Posts Tagged ‘employment’
Occupy Wall Street
The Occupy Wall Street movement appears to be gaining momentum. Thousands have taken to the streets today with hundreds being arrested. The Troll noted that he was concerned that the European riots would make their way to the U.S. (see Washington State. The Big Layoff). While the Troll agrees that Wall Street should be held accountable for their actions leading to current economic conditions, others should be held accountable as well (U.S. Congress). The 2012 elections will go a long way in shaping the path forward. Hopefully, voters will arm themselves with enough information to choose wisely.
The Troll
Mortgage Market Update for 9-14
The Troll wanted to post earlier this week but his loan processor is on vacation and he had to close some loans. Remember he is still a mortgage broker and real estate broker first. It must be this way because he has little trolls to feed. Did you know that little trolls have voracious appetites? Food for thought anyway and now onto the mortgage news.
The releases today were helpful to bonds and mortgage interest rates. The Producer Price Index (PPI)which measures the average change over time in selling prices received by domestic producers for their output came out at zero today. These prices are typically the first commercial transaction for many products and some services. It means that prices are not increasing for manufacturers and inflation is not problematic. Retail sales were also completely flat. These numbers are not indicative of an economic recovery. The Troll doesn’t see a recovery for quite some time. The immediate issues of the day are in Europe, U.S. housing and unemployment. Until these problems are solved, we can expect pretty low interest rates, with some occasional scares along the way.
Sec Treasury Geithner on CNBC this morning saying Europe has the financial strength to avoid defaults in the countries that are on the edge with debt. He said the obvious, that Europe’s problems are causing a lack of confidence in the US. He encouraged Congress to pass the jobs bill offered up by the Administration. He also admitted US growth isn’t what the Administration had expected.
Pessimism about the economy has deepened and confidence in both U.S. political parties has fallen, with only 20% saying the country is on the right course. As little as 9% of Americans say they are confident the economy won’t slide into a recession, according to a Bloomberg National Poll.
As long as the 10 yr note doesn’t climb above 2.10% the positive outlook will continue, a break above it would set up a run up to 2.30% and take mortgage rates up with it. Next week the FOMC will hold a two day meeting, some traders are looking for more Fed help, while others including some FOMC members don’t believe more quantitative easing (QE) is necessary.
The Troll