Men Are in Recession, Women Apparently Not - Housing Tracker

Quote of the Day

“We were going to run out of cash come the end of June. It’s not a decision that any of us took pleasure in, but there are a lot of other cities that are probably [going to] be in the same boat shortly.” – Vallejo City Councilwoman [and] retired banker Joanne Schivley, on the council’s decision to declare bankruptcy as a result of falling tax revenues and the economic and housing downturn. (NY Times, May 8th)

Macro Effects of the Housing Slump

The Slump: It's a Guy Thing. “Bureau of Labor Statistics: From last November through this April, American women aged 20 and up gained nearly 300,000 jobs. At the same time, American men lost nearly 700,000 jobs… Men have the misfortune of being concentrated in the two sectors that are doing the worst: manufacturing and construction. Women are concentrated in sectors that are still growing, such as education and health care. [Yet] while they're getting more jobs, [women’s] pay is stagnant. Also, most share households—and bills—with the men who are losing jobs. The "female" economy can't stay strong for long if the "male" economy weakens too much.” (BusinessWeek, May 8th)

City Council in Bay Area Declares Bankruptcy. “The Vallejo City Council voted to declare bankruptcy Tuesday night in the face of dwindling tax revenues, the housing market meltdown and a faltering economy. The unanimous vote was cast after late efforts to squeeze concessions out of city employees failed and with the city facing a $16 million shortfall for the fiscal year beginning in July… What worries some experts is that some of the problems here are all too common, a steep decrease in property and sales taxes and transfer fees as a result of weakness in the housing market.” (NY Times, May 8th)

Merrill Expects U.S. Consumer Loan Defaults to Rise. “Merrill Lynch CEO John Thain expects defaults on U.S. consumer loans and credit cards will rise, putting strain on the world's largest economy. Thain: “Continuation of falling home prices, rising food prices, rising energy prices and higher unemployment will result in a pull back on the part of U.S. consumers, [that] will continue to drag the U.S. economy for the next 6-12 months.” (Bloomberg, May 7th)

Bankruptcies on the Rise. “Jupiter eSources database, Automated Access to Court Electronic Records: More businesses filed for bankruptcy in April, 2008, than in any month since new bankruptcy laws took effect in 2005. The numbers show a 49% increase in commercial bankruptcies over last year, with an average of 235 daily filings last month compared to 158 in April, 2007. More than 5,000 firms filed for bankruptcy in April, 2008, the most in any month since the new laws took effect in 2005. That leap in bankruptcy filings shows the troubles that started with sub-prime mortgages and other financial instruments on Wall Street have hit home for small businesses.” (BusinessWeek, May 6th)

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