Lawrence Realty
Lawrence Realty

P.O. Box 2365

Olympic Valley, CA, United States

Bottom Hit during Thanksgiving Week??

Two significant events occured during the Thanksiving period which makes me feel that from here on out the economy bouncing along the bottom.
Consumer actions: Fuel prices dropped under $2/gal and in some areas under $1.50/gal from a high of over $4/gal. This gave relief to those whose commuting costs, and consumption costs of consumer products had risen due to the high fuel costs, and on Black Friday ( sales up approx 7.5%) and on Cyber Monday ( sales up approx 12%) consumers started spending money again. Federal Reserve Actions:
Federal Reserve injected $600 Billion into the banking system and $200 Billion into the credit markets helping to prevent deflation. This Quantative Easing has allowed money to start flowing into the credit markets, and with there action this week it should help to get the flow of money out of the banking system and into the consumers who wish to purchase or borrow money.