Sub Prime again

Mortgage applications up 32%, with new home applications up 14%
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=apc10QWpj4p8

Also:
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ajakGFRU_b08

The key phrase here: "All that pointed to slower growth, not a recession."

Maybe we're close to the bottom for housing? Very interesting price action.
http://stockcharts.com/h-sc/ui?s=xhb

As stated below its the change in pattern of trade and inflation expectations that is really interesting.
http://www.bloomberg.com/apps/news?pid=20601068&sid=aV0JVUluJBuU&refer=economy
http://www.bloomberg.com/apps/news?pid=20601085&sid=a6woj_nMjxdA&refer=europe

The ECB is marking its ground and stands ready to push Europe into recession (why are the British hellbent on joining). At some stage the FED will have to face the realisation of accelerating inflation in the goods markets. The financial press will not let the FED forget about the 70's. I assume this means current FED policy of cutting rates will be put on hold, at the very least. This means a shock to most commodity prices, gold included, and a firming of the $US and perhaps adjustment of trade flows. So much for my supposed inflection point?

Platinum Capital give a warning about excessive interest rate risk in the US banking system.
http://www.platinum.com.au/images/us-finance.pdf

Regards
TheBagwan