RE: Operation twist will improve the economy Home sales cannot jump if people do not have the money ,job or the credit to pump money into a house no matter how cheap rates are. Operation twist does not solve the consumer side problem. Nobody has money to spend because the umemployment numbers are horrid. They can barely stay below 400,000 for long periods of time. Until that number stabilizes the housing numbers may stabilize. Interest rates cannot stay low forever and if people buy houses now and when they do jump can be serious consequences still. People cannot even afford to rent never mind buying a house. The banks tightened their reigns on whom they lend to and have used the bailout money to pump up the banks coffers instead of doling the money like they should have. The prices of raised inflation on goods and services and the fact nobody has wages raised in a decade does not help either. Companies are laying off people to cut cost and money they are hoarding on their balance sheets they are keeping it close instead of deploying it. In hiring people, building more infrastructure, and making M/A to provide this for people to consume other goods.
China are competing against the likes of India, Brazil and other emerging markets. US already developed and the goods they import to US and the jobs they are already taking also from the US. Japan is the one suffering right now and need the goods more than the US and their neighboring China is the one to provide them the goods they need to rebuild. China not stupid while they gobble and hoard these goods and raw materials while everyone is scared to spend to give back down the road in more profit right back into China's coffers, all the while building their surplus and continue to expand and grow again faster then the US ever will. US cannot spend their way out without putting themselves from low inflation to deflation with the low interest rates that they have had has done nothing so far without making changes in their defict in bringing it down which has now skyrocketed to over 13 trillion and climbing. The sky is not falling and that's media for you to cause panic. Give bad news and sheep will follow and listen, give constant bad news and you start a panic. Reverse the trend and imply good news more than bad news and sheep will start to listen and bad news lessen, fear lessens and people start to believe the sky is not falling.
I live in Calgary and pay 1.09. a litre. Commodities coming down a bit so inflation would not be high nor should food prices but they will stay high for months to work it's way through. By the time the consumer sees it will be a short relief and the prices go up again. TSX getting spanked and lost a lot all on the hands of the Eurozone and US woes. I do think the bottom is coming when Greece comes to a head this months. US must decide to past debt ceiling or suffer consequences by Nov and it's elections. Market may get a break before years end but you never know what is in store but recession is overdone and over blown with the media. JMHO