The market got mixed news today as sales of existing homes grew 7.4% to a two year high of a 6.5MM annual rate (and we thank our lucky pornstars for tax breaks, 4% lower median home prices, foreclosure sales of houses formerly owned by the unemployed, and Faye Reagan) while GDP was revised downward from 2.8% to 2.2% growth. The commerce department loves downward revisions like WGO loves losing money ($.14 last q, don't let the tax break fool you) and America loves watching stuff that sucks.
The downward revision strategy does seem to be a winner though as the market is up and the previous GDP announcement helped spur on this rally. Money McBags now suggests all of you try this "downward revision" strategy on your first dates. Just tell the lovely lady you are wining and dining that you are a multi-millionaire, have houses on both coasts (and are just renting a crappy apartment while they are being renovated), and are hung like a moose (and not any moose, but a Canadian moose, on steroids). If she winds up liking you, just downwardly revise those estimates every week or so and you're golden. If she doesn't like you, just up your upward estimates next time. So kudos to Secretary Gary Locke and his Commerce Department for that strategy, we always wondered how he scored a fox like Mona Lee, but I guess now we know.
Meanwhile, the yield curve continues to widen like Ben Bernanke's forehead, Kevin Federline's waist, and a young wannabe actresses' sphincter in a Bang Bros. video. The steepening of the yield curve should be a boon to banks who really need a break after almost destroying the economy by lending money to people who couldn't pay, then getting bailed out by the government, and then getting to borrow money for free and lend it for more than free (and that "more than free" is currently growing to "profit-licious"). Now, just when the banks raised more equity (further diluting already underwater shareholders) to pay back the TARP in order to give employees bonuses (and those bonuses are mostly well deserved, and by "mostly" I mean "not at all"), they get historically favorable spreads in which to make money. Thank goodness, I was starting to get worried, but the banking system really does need this kind of break. Now if we could just release OJ, redirect a few billion dollars of the funds going to repair the New Orleans levees to aid in building more golf courses, and elect the cast of the Jersey Shore to congress (with the lovely Jwoww promoted to be Secretary of My Interior), then everything would be alright with this country.
So if you don't care about spiraling credit card risk and the potential commercial real estate bust, now would be a good time to invest in some banks (just not C, because they are to banking what John Meriwether is to hedge funds).