EASING
of mark to market rules and increase in "factory orders" caused reason for
investors to celebrate...DOW UP 216 points!
of mark to market rules and increase in "factory orders" caused reason for
investors to celebrate...DOW UP 216 points!
Market
Insight
Insight
Have you
metChad?
metChad?
FNMA 4% bond was DOWN 34 bps today. Rates will likely come up tomorrow and stay up for a little while again. Fed data released today showed that they are purchasing 4.5% bonds primarily which supports rates in the 5.0% range. (32.9BILLION worth of Mortgage backed Securities were purchased last week.)
Current rates in the 4.75% range will ease upward...
Current rates in the 4.75% range will ease upward...
European Central Bank lowered their key interest rate...but not by as much as expected. This caused the Euro to gain in value vs. the dollar today as this symbolizes sentiment that the central bankers are feeling better about the value of their currency than investors anticipated. Remember that lowering
rates...devalues the currency by making it "cheaper" to get a hold of. It is interesting to see that inflation (devluation) has been kept in check with the US dollar despite the low, low fed funds rate. We are getting clues
that the fed funds rate may see some slow increases soon.
rates...devalues the currency by making it "cheaper" to get a hold of. It is interesting to see that inflation (devluation) has been kept in check with the US dollar despite the low, low fed funds rate. We are getting clues
that the fed funds rate may see some slow increases soon.
FASB: the Financial Accounting Standards Board voted to relax standards today relating to
Mark-to-market accounting. Specifically: they are changing how banks can "value" assets that were up to now considered "illiquid" since there really is not a "marketplace" for them.
Mark-to-market accounting. Specifically: they are changing how banks can "value" assets that were up to now considered "illiquid" since there really is not a "marketplace" for them.
If the assets are assigned VALUE...vs... just sitting out there without value: financial companies appear
to be in a much better place financially.
to be in a much better place financially.
Imagine if you had BILLIONS in financial instruments that were being paid as agreed...but because that "type"
of asset carries a "stigma" that it is "bad": no one wanted them. In a way that has happened...many institutions sitting on good assets were deeply affected because the comparable assets at other institutions were selling for pennies on the dollar. This devaluation caused billions in "lost" wealth nearly overnight. Financial stocks enjoyed a nice run up today.
of asset carries a "stigma" that it is "bad": no one wanted them. In a way that has happened...many institutions sitting on good assets were deeply affected because the comparable assets at other institutions were selling for pennies on the dollar. This devaluation caused billions in "lost" wealth nearly overnight. Financial stocks enjoyed a nice run up today.
Factory orders were up for the first time in MONTHS...so a ray of sunshine.
I am ASTOUNDED that I am not seeing MORE people take advantage of the $8000 tax credit
offered this year for first time home buyers...
offered this year for first time home buyers...
Locally, Deb Royer and Jen Erickson who are relationship managers with me here at MetLife are putting on a
first time home buyers class to help get the word out and educate potential buyers. The class will be at 12.30 on Saturday and will be held at the Bozeman Public Library...if you have any buyers who would like to be better informed on the home buying process please encourage them to attend.
first time home buyers class to help get the word out and educate potential buyers. The class will be at 12.30 on Saturday and will be held at the Bozeman Public Library...if you have any buyers who would like to be better informed on the home buying process please encourage them to attend.
Encourage your local lender in your area to provide this value to you...or set things in motion to provide this
service yourself. Good luck!
service yourself. Good luck!
Enjoy your evening,
P.S. I am involved with Big Brothers and Sisters of Gallatin County. If you or anyone you know may be interested in giving...please let me know. Monthly installments are okay...and the gift is generally a tax deduction.
