www.metchad.com Market Insight!
Have you metChad...lately?
Have you metChad...lately?
FNMA 4.5% is up only 3 bps on the day after being up as much as 19 bps this morning. Remember there is a HUGE supply in the marketplace...and the fed's are still actively purchasing mortgage backed securities to keep things in check.
Dow OFF almost 251 points...as the beat goes on. The Dow is at levels not seen since 1997. We may see a slight bounce tomorrow after such a down session. Remember the Dow only represents 30 stocks that are thought to be a good cross-section of the US Economy.
DJIA 7,114.78 -250.89 NASDAQ 1,387.72 -53.51 SP500 743.33 -26.72
HILLARY CLINTON was in CHINA today expressing a request that they continue to invest in US treasury notes. Hopefully they listen. Remember that because they are primarily "producers" of goods: they rely on "PURCHASE" from other countries. Many economists believe that they have been artificially keeping the value of the YUAN low so that the "trade" between them and other countries would continue... If you can imagine, when the YUAN is worth more...compared to other currencies: other countries do not purchase as much from CHINA. "Dollars" simply don't 'go as far' when the YUAN is on the rise. When China purchases US Treasury notes with the YUAN...and keeps the YUAN at a "value" that is in proportion to the dollar...they stabilize their return. To China, as an exporter, their economy grows as the rest of the world does well and purchases more of their goods...so it is in their best interest to bolster the US by purchasing and holding T-bills. The trouble could come if they have a need to sell more T-bills than they purchase due to global demand deterioration. As an extreme example: If they turned in all the T-bills they hold, the US government would not have any option but to "default." Yikes. We are truly already a "global" economy in many respects.
CITI bank is requesting more money...and the FEDS announced today that they will "STRESS TEST" many of our nations major banks to see if nationalization is needed. Remember: we gave $45BILLION to CITI a few months ago...in exchange for what could be considered an "ownership interest." However: ALL the available stock in CITI only equals about $350 million...with TOTAL value of common stock coming in at about $750 million...so if we trade our investment for "ownership" we will be overpaying by quite a bit for the "asset" according to some.
Feds have committed to spending in Medicare as well as providing a Buffer for banks...
Gold trading at over $1000 an ounce has relaxed a little bit as a ginger "comfort" with financials thanks to government backing is coming back some. We will have to see what investors choose as a "Safe haven" over the next several months. It is kind of like we are in a barrel rolling down a hill...we really can't tell where we are in relation to the bottom...
AIG is still hurting and is expected to report a 60B loss...Yikes.
Morgan Stanley has cut their 38 cent divident to 5 cents to shore up some cash...
MOST importantly: WE STILL HAVE PLENTY OF MONEY TO LEND. MetLife is in a growth mode...and it has been great to see the confidence through the recent affairs. NOW is really a great time to get in on the market...if you aren't at least considering purchase or refinance: it may be okay to consult with a professional.
Have a great eve!
--
Chad Schauers
Have you metChad?
MetLife Home Loans
406.522.0922
406.522.0924 (fax)
1924 W. Stevens, Ste. 202
Bozeman, MT 59718
Cell: 406 799 8613
ccschauers@metlifehomeloans.com
Dow OFF almost 251 points...as the beat goes on. The Dow is at levels not seen since 1997. We may see a slight bounce tomorrow after such a down session. Remember the Dow only represents 30 stocks that are thought to be a good cross-section of the US Economy.
DJIA 7,114.78 -250.89 NASDAQ 1,387.72 -53.51 SP500 743.33 -26.72
HILLARY CLINTON was in CHINA today expressing a request that they continue to invest in US treasury notes. Hopefully they listen. Remember that because they are primarily "producers" of goods: they rely on "PURCHASE" from other countries. Many economists believe that they have been artificially keeping the value of the YUAN low so that the "trade" between them and other countries would continue... If you can imagine, when the YUAN is worth more...compared to other currencies: other countries do not purchase as much from CHINA. "Dollars" simply don't 'go as far' when the YUAN is on the rise. When China purchases US Treasury notes with the YUAN...and keeps the YUAN at a "value" that is in proportion to the dollar...they stabilize their return. To China, as an exporter, their economy grows as the rest of the world does well and purchases more of their goods...so it is in their best interest to bolster the US by purchasing and holding T-bills. The trouble could come if they have a need to sell more T-bills than they purchase due to global demand deterioration. As an extreme example: If they turned in all the T-bills they hold, the US government would not have any option but to "default." Yikes. We are truly already a "global" economy in many respects.
CITI bank is requesting more money...and the FEDS announced today that they will "STRESS TEST" many of our nations major banks to see if nationalization is needed. Remember: we gave $45BILLION to CITI a few months ago...in exchange for what could be considered an "ownership interest." However: ALL the available stock in CITI only equals about $350 million...with TOTAL value of common stock coming in at about $750 million...so if we trade our investment for "ownership" we will be overpaying by quite a bit for the "asset" according to some.
Feds have committed to spending in Medicare as well as providing a Buffer for banks...
Gold trading at over $1000 an ounce has relaxed a little bit as a ginger "comfort" with financials thanks to government backing is coming back some. We will have to see what investors choose as a "Safe haven" over the next several months. It is kind of like we are in a barrel rolling down a hill...we really can't tell where we are in relation to the bottom...
AIG is still hurting and is expected to report a 60B loss...Yikes.
Morgan Stanley has cut their 38 cent divident to 5 cents to shore up some cash...
MOST importantly: WE STILL HAVE PLENTY OF MONEY TO LEND. MetLife is in a growth mode...and it has been great to see the confidence through the recent affairs. NOW is really a great time to get in on the market...if you aren't at least considering purchase or refinance: it may be okay to consult with a professional.
Have a great eve!
--
Chad Schauers
Have you metChad?
MetLife Home Loans
406.522.0922
406.522.0924 (fax)
1924 W. Stevens, Ste. 202
Bozeman, MT 59718
Cell: 406 799 8613
ccschauers@metlifehomeloans.com
