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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: RodgerRafter who wrote (18805)12/16/2004 9:56:59 PM
From: mishedlo  Read Replies (1) of 116555
 
Rodger this paragraph is confusing to say the least
Care to try again?

When the Fed started tightening with a 25 basis point hike at the end of Q2 2004,
The Fed Funds rate had bottomed at 1.00% from June 03 to June 04.
The Fed Funds rate had bottomed at 3.10% during June of 2003.
10-year rates were at about 4.62% at the time of the first hike.
Housing Starts were at a short term bottom top in June if 2004 at 1817.
But rose with to a second top at 2039 in October of 2000.
As of November, 1.0% worth of hikes in the Fed Funds rate, but a 0.6% rise in the 10-year and almost 8 months before housing starts turned down.
When the fed made their final, 50 basis point hike in May 2000,
The Fed Funds rate peaked at 6.5%.
10 year rates inverted to 6.4%.
Housing starts bottomed in August 2000 at an adjusted annualized pace of 1519.
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