Central Bank Watch

[Ammeo 10]

Draghi Says ECB Prepared to Add Stimulus If Deflation Risks Rise - Bloomberg

[Mysticforex 13]

ECB President Mario Draghi said after a Group of 20 meeting in Sydney yesterday that policy makers are ready to add to stimulus if the outlook for prices deteriorates, though there are currently no signs of deflation in the euro area.

 

 

 

“The market may start to focus on that domestic weakness in Europe,” Ken Dickson, an Edinburgh-based director for foreign exchange at Standard Life Investments Ltd., said in a Feb. 19 phone interview. Scotland’s second-biggest money manager, with about $297 billion of assets, sees “fair value” for the euro at $1.29, Dickson said.

[Ammeo 10]

ECB sees no deflation risk for now: Praet

The European Central Bank sees no current risk of deflation nor signs of people delaying purchases, policymaker Peter Praet said in a newspaper interview published on Tuesday.

 

Praet, who holds the economics portfolio on the ECB's Executive Board, told Belgian newspaper De Standaard that persistently low inflation would represent a risk.

 

But this was at the moment being mainly driven by subdued food and energy costs. Energy prices are highly volatile.

 

"Weak demand and high unemployment could also be playing a role," he said.

 

The ECB's mandate is to deliver price stability, which it defines as inflation of close to but below 2 percent over the medium term.

 

Euro zone inflation is currently running at just 0.8 percent - well below target. "We accept that price developments are weak and that the weakness is continuing in the medium term," Praet said.

 

ECB President Mario Draghi said the central bank had not changed interest rates this month because of the need for more information about the economic recovery, putting markets on alert for a possible move in March, when the region's updated inflation outlook is due.

 

The ECB holds its next policy meeting on March 6.

 

ECB sees no deflation risk for now: Praet | Reuters

[Ammeo 10]

ECB to take the QE plunge this year…finally

Better late than never, right?

 

Despite the myriad political, legal and financial obstacles, the European Central Bank will this year take the plunge and start printing money, several years after its counterparts in the United States, Britain and Japan.

 

That’s the view of economists at BNP Paribas, one of the first major financial institutions to predict the ECB will use the printing press, the central bank weapon of last resort, to slay the dragon of deflation and steer the fragile economy away from recession once and for all:

 

 

Asset purchases are increasingly necessary in order for the ECB to meet its primary objective of maintaining price stability. Inflation in the euro area has persistently surprised to the downside, eroding the safety margin against deflation. Additional conventional policy easing will not deliver sufficient monetary accommodation for the price stability mandate to be met. Thus, the ECB will reluctantly have to follow other central banks into balance sheet expansion via asset purchases.

 

Annual inflation in the euro zone is currently running at 0.7 percent. That’s well below the ECB’s target of “below, but close to, 2% over the medium term” and according to BNP Paribas “is likely to remain that way for a long time.” Many economists think it will fall even further – Goldman Sachs is penciling in just 0.4% for March.

 

Against that backdrop, BNP Paribas reckons the ECB will buy between €300 and €500 billion of bonds in the initial phase of its asset purchase or “quantitative easing” programme. This will probably commence in the second half of this year and be spread across private sector and government debt.

 

ECB to take the QE plunge this year?finally | MacroScope

[Ammeo 10]

German March Consumer Confidence At 7-Year High

Germany's consumer confidence is set to improve to a seven-year high in March, reflecting upbeat income expectations amid stable labor market development, a closely watched survey from the market research group GfK showed Wednesday.

 

The forward-looking consumer confidence index rose to 8.5 points from 8.3 points in February. The index was forecast to remain unchanged at February's originally score of 8.2.

 

The survey results, based on around 2,000 consumers, indicate that private consumption is playing a key role in economic growth. The market research group predicted 1.5 percent growth in total private consumption during 2014.

 

The largest Eurozone economy expanded 0.4 percent in the fourth quarter of 2013. Confounding expectations, detailed GDP data suggested no positive contribution to growth from domestic demand.

 

After five consecutive increases, economic expectations registered a moderate fall of 3.4 points to 31.9 in February, survey data showed.

 

In contrast to economic expectations, income expectations rose further in February, to 48.6 from 46.2. It improved slightly from the 13-year high of the previous month.

 

In view of the economic recovery and the extremely stable development on the labor market, consumers are assuming that there will be a greater increase in their incomes again this year.

