Rates Steady…job market improvement?

http://www.metchad.com/

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FNMA 4.5% : Down only 3bps on the day. Remember that investors are anticipating $67 BILLION worth of bonds to be auctioned off and that added "perception" of supply is hurting pricing of bonds in general. Next week's "auction menu" includes $32 Billion in 3-year notes, $21 billion in 10-yr. notes and $14 billion in 30-yr. bonds…

DOW: Down 121 points erasing the "progress" from yesterday. Some analysts are pointing to the HUGE "package" that looms in the senate. There really is no compelling evidence that it will be successful in doing anything but delivering added government expenditure and taxpayer burden for generations to come. Remember: we NEED to PRODUCE some sort of goods or services that actually ADD to our GDP to technically get OUT of a recession…and prevent a "depression" by definition. Many are concerned about not only the HUGE amount of PORK in the package…but the competence of those who are supposed to administer and appropriate the funds involved.

DJIA 7,956.66 -121.70 NASDAQ 1,515.05 -1.25 SP500 832.23 -6.28

EMPLOYMENT: ADP reported 522,000 jobs (non-farm) during January vs. expectations for a loss of 535,000 jobs. The ADP report is compiled with data collected nationwide from nearly 400,000 employers and gives us a "preview" to the jobs report due out on Friday.

Salary Caps! Salary of executives at companies receiving aid through the TARP program was capped at $500,000 today. Remember we tried something similar in the mid-90's and the resulting "loop-hole" was "salaries" given in the form of stock options…this is what created the "golden parachutes" of the CEO's bailing out of corporate America in 2008. I know that the administration is aware of that…so lets hope there is something there to prevent a simple "work around" this new regulation.

Accountability! I saw that Wells Fargo among other corporations have cancelled their recognition events. Wells has taken in 25 billion in gov't aid through the tarp…and felt it necessary to eliminate some of the lavish expense associated with recognition events. Good for them…it is that type of accountability that we need to see more of right now.

Happy to help: I appreciate your referrals. Please don't hesitate to call, email or stop by if you have any finance questions, concerns or comments. I am happy to help. Naturally, I would encourage anyone thinking of making a move in the real estate market to visit with a qualified lender and real estate agent...

Have a great eve!

Chad

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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