Helicopter Drops & Housing Starts
Helicopter drop... ECB injecting $500 Billion to restore liquidity.
The two week euro area interbank offered rate LIBOR for the euro dropped a record 50 basis points to 4.45%. The rate had soared 83 basis points in the past two week.
The TED spread narrowed to 186 basis points. The spread was 35 basis points at the start of the year.
Lena Komileva, an economist at Tullett Prebon confirms our position that these central bank injections are going to reserves: The ECB action...
"doesn't address the fundamental issues of banks hoarding cash and while the central bank has succeeded in stabilizing the shorter-term rates, it makes little impact on the longer-term rates."
Housing Starts Nov -3.7% 1.187M vs prior 1.232M Full Report
Inside the number: Starts YOY -24.2%; YTD -24.1%. SFR Starts -5.4%; YOY -34.9%; YTD -28.1%
Building Permits -1.5% Nov 1.152M vs prior 1.170M, a 14 year low; YOY -24.6%; YTD -24.7%. SFR Permits -5.6%; YOY -33.7%; YTD -28.9%
Deutsche Bank economist Carl Riccadonna puts the odds of recession at 35%:
"We are a good way off from the bottom in the housing market. It's not a very good outlook. It will be a close scrape to avoid a recession next year." Hattip to Bloomberg.
The Nattering One muses... cut all you want, inject away, cryoblate cancerous loans, accept all forms of collateral at the discount window, all to no avail.
We repeat again for the deaf, dumb and blind: NOTHING can stop this trainwreck in progress, it is a fait accompli.
Since this run up in so called "values" was NOT based on rising wages, but was facilitated by cheap money, creative financing and lax underwriting...
And the majority of the economic base was dependent on this rise for job creation and consumer spending, the fall will be more precipitous than previous declines.
Inventory must be in equilibrium with demand and further, the price level to achieve equilibrium must be reconciled with prevailing wages and truthful rents.
Until this occurs, NOTHING and NO-ONE can or will stop the underlying asset devaluation, foreclosures and inventory build.
In the meantime, you can wish in one hand and shit in the other, see what ya get? A good case of central banker's and their friends gone wild.
The two week euro area interbank offered rate LIBOR for the euro dropped a record 50 basis points to 4.45%. The rate had soared 83 basis points in the past two week.
The TED spread narrowed to 186 basis points. The spread was 35 basis points at the start of the year.
Lena Komileva, an economist at Tullett Prebon confirms our position that these central bank injections are going to reserves: The ECB action...
"doesn't address the fundamental issues of banks hoarding cash and while the central bank has succeeded in stabilizing the shorter-term rates, it makes little impact on the longer-term rates."
Housing Starts Nov -3.7% 1.187M vs prior 1.232M Full Report
Inside the number: Starts YOY -24.2%; YTD -24.1%. SFR Starts -5.4%; YOY -34.9%; YTD -28.1%
Building Permits -1.5% Nov 1.152M vs prior 1.170M, a 14 year low; YOY -24.6%; YTD -24.7%. SFR Permits -5.6%; YOY -33.7%; YTD -28.9%
Deutsche Bank economist Carl Riccadonna puts the odds of recession at 35%:
"We are a good way off from the bottom in the housing market. It's not a very good outlook. It will be a close scrape to avoid a recession next year." Hattip to Bloomberg.
The Nattering One muses... cut all you want, inject away, cryoblate cancerous loans, accept all forms of collateral at the discount window, all to no avail.
We repeat again for the deaf, dumb and blind: NOTHING can stop this trainwreck in progress, it is a fait accompli.
Since this run up in so called "values" was NOT based on rising wages, but was facilitated by cheap money, creative financing and lax underwriting...
And the majority of the economic base was dependent on this rise for job creation and consumer spending, the fall will be more precipitous than previous declines.
Inventory must be in equilibrium with demand and further, the price level to achieve equilibrium must be reconciled with prevailing wages and truthful rents.
Until this occurs, NOTHING and NO-ONE can or will stop the underlying asset devaluation, foreclosures and inventory build.
In the meantime, you can wish in one hand and shit in the other, see what ya get? A good case of central banker's and their friends gone wild.
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