According to WSJ, the city of Las Vegas wants to use two million dollars of the economic stimulus for new neon signs. City officials are concerned, since they don’t want to make the city look tacky. PIMCO Wants Lower Rates Is it any wonder that Bill Gross wants mortgage rates to come down? Pacific Investment
Bill Gross
Bond king Bill Gross, head of PIMCO has a simple message in his February Investment Outloook: support asset prices. According to him, that’s the only way we will make it out of this crisis: Capitalism at its philosophical and practical center depends on credit, and while new loans can be and are being advanced via
Below is an excerpt summarizing bond investment recommendations from the PIMCO head Bill Gross’ January 2009 Investment Outlook. PIMCO’s view is simple: shake hands with the government; make them your partner by acknowledging that their checkbook represents the largest and most potent source of buying power in 2009 and beyond. Anticipate, then buy what they
In our first quarterly report of 2008, we proposed “Ride The Storm” as phrase of the year, and discussed how aggressive Fed rate cuts and higher conforming loan limits might “break the storm clouds” in mortgage and financial markets. As 2008 moved on, 85-year-old investment bank Bear Stearns collapsed, Congress passed two economic and housing
Following the Fed’s announcement last week that they would buy $100b in Fannie and Freddie debt plus buy $500b in Fannie, Freddie, and Ginnie mortgage backed bonds, rates on conforming loans dropped by about .625%. If a borrower with 720 credit and a 20% down payment were looking at rates today, a 30yr fixed rate
Markets are even in the hour following the House’s 263-171 approval of the Treasury’s $700b financial sector bailout package, and it passed the Senate yesterday. Now it goes to the White House and President Bush has already said that he would sign it into law. It’s widely expected that Treasury can start purchasing illiquid assets
Fixed and ARM rates are down about .25% in the two weeks since I suggested rates could be in a +/–.25% trading range until Fall. July’s inflation reports released in the past few trading days showed the highest consumer price spike since 1991, when California’s current governor hit his prime with Terminator 2; and the
In an interview with CNBC today, PIMCO chief Bill Gross covered a broad array of economic topics, most notably saying that “no one really knows—the banks, Fannie or Freddie, the Treasury, the Fed, PIMCO—no one really knows where the bottom is for housing.” He said that as prices keep going down it perpetuates a cycle
In his August 2008 Investment Outlook bond king Bill Gross points out that despite Fed Funds being lowered by 3.25% since last September, yields on agency mortgage backed securities are actually higher (see chart). We’ve discussed this repeatedly on this site, noting that after each of the cuts that was made since September, mortgage rates
Rates/Commentary, week of May 23, 2005. Rates are holding to lows from last week. This week’s data includes Fed meeting minutes Tuesday, which will give us a follow up on last week’s inflation data; existing and new home sales Tuesday and Wednesday; and personal income and spending Friday. Should be no surprise from the record