 

Willingness to buy almost maintained its seven-year high of the previous month. The relevant index dropped slightly to 48.9 from 50.0 in January. Propensity to save also did not register any significant change.

 

According to GfK, consumers are still confident that the German economy has overcome its weak phase in the previous year and is entering a solid upswing.

 

In order to establish the upswing more sustainable, it is necessary to restart the investment engine, GfK said. Record low interest rates, gaining momentum in the global economy and lively domestic demand should boost the propensity of companies to invest.

[Ammeo 10]

Eurozone Inflation Steady At 0.8%; Unemployment Remains High

[Ammeo 10]

Eurocoin Indicator Rises For Eighth Month

An indicator of the current economic situation in Eurozone increased for the eighth successive month in February, and remained in the positive territory for the sixth month in a row, a report released by the Bank of Italy revealed Friday.

 

The eurocoin indicator, which estimates quarterly GDP growth in the currency bloc, moved up to 0.35 in February from 0.31 in January, marking the eighth successive monthly growth. The index has now stayed in the positive territory for the sixth straight month.

 

The upturn was supported mainly by the overall performance of household and business confidence and of share prices, the report said.

 

Eurocoin Indicator Rises For Eighth Month

[Ammeo 10]

ECB To Launch QE Thursday: Here's Why

Growing disinflationary headwinds are likely to push the European Central Bank (ECB) toward launching a 300-500 billion euro asset purchase program on Thursday morning. Such a monumental shift in monetary policy posture from the ECB could deliver an outsized impact to global financial markets (although we have clearly seen some front running of this announcement in recent weeks).

 

 

An announcement at the upper end of the 300-500 billion euro range along with open ended language (alluding to the possibility that the ECB could increase asset purchases past the 1 trillion market if needed) from ECB President Draghi could send global stocks and precious metals skyward. A few key charts from BNP Paribas help to illustrate why a QE announcement from the ECB on Thursday is quite likely:

 

While the Fed has spent the last year and a half aggressively expanding its balance sheet, the ECB has allowed its balance sheet to shrink.

 

M3 money supply growth has consistently fallen short of ECB target levels and private sector bank lending remains anemic.

 

All of this adds up to a powerful set of disinflationary/deflationary forces throughout much of the eurozone. Only Germany appears to be immune from the eurozone disinflation plague, whereas, much of the eurozone periphery suffers with extraordinarily high rates of unemployment and stagnant economies.

 

Here’s the money shot from BNP Paribas:

 

“Asset purchases are increasingly necessary in order for the ECB to meet its primary objective of maintaining price stability. Inflation in the euro area has persistently surprised to the downside, eroding the safety margin against deflation. „ Additional conventional policy easing will not deliver sufficient monetary accommodation for the price stability mandate to be met. Thus, the ECB will reluctantly have to follow other central banks into balance sheet expansion via asset purchases.”

 

ECB Set to Launch QE on Thursday | CEO.CA

[Ammeo 10]

ECB May Repeat Japan Mistake That Triggered Lost Decade

The central bank failed to sound a deflation alert.

 

“At present there is no reason to expect that overall prices will drop sharply and exert deflationary pressure on the entire economy,” policy makers wrote in their monthly report, signed off by the governor.

 

That governor was Yasuo Matsushita and the report was published in January 1998. Within six months, Japan’s consumer prices excluding food began falling in a trend that would mark the next 15 years.

 

The concern now for economists from Barclays Plc to Morgan Stanley and JPMorgan Chase & Co. is that European Central Bank President Mario Draghi risks making the same mistake as the Bank of Japan -- publicly playing down a deflation threat -- and ultimately may have to introduce quantitative easing.

 

Among a series of similarities between 1990s Japan and modern-day Europe: Weak economic expansion after a series of shocks? Tick. A reluctance by banks to lend? Tick. A rising exchange rate? Tick. A debatable monetary-policy stance? Tick.

 

“The risk of a Japanification of the euro area is high and rising,” said Joachim Fels, chief international economist at Morgan Stanley in London, who puts the odds of a price decline at about 35 percent. “Deflation wasn’t on Japan’s radar either.”

