HOLIDAYS AND GOV VACCUM

HOUSING will be key to get any kind of lasting rally. We must see signs of buyers eating through inventory and that is just not happening right now. We can´t really blame rates and not even house prices. Those factors are working with the buyer right now. As one could suspect it is credit availiability, or lack of , that is screwing things up right now. This is the case in the US as well as in Europe. For Scandis this is equally true and rates have a long way to go (down) in Sweden before any kind of activity will pick up. As for the US we are going into holiday season and to get any political work done we really need to get the new administration set up. This is not going to happen until Jan and GM, FORD and others are stuck with a lame duck (Georgie W) who can´t do jack. Markets on either side of the pond will be absurdly thin next week and to guess direction in thin markets you might as well use a coin. My bet will be early week rally...end week sell off.