Why do people constantly return to the refrigerator with hopes that something new to eat will have materialized? Is that like economists and analysts continuing to go back to the news about the economy hoping something is better? Yesterday’s Beige Book, which summaries the economic activity in the 12 Fed regions here in the US, [...]

If your stock portfolio is going up in value, do you save less? Probably. People generally feel wealthier when their stocks are rising, or their house is appreciating: they will spend more and save less. When the reverse happens, they spend less and save more, which is exactly what is happening now, or at least [...]

Soon-to-be-ex-Governor of Illinois Rod Blagojevich was impeached after he got caught on tape trying to sell Barack Obama’s senate seat. Instead of attending his impeachment hearings, he embarked on a massive media tour, which he ostensibly thinks will help him win public favor. Perhaps he thinks this because he’s got such great hair…great hair that’s [...]

With short term rates spiking, there’s been lots of coverage about this topic this week. Below are some stories about why short term rates are spiking, including a couple good stories explaining what the TED spread is and why it’s important.

Federal Reserve Chairman Ben Bernanke said this morning that rates are “well positioned” to handle inflationary threats to the economy as well as sustained economic weakness. Markets are interpreting this news that rate cuts are over, and rate markets are trading higher on the news this morning. The ‘well positioned’ comment didn’t move markets as [...]

Fixed and ARM rates are up about .2% this week as bond markets start pricing in a possible end to Fed rate cuts. The results of this week’s FOMC rate policy meeting will be announced Wednesday, and markets expect a .25% cut to the Fed Funds Rate, which is a rate commercial banks charge each [...]

The last time mortgage rates were this bad compared to Treasury rates, dinosaurs roamed the earth…and this morning it continues. After Jobless Claims fell 24,000 to a much lower-than-expected 351,000, we find the 10-yr at 3.67% but 30-yr mortgage prices worse by .50 in price. Fixed income investors need to be reminded why they should [...]

Fixed and ARM rates are up slightly this week on mortgage bond weakness. Factory orders came in stronger than expected today, and bonds took this as a subtle sign that the Fed may only cut 25 basis points instead of 50. They’ve already cut 175 basis points in the past 4 months, and it typically [...]

Rates open this week up about .125% across the board, bringing the 3 week total to about +.30%. Rates held steady on Greenspan’s economic comments before Congress last week, but then bond markets sold off on the news of China removing it’s currency’s peg to the U.S. dollar. When bonds sell, prices decrease and yields [...]