Reprographics 101

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  • Only Six Spots Remain in September’s Color Management Boot Camp
Popular SGIA Workshop Is Sure to Sell Out

    If you are:

    · Struggling with color control

    · Having difficulty getting colors approved by your customers

    · Trying to make multiple printers match in color output

    · Or looking for expert advice to improve your color management skills,

    Then SGIA’s Color Management Boot Camp (September 11–13) is the place you need to be!

    Sign up quickly, as these workshops always sell out.

    The focused, small-class setting allows you to master color management. Learn from top-notch

    instructors and walk away with confidence and skill after three days of training, including:

    · Color management concepts

    · Print standards and specifications

    · Color measurement instrumentation and profiling software

    · Hands-on use of i1 Profiler software

    · Instruction for device calibration and media profiling

    · The newest print standards and how you can use them to improve customer satisfaction

    · Answers to all of your color questions!

    Led by industry experts Tony Quinn, of Nazdar Consulting Services; SGIA’s own Jeff Burton;

    and representatives from Caldera, Mutoh and X-Rite, this three-day event is a must-attend,

    loaded in its offering of first-rate knowledge and real-world examples!

    The class is almost full; don’t miss your chance.

    Register today!

    Member price: $399.00 


    Nonmember price: $549.00

  • New-home sales fall to 5-month low in June

    By Christopher S. Rugaber, Associated Press

    WASHINGTON – Americans bought fewer new homes in June after sales jumped to a two-year high in May.

    The Commerce Department said Wednesday that sales of new homes fell 8.4% last month from May to a seasonally adjusted annual rate of 350,000. That’s the biggest drop since February 2011.

    Sales in the Northeast plunged 60% in June to the lowest level since November.

    Nationwide, sales in May and April were revised much higher. June’s sales pace is 15.1% higher than the same month last year. But sales remain well below the 700,000 annual rate that economists equate with healthy markets.

    “While a housing recovery is under way … fits and starts are to be expected and clearly this summer is one of the ‘fits,’” Dan Greenhaus, chief economic strategist at BTIG, said in a note to clients.

    Home builder stocks fell sharply after the report came out.

    The housing market has started to show signs of recovery this year.

    Builders are more confident and are breaking ground on more homes. Mortgage rates are at record lows. And home prices nationwide have stabilized after losing a third of their value in the past six years. Sales of new and previously occupied homes have risen, although the increases have been choppy.

    Sales of previously occupied homes fell in June to their lowest level since October. But sales 4.5% higher than a year ago, evidence that a modest recovery is still under way.

    One trend holding back sales has been low inventories. There were 144,000 new homes for sale in June, just above May’s 143,000 — the lowest on records dating back to 1963. At the current sales pace, it would take 4.9 months to exhaust the June supply. A six-month supply is generally considered healthy by economists.

    The reduced inventory is pushing up home prices overall. The median price of a new home, however, fell 1.9% in June from May to $232,600.

    “With no excess inventory of unsold new homes, any sustained recovery in new home sales should quickly translate into firmer prices,” Steven Wood, chief economist at Insight Economics, said.

    Low inventories are also spurring building. Builders broke ground last month on the most new homes and apartments in nearly four years. And permits to build single-family homes rose to the highest level since March 2010. Surveys also show that builders are more confident in the market, partly because they are seeing more interest from potential buyers.

    However, many people are still having difficulty qualifying for home loans or can’t afford the larger down payments being required by banks.

    Though new homes represent less than 20% of the housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to the National Association of Home Builders.

    Economists expect housing will add to economic growth this year for the first time since 2005. But home construction and remodeling have become such a small part of the economy that the increase will likely have only a modest impact.

    Other than housing, the economy has been weakening. Americans have cut spending at retail stores for three straight months, the longest stretch of cutbacks since the recession. A survey earlier this month found that manufacturing activity contracted in June for the first time in nearly three years.

