A few clicks later — and courtesy of Asha G. Bangalore, we learn that sales of new single-family homes are down 47.6% from their peak in July 2005.
To contextualize this, if the current path continues into 2008, Centex
CEO Timothy Eller said to Bloomberg, "This looks like it’s going to be the deepest correction
of any housing correction since World War II."
Existing Home Sales – Sales and Prices Are Down, Inventories Keep Climbing Up
Asha G. Bangalore,
Northern Trust, November 28, 2007
Housing Slump’s Third Year Will Be `Deepest’ Since World War II
Dan Levy and Brian Louis
Bloomberg, Nov. 30 2007
A tale of two headlines:
Won’t someone please explain this to me?
How is it possible that the regions of the world with strong currencies — like Europe, U.K., Australia, and Canada — are having inflation problems. And yet at the same time, the nation having a record low currency — i.e., the United States and our Dollar — doesn’t seem to either inflationary pressures (At least according to official CPI data). And we seem to have little concern about further currency induced price increases.
Am I the only person who finds this incongruent?
If Goldman Sachs is correct, and the Fed does eventually cut rates to 3% — what might that mean for various dollar priced commodities like Oil & Gold?
Probably very little — if (and this is a big IF) we are in the throes of a recession. But what if the Bulls are right, and this is merely a mild mid cycle correction?
A 3% Fed rate could mean Oil at $150 and Gold at $1200.
Excerpts after the jump . . .
Inflation fears hit eurozone
By Ralph Atkins in Frankfurt and Krishna Guha in Washington
FT, November 27 2007 18:02
Goldman Sees Funds Rate Cut to 3%
WSJ, November 27, 2007, 9:26 am