FNMA recovered 25 bps of what was lost yesterday. Still in the 5-5.125% range on the 30 year fixed loans. Watch for the effect of the treasury auctions announcement
tomorrow. We get to hear the dollar value of the t-notes to be auctioned off next week and it could move money out of bonds.

OIL surged upwards on the news that the "inventories" have shrunk. (Remember the supply and demand theory?) Settled at about $72.42/barrel

Dow UP 61 points...despite global concern at the steep declines in the Chinese stock exchange. The "Shanghai Index" has lost over 20% in just the last few weeks and the
Chinese stock exchange lost 4.3% overnight. Investors there are concerned that data put out by the
Chinese government may be intentionally skewed to make their economy look stronger etc. to encourage investment.

Hmm...when there is no "check and balance" except for the government...there is room for wiggling the numbers.

This is what is so important about the free market in our economy. The government IS still accountable
to the people here in America. It is one of our strengths and I do understand the concerns over bigger and less accountable government that has emerged recently.

It is really not just some sort of "death to the free market" but actually could be damaging to our credibility in the world. The US is STILL the best place to park
money for a number of reasons...and that is our #1 product. I hope to see our representatives working to protect that product by protecting our position as a
free nation who will not be shaken by the hands of just a few with absolute power.

Have a great eve,

Chad