ECONOMIC REPORT – March 30, 2009
►A LOOK BACK – Last week the reports on New and Existing Home Sales showed more sales than anticipated but the volume was a result of lower sales prices. Also the Feb Personal Consumption Expenditure Index showed that consumer spending was stronger than anticipated. Over the weekend the White House announced a plan to provide more aid to US automakers and the head of GM agreed to step down. Details of the plan are to be announced Monday. Treasury Sec. Geithner reported that there is approx. $135 billion remaining of the original $735 billion for the rescue of corporate America and that some banks will need more funds to survive. Ominous news for the market.
►WHAT’S AHEAD – This week will begin with the Obama administration’s unveiling of their next phase of the bail-out plan for the auto industry. If the plan includes massive amounts of new capital injections look for the bond market investors to register their disapproval by pushing interest rates higher. Another event this week with potentially large implications is Thurs. Financial Accounting Standards Board meeting. This regulatory body is expected to consider relaxing current mark-to-market accounting rules. If they change it look for bank and other financial companies to ignite a stock market rally. Other financial reports include Mar. Consumer Confidence (Tues) and the Mar. NonFarm Payrolls report (Fri).
Greg Burkett
Preferred Home Loan, Ltd.
281/657-0472 x 301 (Office)
713/906-2883 (Cell)
For more information about real estate issues in Katy or West Houston contact Steve Reddell. He is a licensed REMAX real estate agent in Katy, Texas you can trust. You can contact him directly at 281-994-5173 or visit him on the web at Katy Family Homes.
Filed under: Economy/Market, Katy Family Homes
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