San Diego Home Mortgage Blog

“There are some in the financial industry who are misreading this moment,”......“Instead of learning the lessons of Lehman and the crisis from which we are still recovering, they are choosing to ignore them.”....“the storms of the past two years are beginning to break,” .......“While there continues to be a need for government involvement to stabilize the financial system, that necessity is waning,”..... “normalcy cannot lead to complacency.” speaking directly to Wall Street and the big banks......“You don’t have to wait to use plain language in your dealings with consumers,”..... “You don’t have to wait for legislation to put the 2009 bonuses of your senior executives up for a shareholder vote. You don’t have to wait for a law to overhaul your pay system so that folks are rewarded for long-term performance instead of short-term gains.”....“But the old ways that led to this crisis cannot stand,”...... “And to the extent that some have so readily returned to them underscores the need for change and change now.” ..... Snippets from Pres Obama's speech in New York at 12:00 today in New York.

The Pres, and of course Barney Frank, are on it with regulatory reform. The Frank said on CNBC this morning that Congress will deal with it before it adjourns in Dec. Congress was supposed to quit in Oct but with this stuff and other important matters, not to mention the anger that many now have over Washington politics, they better not leave.

There were no economic reports today; markets paid respect to the President and managed a slight improvement after opening 65 points lower following all global markets lower this morning.

Tomorrow, 4 key economic readings; at 8:30 August retail sales, expected to be +1.9% overall (thanks to clunkers), ex auto sales up 0.4%. August PPI is expected to be up 0.8% overall but taking out food and energy +0.1%. Markets are not concerned about inflation currently but if the core PPI is higher than expected it won't be but a nano second before the worrying starts. Finally at 8:30 the NY Empire state manufacturing index is expected at 15.0 frm 12.08 in July; July was the first month the index jumped into positive readings (any read over zero is considered expansion). A 10:00, rounding out the data tomorrow July business inventories estimates are for a decline of 0.8%.

We mentioned it this morning but again we point out the 10 yr note yield failed on Friday at key technical resistance at 3.28%, this afternoon at 3.41% and likely moving to re-test support at the 3.50% area-------unless stocks fall and that appears unlikely as investors can 't stop buying and totally refuse to sell.

PRICES @ 4:00 PM

10 yr note: 101.22 -19/32 3.42% +7 BP

5 yr note: 100.02 -8/32 3.36% +6 BP

2 Yr note: 100.05 unch 0.92% +1 BP

30 yr bond: 104.14 -30/32 4.24% +6 BP

Libor Rates: 1 mo 0.241%; 3 mo 0.295%; 6 mo 0.676%; 1 yr 1.253%

30 yr FNMA 4.5 Nov: 100.03 -11/32 (.34 bp) (-7/32 (.21 bp) frm 10:00)

15 yr FNMA 4.0 Nov: 100.18 -9/32 (.28 bp) (-5/32 (.15 bp) frm 10:00)

30 yr GNMA 4.5 Nov: 100.09 -10/32 (.31 bp) (-6/32 (.18 bp) frm 10:00)

15 yr GNMA 4.0 Nov: 101.07 -8/32 (.25 bp)(-4/32 (.12 bp) frm 10:00)

Dollar/Yen: 90.98 +0.17 yen

Dollar/Euro: $1.4617 +$0.0049

Gold Dec: $1,000.70 -$5.70

Crude Oil Oct: $68.90 -$0.39

Goldman-Sachs

Commodity Index: 452.55 +1.13

DJIA: 9626.80 +21.397

NASDAQ: 2091.78 +10.88

S&P 500: 1049.33 +6.60