BG,
Traders yesterday disappointed in the economic news, sought refuge in defensive stocks,
thus driving the DOW into positive territory late in the day.
No economic reporttoday , going with
UP on Tuesday,
gl,
baz
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July 7 (Bloomberg) -- The U.S. should consider drafting a second stimulus package focusing on infrastructure
projects because the $787 billion approved in February was “a bit too small,”
said Laura Tyson, an adviser to President Barack Obama.
The current plan “will have a positive effect, but the real economy is a sicker patient,”
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In the clearest signal yet that we are still in a potentially devastating global deflationary spiral,
The Riksbank, Sweden’s central bank and the world’s oldest central bank, has effectively
cut interest rates to minus 0.25% and has started a program of quantitative easing a.k.a printing money.
These are the most dramatic moves yet by a major central bank and will be watched the world over for
signs of success or failure.
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Whitney Tilson (right) and Glenn Tongue of T2 Partners:
Here's the bottom line:
We are in the "middle innings" of the mortgage and foreclosure crisis
House prices have at least another 15%-20% to fall and won't bottom until the middle of next year.
The recent signs of stabilization are the "mother of all head fakes."
Real Estate Market Update July 6 2009: Plenty More Downside CHART OF THE DAY: Home Vacancies Still At All-Time Highs