More Saturday afternoon videos…..
Ron Paul questions Ben Bernanke at House Financial Services Committee – 2/25/09
I thought this was a good cartoon to put up on a Saturday…..
A Conversation with John Mack – CEO of Morgan Stanley
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A wortwhile listen……
Some Light Reading for a Saturday….
by Tom on February 28, 2009
in Mortgage Matters, Mortgage Rate Updates, house prices
Here’s a copy of Warren Buffett’s (the Oracle of Omaha) annual letter to shareholders.
Please share your comments if you read through it. I’ll do another post when time allows with some of my “reactions” to it.
Berkshire Hathaway Letter to Shareholders 2-28-2009
Golden Parachutes – thanks to Barry Ritholtz
by Tom on February 28, 2009
in Education, Market Musings, banks
And two more makes 16……
Regulators close 15th bank this year – Feb. 27, 2009
- State bank regulators closed two more banks on Friday, the 15th and 16th banks to fail this year, as the worsening recession pulled more regional banks underwater.
The Lost Decade
by Tom on February 27, 2009
in Market Musings
I love the charts that Bill at Calculated Risk does. They need no explanation.
What I am curious about is what impact the losses in the stock market are going to have to:
- People’s retirement plans.
- Demographics – less people retiring, less people moving to warmer climates?
There’s lots of interesting and frankly puzzling long term dynamics of this that we’re going to see play out way after the worst of this economic cycle is over.
What do you think it’s going to do? I’m talking about beyond the next couple of years and more into the next 15 to 20 years?
Are the markets making a political statement?
by Tom on February 27, 2009
in Market Musings
Interesting dichotomy in this article. I like and agree with a lot of what both Sean Hannity and Paul Kedrosky say and they take opposing sides on this picture….
Paul does sum up his position quite well in the conclusion (which is the only part that I’ve copied below).
What do you think?
Do the Markets Hate Obama? – The Daily Beast
While it may be fun to pretend that markets are taking political stands, they generally aren’t. Sure, they want this crisis over with, but traders mostly want politicians and political officials to stay the hell out of the financial and economic news. Why? Because in the world of ever-oscillating stocks the most terrifyingly unpredictable thing of all is government of either political stripe on live TV making financial announcements.
Morning Market Update Stability amid Volatility
by Tom on February 27, 2009
in Market Report
So what’s happening in the markets so far today?
- The 4th Quarter Gross Domestic Product was revised down from -3.8% to -6.2%. Not fun.
- The government now owns close to 40% of Citibank.
Both of those have put considerable selling pressure on the stock market, especially the financial stocks, and we’re down to 11 year lows at this writing.
To say that things are volatile would be an understatement. However mortgage rates have remained a “non-event” this week. We’re still at 5.25% for a 30 year refi, 5.0% for a 30 year purchase with 0 pts, a 720 credit score or better and an escrow account.
Why haven’t mortgage rates changed? My assessment is essentially that the market is “on hold” waiting for a resolution to some of the issues that are plaguing the financial world.
My recommendation is still to lock all loans. The upside risk for higher rates remains greater than the downside potential for lower rates.
I’ll keep in touch as events require.
If you’d like to get notification of when the Market Updates are posted, send me an e-mail at Market Update at Straight Talk.
Downgraded Prime Jumbo loans? Why should you care?
by Tom on February 27, 2009
in Market Musings, banks
The reason that you should care is pretty simple:
- If the amount of prime jumbo loans that are in trouble is going up (and I’d say $140 Billion is a few), then the appetite for jumbo mortgages on the investment side is going to get less.
- That means that rates on jumbo mortgages are NOT going to get cheaper and will probably actually get more expensive.
- Which will hurt the higher end of the market.
Have a good day!
Tom Vanderwell
Calculated Risk: S&P May Downgrade $140 Billion in Prime Jumbos
From Reuters: S&P may cut $140 bln of prime jumbo mortgage deals (ht Brian)Standard & Poor’s said on Thursday it may downgrade 3,279 prime tranches of jumbo residential mortgage-backed deals with a market value of around $140 billion, after increasing its loss expectations for deals issued in 2006 and 2007.
