THE MAGIC WAND

9/26/07

Home inventories are at an 18 month high.

Don’t worry—the Fed can “cut rates!”

D.R. Horton is auctioning homes at 50% discounts.

Don’t worry—the Fed can “cut rates!”

Retailers (today Lowe’s and Target—who knows tomorrow?) are feeling the pinch of the housing situation

Don’t worry—the Fed can “cut rates!”

Durable goods orders plunged in August.

Don’t worry—the Fed can “cut rates!”

Lennar lost $514mm last quarter.

Don’t worry—the Fed can “cut rates!”

Sales of existing homes fell 4.3% in August to an annual pace (5.5mm homes) that was the slowest in five years.

Don’t worry—the Fed can “cut rates!”

Northern Rock, which a year ago was the most vibrant home lender in the UK, is going to be sold to the vultures.

Don’t worry—the Fed can “cut rates!”

Oil continues to flit back and forth around $80.

Don’t worry—the Fed can “cut rates!”

Home heating oil prices will be higher than ever this winter.

Don’t worry—the Fed can “cut rates!”

Trade problems with China are heating up in the face of a Kabuki dance of recriminations and mea culpae on both sides.

Don’t worry—the Fed can “cut rates!”

The dollar is at an all time low against the euro and isn’t looking too spry against the pound, the yen, or the Canadian dollar.

Don’t worry—the Fed can “cut rates!”

The European economy seems to be running out of gas.

Don’t worry—the Fed can “cut rates!”

Crazy people are in control, and firming up their grip on power, in the Middle East.

Don’t worry—the Fed can “cut rates!”

Crazy people continue in control in Washington.

Don’t worry—the Fed can “cut rates!”

Israel and Syria are rattling sabers…again.

Don’t worry—the Fed can “cut rates!”

Iran and Israel are rattling sabers…again.

Don’t worry—the Fed can “cut rates!”

Osama bin Laden (You remember…the guy about whom George Bush said “I really don’t think about him much. I don’t care where he is.”) and his minions are rattling sabers again.

Don’t worry—the Fed can “cut rates!”

The American consumer still steadfastly refuses to save money.

Don’t worry—the Fed can “cut rates!”

We still haven’t figured out how we’re going to pay for this war.

Don’t worry—the Fed can “cut rates!”

We still haven’t figured out how to end this war.

Don’t worry—the Fed can “cut rates!”

OJ Simpson is once again dominating the headlines.

Don’t worry—the Fed can “cut rates!”

The heel of my right foot hurts so bad that I sometimes can’t walk on it.

Don’t worry—the Fed can “cut rates!”

I have a weird noise, akin to the sounds emanating from the game “Operation,” coming out of the armrest of my new car, but it always goes away when I get near the dealership.

“Don’t worry—the Fed can “cut rates!”

My fourteen year old daughter is being, well, fourteen years old.

“Don’t worry—the Fed can “cut rates!”

My twelve year old daughter refuses to go to band and my wife insists that she go. Both are stubborn beyond comprehension.

“Don’t worry—the Fed can “cut rates!”

White Castle seems to be reducing the fat content of both the delectable slider and its world famous onion rings, somewhat decreasing the sheer joy of that culinary adventure.

“Don’t worry—the Fed can “cut rates!”

ANYTHING ELSE THAT CONCERNS YOU? WELL…

“Don’t worry—the Fed can “cut rates!”