Mortgage applications soar

Home loan demand surges to near four-year high By Julie Haviv (Reuters) U.S. mortgage applications surged last week, with demand hitting its highest in nearly four years as interest rates plunged, an industry group said on Wednesday. The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both ...Read More

2008-01-16 EU Highlights

Overall, inflation and weakness continues: European Inflation Holds Above 3% as Food Prices Soar German 2007 Inflation Fastest Since Records Began France: Inflation up to 2.3% in Q4 sunk real wages, spending ECB’s Weber Says Shouldn’t `Over-Dramatize’ Inflation Jump Europe’s Economies Face `Stagflation’ Risk This Year Weber Says ECB Won’t Tolerate Excessive ...Read More

Why I expect US exports to continue to be very strong..

The desire to accumulate $US financial assets has been diminished for at least the following reasons: Treasury policy – Paulson is actively pushing both a strong yuan and threatening any other CB that buys $US with the label of ‘currency manipulator.’ CB’s had been perhaps the largest source of $US financial assets ...Read More

TAF Results

(from Patrick Doyle) Below is a table of the results of the last 3 TAF auctions Of note is the spread to OIS (FF’s) which is inside the historic LIBOR / OIS spread. There were less participants in this round as well This all bodes well and is showing the easing of ...Read More

2008-01-15 US Economic Releases

Producer Price Index MoM (Dec) Survey 0.2% Actual -0.1% Prior 3.2% Revised n/a PPI Ex Food & Energy MoM (Dec) Survey 0.2% Actual 0.2% Prior 0.4% Revised n/a Producer Price Index YoY (Dec) Survey 7.1% Actual 6.3% Prior 7.2% Revised n/a PPI Ex Food & Energy YoY (Dec) Survey 2.0% Actual 2.0% ...Read More

Re: more on receipts

(an interoffice email) On Jan 15, 2008 9:23 AM, Karim Basta wrote: > > > > US Daily Comment – Tax Receipts: How Good an Indicator? > Summary: Although Treasury income tax receipts are a popular measure of > economic activity, they are generally too noisy and susceptible to calendar > distortions ...Read More

2008-01-15 EU Highlights

EU Headlines: Same twin themes as the US, weakness and inflation: Spain Core Inflation Rises for Fifth Month on Food German Economic Growth Slowed as Sales Tax Increased German Investor Confidence Dropped to 15-Year Low French inflation at highest level since 2004 by Ben Sills (Bloomberg) In France, the euro region’s second-biggest ...Read More

Re: FF vs. LIBOR

(an interoffice email) On Jan 14, 2008 10:29 AM, Warren Mosler wrote: > thanks, continued tafs will get it to wherever the fed actually wants > it. it’s a policy rate they can administer at will. > > > > > > > On Jan 14, 2008 10:16 AM, Pat Doyle wrote: ...Read More

If it isn’t inflation, what is it?

What we used to call an ‘inflation day’ – $ down/oil up Gold through 900- if nothing else, it’s an inflation expectation indicator (not that they cause anything, just reflect it) Other metals up Grains going parabolic Stocks up also, Export driven growth means demand coming from and output going to non ...Read More

2008-01-14 EU Highlights

European News Headlines: Europe Industrial Production Falls for Second Time in 3 Months Fed beggar they neighbor policy robbing some demand. European Bonds Gain on Speculation ECB Won’t Lift Interest Rate inflation on the rise Bonello Says Inflation May Slow to 2% by End of Year He also says this will happen ...Read More