New York City Might Freeze Rents

Via the New York Times:

Possible rent increases this year for New York City’s rent-stabilized apartments will run up to 3.5 percent on two-year leases, with a possibility of a rent freeze also on the horizon for one-year leases, according to a vote by members of the Rent Guidelines Board. Facing a boisterous, sign-waving audience in a packed Midtown auditorium, the nine-member panel voted to consider a 0 percent to 2 percent increase for one-year rent-stabilized leases when it reconvenes this summer for a final vote. Two-year leases could rise 0.5 percent to 3.5 percent, according to the board, which represents both tenants and landlords, though the rent numbers could go up or down after public hearings. The vote on Wednesday was the first by a board appointed entirely by Mayor Bill de Blasio, who last year called for freezing rents for the about one million rent-regulated apartments but did not get his way. The board, which already had a majority appointed by the mayor then, voted instead for historically low increases of 1 percent for one-year leases and 2.75 percent for leases of two years.

The landlords association is fuming.

97% Of Liberal Dems Approve Of Obama

From the latest CNN survey:

For the first time since May of 2013, more Americans polled say they have a positive impression of how Obama is handling the presidency than a negative one: 48% approve of the way Obama is handling his job, while 47% disapprove. As among young people, other shifts in Obama's favor have come largely from the President's base. His approval ratings now tilt positive among women (51% approve to 43% disapprove, compared with 47% approve to 49% disapprove in last month's CNN/ORC poll), and have also improved among Democrats (88% approve now compared with 82% in March), notably, liberal Democrats (from 90% approve in March to 97% now). At this point in his presidency, Bill Clinton held a 60% approval rating following his impeachment trial over the Monica Lewinsky scandal, largely buoyed by a strong economy. George W. Bush posted a 36% approval rating in April 2007, buffeted by the war in Iraq despite mostly positive reviews of the economy. And the spring of Ronald Reagan's seventh year in office saw him earning a 48% approval rating from the public, a rating that was just beginning to recover from the Iran-Contra affair and didn't get any boost from a tepid economic climate.

An overall 67% disapprove of the GOP leadership of Congress.

Bill Maher On Obama's Legacy

"You sometimes hear people, even Democrats, say, 'I’m tired of Obama because he didn’t live up to his promises.' I say, 'Are you sure about that? Maybe they just didn’t cover it on TMZ.' Because Obama is slowly going down the list: Cuba, gay marriage and, I’m hoping before he leaves, pot. He’s trying to finish strong. Obama should be a better bragger. He needs to start acting like he won the last election instead of lost it. If the Republicans had his record, they’d be riding it like a fuckin’ wild bronco into the 2016 election. Their attitude would be, 'Why even have an election? We’ve tripled the stock market, unemployment is below six percent, 10 million more people have health insurance, the auto industry is back on its feet.' Oh, and he averted a depression." - Bill Maher, speaking to Playboy Magazine.

Dollar Soars Against Foreign Currency

Via the Los Angeles Times:

Americans have long complained that the dollar doesn't buy much anymore. Suddenly, the dollar's problem may be that it buys too much — a change that has huge implications across the global economy for consumers, businesses, investors and governments. The U.S. currency's value has surged over the last nine months, reaching levels against some world currencies last seen more than a decade ago. In Europe, it now costs just $1.09 to buy one euro, down from $1.37 a year ago and almost $1.50 four years ago. To put it another way, an American tourist strolling the streets of Paris this April can buy 25% more croissants, cafe au laits or mini Eiffel towers than a year ago with the same dollars. The greenback's advance has been even more dramatic against some rivals. With its latest rally, one buck buys 30% more Swedish kronor than a year ago, 40% more Brazilian reais and 61% more Russian rubles. Western Europe gets a lot of the publicity because the euro is the weakest it has been since 2003. But the dollar is up 22% from a year ago in Poland, 20% in Morocco, 14% in Mexico and 12% in South Africa.

The downside, of course, is that US exports are more expensive and the cost of visiting the United States is much more than it was just last year.

Unemployment Hits Seven Year Low

Via the New York Times:

The economy gained fresh momentum last month as the Labor Department reported on Friday that employers added 295,000 workers in February, far exceeding expectations, and the unemployment rate took another dip. But wage gains continued to lag, rising only 2 percent from a year earlier. The unemployment rate fell to 5.5 percent, its lowest since mid-2008, down from 5.7 percent in January. Last month, wages rose just 0.1 percent, according to the Labor Department, a disappointment coming off an increase of 0.5 percent in January.  Despite the disappointing wage numbers, the report prompted a new round of optimism about the economy’s recovery and spurred more talk on Wall Street that the Federal Reserve might raise interest rates at its June meeting rather than wait until September. The news prompted a rise Friday morning in the yield on 10-year bonds and a dip in the stock market, where investors fear that higher interest rates will take a bite out of corporate profits.

