"Correction Inevitable, Could Be A Doozie"
The Australian has a report out with more details of the speech by Fed honcho Jack Guynn. "He was especially concerned about reports of speculators buying homes and condos 'just to flip them for a quick profit' and that banks and other financers are taking big risks in the area."
"'It seems like every week brings new stories about aggressive financing arrangements that encourage and enable such real estate transactions,' Guynn said."
"New data overnight showed sales of new US homes edged up 0.2 per cent to a seasonally adjusted annual rate of 1.32 million, an all-time record."
"Diane Swonk, chief economist at Mesirow Financial, said, 'The concern is the further we go, the more risk we run of a significant long-term correction."