Danny Salas

Chico, CA Interest Rates Market Report – Economic Influences – February 17, 2010

Is Our Money Safe

Over The Long Weekend

We’ve been in an interesting sort of vortex, let’s call it.  Interest rates are benefiting, and will continue to do so, until the European community can figure out a viable and systematic plan to get Greece out of financial ruin.  The biggest concern is that if Greece cannot avoid this fiasco, it will cause another ripple of pessimisim ’round the world, causing another world financial crises, and cats and dogs to live together.  Oh, sorry for that, this IS serious.  The lack of knowledge, regarding a recovery plan, is causing investors to fly to the safe-haven of Bonds and Mortgage-Backed Securities.

The Empire State Manufacturing Index

We came in a little hotter than expected, this morning, causing a little flurry out of Bonds and into Stocks.  This report showed that business has been picking up and is expected to continue to do so.  However, as I’ve written in the past, in order for things to shine a little brighter, we need jobs.  And, with more jobs, we need higher consumer confidence.  But, at least we’re starting to look as though we’re on the right track.

Greece Two

Fair Warning:  Just like the movie, this is going to suck!  Greece is in horrible financial status.  The solution that the European Union (EU) has given them is for Greece to come up with their own plan in one month’s time.  The EU has indicated that if Greece does not come up with a plan, then they will be heavily taxed and must cut their spending enormously.  Most, figure Greece will come up with a bandaid to sort of cover their wound, temporarily, but some are concerned that they will break their ties with the EU altogether, devaluing their currency and virtually wiping out the value of any savings wealth.  Any way you look at this, the pressure’s on.

Locking Advice

Yesterday, we managed to climb above the 100-Day Moving Average.  We’ve fallen below it, today, however, there is some support at the 50 and 25-Day Moving Averages.  Therefore, cautiously floating is recommended here!  Keep your eye on Greece, as the U.S. could potentially find themselves in a similar situation, if we’re not careful!

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This entry was posted on Wednesday, February 17th, 2010 at 9:00 am and is filed under Chico Home Loans, Home Buying, Interest Rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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