Danny Salas

Archive for December 14th, 2009

Chico, CA Interest Rates Market Report – Economic Influences – December 14, 2009

Bond Market Holding Steady

Headline News More Significant Than Economic News

A lot is happening in the headlines, this morning, but no economic reports until the rest of the week.  First, Citi has agreed to repay $20 Billion of the $45 Billion Bail-out funds that they received.  Dubai has been given $10 Billion by Abu Dhabi to assure the world that Dubai World has the ability to repay its debts.  This has given a feeling of stability to European Banks and Asian Markets.  Exxon has agreed to buy Energy Entity XTO, pushing the energy sector up in value, too.  Rates are remaining stable, even in the face of all of this relatively good economic information traveling the globe this morning.

HR 4173 Passes House

The Wall Street Reform Act and Consumer Protection Act passed Congress and is being sent to the Senate, today.  This bill would allow the Government Accountability Office to audit The Federal Reserves monetary policy decisions.  One the one had, you’d think that after the Global Credit Crisis, that this would be a good thing.  Perhaps helping regulate an industry that, obviously, got completely out-of-hand.  On the other hand, many feel as though government involvement in monetary policy can lead to higher inflation and higher interest rates.  This is what history has shown us, anyway.  But, we’ve never had a global meltdown like the one we experienced after, basically, no regulation in monetary policy was present.

The CFPA

This bill also proposes a new governmental agency to monitor and regulate the housing and credit industries.  The Consumer Financial Protection Agency.  Apparently, this Agency is structured to release more credit and lending regulations to states and smaller authorities, according to the Mortgage Banker’s Association.  ”Regrettably, the House moved forward and passed a bill that could adversely impact borrowers and lenders alike.  By not creating a uniform, national regulatory standard, the bill continues the conflicting and confusing patchwork of state and local laws that result in increased costs for borrowers,”  stated Chairman Robert E. Story.  We’ll have to see how this rolls out.

Locking Advice

We’ll have to cautiously float into the week and see if this week’s economic information can negate some of the losses from last week.

Related Must Reads

Dubai World Crisis with Other Links

What To Subscribe To:

Get Our Twitter Updates
Get Our Blog Blast
Connect With Us On Facebook