The National Association of Realtors on Tuesday lowered its forecast for U.S. home sales in 2006 and called on the Federal Reserve to stop raising interest rates because parts of the housing market are "vulnerable."
"Experiencing a slowing from a hot market is a good thing because we need a solid housing sector to provide an underlying base to the economy, and slower appreciation will help to preserve long-term affordability," said David Lereah, the group's chief economist, "But this is a time for the Fed to pause on rate hikes because we have some interest-sensitive housing markets that have become vulnerable.," he said:
DL: Because I said so:
BB: Makes me:
BB: So you can kiss my you-know-what:
Hey, it's 06/06/06...the Devil made me do it.
11 comments:
bwahahahahahahaha!!! I want to be a fly on the wall when BB tells David... "you get horns!"
well I understand. Many people in the market want BB to STFU because they don't want to be bothered with the truth while they are busy speculating. ;-D
Definitely not you Fred... but others. Most definitely others.
I think Bernanke is more of a straight talker; he is more inclined to speak his mind as compared to Greenspan. Wall Street is still listening with their "Greenspeak parsers". Wall Street has to adjust, not the other way around. I mean, Bernanke has to be himself not try to be another Greenspan.
funny. :-) Love your blog. It seems to be a coordinated attack David Lereah day which he certainly deserve.
Now it is time for the media to also discredit him.
fred -
Maybe I should be careful what I wish for... but here goes.
I hope BB talks so much over the next two years that the Dow hits about 8K again soon - and house prices in Marin return to a respectable premium over renting.
I love it when BB opens his mouth.
It's about time someone reigned in the liquidity explosion.
So far the only thing Bennie and his big mouth have managed to accomplish is to pound us renters right up the tail pipe by tanking the equity markets, while bloated boomer home owners continue to eat steak and huff the bong.
I am only too happy to sacrifice my life for the momentary entertainment of others.
LOL... and X we are oh so entertained!
xxoo
fred -
FWIW, I partly agree with you in that BB "has to understand his affect on markets". I think he does. He must. How could he not? But right now Wall Street is looking at everything he says with a microscope because that is what they had to do with Greenspan. I think THAT is what BB does not appreciate. I think BB needs to understand that others are accustomed still to Greenspeak and he needs to gently let them know that he is not Greenspan and does not speak Greenspeak. At this point I think BB is suffering growing pains and all will be well in time.
I have a different take on BB.
I think he is trying to break the fragile parts of the economy and shake out the pieces to see exactly what is sturdy and can stand alone and be built upon. Looks to me he is trying to find a clear direction for the economy and that seems to be the reason he let's things "slip" and causes a shake-up. I think the fact that various parts of the market get so jittery is precisely because they are fragile. A strong economic area doesn't react with bellyaches with every comment.
His comments look deliberate. This guy MAY be new at being the Fed, but he is not a greenhorn. this is no Robert Kennedy with no work experience before taking the AG job... Ben has been around the block and studied the block... I think his approach is calculated and he is dumb as a fox.
I think the fact that various parts of the market get so jittery is precisely because they are fragile. A strong economic area doesn't react with bellyaches with every comment.
That's certainly true.
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