Back from a nice vacation. Took until Wednesday before mentally I was able to slow down and enter vacation mode. Was kind of nice to be out of the office last week as I would have been very frustrated with the bleakness of the economic news and the way stocks for the most part shrugged them off. Very very big week for economic data with China PMI, United States ISM, and United States BLS employment numbers. It will be interesting if the market can hold it together through Labor day. Leave Wednesday for a wedding in the Northeast so will be on the road again shortly. Probably post a few things I have read that caught my interest.
Remember all that QE that was supposed to be highly inflationary for England? Well U.K. house prices dropped the most in 16 months according to Hometrack Ltd. From Bloomberg:
U.K. home values dropped in August by the most in 16 months as the housing market endured a “modest re-pricing” that is likely to last as long as a year, Hometrack Ltd. said.
The average cost of a home fell 0.3 percent from the previous month to 158,200 pounds ($246,000), the London-based property researcher said in an e-mailed statement today.
The report adds to mounting evidence that the housing market is weakening, and economists predict data tomorrow may show that banks granted the fewest mortgages in more than a year last month.
England and Australia remain the biggest two residential housing price bubbles. Canada is close by. Jeremy Grantham argues that England home prices are 3 standard deviations overpriced.