    And hiring is slowing. Employers added an average of only 75,000 jobs a month from April through June. That’s much lower than the average of 226,000 a month added in the first three months of this year.

    On Friday, the government will issue its first estimate for economic growth in the April-June quarter. Economists have cut their forecasts in recent weeks, and now expect growth at an annual rate of only 1.5%. That’s below the 1.9% pace in the first three months of the year.

  • Service Point Holmbergs Extends Relationship with Studentlitteratur

    Press Release in Spanish (see below for translated version):

    Service Point Holmbergs amplía su contrato con Studentlitteratur

    – Service Point Holmbergs imprime unos 25.400 libros cada mes o 70 millones de páginas al año, todo en impresión digital y con tirajes reducidos

    – El contrato permitirá avanzar en la disminución del almacenaje y del stock de los libros

    – Studentlitteratur podrá mantener vivo su catálogo de publicaciones gracias al sistema de impresión por demanda 


    4 de Julio de 2012, Barcelona – Service Point Holmbergs anuncia la ampliación de su contrato con Studentlitteratur, una de las editoras suecas más importantes en el sector de la enseñanza, material didáctico, cursos cualificados y literatura especializada. 
Studentlitteratur fue constituida en Lund en 1963. Su volumen de negocio alcanzó en 2011 los 264 millones SEK, su ejercicio récord de facturación. La compañía ha editado más de 25.000 títulos escritos por 15.000 autores. Distribuye 25.000 libros de media a la semana. El nuevo modelo de negocio reducirá muy sensiblemente la cantidad de libros en stock y acelerará la impresión por demanda. 
El contrato de Service Point Holmbergs contempla, además de la impresión por demanda, servicios de impresión y edición de tiradas cortas e incluso de un solo ejemplar. Esta manera de gestionar e imprimir está siendo utilizada cada vez más por empresas editoras, pues favorece la reducción de costes de almacenamiento y el control de stocks, al tiempo de ofrece periodos de entrega más cortos. 
“La ampliación del contrato con Studentlitteratur nos brinda la oportunidad de proseguir con nuestras inversiones con el objetivo de ser el partner líder en “libro uno a uno“sin stock”, afirma Mâns Öland, director de grandes cuentas de Service Point Holmbergs. “La colaboración con Studentlitteratur, una editorial de gran tamaño, es vital para impulsar este modelo de negocio”. 
Ambas empresas vienen colaborando conjuntamente desde hace varios años. Ya en 2008 Service Point Holmbergs recibió el Premio AGI a la Innovación Gráfica por su edición de un único ejemplar.

    Press Release in English (using Google Translation):

    Service Point Holmbergs Extends Relationship with Studentlitteratur

     Service Point Holmbergs prints about 25,400 books each month or 70 million pages per year, all in digital printing and small runs

     The contract will allow progress in reducing the storage and stock books

     Studentlitteratur can keep alive his catalog of publications thanks to print on demand

    July 4, 2012, Barcelona – Service Point Holmbergs today expanded its contract with Studentlitteratur, one of the most important Swedish publishers in the education sector, teaching materials, qualified and specialized literature courses.

    Studentlitteratur was established in Lund in 1963. Its turnover in 2011 reached SEK 264 million, its record year of sales. The company has published over 25,000 titles written by 15,000 authors. 25,000 books distributed half a week. The new business model very significantly reduce the number of books in stock and print on demand will accelerate.

    The Service Point Holmbergs contract provides, in addition to printing on demand, printing and editing of short runs and even a single copy. This way to manage and print is being used increasingly by publishers, it helps reduce storage costs and stock control at the time of offering shorter delivery times.

    “The contract extension with Studentlitteratur gives us the opportunity to continue with our investments with the goal of being the leading partner” book one to one “free stock” says Måns Oland, director of major accounts Holmbergs Service Point. “The collaboration with Studentlitteratur, a publisher of great size, is vital to promote this business model.”

