Last week’s batch of economic data – July producer prices, industrial production and housing starts, the August reading on the National Association of Homebuilders sentiment index and the latest weekly reading on jobless claims – did nothing to dissuade financial markets that the U.S. economy remains mired in a slow-growth environment along with uncomfortably high inflation readings. Market reaction to the data was somewhat limited, as the focus remained squarely on the outlook for the two troubled government sponsored mortgage giants, Freddie Mac and Fannie Mae, and the impact on the financial sector from a potential U.S. government takeover of those entities. 

http://www.mwboone.com/library/LPL_Weekly_Economic_Commentary_8_25_08.pdf