Five Things You Need to Know

December 13, 2006 2:30pm by

My favorite part of Minyanville is Kevin Depew’s Five Things You Need to Know.

His take on yesterday’s Fed meeting is a perfect example why 5 Things has become a daily read for me:

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Fed Got a Brand New Bag

The Federal Reserve Open Market Committee met yesterday and decided to keep its target for the federal
funds rate unchanged at 5.25%. 

    • The decision to stand pat on the fed funds target rat was widely expected,
    so the only drama surrounded the release of the FOMC statement. 

    • Two things stand out.  The first is the progression of the Fed’s view of the
    housing market. 

    • Housing first made an appearance in the FOMC statement accompanying the May 10 meeting: "The Committee sees growth as
    likely to moderate to a more sustainable pace, partly reflecting a
    gradual cooling of the housing market    …"

    • The Fed’s view that the housing market was "gradually cooling" apparently
    remained in place until the Sep. 20 meeting when the accompanying statement
    said: "The moderation in economic growth appears to be continuing,
    partly reflecting a cooling of the housing market."

    • Now, the FOMC statement notes the following:   "Economic
    growth has slowed over the course of the year, partly reflecting a
    substantial cooling of the housing market    .    "

    • In the course of seven months the housing market has gone from gradual
    cooling to cooling to substantial cooling. 

    • The second thing to stand out is the addition of the word "mixed" to
    describe the economy. "Although recent indicators have been
    mixed    , the economy seems likely to expand at a moderate pace on balance
    over coming quarters."

    • Looks like the Fed got a brand new bag… and it’s mixed.

Great stuff kevin — Thanks!

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Source:
Fed Got a Brand New Bag
Kevin Depew
Five Things You Need to Know:
Minyanville Dec 13, 2006 10:31 am
http://www.minyanville.com/articles/index.php?a=11777

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What's been said:

Discussions found on the web:
  1. ECONOMISTA NON GRATA commented on Dec 13

    “Economic growth has imploded over the course of the year, reflecting a chaotic implosion of the housing market, the credit market, the consumer, and YO MAMA.”

    The Federal Reserve Open Market Committee

    December 15, 2007

  2. S commented on Dec 13

    “In the course of seven months the housing market has gone from gradual cooling to cooling to substantial cooling.”

    Assuming the progession continues, what is the next modifier of the housing market in this series?

  3. John F. commented on Dec 13

    March 2007: “Economic growth has come to a dead stop, partly reflecting a complete bedshitting of the housing market.”

    Hey, this is kinda like Mad Libs!

  4. lurker commented on Dec 13

    excessive cooling, then way cool!

  5. Whammer commented on Dec 13

    I think it might become the mother of all coolings.

  6. joe commented on Dec 13

    Maybe global warming will save the housing market

  7. whoknows commented on Dec 13

    double secret probation cooling

  8. Taboom commented on Dec 13

    Although I like Minyanville, Kevin’s post is the one I don’t miss daily and the reason I go back. His comments are always very spot on and relevant, and I do find most of his posts have some parts that are just way too funny and entertaining

  9. calmo commented on Dec 13

    Following S and others, where does it go from expressions like “substantial cooling of the housing market”? [“a welcome relief from the icy confines of the housing market”, “emerging from the housing market deep freeze”, “signs that the housing market glaciation may be retreating somewhat”]

  10. kennycan commented on Dec 14

    Ice Age III.

    Homeowner’s will be pictured like the prehistoric squirrel and his nut – clutching on to it for dear life through the icy cataclysm…

  11. egghat commented on Dec 14

    dare I say: Funniest thread ever on Big Picture.

    Mother of all coolings, haha.

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