Danny Salas

Archive for August 28th, 2009

Chico, CA Interest Rates Market Report – Economic Influences – August 28, 2009

The Week Turns Out Quite Well...Float Into Next Week

The Fed’s Favorite Gauge on Inflation

The Personal Consumption Expenditure Index (PCE) came out today.  It’s the Federal Reserve’s closets monitor regarding where inflation lurks.  The Index chilled at 0.1% growth.  That’s pretty measly, and it’s the slowest inflation readings since 2003.  Inflation is interest rates’ worst enemy, so this information should help keep rates low for a little while.

“Cash for Clunkers”

Spending’s up a bit.  Helped by the now complete government program to give cash incentives to help buyers get into new cars.  Heard something pretty interesting about their website.  I guess that the Patriot Act Enabled the government to get into anyone’s computer and check out everything they were up to.  Cash for Clunkers website, is an invitation, once you’re on the site, for the government to take a nice peak at what you’ve been doing lately.  Nice, huh?

Consumer Confidence Up?

According to the private Reuters / University of Michigan Survey consumer confidence was down.  However, forcasting into six months from now, the consumer feels confidently that we’re on the right track.  Even though these same people are in the worst financial situation since the survey began in 1946. 

Stocks Up Eight (8) Days

Stocks have increased over the last eight days for the first time since April of 2007.  I think they’re due for a reversal.  Bonds, and therefore, Interest Rates, should benefit. 

Next Week

Payroll Figures will be the most important information coming out next week.  Have an excellent weekend, and my recommendation is to float into next week, with (again), an itchy finger on the lock button.