US Dollar

Linkage: Weekend Reading List

Sidetracked by market chaos so here’s my first Originations linkfest in a couple days. Most intriguing to me tonight are the S&P 500 correlations to Treasuries. As for Europe, I put the pieces in order starting with quick reads and ending with Michael Lewis’ full piece as weekend reading. Here you go… -Yes You Should

Linkage: Realtime Greek Austerity Vote Tracker

-BofA’s $8.5b Bad Loan Settlement (Bloomberg) -INFOGRAPHIC: Forex Market Basics (TradingHabits) -China’s Top Auditor Warns of Local Gov’t Defaults (Mish) -REAL TIME GREEK AUSTERITY VOTE TRACKER (ZeroHedge) -QE3 Advocate Krugman Sits Down With HousingWire (HousingWire) -A Word On Unemployment (MarginalRevolution via TheMoneyIllusion)

Why QE2 failed & why its end will bring lower Treasury yields

Some folks think that because the Federal Reserve will soon stop its daily purchases of Treasuries per Q2, Treasury prices will go down and yields and mortgage rates go up. I think this view is completely inaccurate. As QE2 ends, let’s to try to figure out what it did. Quantitative Easing-Round 2 was a $600

Monetary Policy 101: Exchange Rates

Over the next month I will examine monetary policy in my weekly pieces. To start, I am recycling this piece I wrote last July. Eternal thanks to economist Steve Hanke of Johns Hopkins University who’s taken the time to educate me on these matters. Money Supply and monetary policy are set by the Federal Reserve.

Monetary Policy 101: Exchange Rates

Over the next month I will examine monetary policy in my weekly pieces. To start, I am recycling this piece I wrote last July. Eternal thanks to economist Steve Hanke of Johns Hopkins University who’s taken the time to educate me on these matters. Money Supply and monetary policy are set by the Federal Reserve.

How The Dollar’s Value Impacts Mortgage Rates

One can write several volumes about how movements in the dollar impact mortgage lending, and our economy in general. The value of the dollar is widely tracked. For example, the New York Federal Reserve reported that the U.S. monetary authorities did not intervene in the foreign exchange markets during the July-September quarter. But during that

How The Dollar’s Value Impacts Mortgage Rates

One can write several volumes about how movements in the dollar impact mortgage lending, and our economy in general. The value of the dollar is widely tracked. For example, the New York Federal Reserve reported that the U.S. monetary authorities did not intervene in the foreign exchange markets during the July-September quarter. But during that

WeeklyBasis 11/13/2010: Alarm Bell, Rates Up .375%

Perhaps it’s early to ring alarm bells when rates are still in the 4s, but they’re up .375% since October 7-8, which means a borrower pays $110 more per month on a $500,000 loan. Back then, mortgage bonds hit record price levels on rumors the Fed would announce billions more in mortgage bond buying to

WeeklyBasis 11/13/2010: Alarm Bell, Rates Up .375%

Perhaps it’s early to ring alarm bells when rates are still in the 4s, but they’re up .375% since October 7-8, which means a borrower pays $110 more per month on a $500,000 loan. Back then, mortgage bonds hit record price levels on rumors the Fed would announce billions more in mortgage bond buying to