Wednesday, December 16, 2009

Two Bits of Good News

1: New residential home building permits are up - this is a classic 'leading indicator' (though it is not at all clear that we need new homes at the moment in the US) and thus a good sign about the direction of the economy for 2010.

2: Core inflation was essentially zero. So after yesterday's scare about the PPI, the fear that inflation concerns would motivate the Fed to tighten monetary policy has now subsided.

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