Rates are slightly improved today. Mortgage bond prices are lower than yesterday afternoons close, but higher than when lenders were setting rates and publishing rates early this morning. Consumer Confidence seems to be fading along with the Christmas spirit; the economic reading came in 3.5% lower than expected, but also lower than November's level. Couple that with rising inflation expectations, a less than stellar 2yr Treasury auction yesterday with little if any indirect bidder participation, the home price index showing home prices have fallen once again, and the rosy economic recovery picture that's being painted by the teleprompter readers on Bloomberg and on CNBC may need a touch up.
So what does all this really mean in regular people language? All the happy talk about economic recovery isn’t being born out in the real economy as many of us have been saying for quite some time now. Your government and wallstreet are just feeding you a line of bull to get you to go out and SPEND, SPEND, SPEND. If you were being told the truth about what the real economic reality was … you would be SAVING YOUR MONEY. Remember people … it isn’t consumer spending that creates wealth and economic growth … spending is simply a function of savings and investment and without savings and investment THERE IS NO WEALTH CREATION …. The BS emanating out of government agencies generating the economic prognostications is highly suspect at best and a deliberate manipulation of our “animal spirits” at worst. Additionally, the “less than stellar” 2 yr auction simply means that no one was beating down the door to buy our Treasury debt but for the Federal Reserve that simply prints the money to buy it. Maybe nobody wants our Treasury debt because they (China, Brazil, Germany, Saudi Arabia et all) have finally realized that WE HAVE NO INTENTION OF EVER PAYING IT BACK.
Just think about it people … in just 35 years the US has gone from the world’s greatest creditor nation (meaning we were the lender to the world), to the world’s biggest DEBTOR nation (meaning we are the biggest borrower in the HISTORY OF THE WORLD). To put it another way … the USA has taken out the biggest Interest Only, Adjustable Rate, Subprime Mortgage IN THE HISTORY OF THE WORLD and its getting bigger by almost 3.5 billion dollars PER DAY. It’s almost impossible to believe that we have chosen not to pick up pitch forks to stop our country from getting deeper into debt and to stop QE2 and all the other manipulations and rip off’s of the Federal Reserve and the resulting destructive monetary effects. It appears that we have lost our national survival instinct. Know that what we are witnessing threatens the very existence of our nation and … here we sit collectively as a people quietly in our lazy boy recliners staring at the flicker of our flat screen TV’s … COMATOSE … DISCONECTED.
UGGG … back to the markets. Trade is still relatively thin this morning, with many big wig traders still using their 'out of office' replies and many little wigs traders that can't seem to drudge through the snow and make it to the trading floor. Smaller trades can move the market when trading is this thin so WATCH YOUR LOCKS. The 5yr Treasury note auction is on tap for later today which should be interesting. Keep those pipelines tight, and make sure all of your active locks get extended if needed.
In the news today…Click on the Market Headlines attachment for more detail on these stories
- Survey Shows Consumer Confidence Slips in December
- U.S. Home Prices Drop 1.3% From September to October
- U.S. Crude Oil Supplies Probably Fell Last Week, Survey Shows
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