ECB May Repeat Japan Mistake That Triggered Lost Decade - Bloomberg

[Mysticforex 13]

Events for the week, so far, have been dominated by Russia's intrusion into the Ukraine, followed by the hand wringing and threats from the West. The markets recovered Tuesday from Monday's panic selling, after soothing words from Putin, and the absence of further military confrontation. There were nasty charges flying between US and Russian officials. However, the intensity was short of that when Khrushchev pounded his shoe, in protest on US policies, on a table at the United Nations.

[Ammeo 10]

EURUSD Surges As Draghi Disappoints Again

Promises, promises. A lack of easing, aside from a promise of "lower for longer", has driven EURUSD back above 1.38 as the market is once again disappointed by Draghi's lack of exuberance.

 

*DRAGHI SAYS UNEMPLOYMENT STABILIZING, REMAINS HIGH (umm, continues to rise every month?)

*DRAGHI SAYS UPSIDE, DOWNSIDE INFLATION RISKS REMAIN LIMITED (umm, continues to plunge every month?)

*DRAGHI SAYS RISKS TO ECONOMIC OUTLOOK ARE ON DOWNSIDE (umm, stocks are at record highs?)

*DRAGHI SAYS REAL INCOME SUPPORTED BY LOWER ENERGY PRICES (umm, so no sanctions on Russia then?)

 

But apart from that, Draghi is "nailing it"...

 

We are sure a stronger currency will work wonders for the recovery...

Just how cornered is Draghi - well you decide - after these comments...

 

*DRAGHI CITES LOW INFLATION, WEAK ECONOMY, SUBDUED CREDIT

*DRAGHI SAYS ECB EXPECTS RECOVERY TO PROCEED AT A SLOW PACE

 

So why no "stimulus" - what's he worried about?

 

EURUSD Surges As Draghi Disappoints Again | Zero Hedge

[Ammeo 10]

Draghi’s failure to take action sees the euro rally, and the AUD is a big winner

This week began steadily. Events in Russia/Ukraine dominated the headlines, but the impact on financial markets remained fairly limited. UK PMIs printed broadly in line with expectations, helping to support GBP/USD above 1.6650 early in the week. US data, including Personal Income and Spending, Manufacturing PMI, ISM Manufacturing all printed better than market expectations, but GBP/USD held on.

 

As expected, the Bank of England left interest rates and QE unchanged on Thursday. GBP/USD jumped to 1.6739 on the announcement that the central bank would reinvest the £8.1bn principal from its maturing March 2014 gilt.

 

It came back off almost as quickly, but the news provided good support to GBP/USD throughout the day and heading in to the end of the week. Cable then tracked EUR/USD higher as ECB President Draghi spoke following the ECB’s decision to leave interest rates in the EZ on hold, trading to a high of 1.6775 in advance of the US Non-Farm Payrolls data.

 

Markets were looking for an increase in February payrolls of 151,000, and for the unemployment rate to remain at 6.6%, with the bad weather taken into account.

 

The ECB left key interest rates on hold yesterday. More interestingly, ECB President Draghi continued to sit on the fence in his accompanying press conference, saying that the inflation outlook is currently no worse than it was last month and pointing out that there had been normalisation in short-end money markets.

 

There were some growing expectations heading into the press conference that Draghi would announce a suspension of the bank’s Securities Market Program (SMP), a government bond purchase facility that has been in place for almost four years. He didn’t, and instead said that the bank would continue to monitor the situation and that sterilisation remains an option.

 

The lack of any action, and the failure to signal future action, saw EUR/USD gap higher through stops under and over 1.38 and onwards to a high of 1.3872. Not everyone is totally convinced Draghi will be able to keep kicking his can down the road, and many feel that at some point soon, action will be needed to stave off the threat of deflation.

 

Draghi?s failure to take action sees the euro rally, and the AUD is a big winner | Forex Crunch

[Ammeo 10]

Moody's changes outlook on Belgium's Aa3 government bond to stable from negative

Moody's changed its outlook on Belgium's Aa3-rated government bond to stable from negative, citing stabilization of the country's banking sector leading to receding risks on the government's balance sheet.

 

"The (banking) sector has been strengthened by a decline in legacy issues and in volatility related to the restructuring operations undertaken during the crisis and the authorities' decisive support efforts," the rating agency said in a statement. ()

 

Moody's also said it expects the government's fiscal position to continue to improve.

 

The rating agency affirmed Belgium's Aa3/P-1 ratings.

 

Moody's changes outlook on Belgium's Aa3 government bond to stable from negative | Reuters

[Ammeo 10]

Week In FX Europe – Is It Time To Admit EUR Defeat?

