Daily Market Commentary for November 28, 2011
The New York Fed reported in its quarterly survey that consumer debt declined slightly during Q3 as Americans continued to deleverage in the wake of the housing crisis. (read more at Millennium-Traders.Com) http://www.millennium-traders.com/news/newscommentary.aspx
Data released by the U.S. government shows the sale of new single-family homes barely changed during the month of October with little evidence of any improvement in the slump-ridden U.S. housing market. Additional reports from the U.S. government showed new-home sales edged up to an annual - seasonally adjusted - rate of 307,000 during October. September sales were revised lower to 303,000 from original reading of 313,000. During October, the median sales price declined $1,000 to $212,300 and the supply of homes on the market fell slightly to 6.3 months striking the lowest level seen in a year and a half. Many prospective buyers have resorted to previously-owned homes in search of better deals and with the nationâ€™s 9.0% unemployment rate looming, prospective buyers remains limited despite all time low interest rates. Compared to a year ago, new-home sales are higher by 9.9%. During 2010, the housing market posted its worst year of sales since the government began keeping records in the early 1960s. Southern sales represented half of the new homes sold even though sales in that region fell 9.5% to an annual rate of 153,000 compared to a month earlier. Sales in the West rose nearly 15% to a rate of 77,000 rate; Sales in the Midwest rose by 22% to an annual rate of 55,000 and Sales remained unchanged at a rate of 22,000 rate in the Northeast. During the three-month period from August to October, new-home sales - when contracts were signed - averaged 301,000 which was slightly higher compared to same period in 2010.
Democratic Representative Barney Frank, 71, a longtime Democratic lawmaker from Massachusetts first elected in 1980 and co-author of the landmark Dodd-Frank bank reform act, announced today that he will not seek re-election in 2012. Frank is the ranking Democrat on the House Financial Services Committee and was chairman of the panel from 2007 and 2011 at which time he oversaw his most lasting legislative legacy, shepherding through the sweeping bank reform legislation that bears his name the Dodd-Frank law. In the wake of the financial crisis of 2008, his efforts to reform the banking sector were backed enthusiastically by consumer groups as well as other Democratic institutions and derided by his Republican critics. Frank was a strong key supporter of the Consumer Financial Protection Bureau, a new agency charged with regulating mortgages and other consumer credit products. Frank was heavily involved in the provisions seeking to set up a new process to dismantle big, potentially failing Lehman type banks to limit the impact of their collapse on the markets. Franks departure sets the stage for Rep. Maxine Waters, Democrat of California, to take the helm as the most powerful Democrat on the House Financial Services Committee. With the departure of Frank, neither of the two main authors of the Dodd-Frank act will remain in Congress.
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