March 17, 2009

There has been some movement in "mark to the market" accounting by the Financial Accounting Standards Board.  This is an important step to get the stock market moving because it will strengthen many banks thus helping to strengthen the financial system which many economists, as well as the Fed Chairman, believe is absolutely imperitive to get any kind of sustained improvement in the economy.

Housing starts for February came in at 583,000 well above the 450,000 estimates.  Building permits also rose making February a very positive month for housing.  This is a start but it needs to be followed by more good news in future months, but it's a start.

Stocks are on the plus side and bonds are basically flat at this writing.  This has been the case in the past 5 business days.  If the stock market can keep its positive march without killing bonds, we could have something going.  Very positive news.