Readings for the Day

From Big Picture: WSJ Video:: End of Wall Street
From Calculated Risk: Foreclosure Moving On Up
From Calculated Risk: New Home sales and Unemployment

Usually New Home sales are declining before a recession.

Usually New Home sales bottom during the recession and start to increase 3 to 6 months before the recession ends. Therefore New Home sales are usually a good leading indicator of an economic recovery.

The unemployment rate usually starts increasing just before the recession begins.

The unemployment rate peaks after the recession ends. During the last two recessions, the unemployment rate didn't peak until over a year after the recession ended.

The unemployment rate typically lags New Home sales.

From Bonddad: Treasury Tuesday's: Why there is a Treasury Bubble?
From Mish: Factory Orders Tumble, Retail Sales Fall, Foreclosure Sales Triple