The National Assoc. of Home Builders says the economic stimulus bill is too weak to help the housing market. So Senate Democrats are planning a bill that would include a tax break for home builders and higher caps on state mortgage-revenue bonds. Homebuilders, just as any other business, should not receive special treatment because they screwed up. Government intervention should not be happening with this group!
The University of Michigan Confidence number is 69.6 v 76 expected. This is unconfirmed at this point.
According to Financial Times, major banks are being advised by their lawyers to walk away from funding commitments. Wow.
News sources report that investors are alleging some banks may have conspired to fix transaction prices for leveraged buyouts. This involves Bain, Goldman Sachs, Blackstone, Merrill Lynch and 12 other investment banks.
The market is weak in morning trading, but expect volatility with options expiration before a 3 day weekend. The market is closed on Monday for President’s Day.