The Dollar is supposed to be king - that's what many had been hoping especially with a 'hawkish' Fed and a 'dovish' ECB running the show. Interest rate differentials are suppose to pull the "mighty" dollar higher against the 18-member single currency. If you ask a EUR bear, especially this week, you probably get the most frustrated of responses - they have been waiting patiently for most of this year to reap some reward from their 'short' EUR positions. It's not happening anytime soon, especially now after the ECB's reaction and rhetoric of this week's monetary meet-up.

 

The ECB managed to wrong foot the markets that have been waiting for a response to the Euro-zone's low inflation problem. With rates on hold at +0.25% and Euro policy makers unlikely to provide any monetary stimulus soon, trades that been wagered on a looser policy are bleeding and will only ever support the EUR in the short to medium term. Betting against the single unit looks wrong and has the bleakest of bears nearly raising both their arms in defeat. Trading above the psychological €1.39 pre-NFP on Friday equaled levels last seen in October 2011. Most of the negative trades have been strapped on assuming that the ECB was going to counter their low inflation problem with one of their controversial policies - negative deposit rates or QE. The upbeat message that followed the ECB rate decision from Draghi at his regular press conference post monetary meet, would suggest that neither of the tools would be deployed anytime soon or if ever. Now the bears have to wait and gage the pullback from Friday's positive NFP report. If the USD does not get aggressively brought outright then the EUR bears could be in a heap of trouble - €1.40 and change looks so near!

 

Week In FX Europe ? Is It Time To Admit EUR Defeat?

[Ammeo 10]

Eurozone Sentix Investor Confidence At 35-Month High

Eurozone investor confidence reached its highest level since April 2011 in March, underpinned by a notable improvement in the current situation assessment, a survey conducted by the think tank Sentix showed on Monday.

 

The composite confidence index rose to 13.9 from 13.3 in February, while economists had forecast it to rise to 14. However, it was the highest score since April 2011.

 

The assessment of current situation climbed to 4.8, the highest since July 2011, from 1.8 in February. The current conditions index turned positive in February for the first time since August 2011.

 

However, the expectations index declined for the first time since September. The score came in at 23.5 in March, down from 25.5 in February.

 

Although there is a lot of talk about an expectations bubble concerning the euro area, Sentix said the expectations index signals that this bubble does not exist.

 

Moreover, the gap between economic expectations and investors' assessments of the current situation is becoming ever smaller as expectations are adjusted to the downside.

 

This might just be a breather, but it could also point to less economics dynamics for the Euro zone in the quarters ahead, said Sebastian Wanke, a senior analyst at Sentix.

 

The European Central Bank forecasts the 18-nation bloc to grow 1.2 percent this year, before accelerating to 1.5 percent in 2015.

 

According to a survey from Bank of France, the French economy is expected to expand 0.2 percent in the first quarter of 2014, unchanged from the previous estimate.

 

Eurozone Sentix Investor Confidence At 35-Month High

[Ammeo 10]

Euro Bullish Sentiment at Fresh Peak – The CFTC Report

The latest report by Commodity Futures Trading Commission (CFTC) covering data up to March 4th shows that the bullish sentiment strengthens towards the Euro as well as net long increases with the GBP. In addition the Swiss Franc bullish bias is being built for one more week. At the same time the negative bias narrowed with the Japanese Yen to $9.7 billion, also the Canadian Dollar negative sentiment moderated by $0.65 billion. Lastly, the bearish sentiment is further built towards the Australian Dollar, with net short position increasing to $3.7 billion.

 

The Euro had the biggest weekly change for one more week. The net long position increased to $4.03 billion, that took place until March 4th which is earlier than the European Central Bank monetary meeting. Thus, we would most likely see further building of the bullish sentiment on the common currency. The British Pound no longer maintains largest net long position among major currencies; the Euro takes now the lead. However, for another week, the British Pound has the largest Long/Short ratio.

 

Traders have covered somewhat their short positions on the Japanese Yen and the Canadian Dollar. The Japanese Yen short covering was triggered by increased geopolitical risk due to Ukraine crisis, while Canadian bearish sentiment moderation is most likely influenced by higher energy prices.

