It’s all an illusion

MarketWatch is reporting Fed’s big worry gets revised away. A huge spike in wages and salaries in the second quarter proved to be an illusion, according to the latest data from the Bureau of Labor Statistics and the Bureau of Economic Affairs.The revisions released Wednesday show that growth in unit labor costs (and therefore in…

Open Market Operations, Interest Rates, and Gold

I have been reading many claims in many places lately that “The Fed is pumping M3″. Others claim that Fed Open Market Operations (repos and coupon passes) are purposely being used by the Fed to fuel the stock market. Others still point to manipulation in gold. This post attempts to look at those claims. Let’s…

Is California Going Bankrupt?

History is about to repeat in California as the State’s cash flood may be receding. It’s familiar: A handful of Californians make a killing on investments, and their tax payments send state revenues soaring. Lawmakers go on a spending spree, without a plan for paying the bills when fortunes turn. That was the late 1990s,…

October Housing Starts, Permits, Foreclosures

Was it just last month that Greenspan and David Lereah at the National Association of Realtors were declaring a bottom in housing? That myth was shattered on November 17th when the Census Bureau released the Residential Construction Report for October 2006. Building Permits Building permits fell 6.3 percent to a seasonally adjusted annual rate of…

Lies, Deceit, Greed

I have been listening to the spin by NAR spokesman David Lereah. The contradictions are nothing sort of amazing. In Looking for a Bottom on November 11th the Chicago Tribune quoted Lereah as saying: 1) “We need a price decline, we were overbloated”2) “In 2007, it will be a flat year, maybe 1 percent [sales]…

Shell Shocked in Key West

Following is a post from a friend living in Key West.He posts under the name “FreeThinkerKW” on my board on the Motley FOOL, and rents a house in Key West. Here goes from FreeThinkerKW…. As longtime readers of this board know, I live in Key West where Real Estate tripled, quadrupled, and quintupled in the…

October ISM

Bloomberg is reporting Manufacturing Growth Slowed in October Manufacturing in the U.S. expanded at the slowest pace in more than three years last month and construction spending unexpectedly declined because of a deteriorating housing market. The Institute for Supply Management’s factory index fell to 51.2, lower than forecast, from September’s 52.9. A reading higher than…

Craps, Dominoes, or Jenga

Last week Ramsey Su (one of my favorite posters on Silicon Investor) proposed and idea that the current rally in stocks is really just a part of “One Big Trade”. Ramsey Su: I had a conversation with a couple of fund managers yesterday and we drew one simple conclusion: The market is now just One…