January 1, 2010 list as 64 were removed because of failure (48), action termination (9), and unassisted merger (7). Interestingly, 26 institutions that were added after August 7, 2009 failed before January 1, 2010.

So far, only 74 or 11.1 percent of the 666 institutions that have been on the list have failed. However, failure is the cause for 81.3 percent of all deletions. While failures only represent 11.1 percent of institutions that have appeared on the list, failed bank assets (quarter before failure) of $135.8 billion represent 30 percent of the $450.2 billion of assets that have been on the list. Moreover, failure is responsible for 98 percent of the $138.6 billion of assets of institutions deleted from the list. Thus, for the second half of 2009, failure was the primary way institutions and assets were removed from the list.

Unofficial Problem Bank List Change Summary
		Number of Institutions	Assets ($Thousands)
Start	(8/7/2009)	389	276,313,429
Additions		277	173,919,123
Subtractions
	Action Terminated	9	1,605,652
	Unassisted Merger	8	1,141,008
	Failures	74	135,814,823
	Asset Change		8,453,550
End	(1/01/2010)	575	303,217,519