Seeking Alpha

New Home Sales at 394K

Comments (7)
  • AZ Desert Trader
    , contributor
    Comments (256) | Send Message
    and there goes the balloon
    23 Aug 2013, 10:04 AM Reply Like
  • ericmcarter
    , contributor
    Comments (190) | Send Message
    I wonder what the conference room in Jackson Hole sounds like right now?
    23 Aug 2013, 10:11 AM Reply Like
  • tclark13
    , contributor
    Comments (134) | Send Message
    Rates go up, housing goes down. Never saw that one coming. Thankfully the same relationship doesn't exist between rates and economic growth!
    23 Aug 2013, 10:14 AM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
    Yes lots of small talk in Jackson Hole right"see..I told you so"..they are so smart....Ivy league you know
    23 Aug 2013, 10:28 AM Reply Like
  • ericmcarter
    , contributor
    Comments (190) | Send Message
    Satirical "Fed Speak"... "Interest rates are only rising because the economy is getting stronger. We can't taper yet because the economy is not strong enough."
    23 Aug 2013, 10:34 AM Reply Like
  • GaltMachine
    , contributor
    Comments (1444) | Send Message
    Wow. Now that's a miss!
    23 Aug 2013, 10:35 AM Reply Like
  • contrarianadvisor
    , contributor
    Comments (1486) | Send Message
    The story to be told in upcoming months is the impact the big percentage change in interest rates is going to have on an economy as fragile as this one. So many economists and strategists have argued that the move from 1.60% to 2.90% on the ten year was not going to significantly impact the economy because nominal rates are still historically low. Yes a 4 1/2% mortgage may still represent a historically low rate but the 100-150 basis point rise in that rate is going to negatively impact housing in a significant way. Initially, you get a bump in home purchases as those contemplating buying a home rush in for fear of even higher rates. Beyond this rush of buyers, comes a big drop off as we saw today and are likely to see in the months to come. All those criticizing the Fed for all the QE and the zero interest rate policy do not seem to realize that without it, the economy would be so much worse. The Fed may still pursue a very modest taper in September but in upcoming months they are going to be forced to reverse themselves and instead ramp up QE to much higher amounts. The global economy is still marching toward a deflationary bust. There is no sustainable economy just ahead.
    23 Aug 2013, 11:07 AM Reply Like
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