Five Things You Need to Know
My favorite part of Minyanville is Kevin Depew's Five Things You Need to Know.
His take on yesterday's Fed meeting is a perfect example why 5 Things has become a daily read for me:
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Fed Got a Brand New Bag
The Federal Reserve Open Market Committee met yesterday and decided to keep its target for the federal funds rate unchanged at 5.25%.
• The decision to stand pat on the fed funds target rat was widely expected, so the only drama surrounded the release of the FOMC statement.
• Two things stand out. The first is the progression of the Fed's view of the housing market.
• Housing first made an appearance in the FOMC statement accompanying the May 10 meeting: "The Committee sees growth as likely to moderate to a more sustainable pace, partly reflecting a gradual cooling of the housing market..."
• The Fed's view that the housing market was "gradually cooling" apparently remained in place until the Sep. 20 meeting when the accompanying statement said: "The moderation in economic growth appears to be continuing, partly reflecting a cooling of the housing market."
• Now, the FOMC statement notes the following: "Economic growth has slowed over the course of the year, partly reflecting a substantial cooling of the housing market."
• In the course of seven months the housing market has gone from gradual cooling to cooling to substantial cooling.
• The second thing to stand out is the addition of the word "mixed" to describe the economy. "Although recent indicators have been mixed, the economy seems likely to expand at a moderate pace on balance over coming quarters."
• Looks like the Fed got a brand new bag... and it's mixed.
Great stuff kevin -- Thanks!
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Source:
Fed Got a Brand New Bag
Kevin Depew
Five Things You Need to Know:
Minyanville Dec 13, 2006 10:31 am
http://www.minyanville.com/articles/index.php?a=11777
Wednesday, December 13, 2006 | 02:30 PM | Permalink
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Comments
"Economic growth has imploded over the course of the year, reflecting a chaotic implosion of the housing market, the credit market, the consumer, and YO MAMA."
The Federal Reserve Open Market Committee
December 15, 2007
Posted by: ECONOMISTA NON GRATA | Dec 13, 2006 3:25:49 PM
"In the course of seven months the housing market has gone from gradual cooling to cooling to substantial cooling."
Assuming the progession continues, what is the next modifier of the housing market in this series?
Posted by: S | Dec 13, 2006 3:34:22 PM
March 2007: "Economic growth has come to a dead stop, partly reflecting a complete bedshitting of the housing market."
Hey, this is kinda like Mad Libs!
Posted by: John F. | Dec 13, 2006 3:47:45 PM
excessive cooling, then way cool!
Posted by: lurker | Dec 13, 2006 3:51:14 PM
I think it might become the mother of all coolings.
Posted by: Whammer | Dec 13, 2006 4:42:36 PM
Maybe global warming will save the housing market
Posted by: joe | Dec 13, 2006 5:13:04 PM
double secret probation cooling
Posted by: whoknows | Dec 13, 2006 5:19:03 PM
Although I like Minyanville, Kevin's post is the one I don't miss daily and the reason I go back. His comments are always very spot on and relevant, and I do find most of his posts have some parts that are just way too funny and entertaining
Posted by: Taboom | Dec 13, 2006 5:30:07 PM
Following S and others, where does it go from expressions like "substantial cooling of the housing market"? ["a welcome relief from the icy confines of the housing market", "emerging from the housing market deep freeze", "signs that the housing market glaciation may be retreating somewhat"]
Posted by: calmo | Dec 13, 2006 10:19:34 PM
Ice Age III.
Homeowner's will be pictured like the prehistoric squirrel and his nut - clutching on to it for dear life through the icy cataclysm...
Posted by: kennycan | Dec 14, 2006 3:30:34 AM
dare I say: Funniest thread ever on Big Picture.
Mother of all coolings, haha.
Posted by: egghat | Dec 14, 2006 3:48:15 PM
