Vital Statistics:
| Last | Change | Percent | |
| S&P Futures | 1660.1 | -2.9 | -0.17% |
| Eurostoxx Index | 2806.9 | -11.1 | -0.39% |
| Oil (WTI) | 95.7 | -0.3 | -0.33% |
| LIBOR | 0.273 | -0.001 | -0.18% |
| US Dollar Index (DXY) | 84.01 | -0.240 | -0.28% |
| 10 Year Govt Bond Yield | 1.92% | -0.03% | |
| Current Coupon Ginnie Mae TBA | 104.2 | 0.2 | |
| Current Coupon Fannie Mae TBA | 102.7 | 0.2 | |
| RPX Composite Real Estate Index | 198.2 | 0.3 | |
| BankRate 30 Year Fixed Rate Mortgage | 3.66 |
Markets are slightly weaker to start the week on no real news. The Chicago Fed National Activity Index came in at -.53, indicating that manufacturing activity is decelerating. We saw the same thing in the Philly Fed last week. Merger Monday is back with a few new deals. Bonds and MBS are up small
This week is very data-light. The main market-moving event will be the release of the FOMC minutes from the April 30 meeting. The focus will be on the tapering of quantitative easing. We will also get existing home sales – it will be interesting to see if the lack of inventory is concentrated only in the hot markets like Phoenix and San Francisco, or is it more widespread. New Home sales come out on Thursday – given the good earnings we have seen from the homebuilders, this number should be good. Finally, on Friday we get durable goods. Expect activity to start to tail off after the FOMC minutes. By noon on Friday, most of the street will be on the LIE ahead of the long weekend, so spreads will widen and pricing will be lousy.
Wells has briefly suspended foreclosures after new questions from the OCC. Meanwhile, the payments from the settlements has been slow to arrive.
The bond market bloodbath bumped up borrowing rates quite quickly. After bottoming out at 3.4% in early May, the average 30 year fixed rate mortgage is 3.66%. That is a big move in a short period of time. In times of excessive volatility, it makes more sense to lock than float. LOs tell your customers they are basically speculating on interest rates if they choose to float.
Filed under: Morning Report |

They are out of control:
Washington Post article cited:
http://www.washingtonpost.com/local/a-rare-peek-into-a-justice-department-leak-probe/2013/05/19/0bc473de-be5e-11e2-97d4-a479289a31f9_story.html
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Meh, FauxNews.
What if a NYT reporter had been killed in Benghazi? Wonder what the coverage would look like.
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“AMY GOODMAN: “You say that President Obama is worse than President Nixon.
JAMES GOODALE: “Well, more precisely, I say that if in fact he goes ahead and prosecutes Julian Assange, he will pass Nixon. He’s close to Nixon now. The AP example is a good example of something that Obama has done but Nixon never did. So I have him presently in second place, behind Nixon and ahead of Bush II. And he’s moving up fast. . . .”
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Effing deniers! Prosecute them!
http://m.bbc.co.uk/news/science-environment-22567023
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Good piece on the mechanics of why using the Fed overnight discount rate for student loans (i.e. the Warren proposal) is absurd and will cost the government money.
http://www.washingtonpost.com/blogs/wonkblog/wp/2013/05/20/no-the-federal-government-does-not-profit-off-student-loans/
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jnc:
The CBO does not do that. It discounts all government loans using the returns on Treasuries of similar maturity.
F-ing hilarious. And this is the kind of thing that is driving public policy.
We are doomed.
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OT: On the IRS scandal, Democrats are trying to out do the Republicans and are in some cases succeeding.
““We should not only fire the head of the IRS, which has occurred, but we’ve got to go down the line and find every single person who had anything to do with this and make sure that they are removed from the IRS and the word goes out that this is unacceptable,” – Senator Claire McCaskill.”
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Heh.
@iowahawkblog: In the media’s defense, who could have anticipated a Chicago Machine pol neck-deep in ACORN/SEIU would be anything but squeaky clean?
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Good Mother Jones piece on the larger context of Obama’s war on leaks:
“Obama’s War on Whistleblowers
The president has been accused of allowing the Stuxnet leaks to help in the election, but his overarching policy has been extraordinarily tough on whistleblowing.
—By Peter Van Buren
| Tue Jun. 12, 2012 1:30 PM PDT”
http://www.motherjones.com/politics/2012/06/obamas-whistleblowers-stuxnet-leaks-drones
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Nova, from PL.
http://www.robertsarvis.com/
“”NoVAHockey
3:03 PM EST
have you heard of this guy before? I haven’t. “”
I signed a petition for him but I haven’t heard much about him beyond that. I tend to be wary of relaying to much personal details on PL, so if you want to discuss Sarvis, I’d prefer to do it here.
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jnc:
Your campaign slogan (“I Walk the Line”) comment on PL was hilarious.
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Good article today by James Taranto on the Obama admin scandals and what they mean.
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From Ace, on a new poll just out:
On IRS scandal, 56 percent think it’s a deliberate attempt to harass conservative organizations. (The other 44 percent are apparently dumber than dirt.)
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Interesting stats on hate-crime reporting by state. DC is number one (as percent of population). Eight of the top ten were blue states in 2012. The bottom 3? The deep south contingent of Louisiana, Georgia, Mississippi.
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