A Duo of Notes
Mortgage bonds traded lower today after bouncing against staunch resistance found at the 200 day moving average of their price. This moving average is a thick layer of resistance to break through, especially on their first attempt to do so in many months. Expect pricing to bump higher for rates just a touch in the coming days.
Robert Shiller, Professor of Economics at Yale University, continues to note that the current decline in national housing prices is the first instance of such a decline without a concurrent recession or depression.
With our economy teetering on the brink of a recession in the final quarter of 2007 what will happen to housing prices with that adding to the fire?
So many of the economic reports are rear-view mirros indicators, showing us the past. What gives us the proper foresight for what is just over the horizon? A review of the past patterns of history with similar macroeconomic events is a good start.
We live in times of a negative national savings rate, high consumer debt loads, high government debt loads, exploding mortgage programs, falling home prices, runaway military spending, and a currency that is no longer backed by gold (a fiat money system). When you add those all up what prognosis do you come up with?
These are the things we should be thinking about as our national political circus begins to take center stage. Who are we electing that has the courage and foresight to tackle this issues head-on?
Well, enough ramblings tonight! As always, it is those that make the proactive decisions that can navigate the stormy seas. Let's make sure to keep our eyes sharp to the decisions we are making these days.
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