Vital Statistics:
Last | Change | Percent | |
S&P Futures | 1838.3 | 2.1 | 0.11% |
Eurostoxx Index | 3122.8 | 1.3 | 0.04% |
Oil (WTI) | 102.4 | -0.3 | -0.34% |
LIBOR | 0.235 | -0.001 | -0.32% |
US Dollar Index (DXY) | 80.36 | 0.076 | 0.09% |
10 Year Govt Bond Yield | 2.77% | 0.02% | |
Current Coupon Ginnie Mae TBA | 105.4 | 0.0 | |
Current Coupon Fannie Mae TBA | 103.9 | -0.1 | |
RPX Composite Real Estate Index | 200.7 | -0.2 | |
BankRate 30 Year Fixed Rate Mortgage | 4.35 |
Markets are up small this morning on no real news. Bond and MBS are down. HP’s earnings beat consensus. Nat Gas continues to move higher based on forecasts of another polar vortex to hit next week. Nat Gas is up 36% over the past two weeks.
Fannie Mae posted a profit for the fourth quarter and will distribute $7.2 billion to Treasury. At this point, Fannie Mae has sent Treasury $121 billion, more than the $116 billion in aid it has received. The stock continues to climb, but emails have shown that the Obama Administration has no intention of letting the common shareholders have anything. So why do the common shareholders still exist? Because as long as the government holds under 80% of the company (they hold 79.9%), Fannie Mae’s debt doesn’t get consolidated on the government’s balance sheet (which incidentally was the reason why LBJ spun out a piece of Fannie Mae in the first place – so that Fannie Debt is not counted as sovereign debt. Of course the Obama Administration will have to deal with court cases from Perry and Fairholme so the Administration’s edict is not necessarily the last word.
The MBA just released fourth quarter delinquency and foreclosure data. The delinquency rate for 1-4 family homes was 6.39% in the fourth quarter, a drop of 2 bps from the 3rd quarter and 70 bps from a year ago. The foreclosure inventory was 2.86%, the lowest since 2008. The remaining inventory is concentrated in the judicial states on NY, NJ, CT, FL, IL.
Investors are beginning to focus more on buying distressed mortgages as a cheap way to secure property as the supply of foreclosed inventory has shriveled up, at least out West. Blackstone is beginning to wind down the amount of additional capital they are putting in the business. As I said yesterday, given that the big price increases are probably in the past and forecasts are predicting a more normal mid-single digit price appreciation pace going forward, the returns in this business today look a lot different than they did two years ago. When the smart early entrants are starting to eye the exit, you know the trade is getting played out.
The government regulators have trained their sights on the non-bank servicers which is evident from the stock prices of Ocwen and Nationstar. Ocwen’s sale of bonds tied to MSRs raised less than expected. New York has placed an indefinite hold on Ocwen’s purchase of a Wells MSR portfolio. The CFPB also gave a tongue-lashing to the industry at a MBA conference. So, while the servicers should have an interest rate wind at their backs, the regulators are dominating the news flow, which has put a damper on valuations.
Filed under: Morning Report |
http://en.wikipedia.org/wiki/Thomas_F._Frist,_Sr.
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Dang!
(You win on style points, too, “Carl”).
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I
f you mess with the bull…
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As usual, thanks for the analysis and commentary, Brent. I still learn something new from you every day!
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Interesting short piece on why and where insurance exchanges are working (or not).
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Thanks, Michi!
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You’re welcome, Brent!
Today’s little internet quiz. Are you left or right brained?
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Mich:
You linked to your results rather than the test.
edit: you can still get to the test from there…sorry
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“Congratulations. You use your brain equally.”
56% – rules, rationality, logic, etc.
44% – creativity, intuition, chaos, etc.
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“Congratulations. You use your brain equally.”
59% – rules, rationality, logic, etc.
41% – creativity, intuition, chaos, etc.
Jeebus, who knew? Must be something wrong with the test. 😉
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I got equal brained as well.
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Holy smokes!
53% left, 47% right.
Maybe there’s a reason we’re all here. . .
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59% creativity, intuition, chaos, etc
41% rules, rationality, logic, etc.
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So NoVA and Lulu are polar opposites. . .
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The suggestion that I might be more rational than Scott sort of freaks me out.
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lms:
The suggestion that I might be more rational than Scott sort of freaks me out.
According to the last test we took, you are also more libertarian than me. I am looking forward to the next test that measures how masculine/feminine we are. No doubt you will be more manly than me, too.
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“At this point, Fannie Mae has sent Treasury $121 billion, more than the $116 billion in aid it has received. ”
I’m sure Mel Watt can help them lose some money.