    Both companies have been working together for several years. As early as 2008 Service Point Holmbergs AGI received the Innovation Graph by editing a single copy.

    About Service Point

    Service Point Solutions (www.servicepoint.net) provides a comprehensive solution for customers who wish to have all information processed, communicated or managed by a partner. Its 2,140 professionals in 10 countries (Germany, Belgium, Spain, USA,

    France, Holland, Hong Kong, Norway, UK, and Sweden) provide products and services through a network of 130 service points and 800 management programs. Service Point Solutions is headquartered in Spain and listed on the Madrid and Barcelona (ticker: SPS.MC).

    In 2011 sales amounted to 218.6 M €, 6.4% from fiscal 2010.

    For more press information: Miguel Ramos mramos@newsline.es

  • MANAGED PRINT SERVICES FUELS GROWTH OF SERVICE POINT USA – SP announces renewal of MPS deal with Bruner-Cott Architects and Planners

    Hooray, a Service Point press release issued in the English language (instead of just in Spanish) !!!

    MANAGED PRINT SERVICES FUELS GROWTH OF SERVICE POINT USA

    Early MPS Provider Adds High-Quality Print and Design Consultative Services to MPS, Creating End-to-End Business Efficiency and Marketing Advantage

    July 24, 2012 – Service Point USA, a longtime Managed Print Services (MPS) provider, enters its third decade of MPS leadership with an expanded suite of end-to-end business, marketing, and graphics advisory services. Service Point is favored by architects, engineers, construction consultants, professional photographers, graphics designers, self-published authors, and artists–– all professional users of large format and high-quality color-rich printing. Service Point’s new bundling of MPS with design and specialty reprographics is directly aligned the industry needs of commercial real estate and building design, hospitality, advertising, high tech, pharmaceuticals, and biosciences. Along with higher education institutions, museums and galleries, these sectors routinely demand high-quality, specialty printing.

    Service Point’s customer satisfaction is exemplified by the recent renewal of ten-year MPS customer Bruner/Cott Architects and Planners of Cambridge, Mass., a 40-year-old architectural firm for which four-color oversized color renderings, glossy project sales brochures, large project signage and reception collateral are vital to its business. Bruner/Cott is nationally renowned for design of ‘buildings that work,’ including repurposed Ivy League campus buildings and stately landmarks. The decision to renew their MPS contract exemplifies how Service Point has kept pace with sophisticated new printing and scanning technologies while generating operational excellence and value for the firm.

    According to Bruner/Cott CFO Mark Teden, “Our firm places a high value on technological expertise and a team approach, and we expect those same qualities for a valued service provider. For the past ten years, we’ve trusted the visual representation of our work to Service Point USA, but before we renewed our contract, we conducted comparative research to be sure our managed print service provider continued to be best choice for us. Their flexibility, consultative approach, investment in talent, and deep knowledge of our own high-end equipment truly points to their category leadership. I’m pleased to continue to partner with Service Point USA.”

    New Service Value Package Differentiates Service Point’s MPS Offering

    According to Managing Director and COO Kevin Eyers, Service Point’s long held track record for superior printing quality and service has always distinguished the company above copy shops and big box retailers who have recently jumped onto the MPS bandwagon.

    “At the infancy of MPS, Service Point took a solution-driven, service-focused approach to each customer’s unique situation. By bundling services, we consolidate expert technical and design guidance with productivity gains to maximize our customers’ efficiency and print quality. Our leadership in MPS, combined with decades of hands-on specialty and large format printing experience, make us ideally suited to create bottom-line impact to regional and global businesses with subsidiaries abroad, as well as for small business and nonprofits,” Eyers said.

    Analysts Peg MPS As High Growth Service Sector

    Growth in Managed Print Services as an outsourcing strategy is the subject of two bullish 2012 industry forecasts by stalwart technology analyst firms, Forrester and IDC, the latter projecting an annual growth rate of 11.7 percent[1]. MPS analyst Photizo Group reported[2] by 2014, some 50 percent of print services would be outsourced to an MPS provider.