RUSSIA: Top Official Pledges That Country Will "Eat Less" For Vladimir Putin

Via the Associated Press:

Russian Deputy Prime Minister Igor Shuvalov, speaking at the World Economic Forum in Davos, on Friday warned the West against trying to topple President Vladimir Putin and said that Russians are ready to sacrifice their wealth in Putin's support. Russia has for the past year been sliding into recession amid a slump in its energy export prices as well as Western sanctions against Moscow's role in the conflict in Ukraine that has claimed more than 5,000 lives. Questions have been raised in Russia and abroad whether the price that ordinary Russians are having to pay for the annexation of Crimea is too high.

Shuvalov, who is believed to be one of the richest men in the government, said that what he considers the West's attempts to oust Putin will only unite the nation further. "When a Russian feels any foreign pressure, he will never give up his leader," Shuvalov said. "Never. We will survive any hardship in the country — eat less food, use less electricity.  Shuvalov's comments triggered pithy remarks on Russia social media including an opposition activist who posted photos of Shuvalov's Moscow, London and Austria homes to illustrate where the deputy prime minister would experience the hardships he described.

The image above comes via Copyranter, who notes that the font is called "Hunger Games." Hit his link for two more suggested billboards.

RUSSIA: Vladimir Putin Vows To Repair Ruble, Blames Crash On The West

Via Reuters:

President Vladimir Putin assured Russians on Thursday that the economy would rebound after the ruble's dramatic slide this year but offered no remedy for a deepening financial crisis. In an assured performance at a three-hour news conference, Putin blamed the economic problems on external factors and said the crisis over Ukraine was caused by the West, which he accused of building a "virtual" Berlin Wall to contain Russia. Putin even cracked jokes at times, despite pressure to fix an economy that is heading into recession and caught by what his economy minister called a "perfect storm" of low oil prices, Western sanctions over Ukraine and global economic problems. The ruble has fallen about 45 percent against the dollar this year, and suffered particularly steep falls on Monday and Tuesday, but Putin said its eventual rise was unavoidable and avoided using the word "crisis".

The retail fallout has been immediate.

Russian consumers flocked to the stores Wednesday, frantically buying a range of big-ticket items to preempt the price rises kicked off by the staggering fall in the value of the ruble in recent days. As the Russian authorities announced a series of measures to ease the pressure on the ruble, which slid 15 percent in the previous two days and raised fears of a bank run, many Russians were buying cars and home appliances — in some cases in record numbers — before prices for these imported goods shoot higher. The Swedish furniture giant IKEA already warned Russian consumers that its prices will rise Thursday, which resulted in weekend-like crowds at a Moscow store on a Wednesday afternoon.

General Motors, Audi, Land Rover, and Apple have temporarily suspended sales inside Russia.

MAP: What EU Nations Are Worst At

The categories for France, Denmark. and Romania are really dumb compared to the seriousness of the others. Visit Thrillist for a breakdown. A huge version of the map is here. (Via JMG reader Aaron)

Unemployent Rate Hits Six-Year Low

The Labor Department today reported that 248,000 jobs were created last month, pushing the unemployment down to a six-year low of 5.9%. Via Politico:

The number of new jobs easily surpassed expectations — analysts had predicted 215,000 jobs created last month, according to a Bloomberg survey. Friday’s robust jobs report comes at an opportune time for the White House as it makes a final push ahead the midterm elections to highlight the economic recovery during the Obama administration. This is the last jobs report before voters go to the polls on Nov. 4. “The data underscore that six years after the Great Recession — thanks to the hard work of the American people and in part to the policies the President has pursued — our economy has bounced back more strongly than most others around the world,” Jason Furman, chairman of the White House Council of Economic Advisers, said in a statement.

The dip in unemployment can be attributed in part to an estimated 96,000 Americans leaving the work force. The labor force participation rate also dipped slightly to 62.7%.

NEW YORK CITY: The Rich Get Much Richer, The Poor Get Much Much Poorer

From the New York Daily News:

The number of city residents receiving aid under the federal Supplemental Nutrition Assistance Program, commonly known as food stamps, soared from 1.3 million in 2008 to 1.8 million today. Yet, with so many people in need, the biggest benefit reduction in the 50-year history of food stamps took effect Nov. 1. That’s when a temporary increase in benefits — pushed through by President Obama in 2009 as part of his economic stimulus program — lapsed. New York households receiving food stamps saw their benefits decrease by an average of $30 to $50 a month, depending on a complex formula that takes into account family size and income. For a typical family of three, that meant a drop to $189 a month, down from about $220. Food pantry and soup kitchen operators said the impact was swift and dramatic: Although the economy had rebounded since the financial crisis, those at the bottom of the ladder had not fully shared in the recovery. Nearly every emergency food program in the city has struggled in the wake of the November cut in food stamps. “Eighty-five percent reported a drastic increase (in clients) in November 2013 compared to November 2012 — and remember we’d already set records that month because of Hurricane Sandy,” said Margarette Purvis, president of the Food Bank for New York City. Nearly 50% of pantries and soup kitchens ran out of food in November, and an additional 25% had to move to smaller rations, said Purvis.

