No bounce in housing in August as the NAHB index stays at record lows of 16. Starts and permits are due out tomorrow morning and are expected to slide again after a one-time bounce as a result in a change in the New York City building code.
Credit jitters are rampant again after a Barron’s article predicted the Treasury will have to use its backstop facility to bail out Freddie and Fannie. That would dilute shareholders further, prompting the stocks to slump.
The Treasury earlier said they have no plans to use their backstop plan.
