Stalled Stimulus

11/12/09 Baltimore, Maryland – Can the American recovery persist without government support? Today the market gave us a hint:

Heh, it didn’t even take actual removal of government intervention to sack mortgage applications, the MBA confirms today. As we noted earlier this week, the tax credit was extended and expanded into the spring of 2010. Just the anxiety of its Nov. 30 expiration alone (or perhaps savvy homebuyers waiting to see if they were going to get a better government deal) plunged the mortgage applications index to 220 last week, its lowest score since 2000.

And what a coincidence, too… the previous low was in early February of this year, right before our government enacted the homebuyer credit.

Ian Mathias

Ian Mathias is managing editor of The 5 Min. Forecast.  We discovered Ian working as a full time rock climbing guide and writing on the side. As it turns out, markets and global economics can be extreme too… at least enough to keep him around. Since working for Agora Financial, respected media outlets including Forbes.com, the Associated Press, Yahoo, and MSN Money have syndicated his writing. He received his BA from Loyola College in Maryland and is currently studying writing at the graduate level.

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Related Articles:

• December 11, 2009 -- The Retarded Recovery
• November 11, 2009 -- How Quickly Will Feds Exit Stimulus?
• February 8, 2010 -- Economic Recovery: Demanding More Purchasing Power
• February 3, 2010 -- Monetary Stimulus Produces Phony Recovery
• February 2, 2010 -- Economic Recovery: The Unresolved Mysteries

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