Monday, July 14, 2008
Latre Friday had some major market moving news come out after the markets closed, which followed through the weekend with fed meetings. Late Friday Indymac officially imploded and fell under the umbrella of the federal government. That Whole FDIC insured sticker on the window came into play and clients with more than $100,000 are now wondering what to do. Over the weekend the Federal Reserve and white house both set down plans on how to shore up the Freddie/Fannie issue, leading to an initial gain and then downturn in stocks. Add to that Bush ending lifting the ban on offshore drilling and we have a stagnant oil market. The hope today is that the bond market will be the big winner and so far it has been. The only concern is the chance of a turn in any of the markets will drop the bond like it did on Friday. So far the bond has been hovering around 40-50 Bp up today. With investors still trying to digest all the news over the weekend (and some wondering if they are FDIC insured), I expect the real rally to happen later in the day. Keep a close eye out as this is going to be a fun ride. Until then, lets float in hope of better rates.
Karl Menzer
http://www.tooelehomeloans.com
435-849-0212
Great summation Karl, and sound advice. Thanks for blogging it, and good luck!
Thanks for the post Karl.
Looks like you'll have a lot of material to write in the near future.
Best of luck.