Morning Report 9/7/12

Vital Statistics:

Last Change Percent
S&P Futures 1435.1 4.1 0.29%
Eurostoxx Index 2556.1 31.1 1.23%
Oil (WTI) 95.63 0.1 0.10%
LIBOR 0.408 -0.001 -0.15%
US Dollar Index (DXY) 80.77 -0.272 -0.34%
10 Year Govt Bond Yield 1.66% -0.02%
RPX Composite Real Estate Index 192.8 0.2

Markets are giving back earlier gains after a disappointing jobs report. Bonds and MBS are rallying on the number. The markets should be selling off on the lousy jobs report, but perhaps they are reacting to the possibility of more QE. Don’t fight the Fed, as they say.

Nonfarm payrolls increased by only 96k, a surprisingly weak number given yesterday’s ADP number which showed an increase of 200k. The Street was expecting 130k. June and July payrolls were revised down by 20k each. The unemployment rate fell to 8.1% from 8.3% due to a drop in the labor force participation rate, which now stands at 63.5%, the lowest level since the 81-82 recession.

Lawrence Yun has an interesting post showing how low mortgage rates are over the past 40 years. Unfortunately, it is mainly the professionals who are able to take advantage of these rates – the first time homebuyer is largely shut out.

Chart:  30 year fixed rate mortgage:

Vlog Brother On Taxes

Hank Green, one half of the Vlogbrothers, is a minor internet celebrity who usually stick to videos about Harry Potter and other aspects of nerdom but today he tackles explaining the tax code to his audience, many of whom are still living with their parents.

Feel free to critique.

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