I think the people worried about housing worry to much. There is a natural demand for housing as the age group between 25 and 35 is growing and where demand is created. This is also the most employable age group as well so most likely to return to work more quickly.
Witness the successful increase in demand from the first time homebuyer tax credit. This may be a little like cash for clunkers pulling demand forward but this age group is growing faster than at any time since the '70's.
It may be that the Fed is more worried about the beleagured balance sheets of FNMA and FHMLC who are so stuffed with delinquent paper that the taxpayer will be wearing it for years to come - but I wouldn't worry about housing demand it will return.
On the iPad, Kids, Making Money and Video [View article]
There is a company that makes the covering ZAGG. They have a product for smart phones that works great if they can do the same for the iPad it will be a homerun.
The Equity Market Likes Rising Treasury Yields [View article]
Investors will continue to bid up regional banks as long as they think the Fed is going to keep short rates low and the 2's/10's spread stays as wide as it is. Net interest margins continue to expand and that's good for those stocks. We're not likely to see a decline in NIM for some time so banks continue to earn their way out of the problems they face.
The 10-Year Treasury Signal [View article]
Witness the successful increase in demand from the first time homebuyer tax credit. This may be a little like cash for clunkers pulling demand forward but this age group is growing faster than at any time since the '70's.
It may be that the Fed is more worried about the beleagured balance sheets of FNMA and FHMLC who are so stuffed with delinquent paper that the taxpayer will be wearing it for years to come - but I wouldn't worry about housing demand it will return.
On the iPad, Kids, Making Money and Video [View article]
The Equity Market Likes Rising Treasury Yields [View article]