Most U.S. portfolio managers seem to view the EU sovereign debt crisis as they would a pesky mosquito that refuses to fly away. If only the mosquito would leave, the asset managers could concentrate on the U.S. where the economy is said to be showing so much improvement and stocks are incorrectly perceived...
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From Naufall Sanaullah of Shadow Capitalism we get a nice overview of the world economy and markets.
Housing Starts:
Privately-owned housing starts in August were at a seasonally adjusted annual rate of 571,000. This is 5.0 percent (±10 6%)* below the revised July estimate of 601,000 and is 5.8 percent (±12.0%)* below the August 2010 rate of 606,000.
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"we see very few indicators that any recovery in the housing market has begun." -Ara K. Hovnanian
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From the Baton Rouge Business Report: The number of people who signed contracts to buy homes fell in July, further evidence that the depressed housing market remains a drag on the economy. The National Association of Realtors says its index of sales agreements fell 1.3% in July to a reading of 89.7. A reading...
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Calculated Risk has their always excellent weekly roundup of Economic Releases from last week. Short and informative with their standout charts and graphs. New Home sales were down slightly, GDP was poor, mortgage delinquincies increased slightly, new home inventory was at the lowest on record (Yay!) but obviously the big issue is existing home inventory,...
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From Calculated Risk we see that housing supply is still going in the wrong direction. Housing prices are likely to go lower which means more defaults and more supply (wash, rinse, repeat.)
While we suggest investors set their long-term plans and approaches based on valuation, the economy drives shorter term results. The Wall Street journal has a nice article summarizing our economic position, which is tenuous: The good news: It would probably take a significant shock to knock the economy off course, even in its weakened...
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Here is a nice collection of charts based on Robert Shiller’s data. First, the really long term: For those who haven’t been here before the housing category and tag has lots more on the bubble. My thoughts on the latest data, and that in reality this is long term a good thing, can be...
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Yesterday was one fo the best days ever for the stock markets: What does it mean? I think it ultimately depends on factors unrelated to the move itself. Econompic provides us with some context: Obviously large one day moves in and of themselves tell us little about what is to come. So, let us...
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Durable goods cam in better than expected, though it may only be due to a temporary bump: Miller Tabak’s Peter Boockvar notes that “the Govt stimulus package has a depreciation tax credit that expires by year end — so companies have to now use it or lose it. That could have had an impact...
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You may remember the website we discussed back in January. Dale Franks just discovered their program, because they now are on Television. He asks the obvious question: So, should the mortgage companies get off scott-free from facing the results of their poor business decisions when it comes to the loans—loans they shouldn’t have made...
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From the New York Times: Earlier this year, Mr. Bush derided a modest plan to provide $4 billion to states and localities to buy foreclosed properties, saying that buying up empty homes helps only “the lenders or the speculators.” Actually, it protects entire neighborhoods and local economies from the effects of foreclosures by preventing...
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We should start out with some humor: A robber in a ski mask blamed the bank for what he was about to do, The Associated Press reported Feb. 22. “You took my house, now I’m going to take your money!” the assailant hollered. Talk about a reverse mortgage! The FBI plans to review the...
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So claims Alex Tabarrok. Alex and his blogmate Tyler are two of my favorite bloggers, but on this matter I think Alex is wrong. Unlike for some, his argument doesn’t invite scorn, because humility should teach us that sometimes things are different, and we cannot always fully understand why, at least not until after...
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The GDP numbers came out yesterday. For a breakdown, including the inflation component, go here. For the announcement from the BEA go here. The Fed also cut rates by 50bps. Here is the Journal’s story. Reactions: Barry Rithotlz- Q4 GDP: El Stinko! • Consumption slowed to 2% from 2.8% in Q3; I suspect that...
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youwalkaway.com I really have little to add to my declaration of extreme discomfort. H/T: Barry Ritholtz Much more on this here. Thanks for visiting Risk and Return. Please feel free to contact us with any questions and/or comments. Please note our disclaimer. Download article as PDF
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Ben Bernanke gives Congress and the President the green light to take steps to stimulate the economy along with a warning: Fortunately, the Fed has some ideas on what they should–and shouldn’t–do. Bernanke’s remarks came with a warning that any fiscal bailout “could prove quite counterproductive” if it’s not done in a timely manner...
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There has been a considerable difference between the two indexes of housing prices. Calculated Risk notes a new paper analyzing why and notes these implications: This suggests that one of main differences between OFHEO and Case-Shiller was that Case-Shiller included many non-agency homes financed with subprime loans. These homes saw more appreciation during the...
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From a post at the Minneapolis Star Tribune’s buzz.com describing the impact on neighborhoods in Minneapolis of the spiraling number of foreclosures. Each pin is a foreclosure. 725 total in North Side. (HT: Instapundit)
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