| Last | Change | Percent | |
| S&P Futures | 1496.5 | 4.7 | 0.32% |
| Eurostoxx Index | 2741.8 | 18.8 | 0.69% |
| Oil (WTI) | 96.22 | 0.3 | 0.28% |
| LIBOR | 0.301 | 0.000 | 0.00% |
| US Dollar Index (DXY) | 79.73 | -0.217 | -0.27% |
| 10 Year Govt Bond Yield | 1.91% | 0.07% | |
| RPX Composite Real Estate Index | 192.5 | 0.4 |
US stock index futures are higher this morning on the back of a sell-off in bond futures. The sell-off began around 4:00 am, and I don't see any single economic story in Europe that would explain it. German confidence was higher than expected, and the Euro banks plan on paying off the ECB loans earlier than expected. Could be a big asset allocation switch, but why do you do it at the opening of Europe? Strange. The 10-year now yields 1.91%, and is flirting with resistance around the 1.91 - 1.92 level. MBS are weaker this morning as well.
The theme of Radar Logic's November 2012 monthly report is: It is still too early to call a housing recovery. Radar Logic has consistently been more bearish on the outlook for housing than Case-Schiller or the government. In their view, the strength in 2012 was due more to easy comparables from a lousy 2011 than any true organic growth. The typical seasonal drop in prices this year has been much lower than in the past. In addition, the increase in house prices has been driven more by a drop in distressed sales than an increase in the value of individual properties. Finally, they note that housing demand has been driven primarily by institutional investors, who's demand may be temporary.
Chart: Radar Logic 20 City Composite:
Its baaaack... The San Bernardino Eminent Domain debate returns with a public meeting. The eminent domain route is fraught with legal roadblocks and will probably not work. Yet Mortgage Resolution Partners is committed to covering the legal costs and would be willing to take the case to the Supreme Court. The payoff for them if it works is decent, but I don't see how their limited partners are willing to accept this risk / reward.
Is the "D" the new Phoenix? Yes, house prices have gotten demolished, but the population of Detroit has been shrinking since the 1950s. Completely opposite of the Southwest. I guess a $500 house is a $500 house and any investment becomes attractive if it gets cheap enough.
Will Jack Lew's tenure at Citi cause problems for his nomination to Treasury Secretary? Richard Cordray will undoubtedly have some opposition in the Senate. I have not heard much in the way of opposition to Mary Jo White for SEC.
Carl Icahn has entered the Herbalife fray. Let's just say there is no love lost between Carl and Ackman.
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