Chart of the Day – 10.28.2008

Let our journalists help you make sense of the noise: Subscribe to the Mother Jones Daily newsletter and get a recap of news that matters.


CHART OF THE DAY….Newspaper accounts of housing prices usually provide year-to-year comparisons, which are useful for some purposes but not for others. In particular, if house prices start to stabilize, you won’t see it in the year-to-year charts because prices will still be way below their level from a year ago even if they aren’t dropping any further. “21% below their peak” doesn’t really tell you much about what’s happening now.

For that, you want to see how prices compare to the previous month. Back in August I posted a Case-Shiller chart showing monthly comparisons (through June) that suggested prices might be stabilizing, but with a caveat that this stuff is seasonal and the good news might not hold up. Sure enough, it hasn’t. Here is this month’s chart (with prices through August), and it shows that month-to-month prices are not only still declining, but declining faster than they were earlier in the summer.

The rate of decline is still nowhere near its nadir in February, but this is yet more evidence that we still have a ways to go before housing prices bottom out. And people know it: this month the consumer confidence index fell to 38.0, lower than during the 1974 recession, lower than during the 1980 recession, lower than ever recorded before. And credit card companies are “sharply curtailing” credit lines. And to top it all off, we’re running up an “ecological debt” of $4 trillion per year.

But the stock market is up! Why? Apparently because investors are looking forward to the Fed cutting interest rates tomorrow. Sure, the Fed is only contemplating this because the signs of recession are so bleak, and it’s unlikely that interest rate cuts will have much of an effect anyway, but who ever said Wall Street investors were smart?

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate