Posts filed under “Federal Reserve”

One Two Three & Done (The Sucker Play)

Once again, the One & Done crowd has managed to pull the PermaBull traders into a long side bet, following the spin 2 weeks ago after the March FOMC minutes were released, and last week’s JEC testimony by Fed Chair Bernanke. 

Over the weekend, Fed Chair Ben Bernanke told CNBC’s Maria Bartiroma at the White House Correspondents Dinner that "No, the market did not get it right" after his recent comments.

Once again, the One & Done play was a sucker’s trade.

What is this, the 4th or 5th time? Great Caesar’s Ghost, even a puppy learns not to pee on the carpet after he gets rapped with a rolled up newspaper twice. These traders have been getting bitch-slapped around like they are Wile E. Coyote and the Fed Chair is the RoadRunner. Its astonishing that the same suckers keep coming back for the same abuse. Get some help, get into a support group for abused spouses investors.

This does go a long way in explaining the new Fed Chair Curse — perhaps it takes a while before the Chairs learn they are not still in Academia or where ever;  it took Greenspan a long time to learn to speak for 4 hours straight — and say nothing. I suspect it may take Bernanke a little longer to learn the dark art of obsfucation . . .

Category: Federal Reserve, Fixed Income/Interest Rates, Psychology, Television, Trading

Ben Bernanke’s Inflation Targeting and Forecasting

Category: Commodities, Federal Reserve

Inflation Watch

Category: Commodities, Federal Reserve, Inflation

Pause/Resume Scenario Increasingly Likely

Category: Commodities, Economy, Federal Reserve, Inflation

“Every Change of Rate”

“Every Change of Rate” is an utterly hysterical parody of the black & white Police video “Every Breath You Take,” as done by some Columbia Biz School students; Its an amusing take on the Ben Bernanke, the newly appointed Fed Chief. My favorite bit are the lyrics during the second verse: “First you move your…Read More

Category: Federal Reserve, Music

Existing Home Sales Data (California Real Estate: On Sale!)

Sales of existing homes surprised to the upside yesterday. But one data point does not make a trend. This is the first rise (sequential monthly change) after 5 straight months of falling Home Sales. And that’s before we examine the data.

Before you declare the end of the housing slow down, consider:

- Existing Home sales actually slipped vs. last year by -0.7%; The reported gain was over last month’s data;

- the Inventory of unsold homes soared 7 percent in March, hittting an all-time record; There are now 3.19 million existing homes for sale, or  5.5 months’ supply; That’s the largest inventory since July 1998

- Existing homes edged up 0.3% last month to a seasonally adjusted annual rate of
6.92 million units; (we know that seasonally adjusted data is not always accurate)

- Year over year, the Northeast and Midwest gained, while the previously hot housing markets in the South and the West slipped;

- median home prices are still rising, albeit nmore slowly — up 7.4% year over year, to $218,000.

Here’s a data point that has me scratching my head:  Why are there different numbers for the year-over-year changes for seasonally and not seasonally adjusted?  Was this March somehow in a different season than last year’s March? I am perplexed.

Note that data for existing home sales comes from National Association of Realtors, a group that is certainly an interested party; Of course, as a homeowner, investor, and someone with a public bearish tilt for the second half, I’m hardly objective myself (hey, I try). But this oddity — down -0.5% for the not seasonally adjusted year over year versus down -0.7% for the seasonally adjusted year over year — is beyond my comprehension.

So much for the hard data on existing sales; Today, we get New Home Sales. Recall our prior admonishments that monthly New Home Sales Data are unreliable; look instead to a moving average.

Let’s move onto some anecdotal evidence.  A friend writes:

"Flop! Wow, KB running blue light specials in California. Not surprising,
Chico area was rated one of the most overvalued markets in the country. Houses
in the $200k space.  When was the last time you saw that in California? "

 
Oak Knoll Place Live Oak, CA

Oak Knoll Place Slideshow

Here’s the sales pitch:

"Oak Knoll Place in Live Oak is located in a beautiful
community near the majestic Sutter Buttes. With easy access to Highway 99, it is
ideally located for easy access to Sacramento, Lake Tahoe, Reno and a wide
variety of recreational opportunities. Yuba City and Marysville are
approximately 10 minutes south, Chico is approximately 35 miles north and the
Gray Lodge Wildlife area is approximately 10 minutes west. Live Oak has a
quaint, small-town atmosphere with many nearby recreational water activities,
including the Feather River, Yuba River and Sacramento River. Prices starting
from the High $200′s.
"

I don’t know Live Oak, but houses like that in California are hard to imgaine . . .

More after the jump.

Sources:
Existing-Home Sales Rise Again in March
NATIONAL ASSOCIATION OF REALTORS
WASHINGTON (April 25, 2006)
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/MarchEHS06?OpenDocument

Existing Home Sales  data
NATIONAL ASSOCIATION OF REALTORS
http://www.realtor.org/Research.nsf/files/REL0603EHS.pdf/$FILE/REL0603EHS.pdf

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Category: Data Analysis, Federal Reserve, Fixed Income/Interest Rates, Real Estate

More evidence: Fed Pause Not Good For Stocks

Category: Data Analysis, Economy, Federal Reserve, Investing

Smackdown: Fleckenstein vs Yardeni

Category: Federal Reserve, Fixed Income/Interest Rates, Inflation

After Final Discount Rate Hike

Category: Federal Reserve, Inflation, Investing, Markets

Fed Halt Now Baked into the Cake

Category: Federal Reserve, Investing, Markets, Psychology