    The enthusiastic response to Service Point’s service bundling has invigorated active recruitment of new talent from high-touch customer service, commercial printing, and design software backgrounds.

    Eyers notes three key reasons why Service Point excels beyond office product retailers and manufacturers: customized MPS programs that go beyond delivery of hardware; superior contemporary design expertise; and world-class standards for quality control. “Service Point’s distinction has always been the surety of our high-touch guidance, and the fact that we operate and recommend only the best performance equipment and software without any restrictions or bias.”

    About Service Point. (http://www.servicepointusa.com ) Service Point USA provides outsourced workplace MPS, digital and offset printing, archival document scanning, and print fulfillment services. The Spanish-headquartered company is expanding its American retail store network as the domestic subsidiary of Service Point Solutions S.A. (SPS). Twitter: @servicepointusa and Pinterest: pinterest.com/servicepointusa.

    [1] IDC Worldwide and US Managed Print Services and Basic Print Services 2012 – 2015 Forecast and Analysis – ©IDC, March 2012.

    [2] 2011 MPS Market Size Share and Forecast Study – ©Photizo Group, Nov. 2011.

    About Service Point

    Service Point provides tools and services for greater efficiency in document, print, and information management via stores, service centers, and online tools, and through On-Site Services programs with clients nationwide. Service Point USA is a subsidiary of Service Point Solutions (SPS). SPS employs over 2,700 people across 8 countries through a network of 140 services centers and 840 facilities management programs, is headquartered in Spain, and listed on the Madrid and Barcelona stock exchanges (ticker: SPS.MC). In 2011 sales were M€ 218,6 (+6,4% vs 2010).

    USA Press Contacts:

    Julie Dennehy (508) 533-8311 Maryanne Keeney (617) 848-8805

    Corporate Press Contact:

    Newsline
Miguel Ramos
E-mail: mramos@newsline.es

  • Displays2Go Introduces New Snap Frame Display

    7/19/2012 – Displays2Go has just released a new large 80” tall snap frame display. This 30” by 80” free standing poster holder is double sided for maximum exposure.

    “The free standing frame that we introduced this week is one of our easiest solutions to large format advertising,” said Sandra Reno, Executive to the Vice-President of Displays2Go. Reno continued: “The clips we designed to use with this frame are strong for the most secure grip which is why we recommend using a more durable printed material than normal paper or cardstock.”

    This 30″ x 80″ floor poster stand is designed for use in establishments with wide open areas. Some of the most popular venues for these sign holders are casinos, theaters, concert halls, malls, trade shows and more. The black finished snap poster frame is double sided so that it may hold two independent graphics to attract customers. The use of printed materials 3/16″ or thicker is highly recommended.

    Each floor standing poster stand is made of aluminum and MDF , which is highly durable for years of use. This highly durable advertisement holder is designed with snap open framework for quick changes. Users simply clip open the (4) sides of the frame and insert the graphics then snap them shut again. The poster stand measures in at over six feet tall so when updating signage a step stool may be needed for the top portion of the frame.

    “The sign frame that is affordable, durable and has snap frames for easy changing of graphics is exactly what we tried to build and here it is on the market and receiving positive reviews!” Reno said later in the interview.

    Displays2Go has been one of the leading companies in the point of sale and visual merchandising world since 1974. Displays2Go is not only one of the largest wholesale distribution facilities in this marketplace they custom design their own products such as this poster frame. The company calls Bristol, Rhode Island their home and is where they have their warehouses, offices and production facilitates. For more information go to www.displays2go.com.

