Put Me in Coach, We Are Ready to Build
- Existing home sales rose 7.8 percent in August and singlefamily housing starts increased 5.5 percent.
- With new home inventories at all-time lows, distressed inventories falling and the Fed buying mortgage-backed securities on an open-ended basis, the housing recovery appears poised to shift into higher gear.
- Data from the manufacturing sector, however, and labor market continue to flash warning signs.
Bank of Japan Eases Policy Further
- The Bank of Japan (BoJ) followed in the Fed’s footsteps this week by further increasing the size of its quantitative easing program. By the end of next year, the BoJ intends to own more than $1 trillion worth of government bonds and corporate securities.
- The BoJ deemed that further easing was necessary because it appears that the economy has stalled. Not only have exports weakened, but domestic demand appears to be softening as well. Moreover, the Japanese economy continues to suffer from a mild case of deflation