No recovery yet for low- and moderate-income populations

[Donnachaidh]

http://okpolicy.org/blog/economy/no-recovery-yet-for-low-and-moderate-income-populations/



Despite a modest recovery in the overall economy, a new study from the Federal Reserve Bank of Kansas City finds that low- and moderate-income populations continue to face increased hardship in Oklahoma and other states in the Tenth Federal Reserve District.

The FRB of Kansas City conducts a quarterly survey of non-profit and community organizations that serve low- and moderate-income (LMI) populations in the Tenth District.* Respondents are asked about the economic conditions of the clients they serve. The results are used to construct indices measuring the financial condition, service needs, jobs availability, affordable housing, and credit access of LMI populations. The June report found conditions continuing to worsen for LMI populations in the 2nd quarter of 2011, although in some sectors the gap between the number of respondents reporting things are getting worse and those reporting things getting better is narrowing :

* The Financial Condition Index, which is the broadest measure of the financial health of the LMI population, revealed significant deterioration. The report states that, “Persistent unemployment, diminished credit standing, and rising costs for basic needs were noted as impediments to financial recovery in the LMI community.”
* The Service Needs Index revealed growing demands for services by organizations serving the LMI population. Increased demand was attributed to rising costs for essential items, an exhaustion of financial resources by the long-term unemployed, and a rash of natural disasters, including flooding and tornadoes.

More at the link --

[emilyg]

1. k/r

[ixion]

2. The Banksters have recovered quite well... the Rest of Us

not so much.

[Octafish]

3. Tiffany's reports their sales are through the roof.

TFB for everybody "down ladder."

What's wrong with this picture?

EXCERPT...

Consider this incomprehensible and troubling dichotomy: while the luxury market continues to boom, cheaper mass-market brands are shrinking product to offset consumers' dwindling wallets.

Tiffany's first-quarter sales were up 20 percent to $761 million. Last week Louis Vuitton Moet Hennessy (LVMH) reported sales growth in the first half of 2011 of 13 percent to 10.3 billion euros, or $14.9 billion. Last week, PPR, the French multinational holding company that specializes in retail shops and luxury brands including Gucci and Yves Saint Laurent, reported a luxury segment sales gain of 23 percent in the first half of 2011.

The incredible laundry list grows longer: BMW doubled its quarterly profit from a year ago with sales rising 16.5 percent; Porsche's first-half profit rose 59 percent; and Mercedes-Benz 's July sales of its high-end S-Class sedans -- some of which cost more than $200,000 -- jumped almost 14 percent in the United States (Source: Bloomberg).

At the same time, The New York Times reports that: "Wal-Mart is selling smaller packages because some shoppers do not have enough cash on hand to afford multipacks of toilet paper. Retailers from Victoria's Secret to the Children's Place are nudging prices up by just pennies, worried they will lose customers if they do anything more."

CONTINUED...

My nose doesn't lie: There's something NAZI going on.

[gkhouston]

4. Yet another memo from the Department of Duh.

I'm glad someone's quantifying this. I hope they'll do more with the report than file it.