  • Repro Graphix Adds Fujifilm Printer / Press; Wins Super Bowl Award

    Tuesday, July 24, 2012

    Press release from the issuing company

    Repro Graphix Inc., with production facilities in Indianapolis, and Evansville, Ind., recently installed an Acuity Advance HS-X2 wide format printer and a Xerox Color 800 Press from Fujifilm. Having just celebrated its 27th year in the printing business, Repro Graphix’ new acquisitions explain a lot about the leadership of owners Jill and Brian Hall, their business philosophy, and the way they manage the operation to keep customers happy and keep the business growing and thriving.

    “We’re not a commercial printer,” Jill Hall, president of Repro Graphix says. “We started out serving Architects, Engineers and Contractors (“AEC”) in the Indianapolis area, mostly reproducing blueprints, artist’s renderings, presentation materials and such, and the business grew on its own, organically.”

    Repro Graphix is known for its excellent quality and highest levels of customer service. “We do whatever it takes to get the job done, and our customers know that and depend on it,” says Brian Hall, vice president and co-owner. “From that ‘get it done’ attitude and reputation, our customers started to ask us about signs, brochures, and pretty much the same collateral materials any other business needs, from a source they knew they could count on.”

    At last year’s Graph Expo, Brian and Jill came by the Fujifilm booth to look at the latest innovations to help them take their business to the next level. “We were looking for efficiencies, ways to diversify and move into new markets,” Brian said. “The Acuity Advance with the white ink, fast speed and larger bed offered us several benefits that would save steps, eliminate waste, and save us big money, especially by eliminating lamination. Before we brought in the Acuity, we would have to print separately, mount and laminate; now we can print directly to substrate.”

    “The Acuity allowed us to bring in so much new business, we had to open a new facility,” Jill says. “We had to turn down jobs before installing the Acuity because we didn’t have the capability or efficiencies with our previous production methods. We hated having to turn jobs down before, and when customers requested, we had to farm it out and lose control of the job. We didn’t like that one bit because we believe no one takes better care of our customers than we do.”

    Shortly after investing in the Fujifilm Acuity Advance wide format printer, the Halls began to look for a high-production digital color press to once again expand their service offering. “Over the course of the years, we had every kind of device out there,” says Brian, “but when we saw the quality of the Xerox 800, how close it came to offset, we knew we were on the right track.

    “Our relationship with Fujifilm is what helped us make the final decision,” says Jill. “The 800 provided us with the best technology from the best vendor to help us best meet our customers’ growing demands.”

    “We work for some very smart, very demanding print buyers,” Brian says. “Our customers wanted their printing to compete with offset, to have that ‘printed look,’ not the toner shine you usually see. They recognized the difference right away, and appreciated the capability to print on heavier substrates and add the spot clear effects.”

    “Our customers are very happy with what they’ve seen come off the Xerox 800,” says Jill. “They know that it’s not offset but they’re very impressed with the quality; it holds up to offset as far as they’re concerned. And we know the support we get from Fujifilm will pay off in increased sales, higher quality and longer uptime. We’re pleased to be dealing with the same group of professionals on both machines; they know us, they know our business and our customer requirements and they help those machines meet everyone’s needs.”

    Repro Graphix’ prints unusual job for Super Bowl
With the Super Bowl in town earlier this year, Repro Graphix’ had the opportunity to print one of its more unusual projects. As a supporter of several arts and community organizations in Indianapolis, Repro Graphix helped create a display that was part of an exhibit tied to the game, featuring an historical display of Indianapolis, printed on 4’ x 8’ sheets of 3/4’ plywood, cut to go together like pieces of a puzzle.

    The creativity of our presentation led to a contract with the NFL for “printing, lots of printing,” as Brian Hall puts it. “We printed a large number of media guides outlining all activities, Game Day Quick Fact Books, maps, a lot of signage and banners.” Repro Graphix received the NFL Super Bowl XLVI ”Business Leadership Impact Award” for Leadership/Social Responsibility. This award is based on Repro Graphix commitment to community, the event and other businesses. According to one NFL source, “Repro Graphix saved our lives—more than once!”

