Tuesday, May 12, 2009

More Good News for the Economy

It seems as though the economic good news keeps coming one news story at a time. Here are just a few of the bright economic news stories that I have read about in the last 24 hours:

#1 Alan Greenspan see the Housing Market Bottoming, and said that it is “very easy to see” the financial markets improving. Remember, one of the main things we need to look at to determine when the recession may end is the supply of homes on the market and how low the prices are going. Although this month has seen some pretty large price declines, we are also seeing demand for homes pick up quite a bit. As banks get rid of the homes under water via short sales and foreclosures, prices will typically drop, but what matters that they are selling.

#2 Intel Chief sees Chip sales higher then expected. Computer chip sales are selling better then most experts had predicted. This may mean that the tech sector isn't really doing all that bad after all.

#3 Top Officials talking about the Fed Raising Rates. In order to prevent inflation, which I discussed in Yesterdays post, The Fed is already talking about how soon it will be before they raise rates. Just the fact that they are considering raising rates means that they feel things are getting more stable.

As I finish writing this the market is down quite a bit. Wait to see where it seems to land and then I will be taking this as yet another buying opportunity.

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