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BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise...

BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise After Durable Goods? When are Construction Revisions Coming? Here's an alarming fact about Sacramento's housing market: About one of every five existing homes on the market is a 'short sale.' That means the home is worth less than the value of the mortgage, and the lender is willing to accept less than full repayment of the loan to avoid foreclosure, says Tracey Saizan, president of the Sacramento Association of Realtors. That, in turn, puts pressure on the remaining 80% of sellers, who have equity in their homes, to cut prices. The median price in the state capital, one of the most overheated metro areas during the real estate boom, fell 4.3% in December compared with December 2005. 'Sellers are having to give concessions and cut prices,' Saizan says. 'It's all about making the house show the best it can and aggressive pricing.' One in five sales is a short sale. That is pretty stagg

In Globally Contained Liquidity Crunch I pointed out that the Fed was providing...

In Globally Contained Liquidity Crunch I pointed out that the Fed was providing temporary loans (as repos) not capital to the markets. While true I missed something. What I missed involves the collateral the Fed is willing to take for those short term loans. Mr. Practical was right there with The Fed's Path. BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise After Durable Goods? When are Construction Revisions Coming? I pointed out that the Fed was providing temporary loans (as repos) not capital to the markets. While true I missed something. What I missed involves the collateral the Fed is willing to take for those short term loans. It has now become obvious to me the path of the Fed. No, Mr. Bernanke is not going to be tough on markets. He is not going to give the medicine that is needed. He has chosen his path, the seeds of which were planted in his November 2002 speech about monetization (dropping dollars from helicopters). The Fed today injected $65 bln of repo

Given that Fitch is implicitly admitting that it is making rating...

Given that Fitch is implicitly admitting that it is making rating decisions not on merit alone, but on perceived implications of what a rating change might do to the company being rated (see Any Credibility Left At Fitch?) what does Countrywide Financial have to lose by pleading downgrade could weaken business? BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise After Durable Goods? When are Construction Revisions Coming? Given that Fitch is implicitly admitting that it is making rating decisions not on merit alone, but on perceived implications of what a rating change might do to the company being rated (see Countrywide (CFC), the largest U. S. mortgage lender, said in a U. S. regulatory filing on Friday, that if its credit rating dropped below its current lowest rating, this would 'severely,' limit its access to the public corporate debt market and that could have repercussions on its business. A below investment-grade rating also would mean Countrywide would f

U. S. FEB. NEW HOME SALES REVISED TO 1.27M V. 1.23M10:00am 04/26/05 U. S. MARCH...

U. S. FEB. NEW HOME SALES REVISED TO 1.27M V. 1.23M10:00am 04/26/05 U. S. MARCH NEW HOME INVENTORY 3.6-MONTH SUPPLY10:00am 04/26/05 U. S. MARCH NEW HOME INVENTORY DOWN 0.9% TO 433,00010:00am 04/26/05 U. S. MARCH NEW HOME SALES BEAT 1.19M EXPECTED10:00am 04/26/05 U. S. MARCH NEW HOME SALES UP 12% TO RECORD 1.43 MILLION Record New Home Sales....Were you impressed? I was not (more on this in an upcoming blog) but for now let's take a look at the market's reaction. Click on image for enhanced view. Click on image for enhanced view. If the Market was not impressed, should anyone else be? Looks to me as if it was all priced in if not more. Mike Shedlock / Mishhttp://globaleconomicanalysis. blogspot. com/

BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise...

BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise After Durable Goods? When are Construction Revisions Coming? Among her top priorities will be changing sentencing laws to shrink the number of people heading to prison, potentially saving the state hundreds of millions of dollars. She proposed the changes early this year, but the state's budget problems overwhelmed nearly everything else, leaving many of her proposals undone. 'It's not good public policy to take all of these taxpayer dollars at a very tough time, and invest it in the prison system when we ought to be investing it in the things that are going to transform the economy, like education and diversifying the economy.' Granholm also wants lawmakers to pass several of her education proposals pushed aside this year, including making kindergarten mandatory, requiring teenagers to stay in school until age 18 rather than 16, and setting aside more money to hire educators to train thousands of nurses

On Wednesday in Florida School Fund Faces Bankruptcy Over ABCP...

On Wednesday in Florida School Fund Faces Bankruptcy Over ABCP I made a prediction: 'The State of Florida will freeze withdrawals and come up with a hokey plan to fix things just as happened with ABCP in Canada.'So it was no shock that on Thursday Florida Halts Withdrawals From Local Investment Fund. BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise After Durable Goods? When are Construction Revisions Coming? The State of Florida will freeze withdrawals and come up with a hokey plan to fix things just as happened with ABCP in Canada. Florida officials voted to suspend withdrawals from an investment fund for schools and local governments after redemptions sparked by downgrades of debt held in the portfolio reduced assets by 44 percent. The Local Government Investment Pool had $3.5 billion of withdrawals today alone, putting assets at $15 billion, said Coleman Stipanovich, executive director of the State Board of Administration, which manages the fund along with

Some people claim that Bailing Out is an art. Others think...

Some people claim that Bailing Out is an art. Others think it is a science. I think it is a bit of both. Regardless of what it is, if you are in a doomed relationship, it is best to get out of it as quickly as you can. This advice applies not only to personal relationships, but also to the stock market. If a stock is not loving you, why should you love it back? When it comes to stocks, the sane way to get out of a doomed relationship is to sell and never look back. The stock won't be looking back either so there really should be no hard feelings.