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Housing is close to a bottom.
The fed put 250 billion in to Fannie/Freddie last week to
give out in low interest home loans and rates will come down another 100
basis points to 4.75% or 5.00%. This news didn't get covered by the news media
but it will soon.
Home sales in California jumped 35% in the last 30 days and when the full effect
of the Feds injection hits it should push many to buy new homes which will get the existing inventory down to normal and then there will be a shortage late 2009.
Oil is down to $90 and will continue going down and the price per gallon will be close to $2.00 soon and this will fuel spending. We may have a short recession but maybe not ?
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