…Now there is a real figure and one that should surprise no one reading this blog on a regular basis. Moreover, this number was not surprising to the Fed as evidenced by the 2:00pm release of the December Fed meeting minutes:
AP: Some on FOMC said wind-down of MBS may hurt housing
DJ: Fed officials still concerned about weak labor market
AP: FOMC members said more stimulus ‘might become desirable
While I’m not surprised by the sales figures I do find the Fed comments a bit suspect. Correct me if I’m wrong, but during the month of December wasn’t the Fed preparing mechanisms to drain liquidity? I recall something about reverse repos being applauded on CNBS (Denninger). Meanwhile, behind closed doors the Fed is discussing the need for more stimulus! Do you think all those recent US$ bulls are feeling like suckers yet?