The biggest new this past week was much lower than expected corporate earning as mortgage debt exposure is begining to take its toll. We side with many economists who believe their is much more exposure to lower grade mortgage debt than has previously been disclosed. And this coupled with large inventories of new and used homes in various areas of the country has many economist projecting the housing slump to drag on into 2009.
Next weeks important economic reports, Existing and New home sales, Durable Goods Orders, and Consumer Sentiment will further define this past week’s meager corporate earnings or indicate a possible turn round in the housing market.
Thank you for the opportunity to serve you and your clients.