Eyes on the Prize “It will fluctuate.” –Financier JP Morgan, when asked what the stock market will do. “It’s tough to make predictions, especially about the future.” –Yogi Berra Regular readers of this blog know that I’m chary of making predictions — about the housing market or anything else. But, here’s a relatively safe one: ...Read More
Pop quiz: the consensus among mortgage lenders is that Hurricane Sandy will have the following effect on mortgage rates: A. Up. B. Down. C. No change. Answer: C. That opinion seems to be based on two factors: 1) Hurricane Katrina’s negligible effect on interest rates in 2005; 2) the Fed’s commitment to keep rates low...Read More
The Limits of QE (“Quantitative Easing”) I’ll tip my hat to the new constitution Take a bow for the new revolution Smile and grin at the change all around me Pick up my guitar and play Just like yesterday And I’ll get on my knees and pray We don’t get fooled again Don’t get fooled...Read More
“1 Picture = 1,000 Words” Department If you can’t make out the labels in the chart above, the three time periods (shown in gray) correspond to the Federal Reserve’s QE I, QE II, and Operation Twist (QE stands for “Quantitative Easing”). So, is the Fed supporting stock prices? You tell me . . .Read More
