Money Markets and the Govnmt

And and guess what we got some good news out when the government jobs and billions of dollars in a marketplace do you know what can actually affect. What's gone on in the remarkable is not Steve Rotella says he always does in today's edition of the news business report with Steve's site is being brought to you by The Wall Street Journal good one -- Steve sire.

Good morning I feel like these that we in the coming -- the animal actually.

Yeah let's -- joke -- pop pop pop pop up. So what's what's going on a deer in the real world.

What got referred to is so real estate sales numbers they can now or November it was yesterday which were. And it just off the charts very good days and doubt it the reference to let dumping money into the market was. The fact that in November people early on at least were afraid that the -- that the stimulus -- 8000 dollar. First time home buyer checks would disappear at the end of the month and clearly that out of a big impact that its sales were up in a year a year in this 60% of -- a very big numbers also some other up. Positive signs in the air that these that the price declines that we saw earlier continue to look like they've. Leveled off there are about guilt bombing along this same area where they were last year the inventory of houses. Available for sale and go down dramatically that's an important. -- and figuring out ways help of the overall will --

Hey has anyone done any numbers on if you word out pull back from the and I assume this is like cash for clunkers or bunch of people went out and sped up their -- so you got December virus January -- march fires. Who bought while the incentive program was trash so that they wouldn't miss Saudi or is there any reasonably that it's gonna work out that went.

There's certainly an element of that I can't tell you that has seen an accurate number you know when it comes just 8000 dollar stimulus check if there were. Shipped to camps they're the -- saying that if you know you're artificially inflating the debt market. Any Owens saying well you know this is a waste of money that you're really not creating -- nearly as many -- is there is used this against state beat you know. Both can't be true or false so I think that there is a significant element that but it does give these. 8000 dollar checks weren't available to people who are worried that the program was gonna disappear which it did not. India and it looks -- that -- that there would be overall sales numbers what they've been so dramatic. But I think. You know we have a huge inventory problem that we are in the eating until. Price is clearly have stabilized over. The last couple of months and these are all positives and I think -- big stimulus -- non factor you still have a positive development on the actual -- number. Not just merely a dramatic.

Steve can you dissect that inventory number so that you can learn whether in -- people just hold homes off the market out of crushed ration. And just so almost really exhaustion. That no action that does does that -- the numbers reveal anything like that.

Get beat this issue about how many people would like to sell their houses but. You know I just don't even try in this market is. A big unknown and clear element -- in the market overall. But I think you know we've talked over and over about. This you don't. -- of foreclosures that keeps bringing new product my are designed to the market and so there is is. It is it is you've got you know a thousand new foreclosures over a period of time. It's not like you've whoever owns those houses at that point is gonna keep them off the market those things come on regardless so. You know I think the fact that. We have we've made progress but that's still a problem. Indicate that there is lots more power coming up for the market and effective reading in the inventory has. It is very good thing overall.

cautiously optimistic.

Well you know. There are -- or -- then of the stimulus product. -- ruby is that the first time home buyer checked that's propping up the market the Federal Reserve is you know buying. I played the amount of securities that are backed by home mortgages because people are reluctant investors are reluctant to buy these things and that's what's keeping mortgage rates so low right now. Yeah eventually. The Federal Reserve has to wind this down and stop buying all these mortgage securities. What happens to home interest rates at that point what happens to the market's appetite divide the mortgage related securities and the availability of credit.