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For the week of October 15, 2007 - Vol. 5, Issue 42
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>> Review of Last Week
ARE WE DANCING WITH GOLDILOCKS...OR SCARLETT O'HARA? OK, folks, the majority of economists, media pundits and Wall Street savants are now dubbing this another Goldilocks economy (like the mid-to-late 1990's)...not too hot, not too cold, but just right. The big question: Will Goldilocks turn into Scarlett O'Hara, acting volatile, spoiled and vain, driving the bears home for their porridge?
There was enough going on to please both those who want to believe in Goldilocks AND those who insist she's just Scarlett in disguise. On Tuesday, the Fed released its Minutes from the September 18 meeting that voted in the surprise .50% rate cuts. This document revealed the Fed's stronger concern about supporting continued economic growth and lower obsession with the threat of inflation.
The week's final economic reports presented mixed messages that the markets quickly netted out as positive. The Producer Price Index (PPI) came in for September at 1.1%, above the expected 0.5%, but the Core PPI, excluding volatile Food and Energy prices, was below expectations at a modest 0.1%. However, year-over-year PPI was 4.4%, with Core PPI at 2.0%. These numbers might make an inflation-watching Fed hold off on another rate cut at the end of the month.
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I recieved this from Catherine at CTX Mortgage! It a real good piece and I hope that you find it helpful!
The AXIS for all your Real Estate Needs!!
Jorge Pomales
Home Connection Realty Inc.
219-973-9398
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