news

Preliminary BoP Imports MoM

Prior 7.0%

Actual -2.0%

Just across the news wires-  US Treasury to boost line of credit and take an equity stake in GSES;  FED may allow GSES to borrow directly from the NY FED if necessary.  USD reacting very positively towards this announcement on an initial knee-jerk reaction.

NY Times: "Fannie and Freddie Grew, Protected by Washington "

WSJ:"Fannie Mae Ugly"
        "Crisis Deepens as Big Bank Fails"

Wall Street Journal: Theodore "Ted" Forstman, Founding member of a private equity firm, speaks about how the Credit Crisis is going to get worse. 

AUD WMI Consumer Sentiment m/m came in worse then expected at -8.3%

JPY Core Machinery Orders m/m came in better then expected at -2.8%

JPY CGPI y/y came in better then expected 2.6%

Jpy M2+CD Money Supply y/y came in at 2.1% higher then expected.

US new home sales declined to 647k in Nov vs. consensus 718k, October 711k (prelim 728k), and September 716 k. Sales of new homes fell to a 12 year low in Nov.the market could assume bigger declines in construction that could weaken economic groth in 2008. The housing recession has worsened since the August sub prime concerns. We now have stricter borrowing standards putting many mortgages out of reach of potential home buyers.