2 replies to this topic

[redfoliage2]

In contrary to the expectation that the Fed will cut the rate soon the Bank of England surprised markets Thursday by raising interest rates a quarter percentage point to 5.25 percent, saying the economy had less spare capacity and price pressures were increasing.
TNX Is on Another Leg Up. Chart Link:
http://stockcharts.com/c-sc/sc?s=$TNX...3052&r=7609

Edited by redfoliage2, 11 January 2007 - 07:51 AM.

[Tor]

In contrary to the expectation that the Fed will cut the rate soon the Bank of England surprised markets Thursday by raising interest rates a quarter percentage point to 5.25 percent, saying the economy had less spare capacity and price pressures were increasing.
TNX Is on Another Leg Up. Chart Link:
http://stockcharts.com/c-sc/sc?s=$TNX...3052&r=7609

Maybe but bear in mind the supply and demand housing balance is different in the UK.

The limited supply is SQUEEZING up prices as the regulation etc is preventing new housing being built. So the economy is two speed - consumer spending abating a bit and yet housing powering up still.

In the US, the housing market has no supply constraint and the bigger debt exposure (bears will argue) say the declines will have bigger impact.

Who knows.

[Data]

The British government started launching shared equity mortgages in the last year to prop up the property market. The buyer owns only 75 percent of the house. The government owns the rest.