by Larry Levin
There were a few economic reports Tuesday morning that are important but pale in comparison to Wednesday’s FOMC meeting. When market rates are above zero (ZIRP), the FOMC announcement is quite volatile. Given ZIRP, it may be muted but can still be dangerous.
Tuesday’s reports were consumer confidence and housing prices.
The consumer confidence data was much better than expected coming in at 60.6 vs the 54.3 consensus. Although this is going in the right direction, keep in mind that when the economy is growing without phony stimulus, this reading is in the 90’s.
The FHFA home price index and S&P Case-Shiller HPI data both agree: housing is double dipping. Both indices show that home prices continue to fall.
But don’t worry folks, Zimbabwe-Ben is on your side (if you’re a bankster) and will tell us all about his financial-goodies Wednesday afternoon.
There were a few economic reports Tuesday morning that are important but pale in comparison to Wednesday’s FOMC meeting. When market rates are above zero (ZIRP), the FOMC announcement is quite volatile. Given ZIRP, it may be muted but can still be dangerous.
Tuesday’s reports were consumer confidence and housing prices.
The consumer confidence data was much better than expected coming in at 60.6 vs the 54.3 consensus. Although this is going in the right direction, keep in mind that when the economy is growing without phony stimulus, this reading is in the 90’s.
The FHFA home price index and S&P Case-Shiller HPI data both agree: housing is double dipping. Both indices show that home prices continue to fall.
But don’t worry folks, Zimbabwe-Ben is on your side (if you’re a bankster) and will tell us all about his financial-goodies Wednesday afternoon.
Trade Date: 1/25/11
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