    “Referrals are everything to us,” Jill said. “We have a great team here with tremendous experience, not just on the equipment, but also working with our customers. Our customers have great confidence in our staff, most of them have been around awhile and the customers know them and enjoy working with them.”

    For more information on Repro Graphix, please visit: http://www.reprographix.com/

  • Housing market bottoms; first price increase in 5 years: Zillow

    By Tiffany Hsu, LA TIMES

    July 24, 2012, 10:03 a.m.

    Housing prices appear to have bottomed, posting their first year-over-year increase since 2007 and fueling more talk of a real estate recovery – at least according to real estate site Zillow.

    The site’s second-quarter report shows nationwide home values inching up 0.2% from the same quarter in 2011 to a median of $149,300. On a monthly basis, prices have been rising for four straight months.

    Nearly a third of individual metro areas saw prices rise; in Phoenix alone, homes were worth 12.1% more compared to a year ago, according to Zillow.

    “The housing recovery is holding together despite lower-than-expected job growth, indicating that it has some organic strength of its own,” Zillow Chief Economist Stan Humphries said in a statement.

    But don’t expect many huge price spikes. Over the next 12 months, Zillow expects home values to rise 1.1%, with increases forecast for nearly half of the nation’s markets.

    “We expect home values to remain relatively flat as the market works through a backlog of foreclosures and high rates of negative equity,” Humphries said. Inflation and the looming threat of a so-called fiscal cliff of spending cuts and tax increases will likely be another dampening factor.

    Foreclosures have declined since January to constitute 5.8 of every 10,000 homes, according to Zillow. Since February, foreclosure resales have shrunk and made up 15.6% of all home sales in June. DataQuick said yesterday that the number of California homes entering foreclosure was at 2007 levels.

    But in the wake of a national foreclosure settlement announced earlier this year, foreclosures are set to rise, sending more properties streaming back into the market by the end of the year, Humphries said.

    “Acute inventory shortages,” however, will cause high home-buyer demand to absorb the extra properties for sale, he said.

  • Eurozone crisis brings world to brink of depression

    For a depressing start to your day, read this one!

    July 24, 2012, 11:25 a.m. EDT

    Euro crisis brings world to brink of depression

    Commentary: Parallels to 1930s’ missteps unmistakable

    By Darrell Delamaide

    WASHINGTON (MarketWatch) — Europe is a tinderbox waiting for a spark.

    The financial volatility in Europe may have created a situation that is now beyond the capacity of policy makers to control or curb.

    When an accomplished fixer like Pascal Lamy, the head of the World Trade Organization and the longtime chief of staff for former European Commission President Jacques Delors, describes the situation in Europe as “difficult, very difficult, very difficult, very difficult,” you know it is time to run for cover.

    The crisis has now gone well beyond the prospect of breaking up the euro to the threat of a full-fledged financial and economic collapse in Europe that could plunge the world into a second Great Depression.

    Few Americans are aware that a worldwide banking crisis started by cascading bank failures in Austria and Germany was one of the major causes of that earlier Depression.

    It was in the summer of 1931 that the collapse of Creditanstalt in Vienna forced one of Germany’s big banks, Danatbank, to fail, leading to a credit crisis that prompted bank holidays around the world and exacerbating an already severe economic crisis.

    The spark in the current crisis could come from a bank failure, and not necessarily in Spain. It could be a bank in Italy — or Austria, or Germany. German banks are notoriously undercapitalized and poorly supervised and have created a number of mini-crises in the past few decades since the collapse of the Herstatt Bank in 1974.

    German economist Fabian Lindner drew the parallel to 1931 in an op-ed last fall when he compared his country’s intransigence toward southern Europe now to the misguided harshness of the U.S. and France toward Germany in the earlier crisis.

    Hough: Now is the time to buy Spain

    Spain has led headlines following its surging bond yields but investors who plunk money into a broad basket of Spanish shares today could see average returns of 20% a year over the next several years. Jack Hough discusses on Markets Hub.

