- On his homeowners' aid plan, Pres Obama announced an intention to spend up to USD 75 bn to reduce mortgage principles and payment amounts in order to stem foreclosures.
In addition, USD 200 bn will be committed to back stop Fannie Mae and Freddie Mac and improve liquidity in the housing market.
The market had already priced in the announcement though I am surprised they didn't see the brighter side of it considering the heavy recent sell off. Dow closed almost unchanged.
- A reality check came in the form of the US Housing Starts and Housing Permits data which both disappointed by some margin which highlighted that the US housing market is still in steep decline - maybe this is why they market carried a sense of pessimism.
- because of the heavy selling in the past days, stocks, currencies and commodities were relatively muted
- watch this space
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment