Housing Market

Is The Short Squeeze Over? Global Rally Fizzles, Futures Lower

The biggest question on all traders' minds will be whether the bear market short squeeze that sent the S&P higher by 130 points in 6 days, is finally over - with most global market rolling over and with US equity futures unable to find their  solid early morning footing, it may finally be time to cash out of the bear market rally which so many predicted, and which GSBank yesterday may have top-ticked with perfection.

Freddie Mac, Bank Of America Launch Another 3% Down Mortgage Program

In what looks like a spiteful move designed to undercut the FHA, Bank of America has partnered with Freddie Mac on a new mortgage scheme that will allow borrowers to make down payments as low as 3%. Because that's just what taxpayers need. Fannie and Freddie making more bad loans. 

Fannie, Freddie May Need Another Bailout As Washington Drags Feet On Housing Finance Reform

“The most serious risk and the one that has the most potential for escalating in the future is the enterprises’ lack of capital," Fannie's top regulator, Mel Watt says. The GSEs' capital buffer is being steadily depleted as the government sweeps the entirety of the businesses' profits, putting taxpayers in the absurd position of having to bail out two entities they've already bailed out due to the constraints imposed in an effort to recoup the first bailout.

As "Plan A" Fails, This Is What The Fed's "Plan B" Would Look Like

As you might have noticed, the Fed made a policy mistake in December. We could delve deeply into the specifics, but quite frankly it all boils down to this: Yellen hiked right into a recession. With the pressure mounting, and with Janet Yellen having failed (miserably) to reassure the market with her testimony on Capitol Hill earlier this month, what’s in the cards for the Fed if the situation (both in financial markets and in the real economy) continues to deteriorate?

Frontrunning: February 17

  • Futures rise as oil gains hold steady (Reuters)
  • China promises economic stability as G20, parliament loom (Reuters)
  • Obama scolds Senate Republicans for Supreme Court threat (Reuters)
  • China Deploys Missiles on Disputed South China Sea Island (WSJ)
  • China Ramps Up Rhetoric, Plans New Steps to Juice Up Economy (BBG)
  • China Loses Control of the Economic Story Line (WSJ)

S&P Futures Storm Above 1900, Europe Jumps Despite Gloomy Asian Session

It has been a morning session of two halves. In Asia, the mood was somber, and stocks fell with the Shanghai Composite (+1.1%) outperforming on another late session binge-fest by the National Team. The European session on the other hand surged higher and did not look back when the USDJPY proceeded to soar 100 pips from overnight lows, and push the Stoxx 600 +1.7% and US equity futures up with it, with the ES trading above 1900 as of this posting, adding to the best 2-day rally in the S&P in five months.

Neil Howe Warns The 'Professional Class' Is Still In Denial Of The Fourth Turning

"The world has fundamentally shifted over the last decade, especially since we’ve emerged from the Great Recession... But the professional class has been very slow to understand what is going on, not just quantitatively but qualitatively in a new generational configuration that I call the Fourth Turning. They don’t accept the new normal. They keep insisting, just two or three years out there on the horizon, that the old normal will return – in GDP growth, in housing starts, in global trade. But it doesn’t return."

"Liar Loans" Are Back In 2007 Housing Bubble Redux

Don’t look now, but the infamous "Alt-As" are making a comeback thanks to “big money managers including Neuberger Berman, Pacific Investment Management Co. and an affiliate of Blackstone Group LP [who] are lobbying lenders to make more of these “liar’ loans—or even buying loan-origination companies to control more of the supply themselves,” WSJ reports.