Market actually likes slowing housing market

Discussion in 'Too Hot for Swamp Gas' started by gatordowneast, Aug 28, 2013.

  1. gatordowneast
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    gatordowneast Premium Member

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  2. surfn1080
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    surfn1080 Well-Known Member

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    trust me its an odd market right now. Rates actually get better with bad economic data... At the same time I have less loans because people still can't get them.
  3. docspor
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    The mkt does not react to information in an absolute sense. It reacts to the difference between expectations and actual information. So, it can go up on bad news & down on good news. The expectations are an aggregation of individual expectations and are not observable & hence it is hard to predict the reaction.
  4. Gatorrick22
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    Without that "crack" the markets would plummet.
  5. orangeblueorangeblue
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    orangeblueorangeblue Well-Known Member

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    Prime is holding the markets up either way. $85B in bonds is a drop in the bucket.
  6. oragator1
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    Yes the market often reacts based on expectation, but right now the expectation is that the fed will start tapering in the next month or two. They want status quo right now, high profits, based in part on the liquidity the Fed's interventions. Anything that disrupts that is bad. So when the market sees data that isn't bad enough to indicate a recession or disruption of corporate profits but not good enough to justify the tapering to start, it hits the market's sweet spot.
  7. HallGator
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    And it seems very convenient that oil prices starting to take off may stall the feds from tapering off their buying. Funny how it almost seems to be choreographed.
  8. Gatorrick22
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    Per month... huge infusion of cash.
  9. Gatorrick22
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    Gatorrick22 Well-Known Member

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    Is there some collusion going on by the Fed?
  10. ThePlayer
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    Convenient?....it's a total gas.
    Even though we have yet another holiday weekend with higher prices,
    oil is going up because a mad-man just used chemical weapons on his
    own people and now the world is on the verge of waging war to stop him.
  11. HallGator
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    There is always killing going on in the Mideast. That is way of life over there. Not long ago we were talking about how our own oil production has risen drastically and is still going up. Seems supply and demand makes little difference to those who bid up the prices.
  12. orangeblueorangeblue
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    orangeblueorangeblue Well-Known Member

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    Yes, I know it's per month. It still represents .1% of total market value. Per day it represents .2% of daily trading volume as it relates to total dollars. Rates float the market far more than that.

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