Bernanke Testimony
Stocks rested today as traders are waiting for the real “stress test” results. So, a sideways day!!! Ditto with bonds.
The Euro backed up a little against its gains with the Dollar from yesterday.
Oil and gasoline went sideways, but are at high levels.
Gold was sideways, but remains above $900 – wait and see what happens.
In the news today…..
FED Chairman Bernanke gave testimony to Congress today, and was his usual optimistic self. He said the economy should pull out of a recession later this year, but the growth will be subpar. Also, the unemployment will remain high.
Bernanke said that the housing market showed signs of bottoming….???? What is he reading? As long a housing prices are going down, there is no sign of bottoming. Let’s see the majority of major metropolitan area house prices STOP falling before we start breaking out the champagne please. The housing market is the driving fundamental factor in our lousy economy – it caused the bank meltdown, etc, and it continues to have negative impact on all those toxic assets held by banks.
Here are the last numbers for today:
Dow Jones 30 Industrial – 8410 (down 16 points)
10 Year Treasury Bond – 3.16% (no change)
Euro – $1.3318
Gold – $904 (up $2)
Oil – $54.12 (up $0.28)
Gasoline $1.57 (down $0.01)
Yeah, I am not trusting much that Bernanke says. In regards to the housing market bottoming, maybe he means the rate of decreasing home prices has finally peaked and future price decreases will be less than the prior month.
That’s not really a bottom or a comforting thought though.
My favorite real estate blogger by far is Jim Klinge at:
http://www.bubbleinfo.com
Apparently in the lowest price points of the lower parts of town, prices are stabilizing. This is in northern San Diego county.
Hi David,
Great to hear the good news in San Diego. I hope the bottoms are real bottoms, and not just temporary bottoms. I would assume this means the rate of foreclosures in your area is slowing, and those bottoms are caused by the foreclosures.
When foreclosures slow way down, the only thing left to sell will be for higher prices, and we will see a true bottom of prices in housing.