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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (281250)	10/6/2010 12:37:30 AM
From: Cactus Jack	Read Replies (2) \| Respond to of 306849

Thank God someone finally explained QE in a meaningful way -- kool-aid special: blogs.wsj.com Dear Conspiracy Crackpots: Here’s How QE Works By Matt Phillips On the list of things MarketBeat isn’t into — right besides old yeller — is conspiratorial frothing, which permeates the markets blogosphere. Much of the spittle spritzing is aimed at Bernanke & Co. Granted, the keepers of the Fed temple aren’t the most transparent bunch. Still, the plan to restart the money printing presses isn’t designed to kill the dollar or inflate away the massive U.S. debt. (Though it has put the greenback into its current funk.) No, the Fed has been printing money and buying assets like Treasurys to try to keep rates low. (Remember the bond-world see-saw. As prices rise, yields fall. So the Fed bidding up prices of Treasurys pushes yields lower.) That filters through the economy, largely through the mortgage markets. When folks refinance to take advantage of lower mortgage rates, that leaves more cash in their pockets. And it has been working. Check out this squib from a J.P. Morgan analyst’s note on the big banks Tuesday: We expect core mortgage production revenues (excluding additions to mortgage repurchase reserves) to benefit primarily from sharply higher origination volumes and gain on sale spreads in [the third quarter of 2010]. Refi activity surged in [the third quarter], benefiting from drop in mortgage rates to historically low levels, and more than offset significantly lower purchase activity following the expiry of the first time homebuyers tax credit. Total mortgage application index rose 16% on average [quarter-on-quarter in the third quarter] (on lagged basis) as refi applications rose 43% [quarter-on-quarter] (up 45% seasonally adjusted) but purchase activity fell 28% qoq (down 26% seasonally adjusted). As shown in Figure 1, refi applications have declined recently but remain well above 1Q levels, which should also benefit 4Q. That 10-year yield is still below 2.50% Tuesday. Ok, that’s hopefully the wonkiest post we’ll do today.

To: patron_anejo_por_favor who wrote (281250)	10/6/2010 1:31:44 PM
From: Broken_Clock	Read Replies (2) \| Respond to of 306849

Weird. Isn't this town well up in the high desert? Tornadoes derail train, smash homes in N. Arizona AP – A man walks through a Bellemont, Ariz., backyard after a tornado swept through the community west of … Slideshow:Tornadoes smash homes in Ariz. Play VideoWeather Forecast Video:National Forecast weather.com By FELICIA FONSECA, Associated Press Writer – 12 mins ago BELLEMONT, Ariz. – Two tornadoes touched down in northern Arizona early Wednesday, derailing 28 cars of a parked freight train, blowing semis off the highway and smashing out the windows of dozens of homes. The first tornado hit Bellemont — west of Flagstaff — around 5:30 a.m. Wednesday and the second touched down east of the small community a short time later.