Great piece on US Housing, h/t Riholtz:
A caveat is that if home sales are mostly of the more expensive type, the home sales price / median income ratio can stay elevated for a while.
Separately, the Hilsenrath article in the WSJ today was quite interesting. It is appears that Bernanke has been able to get a very broad consensus of FOMC members to come to his point of view. His conversion of Kochlerkota from a hawk to a dove is especially enlightening. IMO, the article supports the view that, given the fairly consensus views, Fed policy is likely to be easy for a very long time. (Certainly longer than market pricing)
- Spanish Stress tests results were better than expected. 7 of the 14 banks need capital, totally 59.3 bn.
- Chicago PMI declined to 49.7 vs 52.8 exp and 53 prev. Lowest print since Sept 2009.
- US Savings Rate declined to 3.7% in Aug from 4.5% in June
- Fri: US Personal Income, Spending, PCE Deflator, Chicago PMI, China HSBC Mfg PMI
- Mon: ChinaMfg PMI, ItalyMfg PMI, UKMfg PMI, US ISM, Australia Mfg PMI
- Tues: RBA, China Non-Mfg PMI
- Wed: Italy Services PMI, UK Services PMI
- Thu: BoE, ECB
- Fri: US Employment, CA Employment