People told consumer surveys they were miserable, but they were willing to borrow money to pursue a bargain.

This report augurs very well for the holidays.

This is slightly baffling, given that existing home sales have been strengthening, ... It may be a reflection of caution on the part of builders, who have been reluctant to keep pace with sales because of fear the market strength will not last.

As for the Fed, we look for 50 (basis points, a half-percentage point) next week.

Supply remains tight; buyers may have been unable to find the homes they want where they want them. Housing will not fold.

Companies seem to have acted very quickly this time around once they realized that [economic] growth was slowing sharply, ... Overall, the data suggest talk of a labor market meltdown is overdone.

The Fed is now explicitly conducting monetary policy with the aim of supporting stock prices.

There is nothing in the statement to suggest they're done.

We remain relatively optimistic about the housing market, but we do accept that activity fell sharply in the immediate aftermath of Sept. 11.