 

Euro Bullish Sentiment at Fresh Peak ? The CFTC Report | Forex Crunch

[Ammeo 10]

Bank of Spain sees inflation at around 0.4 percent by end of year

Bank of Spain Governor Luis Maria Linde said on Wednesday he saw annual Spanish inflation rising to around 0.4 percent or 0.5 percent by year end, though he said accurate predictions were difficult.

 

"The ECB aims to keep inflation at around 2 percent, and we're a long way from that right now. This is one more problem for the recovery. We think it will be around 0.4 percent or 0.5 percent," he said during a conference in Madrid.

 

Consumer prices in Spain were flat in February, official data showed on Wednesday.

 

Linde also said the European Central Bank may have to take new measures in the coming months as long-term financing operations for European banks, known as LTROs, expire in 2015

 

Bank of Spain sees inflation at around 0.4 percent by end of year | Reuters

[Ammeo 10]

The King of Currencies has said it..

George Soros: Germany botched crisis response and EU may not survive

It’s no secret that Geroge Soros thinks Germany has bungled the response to Europe’s debt crisis with its insistence on across-the-board austerity. On Wednesday, the billionaire hedge-fund legend said he feared the European Union was headed for “long-lasting stagnation” and that the pan-European institution might not survive it.

 

“My hope is that Germany is going to change and realize that that the policy of austerity is counterproductive,” Soros told the BBC. Germany’s collective memory is of inflation, Soros said, referring to the hyperinflation that followed World War I and is often described as sowing the seeds for the rise of the Nazis. As a result, German policy makers “continue fighting inflation when the threat is deflation,” Soros said.

 

The billionaire, in a separate event in London, said Germany’s decision to remain in the euro zone “fulfilled my worst expectations,” CNBC reported. A German exit, which he had advocated previously, would have resulted in a tough but difficult “quick fix” that would have let the region rebalance.

 

Instead, the EU has been transformed into a “creditor-debtor relationship” that is endangering the organization.

 

Soros is promoting his new book, “The Tragedy of the European Union.”

 

While Soros is echoing past complaints, some of his recent predictions about Germany and Europe haven’t panned out. Soros in September 2012 predicted that the euro-zone recession would intensify and engulf Germany within six months. Instead, the euro zone slowly returned to meager growth in 2013.

 

That didn’t appear to hold him back much, though. The man who became famous by scoring a cool billion on his bet against the British pound back in 1992 earned an estimated $4 billion in 2013, in part by shorting the Japanese yen, according to Forbes, which put him atop the publication’s list of top earning hedge-fund managers.

 

George Soros: Germany botched crisis response and EU may not survive - The Tell - MarketWatch

[Ammeo 10]

ECB's Praet Says Policy Stance To Remain As It Is Despite Economic Improvements

 

 

ECB's Praet Says Policy Stance To Remain As It Is Despite Economic Improvements

[Ammeo 10]

German GDP Growth Likely To Rise In 2014 And 2015: Bundesbank

 

 

The pace of growth in the Germany economy is likely to increase again in 2014 and 2015, Bundesbank said in an annual statement on Thursday.

 

The low level of interest rates, low unemployment rate, and a distinct increase in earnings, are fueling housing construction. However, foreign trade has not provided any positive impetus of late. Even so, the current account surplus remains high, the central bank noted.

 

The central bank's profit increased to EUR 4.6 billion in 2013 from EUR 664 million in 2012. The higher profit came as provisions for risks decreased compared to last year.

 

"The risk situation has eased to some extend because of the decline in the volume of refinancing loans and the reduced holdings of government bonds," Bundesbank President Jens Weidmann said.

 

However, he added that it would not be appropriate to run down the risk provisions, as the lower key interest rates meant that the Bundesbank was likely to post a smaller profit in 2014.

 

German GDP Growth Likely To Rise In 2014 And 2015: Bundesbank

[Ammeo 10]

EUR/USD: What Is The Level That Could Really Trigger ECB Easing? - BTMU

The euro has pared some its recent gains overnight following comments from ECB President Draghi on the strengthening of the effective euro exchange rate and how this had a significant impact on current levels of inflation and price stability.

 

 

In this regard, Bank of Tokyo-Mitsubishi UFJ (BTMU) thinks that Draghi's comments are not a game changer for the EUR arguing that the ECB’s staffs’ average forecast for inflation in 2016 is already low at 1.5%, and this already signals that a further significant strengthening of the euro would likely trigger additional ECB easing by increasing the likelihood that inflation undershoots their target.