    “Both the German public and politicians should learn from history,” Lindner wrote in a commentary for Die Zeit that was also published in The Guardian. “Solidarity with the crisis countries is in Germany’s long-run interest. The German government should stop abusing its power to dictate economic decline to other nations. The alternative is economic stagnation and increased tensions between European nations.”

    The situation has deteriorated since Lindner hoped in vain for some enlightenment on the German side. Instead, German Chancellor Angela Merkel and Bundesbank President Jens Weidmann have held to the prescription Lindner saw leading to disaster: “Germany and the German central bankers demand drastic austerity and only give piecemeal and insufficient help in return — too little, too late.” Read Lindner’s op-ed in English.

    The latest austerity measures in Spain, approved by the national Parliament last week even as the economy continues to contract, has led to new riots in the streets, pushing the yields on Spanish bonds above the 7% level deemed manageable, and increasing the likelihood of contagion to Italy.

    Meanwhile, German Economics Minister Philipp Roesler whistles in the wind, saying the possibility of a Greek exit from the euro has “lost its horror,” and German Finance Minister Wolfgang Schaueble says Greece must try harder to meet its austerity commitments.

    The problem, meine Herren, is not poor little Greece, long since written off by a smug German officialdom. The problem is the growing possibility of defaults in Spain and Italy that will lead to bank failures across the continent and incalculable consequences.

    Paul Krugman quipped at the beginning of the current crisis that someone will be able to write a sequel to Liaquat Ahamed’s Pulitzer Prize-winning book, “Lords of Finance” — which chronicles how the four leading central bankers of that era plunged the world into the Great Depression with their wrong-headed policies — and call it “Lords of Finance: The Next Generation.”

    The target of Krugman’s barb was Jean-Claude Trichet, then president of the European Central Bank. But his successor, Mario Draghi, has proven equally clueless in his public statements and actions.

    Federal Reserve Chairman Ben Bernanke, an avowed admirer of Ahamed’s book, has nonetheless been relatively timid in recent months, keeping his distance from the European crisis and failing to make a convincing case for the Fed’s inaction in following its own mandate to promote employment in the U.S.

    History is not likely to be any kinder to Bernanke and his cohorts than to the European policy makers who collectively have not been equal to the task.

    The worst may still be averted but the challenge is indeed very, very, very difficult, and it is hard to see at this point where salvation could come from.

  • Double-Dip Recession Hits Eurozone as Crisis Clouds Swirl

    Blog publisher’s comment:

    The other day, there was an article in the New York Times Sunday Business section where the author opined that “the Dow Jones average will rise to 20,000 over the next couple of decades.” Quite a prognostication, huh? As I’ve pointed out several times before in posts on Reprographics 101, there are lots of folks who come up with guesses where our economy will be and where the market will be, and, by the time we “get there”, half will be right (or close to right) and half will be wrong (or awfully wrong.) I’d love it if I had a job where someone asked me – and paid me – to guess the future!

    Some are now saying that the U.S. is either already in recession again, or close to it. And, some are saying we’re not and that we aren’t going to go there. Here’s an article I found about the Eurozone economy:

    Article from Reuters

    Posted 10:50AM 07/19/12

    Posted under: Economy, International

    By Jonathan Cable

    LONDON — The eurozone has sunk back into its second recession since 2009, a Reuters poll predicted on Thursday, as the debt crisis that has ravaged the continent for over two years continues to stifle growth.

    A deluge of downbeat data pushed economists to revise down their growth forecasts. And with no end to the debt crisis in sight the chances the European Central Bank will cut rates further from current record lows have increased.

    The 17-nation bloc’s economy contracted 0.3% last quarter and will shrink 0.1% in the current one, according to median forecasts in the poll of 34 economists taken this week, meeting the technical definition of recession.

    “The environment is deteriorating,” said Uwe Duerkop at Landesbank Berlin, who sees two quarters of contraction and a flat end to the year.

    “The question is how long this recession will last — we have a chance to come back to growth at the end of the year but if the political crisis stays as it is with no [concrete] decisions there is a risk the recession could be longer.”

    Here’s a link to the full article that Jonathan Cable wrote:

    http://www.dailyfinance.com/2012/07/19/eurozone-double-dip-recession/

  • U.S. Existing-Home Sales Fall 5.4%

    The other night on NBC news, Brian Williams reported that “for the first time ever, the average net worth of Canadian families is higher than the average net worth of U.S. families” (both figures are reportedly in the mid $300,000’s). Brian went on to say that Canadian net worth did not suffer from declining home values to the extent that U.S. net worth did. Reported in the article below, you’ll see that “nearly $7 trillion in housing value has been wiped out (in the U.S.) since home prices peaked in 2006.” Trillions, that’s a lot of zeros, tons of money.

    I don’t understand why the first paragraph of the article below contains the word, “unexpectedly.” If there’s been one “constant” in reporting (economists, writers who report on the economy financial analysts, etc, etc.), it’s the constant that no one seems to be able to accurately predict how the economy is and where it’s heading. We’ve got half saying that we’re headed back into recession (if we are not already there) and half saying things are continuing to improve. Based on that, the wisest way to invest your money (and, come on, I’m kidding, of course) is to go to Vegas and alternatively bet on black or red at the roulette table. On the other hand, there’s lately been more bad news than good news about the economy (U.S. and worldwide), but, in spite of that, the stock market has been moving up of late. Figure that out …. and let me know what to do!

    7-19-12 10:25 AM EDT

    WASHINGTON — Sales of previously occupied homes in the U.S. took an unexpected dip last month to the lowest level in eight months, a sign of weakness for a part of the economy that has been showing life.

    Existing-home sales decreased 5.4% from a month earlier to a seasonally adjusted annual rate of 4.37 million, the National Association of Realtors said Thursday. It was the weakest report since October 2011, but sales were still 4.5% above the same month a year earlier.

    The results were worse than forecast. Economists surveyed by Dow Jones Newswires had expected home sales to rise by 2.0% to an annual rate of 4.64 million. May’s sales pace was revised upward to 4.62 million sales per year.

    The median sales price was $189,400, up 7.9% from $175,600 a year earlier.

    The rise in prices, however, was likely the result of a smaller share of sales that came from foreclosures and other lower-priced properties, said the Realtors’ top economist, Lawrence Yun. Foreclosures and other sales of distressed properties made up about a quarter of the month’s sales, down from about a third a year ago, according to a monthly survey by the Realtors’ group.

    At the end of June, meanwhile, the inventory of previously owned homes listed for sale fell to 2.39 million. That represented a 6.6-month supply at the current sales pace and was consistent with healthy levels.

    The report contrasts with other recent signs of a modest recovery in housing. The Commerce Department reported earlier this week that home construction jumped 6.9% last month to the highest level since October 2008. Meanwhile, housing- related spending has now boosted the economy for four consecutive quarters.

    Still, the aftereffects of the prolonged housing bust remain a drag. Nearly $7 trillion in housing value has been wiped out since home prices peaked in 2006, and more than 11 million Americans owe more on their mortgages than their homes are worth.

    Those “underwater” homeowners are less likely to be able to move if they can’t sell their homes. Meanwhile, tight credit restrictions make it hard for many consumers to take advantage of record-low mortgage rates.

    The Realtors’ report said home sales last month fell compared with a month earlier in all four regions. Sales were down 11.5% in the Northeast and were down 6.9% in the West. They were down 4.4% in the South and 1.9% in the Midwest.

    -By Alan Zibel and Sarah Portlock; Dow Jones Newswires; 202-862-9263; alan.zibel@dowjones.com