Tuesday, February 21, 2006

LEI DOOMS RATE HOPES...

The strong LEI dooms any hopes of stopping rate hikes and could insure even more increases this year...

True, the LEI was up because stocks were up and stocks are up because the LEI is up, but circular reasoning is not unusual on the Street.

Still the notion that the increase was primarily in building permits and stock prices should be of interest...perhaps even to the FED!