Giving Away America
Most markets went sideways today, and the Dollar continued its fall to new lows. Basically a day of churning
In the news today…..
Mortgage Applications – hit a high on low interest rates and the $8000 US tax credit on new home buyers. Mortgage applications were up 17% over the previous week. Refi’s represented 59.8% of all applications.
Mortgage Interest Rates – were 5.02% for a 30 year fixed mortgage (excluding fees), down 0.13% in a week, and a 3 month low for interest rates. The 15 year fixed mortgage rate was 4.45%.
GM and Chrysler loans – unlikely to ever be repaid, according to a Congressional Oversight Panel. This refers to the entire $81B given to the auto industry. To get the money back, the share value of the two companies would have to rise to levels never attained before – in other words a pipe dream. The report went on to say that GM and the government failed to make clear what criteria they were using to define success, so a real evaluation of the bailout could be assessed.
In my opinion, the real question to be asking is whether the price paid by the Bush and Obama administrations was greater or less than the amount that would have been spent if the government had just let the two companies to bankrupt. The went bankrupt anyway, and could have done it faster without the government interference.
US and UK AAA Credit Rating – will remain at AAA according to Moody’s. They said that only a sustained multi-year increase in the nations’ deficits would result in a downgrade.
First of all, who believes anything that Moody says? They lost their credibility in the housing meltdown when they failed to downgrade everyone associated with that fiasco. Second, what planet does Moody live on? Don’t they see what the Obama Administration is planning over a “sustained, multi-year period?” Obama is planning on having deficits for as long as he is President, and he plans to be President for as long as possible.
Tonight’s Dinner Conversation…..
China’s $300B sovereign investment company China Investment Company is planning on using some of those US Dollars to buy up distressed US commercial property, and to buy into the Geithner Private-Public Investment idea to sell of those toxic assets owned by our banks.
So, all those Chinese toys you bought gave the Chinese a bunch of money to buy the United States. Get ready to see Chinese signs in major cities – why would they want to speak English if they can force Chinese down our throats? Of course, I am being sarcastic, but this is a heck of way to give away America.
What are you thoughts on this issue?
Here are the last numbers for today (about 40 min before closing):
Dow Jones 30 Industrial – 9547 (up 50 points)
10 Year Treasury Bond – 3.48% (up 0.01%)
Euro – $1.4573
Gold – $991 (down $5)
Oil – $71.31 (up $0.21)
Gasoline – $1.83 (no change)