One in five New Yorkers are now on food stamps.

Comparing Foreign GDPs To US States

Via Reddit. I always find these things fascinating.

Unemployment Hits Five-Year Low

Via the New York Times:

The jobs picture brightened in November as hiring in the United States was stronger than expected and the unemployment rate fell to a five-year low, data that increases the likelihood that the Federal Reserve will begin easing its stimulus efforts sooner, rather than later. In November, the jobless rate dropped to 7 percent. Economists surveyed by Bloomberg before the Labor Department announcement had expected an increase of 185,000 jobs, with the unemployment rate falling by 0.1 percentage point to 7.2 percent. Payrolls are tracked using data gathered from employers, while the unemployment rate is based on a separately survey of households.

Unemployment Rate Falls To Lowest Since December 2008

"The books are cooked! Fake!" said all of Teabagistan.

16% More American Millionaires

The number of American millionaires rose by 16% in the last year. Via New York Daily News:

Blazing stock market gains pushed more bank accounts past the $1 million mark last year. The number of millionaires around the globe reached 13.8 million by the end of 2012, up from 12.6 million in the prior year, according to a report by Boston Consulting Group. Private wealth worldwide grew by nearly 8% last year to $136 trillion. The biggest driver was the performance of equity markets, which helped the “haves’ have even more. The U.S. was home to the most millionaire households, with 5.9 million — up about 16% from the prior year.

Meanwhile the number of people using food stamps has soared by 70% since 2008.

NYC's Luxury Condo Boom Accelerates

Pads for jillionaires are going up everywhere.

Ultraluxury housing and construction is booming across Manhattan, which is now beginning to rival London in popularity with the world’s wealthy. The number of condominium buildings in the borough with apartments selling for more than $15 million has risen to 49, up from 33 in 2009, according to CityRealty. And an additional 20 or so are under construction or in planning. The growth in high-end projects in Manhattan comes as housing for the working and middle class is in increasingly short supply in the city. These buildings are proving so profitable that they are warping the local real-estate market, making it more difficult to put up more-affordable housing.

Key quote from the article: "There are only two markets, ultraluxury and subsidized housing."

Baggage Fees Boost Airline Profits

Billions of dollars in recently imposed baggage fees and charges for reservation changes are the only thing keeping airlines in the black.

The nation's 15 largest carriers collected a combined $3.5 billion in bag fees in 2012, up 3.8% from 2011, according to the Bureau of Transportation Statistics. Fees for changing a reservation totaled $2.6 billion, up 7.3%. The airlines took in $159.5 billion in revenue last year and had expenses of $153.6 billion, according to the government. That 3.7% profit margin comes entirely from the baggage and change fees.

Delta Air Lines once again took in the most fees — $865.9 million from baggage alone — but it also carried more passengers than any other airline. Delta collected $7.44 per passenger, about average for the industry. Low-cost carrier Spirit Airlines collected the most, an average $19.99 per passenger in baggage fees last year. The government only requires the airlines to report revenue from baggage and change fees.

The change fee on the four largest carriers is now $200.

MAP: Average San Francisco Rents

Via Cleve Jones.

SPAIN: Flamenco Flash Mob

The BBC reports:

Flamenco flash mobs - seemingly spontaneous dance and song performances - have been taking place in banks not just in Seville, but all over Andalusia, causing short, if amusing disruptions to the working day. Some involve just one or two dancers, performing silently in front of bemused customers and clerks. Others can be made up of several dozen bailaores clicking their fingers and stomping their feet to recorded music. The flash mobs are staged by an anti-capitalist group known as Flo6x8 to express anger and frustration at the economic crisis.

(Tipped by JMG reader Buxton)

Record High For S&P 500

More evidence of the Obama economy:

Stocks edged higher on Thursday as the S&P 500 rose just above its record closing high, a level that has acted as a significant resistance point in recent weeks. The S&P 500 had been stuck in a fairly tight range, having traded within 10 points of the October 2007 record closing high of 1,565.15 over the previous 13 sessions before successfully piercing that level on Thursday morning.

The Dow average will close out the first quarter with an increase of 11% just in 2013.

Unemployment Drops To 7.7%

The February jobs report has been released.

U.S. employers added 236,000 jobs to non-farm payrolls in February, the Bureau of Labor Statistics reported on Friday, up from 119,000 in January. That was the best payroll growth since 247,000 jobs last November and the second-best month for job growth of the past 12 months. The unemployment rate dropped to 7.7 percent from 7.9 percent in January, with 12 million people looking for work. That is the lowest unemployment rate since December 2008, when the rate was 7.3 percent.

There are numerous caveats at the link.