Stimulus Check Gone with Price of Oil: Running the Actual Numbers Behind the Non-Issue Stimulus Checks.
You may be wondering why the $150 billion stimulus package has had such a minimal impact on the markets and the general economy. The problem is, the entire stimulus package was spent merely keeping up with rising oil prices. Since the start of the year, oil has gone from $95 to $145 to the current $136. Yet we have remained in the high area for sometime. So let us take some rough estimates from the last month to see how many days it took to wipe out that stimulus.For the month of June, oil per barrel averaged $130. This is 36 percent higher than the $95 point we started at in the beginning of the year. So let us look at some data:
Is Oil Having an Impact on Housing? Taking a Look at Los Angeles County.
High gas prices are nothing new to those that live in Southern California. But there is something surreal about seeing prices quickly approach $5 per gallon. In fact, as you scroll through the list of your local gas station options, you’ll already see $5 a gallon for diesel serving as a highlight of coming attractions.
California Home Prices Down 35% From a Year Ago. Sales are up due to Distress Sales.
There may be a silver lining in falling prices and that is, homes are selling. Â Maybe not at the blistering pace of the early 2000s but there is definitely a minor jump in those searching for bargains in the now heavily hit
Revisiting the Last California Housing Slump: How bad are Things Currently for California Housing?
Sometimes the best way to measure one current downturn with one from a distant past is to look at the headlines. Many will recall that California in particular Southern California faced a boom and bust cycle; in the late 80s prices went up only to bust during the early 90s. Much was to blame including a recession and also local factors including the shrinking of the aerospace and defense industries. Yet as is currently happening, there is always a multitude of reasons why housing is declining. The actual forces have been here for sometime including dropping sales and increases in distressed properties.