Tag: Fed

Short Squeeze, Fed Still Buying, Strong Home Sales

If you are like me your probably read at least 5 stories about Gamestop this week. This is a great example of a ‘short squeeze.’ There has been other speculation about ‘pump and dump’ strategies and whether it really is a David vs. Goliath story (Cleary in runs like this the ones that got in […]

Capitalist Xmas Tree Story, Rates Flat, Jobless Claims Increase

Wanna understand the economics of Christmas Tree sales? Why not drive to the auction house and buy a truckbed full? Spoiler alert – they didn’t end up making a profit but one of their customers was a composer and made a great carol out of it. Rates – the price of Mortgage Back Securities (MBS) […]

Corona Data, Treasury Decline, Fed Emergency Cut

Coronavirus – the larger 40 page report can be found here. There is plenty of memes and noise circulating about the virus, here is a report from the World Health Organization. In this study of over 44,000 infected individuals 3.4% died. Certain factors heightened chance of fatality including: gender (males 4.7% vs 2.8% female), age […]

Female Labor Force, Soft Weekly Earnings, Fed Juice?

Women secured 95% of the net jobs added in December and for the second time in US history women make up over 50% of the workforce. This figure is for payroll jobs that excludes farm workers and self employed individuals. During the great recession men were handed ‘pink slips’ before women and there was a […]

Fed Considers Climate, Appreciation, Rates Climb

The Fed – looks to be considering how policies built around climate change will impact productivity and long-run economic growth and the implications for their ‘neutral level of real interest rate’ or target rate. Under the Community Reinvestment Act banks are obligated to meet needs of local communities, especially low-to moderate income communities that are […]

Jobs Report, Fed Rate Cut, Inflation Mild

Delayed maintenance can really bite you, and your clients. PG&E’s equipment has been blamed for starting a 100,000 acre fire that killed approximately 100 people and is now resorting to blacking out areas of its grid to avoid future incidents (they are estimated to be liable for $30B and it is speculated they will not […]

Negative Rates? Strong Home Sales, Rates Flat

Global Interest Rates – Jyske Bank in Denmark announced it is offering a negative interest rate on a 10 year fix with a ‘strong equity position’. Of course this is after fees but it’s interesting to think that you could take a loan on your house for another investment and get paid to do so! […]

Fed Talk, Rates Improve, What’s a Yield Curve Inversion?

The main way the Fed influences interest rates is very narrow, usually through a policy lever known as the federal funds rate. It’s the rate banks charge each other to borrow money overnight. By making it cheaper for banks to borrow, it makes it cheaper for businesses and households to borrow. That is the traditional […]

Rates Improve, Fed Cuts Likely, Conforming Low Income Program Updates

Both Fannie & Freddie have announced updates to their low income/down payment programs that give discounts on note rate and mortgage insurance rates (these programs allow: 3% down, boarder income, ADU income, & low down payment on owner occupied 2-4 units). The updates make it more challenging to qualify. Instead of allowing 100% of Area […]

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