The US Fed blinked. Actually it did't blink, it closed it's eyes and assumed the fetal position.
After talking tough about backing off on buying the US Government debt (the definition of ponzi btw), it stood pat and said.."we will..we will...keep buying! forget what we said earlier this year".
Actually it worked out ok for me, as my poor preferred shares which had been beaten into mush caught a bid.
However it did bring interest rates down a notch now that everyone sees the Fed for the blow-hard-but-do-nothing that it is.
The Canadian bond market which is tied by it's apron strings to the US one also got a bounce and rates dropped.
Now how about September? What are we looking at. Well so far it looks to em like we are going to get some weakness in the HPI and averages for the month.
I see mid range homes (would be super upper end anywhere else) $1.2-$1.6 M selling for a 4-8 % below asking. Of course the asking prices are pretty crazy, made up numbers , but that didn't deter the delusional buyers before.
I have said before that if September didn't show some weakness that I would probably suspend or close this blog but it looks like you may have to put up with me a bit longer.
The market catches round number-itis - *Mid-week market update: *On the weekend (see The market's hidden message for the economy, rates and stock prices), I wrote that the short-term outlook was...
10 hours ago