Money and Metals

Atlanta Federal Reserve Bank President Jack Guynn had a warning for the housing market today. "'There are some local markets, especially in coastal Florida, where I've heard stories for more than a year about behavior that's got to be characterized as nothing other than speculation,' Guynn said it response to questions after his speech."

"'It makes me very uncomfortable,' he added. 'Some buyers, some builders, some lenders are going to get burned, could very likely get burned, in some of those local markets.'"

He also indicated rates will continue going up. "'Given the current outlook for the economy, my personal view is that we've not yet reached a neutral policy stance,' Guynn said."

This chart shows that M1 took a sharp turn south recently.

MarketWatch is reporting a huge drop in foriegn reserves coming into the US. "Foreign central banks became net sellers of U.S. assets for the first time in 19 months in March, helping to slow foreign capital inflows into the United States by 46%, the Treasury Department said Monday."

"Net capital inflows fell to $45.7 billion in March from $84.1 billion in February. Read the full report. It was the lowest level of capital inflows since October 2003."