The Fed announces what everyone knew already, namely the housing market has undergone a cool-down induced by increased interest rates. The only real issue is whether this data is a quarter old and really needs to be seen as history. Local anecdocatal data would suggest that the cool-down is over and the housing market is back in growth mode.
Goldman Sachs analysts predict that Fed Funds will go down 1.25% percent in 2007 to 4% while JP Morgan Chase predicts the opposite that Fed Funds will go up to 6% in an effort to hold down inflation. I would tend to side with Goldman Sach, though I would prefer that the Fed go neutral for a year, just plain leave the rates alone at 5% ... and see if the market's own liquidity won't be enough.
Terror Update: Tamil Rebel blows up convoy in Sri Lanka. More Moslem Extremists blowing up people so they can keep the world from seeking a level of peace and resolution.
Lebanon wants an aid conference so we can give them a ton of cash. Now a couple problems. Will they agree to continue moving toward a real democracy? Will they make sure the cash goes to those who were displaced or will we be lining the pockets of the mullahs? Will Christians have freedome of expression? Will they even start making Hezbollah's life hard in their country? Or did we just agree to international blackmail?
School Choice the recipe for middle class growth? “Any policy that loosens the ironclad relationship between location-location-location and school-school-school would eliminate the need for parents to pay an inflated price for a home just because in happens to lie within the boundaries of a desirable school district. A well-designed voucher program would fit the bill neatly.” Read full article.
Looks like a crack is widening in the the anti-US sentiment that seems to have dominated Latin America for the last ten years. In Ecuador a possible decent candidate for President looks like he's gained some support against a classic Chavista type wack job. Time to pick up a few more good leaders in Latin America.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment