Fed Passes On Any Rate Move And More

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Millionaire Now! by Larry Nusbaum

This blog is based on the organizational principles found in my new book, "Millionaire Now! - A Financial Toolbox with Seven Steps to Wealth".

Fed Passes On Any Rate Move And More

Posted on 12/13/2006 05:02 AM | Link | Post Comment

The Fed's interest-rate policy committee did nothing today. Zero surprise! They've stood pat since June with the benchmark Fed Funds rate at 5.25% (up from 1% before June 2004.) Clearly, housing woes are testing the economy-tinkering mettle of the nation's central bankers. See a snippet of the Fed's post-meeting comments:

"Economic growth has slowed over the course of the year, partly reflecting a substantial cooling of the housing market. Although recent indicators have been mixed, the economy seems likely to expand at a moderate pace on balance over coming quarters."

To the entire Fed statement, CLICK HERE

How Fed announcements affect stocks and bonds: TraderFeed.

From Crossing Wall St.: December 12, 2006 "Substantial"
For the fourth straight meeting, the Federal Reserve didn't change interest rates. Read Eddy's take here.

US Dollar Weakness & Foreign Investers
A: As the US Dollar continues its slide, foreign investors SHOULD (and I stress SHOULD) get more interested in US real estate; especially in big cities such as New York where foreigners usually live & work. When comparing a 1YR trading chart of the US Dollar vs. EURO I see a steep sellof that brought the greenback down to a new 12 month low: 1 EURO = $0.7527 US Dollars.

Rent increases trump workers' income growth:
Rents for two-bedroom homes have climbed sharply in past seven years, putting affordable housing further out of reach for many low- and median-wage.

Realtors See Improvement Ahead For Housing Market, Home Prices:
Existing-home sales are expected to improve in 2007 and prices will continue to rise, according to the National Association of Realtors' forecast, but new-home sales will remain depressed.

Is The Housing Slump Over?
on Dec 12th, 2006 in Market Overview by Barry Ritholtz

Treasury Sets New Guidelines to Stem Rising Delinquency Threat
on Dec 12th, 2006 in Financial Stocks by SA Editors

Louis in the Lobby
New listing, in a condo building without much turnover: 1170 Sacramento Street. A classic mid-century building from 1963 that squeaks money, highballs, Sinatra.