Sunday, October 23, 2011

Expect major fireworks this week

Sometimes I wonder if people ever actually read the news or, if in the ipad era, we've just become a world headline scanners.  The news out of the latest European has been decidedly negative yet the global reaction to this news has been a collective shrug of the shoulders.  Asian markets are actually soaring, while the US futures are a little off as the Euro has weakened a bit relative to the US dollar.  As has been the case for the past month - watch the US dollar/Euro because it will tell the story.

At some point people are going to realize that Europe does not have the political will to take the necessary steps to stabilize Greece and Italy.

While we're on the subject of political will, there are some interesting rumors dancing around the internet about the US housing market.  There is a rumor that the Federal government is readying some type of plan to create a pool of all Fannie/Freddie foreclosures that could be sold off in large blocks to investors.  This would help to eliminate some uncertainty in the housing market and probably strengthen the status of Fannie and Freddie.  However, if this is something that would require Congressional approval I think the originators of the rumor need to have their head examined.  In my opinion, anything that might help the President in the polls (regardless of its actual value to the country) has less than a 0% chance of passing in the midst of an election year.


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