ON THE PULSE OF SOUTHERN CALIFORNIA

BLUES CLUES

I had a long road trip today on the highways in Southern California, so listened to a fair bit of radio in between phone calls (with a head-set of course).   

What a difference a year makes in terms of the ads on the local radio stations.  Last year, it was nothing but ads for home re-financings, and no-doc loans.  In fact, it seemed each commercial was trying to out-do the next one in the terms it was dangling to lure listeners to call.

On the trip today, not one home financing commercial aired on any of the radio stations.  Not surprising of course given the events of recent weeks in the markets.

What was interesting though, was that there seemed to be a lot more radio commercials by trucking companies looking to hire drivers.  Each ad seemed to do try and out-do the last one in terms of the benefits and perks it offered it's drivers.

Anecdotally speaking, it indicates an economy that perky despite the sub-prime credit crunch of recent months.

All eyes are on the Federal Reserve to cut the Fed Funds rate by 25 to 50 basis points next week.  If the Fed is listening to the radio ads in Southern California, they may skew to the lower end, or just lower the discount rate again instead.

We'll see.

Comments

[Mo]

Not so out here in DC, you are sure to find several ads from mortgage related businesses (schemes, that is the only way I can describe what these people are proposing). I just shake my head and say haven't these people learned their lesson?