Monday, July 21, 2008

Economics Update

The Leading Economic Indicators have now fallen for the 2nd straight month. It's down 2.1% year over year, putting it in the 2001 recession category.

In a related matter, it appears that Freddie Mac may be trying to unwind its debt exposure a bit, as we have reports that it will be purchasing less mortgage debt from lenders, making getting a home mortgage more difficult.

Oil is back above $130/bbl, largely on concerns about Iran and Tropical storm Dolly, but gasoline prices continue to fall, it's now about a nickel down from the record.

The dollar is slightly weaker today, but I think that the delta is more a non-movement than a movement.

For some well predicted hilarity, note that Bank of America profit took a 41% hit, in part because the newest member of their stable, Countrywide Financial, lost $2.3 billion this quarter.

I told you so.

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