 

 

"In the near-term such euro specific rhetoric from the ECB may help to dampen further euro upside momentum although it is unlikely to prevent further gains. The EUR/USD rate may be able to rise towards the 1.45-level before triggering further ECB easing which would weigh more heavily upon the euro," BTMU projects.

 

 

"ECB President Draghi remains optimistic that the ECB’s forward guidance will over time place downward pressure upon the euro as the real interest rate spread between the euro area and the rest of the world will probably fall. However, in the near-term the ongoing shrinking of the ECB’s balance sheet continues to support a stronger euro making ECB monetary policy appear relatively tight," BTMU adds.

 

eFXnews : EUR/USD: What Is The Level That Could Really Trigger ECB Easing? - BTMU

[Ammeo 10]

Markets on edge as Crimea votes to quit Ukraine

U.S. stock investors will start the week on edge as markets worldwide react to the referendum that appears to back Russia's claim to Ukraine's Crimean peninsula, even if the vote result is not internationally recognized.

 

U.S. stocks closed on Friday with their largest weekly drop in the last seven weeks as the worst confrontation between Russia and the West since the end of the Cold War continues to unfold. Markets were also haunted by concerns over a slowdown in China's economy.

 

Dozens of Russians involved in Moscow's gradual takeover of Crimea face U.S. and European Union travel bans and asset freezes on Monday. Russian state media quoted an exit poll as saying 93 percent of voters supported union with Russia.

 

The White House rejected the referendum and called Russia's actions "dangerous and destabilizing."

 

"There's an open question as to who suffers most," said Sam Wardwell, investment strategist at Pioneer Investments in Boston, about the planned economic sanctions.

 

"The EU is dependent on Russian natural gas; it's an economic mutually assured destruction."

 

Last week's record decline in foreign holdings of U.S. Treasuries has led some to speculate that Russia has been cutting its dollar reserves ahead of possible sanctions from the West.

 

"It will be harder to make a new high (on the S&P 500) with these global and geopolitical effects overhanging," said Andre Bakhos, managing director at Janlyn Capital in Bernardsville, New Jersey.

 

"I don't know if these warnings signs result in dire results, but they are certainly to be considered when making a macro bet."

 

Markets on edge as Crimea votes to quit Ukraine | Reuters

[Ammeo 10]

Russia may offer special tax regime for Crimea

Russia's finance ministry said on Monday Moscow may offer a special tax regime for Ukraine's southern Crimea region, which voted overwhelmingly in a referendum on Sunday to join Russia.

 

"Undoubtedly, the probable accession of Crimea to Russia will have a very serious impact," Deputy Finance Minister Sergei Shatalov told a local business conference.

 

"I do not rule out a special tax regime (during Crimea's transition period)," he added, without giving any further details.

 

Russia may offer special tax regime for Crimea - Finance Ministry | Reuters

[Mysticforex 13]

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FOMC Preview:

[Ammeo 10]

Existing Home Sales Lowest In 19 Months, Cheapest Home Sales Tumble 18%

Another month, another confirmation that the so-called housing recovery is sputtering on its last breath and is being held up entirely by the higher end segment, which however is also coming to an end now that wealthy Chinese have started liquidating their ultra luxury housing. In February, according to the NAR, some 4.6 million annualized existing homes were record, in line with expectations, and a 0.4% decline from the 4.62 million print in January. This was the 19th monthly drop in a row, and the lowest since July 2012, and a 7.1% drop year over year. But the worst news is that housing is increasingly unaffordable to the poorer Americans, with houses costing in the $0-$100 bucket down 18% from a year ago. Since nobody is applying for a mortgage any more this is hardly surprising. Finally, in addition to the usual weather excuse for weak housing sales, a new scapegoat has appeared: soaring student loans: "20 percent of buyers under the age of 33, the prime group of first-time buyers, delayed their purchase because of outstanding debt. 56 percent of younger buyers who took longer to save for a downpayment identified student debt as the biggest obstacle." Oops.

 

The median home price remained largely flat in February at $189,000, and has continued on a shallow downward slope which peaked in mid-2013. Not helping things is that distressed homes – foreclosures and short sales – accounted for 16 percent of February sales, compared with 15 percent in January and 25 percent in February 2013.

 

Existing Home Sales Lowest In 19 Months, Cheapest Home Sales Tumble 18%; Weather, Student Loans Blamed | Zero Hedge