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Fnma 4.0 bond held its own today gaining 12 bps. This is good news as for now rates may hold steady at the 4.875%-ish range. We will have to see what happens for the rest of the week though...we will have the market flooded with 61 BILLION dollars worth of T-notes by Thursday of this week.

DOW also steady giving up only 41 points...despite some "bad news" put out by a person named Michael Mayo of Calyon Securities. Michael is an analyst and he said that "bank losses" will exceed those of the Great Depression. Hmm...every time the "Great Depression" comes up heads are turned. He also alleged that the Mark to Market easing last week will not be enough to help the overall financial industry. He mentions in the article below that trouble comes when banks are involved in the "seven deadly sins": 1. Greedy Loan Growth 2. Lust for High Yields 3. Sloth-like Risk Management 4. Pride of low Capital 5. Envy of Exotic Fees 6. Anger of regulators.

DJIA 7,975.85 -41.74 NASDAQ 1,606.71 -15.16 SP500 835.48 -7.02

This is a holiday shortened week...so Thursday's session gets out early and Friday the market is closed. We may see some sell-off later in the week...and this along with the flood of Treasury notes could bring the rates up. Could be a good time to jump in!

Remember the comment that the G20 group was talking about selling 403 tons of gold?
Watch for gold futures to go LOWER in the short term perhaps before ramping back up.

Oil is still trading in the 50 dollar range. With 2.5 trillion in estimated "mattress money" out there: it will be interesting to see where it all goes when things begin to "feel" better in the markets.

Parting notes:
I am taking applications 24 hours a day at www.metchad.com and we are nowhere near capacity...so would love to help anyone you know who may have mortgage financing or re-financing needs.

I am also available if anyone would like to team-up to teach a first time homebuyer class.

Have a great eve!