Ugh-ly

I don’t know what the market is rallying about.

I understand that they feel cheered about Citi taking the Feds to school and there is general (and justified) excitement about Obama’s economic team, but our problems remain. To wit: (emphasis added)

The inventory of existing homes for sale slipped 0.9 percent to 4.23 million from 4.27 million in September. The median national home price declined 11.3 percent from a year ago to $183,300, the lowest since March 2004 when a median price of $183,200 was recorded. The percentage drop was the biggest since the NAR started keeping records in 1968

So prices are now at 2004 levels and still have more to go (especially in New York City).

Also, Bloomberg points out that the real cost of the bailout is $7.4 trillion so far, of which the Fed is responsible for $4.4 trillion.

I’m too busy right now to write more about this, so read the article yourself.

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