Learn more with "Marketwatch.com, CNNmoney.com, MSNbc.com, Forbes.com" among other sites that I look through to present this report for you.
SO: Biggest news is that the HUGE package made it through the senate. Unfortunatly, Geithner's plan for the 2nd half of last fall's bailout didn't draw much credibility as the DOW retreated 381 points. (That money is more IMMEDIATELY available...so the actual effects can be more immediate.)
The bond market enjoyed a nice rally which was a great surprise! The FNMA 4% actually GAINED 47bps today so rates WILL likely improve again some tomorrow. We will likely start to "feel" the real effects of the stimulus in 12-18 months...but the "emotional" effect will be seen over the next several sessions in the stock and bond markets.
Mortgage bond rally will hopefully continue in the morning if investors remain comfortable with the threat of inflation and long term stagnation in the US economy. The 30 BILLION dollar auction of 3 year t-notes today went over EXCEPTIONALLY well proving that investors NEED places to put there money and they are feeling good enough for now to "buy stock" in the USA.
INFLATION UNDER THE BED? Remember this perspective? Inflation around the corner? Many are still holding onto that theory...including myself I must admit. In 1983 the federal government changed the way they looked at inflation...the way it was measured and what it "was".
This was great for them...it actually made it appear as if inflation was under control in a really volatile time. It encouraged the foreign investment I have mentioned we count on (44% foreign participation in the 3 year t-note auction above!). Also, making things look better than they were changed the way they were required to give "cost of living" raises to those drawing social security...so less money was put out to people on fixed incomes.
SO: Changing inflationary indices actually was good for the feds.
Unfortunately, if the more "precise" way of estimating inflation were used for 2008 we would have seen an estimated 10-12 percent inflation...or maybe that is a good thing during this time in our economic history. SHH...don't tell the foreign investors that TRUE inflation numbers are higher than we are reporting. INFLATION is a killer when our currency is not "converting" well into other currency if you can imagine.
I will be at 100% tomorrow...and I appreciate your comments, referrals and encouragement.
Have a great eve!
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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
