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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: CalculatedRisk who wrote (56841)3/25/2006 4:49:23 PM
From: Mike Johnston  Respond to of 110194
 
Several of the FED members have expressed concern about housing's impact on the economy

Housing IS the economy.



To: CalculatedRisk who wrote (56841)3/25/2006 9:07:16 PM
From: ild  Respond to of 110194
 
<<<they are concerned about the impact of a slowing housing market>>>

Housing is still doing very well. What we're having is a little slowdown in new home sales. We had record housing appreciation last year - over 12%. Most economists predict a "slowdown" to 4-6% appreciation in 2006. I'd think that the Fed members are fine with 4-6% appreciation and they actually do not want another 12%. They know that there are some local RE bubbles. I don't think they care about them.