Tuesday, September 9, 2008
Monday, September 8, 2008
Fannie and Freddie moving market
A new era in mortgage lending begins today as Fannie Mae and Freddie Mac transition from Government Sponsored Enterprises to "government owned" and managed entities. The implicit guarantee behind Fannie and Freddie that we've known for decades is now explicit. The CEOs of both companies have been replaced and the companies have been moved into conservatorship by the U.S. Government. So this means the US government owns more of your home than most home owners do.
There are many unknowns, but one thing is clear... for now, the international and domestic stock markets have greeted the "mother of all bailouts" as positive. Stocks are moving significantly higher and treasuries are getting crushed in the stampede to equities. In fact, trading volume was so high in London this morning that the computer system at the London Stock Exchange melted down. London traders have been without access to their computerized pricing system for more than six hours.
Secretary Paulson and James Lockhart, the head of the Federal Housing Finance Agency (FHFA), have indicated that the portfolios of the "former GSEs" must shrink to reduce future risk to taxpayers. That's a nice idea, but who will buy mortgages in this environment if Fannie and Freddie decelerate their purchase activity? And, what kind of mortgages will Fannie and Freddie be buying in the future? Will they take on more or less risk? Will they continue to be saddled with the obviously impossible dual responsibilities of creating shareholder value while meeting the affordable housing goals of our government? Congress needs to define the roles of these two companies for the long term.
Would you like an Emini futures day trading coach that can help you be the best trader possible? Joel can help you find the best trades, follow a business plan and trade like a business.
There are many unknowns, but one thing is clear... for now, the international and domestic stock markets have greeted the "mother of all bailouts" as positive. Stocks are moving significantly higher and treasuries are getting crushed in the stampede to equities. In fact, trading volume was so high in London this morning that the computer system at the London Stock Exchange melted down. London traders have been without access to their computerized pricing system for more than six hours.
Secretary Paulson and James Lockhart, the head of the Federal Housing Finance Agency (FHFA), have indicated that the portfolios of the "former GSEs" must shrink to reduce future risk to taxpayers. That's a nice idea, but who will buy mortgages in this environment if Fannie and Freddie decelerate their purchase activity? And, what kind of mortgages will Fannie and Freddie be buying in the future? Will they take on more or less risk? Will they continue to be saddled with the obviously impossible dual responsibilities of creating shareholder value while meeting the affordable housing goals of our government? Congress needs to define the roles of these two companies for the long term.
Would you like an Emini futures day trading coach that can help you be the best trader possible? Joel can help you find the best trades, follow a business plan and trade like a business.
Sunday, September 7, 2008
S&P 500 Emini futures support and resistance Sept. 8 chart
1279, break out to 13031272.75 is the point of Control for direction
with a little momentum when we come off the highs watch out. Could be a sell off and head to
1260.75 watch volume on approach because from here it is a long way down.
Friday, September 5, 2008
Non farm payroll and the economy
Big news 8:30 AM EST lets see if the
Nonfarm payroll (NFP) employment continued its downtrend in July with U.S. employers shaving 51,000 jobs, marking the first time since May 2002 that the economy lost jobs for seven consecutive months. The Labor Department also reported last month that the U.S. unemployment rate rose to 5.7 percent—its highest level in more than four years—erasing all job gains made over the last year. Revisions to May and June's payrolls showed a total of 26,000 fewer jobs were lost than previously expected, bringing the number of jobs lost so far in 2008 to 463,000.
On the inflation front, the Commerce Department reported last week that the GDP price index was revised to an annualized 1.2 percent—up from the initial estimate of 1.1 percent—virtually eliminating any claims of recession for spring. The sharp easing in overall price index was technical in nature, caused by a spike in nominal imports cutting into nominal GDP growth. In contrast, the inflation for final sales of domestic purchases was revised up to a strong 4.3 percent, compared to the initial estimate of 4.2 percent.
Nonfarm payroll (NFP) employment continued its downtrend in July with U.S. employers shaving 51,000 jobs, marking the first time since May 2002 that the economy lost jobs for seven consecutive months. The Labor Department also reported last month that the U.S. unemployment rate rose to 5.7 percent—its highest level in more than four years—erasing all job gains made over the last year. Revisions to May and June's payrolls showed a total of 26,000 fewer jobs were lost than previously expected, bringing the number of jobs lost so far in 2008 to 463,000.
On the inflation front, the Commerce Department reported last week that the GDP price index was revised to an annualized 1.2 percent—up from the initial estimate of 1.1 percent—virtually eliminating any claims of recession for spring. The sharp easing in overall price index was technical in nature, caused by a spike in nominal imports cutting into nominal GDP growth. In contrast, the inflation for final sales of domestic purchases was revised up to a strong 4.3 percent, compared to the initial estimate of 4.2 percent.
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