The synopsis that I posted from the IHT was specifically about the house price bubble in the US. Therefore it is highly relevant to the Dow, SPX and NDX since any significant fall in US house prices would impact consumer spending and negatively affect stock prices.twiggytwo said:Hi, house price increase in the South East of UK over the last 25 years = 7.84 times the buying price in 1980
As you can see this is nothing to do with trading the USA index market ( DOW JONES ) or ( S&P 500 )
Some interesting statistics regarding house purchases in the US last year.
42% of all first time buyers paid no deposit on their house purchase
25% of all buyers paid no deposit on their house purchase
40% of all loans in some of the hottest house price areas were interest only
Over the last 4 years homeowners have extracted $559bn in equity from their homes by refinancing
Cashout refinancing represented 18.1% of all refinancing last year compared to 7.3% in 2003
Home equity now represents 56.3% in all residential property compared to 75% 20 years ago
47% of all residential mortgages are no longer the traditional fixed rate 30 year term repayment mortgages
Greenspan made it clear for the first time this week that the Fed is now focusing on the growing asset bubble that was stimulated by low interest rates over the past 2 years. Excluding the oil price wildcard, it is almost certain that the US Fed rate hike has at least another 1% to go before a pause is considered.
The first real sign that the chickens are begining to come home to roost !
42% of all first time buyers paid no deposit on their house purchase
25% of all buyers paid no deposit on their house purchase
40% of all loans in some of the hottest house price areas were interest only
Over the last 4 years homeowners have extracted $559bn in equity from their homes by refinancing
Cashout refinancing represented 18.1% of all refinancing last year compared to 7.3% in 2003
Home equity now represents 56.3% in all residential property compared to 75% 20 years ago
47% of all residential mortgages are no longer the traditional fixed rate 30 year term repayment mortgages
Greenspan made it clear for the first time this week that the Fed is now focusing on the growing asset bubble that was stimulated by low interest rates over the past 2 years. Excluding the oil price wildcard, it is almost certain that the US Fed rate hike has at least another 1% to go before a pause is considered.
The first real sign that the chickens are begining to come home to roost !
Pat494
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There will be a major problem for the Fed when the economy is shown to be slowing and inflation rising because of rising oil prices. They won't want to raise rates at all imho. but can't really lower them. Greenspan's legacy, but not his fault entirely.
counter_violent
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We're all doomed , doomed I say .
Of particular concern is the NHC forecast showing Katrina may track near Port Fourchon. The Louisiana port supports 18% of all U.S. oil and gas production and 13% of its imports, according to LA1 Coalition, a nonprofit group promoting improvement of the easily flooded road linking the port to the rest of Louisiana.
Racer
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New Orleans evacuated as Hurricane Katrina approaches By John Shinal
12:14pm 08/28/05
SAN FRANCISCO (MarketWatch) -- The mayor of New Orleans ordered the city's 485,000 residents to evacuate immediately Sunday as Hurricane Katrina approached with 175-mile-per-hour winds and an expected storm surge of up to 20 feet, according to news reports. "The city of New Orleans has never seen a hurricane of this magnitude hit it directly," Mayor Ray Nagin said of the Category 5 storm, according to the Associated Press.
12:14pm 08/28/05
SAN FRANCISCO (MarketWatch) -- The mayor of New Orleans ordered the city's 485,000 residents to evacuate immediately Sunday as Hurricane Katrina approached with 175-mile-per-hour winds and an expected storm surge of up to 20 feet, according to news reports. "The city of New Orleans has never seen a hurricane of this magnitude hit it directly," Mayor Ray Nagin said of the Category 5 storm, according to the Associated Press.
Racer
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Only three Category Five hurricanes have hit the U.S. since records began.
Port shut for hurricane
Katrina shutting down oil production
Prices likely to spike
Now a category 5 hurricane, Katrina is moving slowly into an area
central to oil and gas production -- and oil companies have begun
evacuating production sites throughout the Gulf of Mexico and the
southern United States.
..................
Meteorologists say only two or three category 5 hurricanes have ever
hit the United States -- and only 2 in the last century, Camille in
1969 and Andrew in 1992.
http://www.nbr.co.nz/home/column_article.asp?id=12778&cid=8&cname=News
( Andrew was by far the most expensive natural disaster in history (up to that date), with estimated damages exceeding $20 billion. More than 60 people were killed and approximately 2 million people were evacuated from their homes)
Port shut for hurricane
Katrina shutting down oil production
Prices likely to spike
Now a category 5 hurricane, Katrina is moving slowly into an area
central to oil and gas production -- and oil companies have begun
evacuating production sites throughout the Gulf of Mexico and the
southern United States.
..................
Meteorologists say only two or three category 5 hurricanes have ever
hit the United States -- and only 2 in the last century, Camille in
1969 and Andrew in 1992.
http://www.nbr.co.nz/home/column_article.asp?id=12778&cid=8&cname=News
( Andrew was by far the most expensive natural disaster in history (up to that date), with estimated damages exceeding $20 billion. More than 60 people were killed and approximately 2 million people were evacuated from their homes)
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Racer
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IG knocked the daily Dow down within a few of mins of opening at 23:00
10352-58
now down to 10531-37 and it is only 23:05!
PPT get to work soon maybe? LOL, cavalry to the rescue
10315-21 a few stops have being triggered by now.. and it is 23:07
10292-98
PPT must be asleep!!!
10352-58
now down to 10531-37 and it is only 23:05!
PPT get to work soon maybe? LOL, cavalry to the rescue
10315-21 a few stops have being triggered by now.. and it is 23:07
10292-98
PPT must be asleep!!!
Last edited:
Racer said:IG knocked the daily Dow down within a few of mins of opening at 23:00
10352-58
now down to 10531-37 and it is only 23:05!
PPT get to work soon maybe? LOL, cavalry to the rescue
10315-21 a few stops have being triggered by now.. and it is 23:07
10292-98
PPT must be asleep!!!
Indeed, I has a sell stop order on ym bypassed @ 10381, presume the price didn't pass through but jumped straight down...
