The QUICK NEWS!

Housing STARTS and Permits were UP for last month.

Roller coaster of the Bond market continues its climb...with the FNMA 4.5% closing the session at 99.53...now within 100 bps of the best levels we have seen. The bond picked UP 62 bps at the bell today.

TGFS...Thank Goodness for Federal Spending. The downward spiral would have been much more dramatic and recovery slower without the "rainmakers" buying up mortgage bonds.

Remember: when the feds buy mortgage bonds they are buying bonds backed by something tangible...real estate. When the feds buy "Treasury Notes" they are buying a "promise" that the note will perform. Granted: the promise is by the "federal government" to pay up when the coupons are cashed in...

Economists are warning of continued disappointing retail numbers and even with the "turn" in the recession projected as early as the end of 2009 (no more negative growth in the GDP)...there is a general feeling that growth will continue to be slow. Many have been guilty of being too optimistic recently and this is playing on investors.

Dow lost 107 points and oil held its own just over $70/barrel.

Have a great eve!