Estimated tax payments are down 6.5% year to date, corporate tax payments have slipped 11% since the beginning of the year. Other oddities include anemic economic growth of just 1.2% in the last 12-months and a 19% increase in announced large layoffs as per Challenger, Grey and Christmas during July.
June’s trade deficit increased to 44.5 billion as exports gained .6 billion and imports jumped 4.2 billion and it would appear that the steady decline in trade began in late 2014 is reversing. Imports subtract from Gross Domestic Productor GDP so this is a negative. That said it didn’t stop the Atlanta Fed’s GDPNow model for the 3rd quarter coming out of the gate at a very hot +3.7%.
Fannie Mae and Freddie Mac report that REO or Real Estate Owned inventory has now fallen back to pre-crisis levels as of the 2nd quarter when they declined to 59,265 units combined, a level not seen since the end of 2007.
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