Bond prices are within stabbing distance of all-time record lows. And since bond prices are pretty intimately tied to mortgage interest rates, they are making rates so low that they’re off the chart, chain, hook, grid and wagon. Records only happen so often. These are the Michael Phelps’ of bond price lows.
Olympics references? I’ve got one.
I’ve told you pretty consistently lately that real estate statistics are pointing to a sustained and wide-spread recovery happening in home prices. Recent numbers did not disappoint. Year-over-year home sales and median home prices are up notably. New home inventory is falling. Homebuilders are being slowly pressured to increase production. All of this points to a floor beneath home prices. Whether it is artificial in nature, supported only by a cocktail of taxpayer subsidized rock-bottom rates and rule-bending governmental programs, we will have to wait to find out. But stability in my industry gets a big two thumbs up from this guy.
The potential downside is that we are still staring another wave of foreclosures in the eye. But the banks have gotten pretty darn good at turning those around. And frankly, we could use some inventory out there. So I don’t imagine there’s going to be a huge effect exacted upon national numbers from this round of foreclosures. But I suppose we shall have to wait and see.
Moody’s recently cut Italy’s sovereign debt’s credit rating by two tiers. Evidently Moody’s hasn’t watched the Sopranos. Those guys are freaking crazy. I’ve seen them give out some cement shoes for less. If I were Moody, I’d disappear for a few months.
Romney is narrowing the field of potential running mates. Shockingly enough, Condoleezza Rice seems to be bubbling to the surface as a front-runner. I gotta tip my hat to them: a black woman? That’s a minority-appealing double-whammy. Let no man say Republicans are not efficient in their politics. Maybe not elsewhere, but definitely in their politics.
I look forward to your hate-mail. I think I offended a wide variety of you with that one.
Jobs continue to be a drag on the economy, with the latest report not moving the needle on the unem-ployment rate and the growth pallid enough to potentially necessitate additional stimulus. That’s right! We’re back in the money printing business here shortly! Riiiiiiight until the critical level where toilet paper holds more value than the dollar. Then everyone would wipe themselves with dollar bills and that wouldn’t be very respectful to George Washington AND it would trash the toilet paper production industry. All sad circumstances. But between now and then, get them printing presses churning!
Europe is still causing untold sums of financial market confusion, and China is rapidly catching up as the biggest rock thrown into the metaphorical pond. I’m… I’m just sick of talking about this. Next.
The president’s health care reform bill held up in the Supreme Court in a 5-4 vote, and then was promptly voted for repeal by the House of Representatives for the ump-teenth time. It’s funny, be-cause I talk to insurance agents all the time who are directly affected by this and they all say “Well, we’ll see how it pans out.” There’s no certainty in politics is there? Everything is constantly up for debate? It’s like trying to ask your wife what she wants for dinner. She always tells YOU to pick, so you do. And then she says she’s not in the mood for that. And then you ask what SHE wants and she says “Whatever you want, honey.”
And this is why we golf. And drink.
Egypt now has their first freely elected president. I hope his first presidential edict is to make sure everyone starts “Walking Like an Egyptian” just to establish some sense of solidarity among his citizens. I know the Bangles would appreciate the free advertising.
Modern science has finally discovered proof behind the elusive Higgs Boson, otherwise lovingly known as the God Particle. Essentially, we’re now able to decisively explain how something can literally come from nothing, only this time without the assistance of psychedelic mushrooms. Many have extrapolated this to mean that scientists just proved God exists. Like, a shocking number of people have drawn this conclusion. I can only assume each and every one of them also has a favorite NASCAR driver and the corresponding set of collector plates displayed on their mantles.
People who draw wild, self-validating conclusions from discoveries in physics are dumb is what I’m getting at. Nothing against God. But the Higgs Boson doesn’t prove jack. Has nothing to do with economics or mortgages but doggonnit, it interested me.
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