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that’s why we get along. clearly my creativity and passion counter her cold, ruthless logic.
WTF?
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WTF?, indeed!
I’ve just been toying with y’all all this time!
Nova, we should probably switch avatars!
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Fed publishes meeting transcripts from September 2008. Should be interesting reading.
I think this is the actual transcript.
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72 / 28 right brained…
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Call me Homer Jay, man.
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NoVA: the new avatar!
Bwahahahahahahahahahahahahahahahaaaaaaaaaa!!!!!!!!!!
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72 / 28 right brained…
You’d think you were an economist or something, Brent!
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Fed publishes meeting transcripts from September 2008
Almost halfway through it… Fascinating reading…Takeaways so far:
1) They had no idea of the severity of what was going on
2) They were still concerned about inflation – Janet Yellen was against cutting the Fed Funds rate.
3) Janet Yellen has a sense of humor..
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No doubt you will be more manly than me, too.
Ahem.
Not that there’s anything wrong with that. . .
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You’d think you were an economist or something, Brent!
Should have been a musician, I guess. Actually you would be surprised how many people in my business have a creative / artistic side..
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Brent:
Actually you would be surprised how many people in my business have a creative / artistic side..
Finance is filled with creative minds. It takes a lot of imagination to run a criminal enterprise.
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@ Scott
No doubt you will be more manly than me, too.
Yikes…………………low blow and all. But then again, maybe I’ve just been using the wrong bathroom all these 60 odd years. I might actually be stronger than you, that’s pretty manyly I guess!
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lms:
Yikes…………………low blow and all.
More a reflection of the tests than you, I assure you.
I might actually be stronger than you, that’s pretty manyly I guess!
Well, I certainly wouldn’t challenge you to a swimming race, that is for sure, you being a near-olympian and all that.
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It takes a lot of imagination to run a criminal enterprise.
. . . and not get caught. 🙂
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Scott
Unfortunately near only counts in horseshoes.
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and curling. I think. i really don’t know.
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nova:
and curling. I think. i really don’t know.
I really enjoy the curling. Very strategic.
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My grandma’s saying was “Close only counts in horseshoes and hand grenades.” Not quite sure where she got it from.
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women’s biathlon is where its at
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NoVA, do you have your TV on mute again right now?
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No .. i had a live stream going, but it timed out. don’t get the channel at the office.
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My results are identical to lulu’s. I’m a little skeptical.
I didn’t know how to answer several of them; on tests like this, I always stare at some of the questions and make an internal case for each answer. The shape preference and “which one is most like” were really unanswerable for me. Liked different shapes for different reasons. So I guess I probably am more left brained. When I am working on complex problems, though, I have found that I have to let them simply percolate for long periods of time, and eventually my brain finds the way through the chaos. Interesting stuff.
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I don’t like Homer nearly as well, nova.
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The left is completely unhinged on Clarence Thomas.
http://m.newyorker.com/online/blogs/comment/2014/02/clarence-thomas-disgraceful-silence.html?utm_source=tny&utm_campaign=generalsocial&utm_medium=facebook&mbid=social_facebook
Why? It’s weird.
Is it racism?
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McWing:
Why?
I suspect it is because they view him as essentially a traitor to the cause. Identity, and especially racial, politics is a cornerstone to leftist ideology. Blacks who don’t toe the line, being potential examples for others, are a lot more dangerous to the coalition than any white person, and hence their destruction is much more important.
Is it racism?
Of a sort.
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Well, how about we combine them.
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I mean, look at what Toobin writes here,
Thomas is demeaning the Court. Imagine, for a moment, if all nine Justices behaved as Thomas does on the bench. The public would rightly, and immediately, lose all faith in the Supreme Court.
That is objectively stupid.
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Is hatred of Clarence Thomas a tribal indicator
That must be expressed frequently?
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“They are, in fact, the public’s only windows onto the Justices’ thought processes, and they offer the litigants and their lawyers their only chance to look these arbiters in the eye and make their case. ”
or, i don’t know, the written opinions.
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They’ve never stopped being deranged over Thomas. That statement by Toobin is particularly stupid, but he is a particularly stupid and dishonest little man. Just like Linda Greenhouse, the stupid and dishonest little woman who is the other “mainstream” “journalist” on that beat.
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No shit, Toobin is completely unhinged. What percentage of Americans could even name a member of the Supreme Court let alone Thomas yet ALL would lose faith if no one asked a question?
Again, how is this tribalism, directed at the black guy not racism?
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Hasn’t he written a book about his life for Christ sake?
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Yes it is liberal racism. It was from the beginning with Thomas. People like Toobin lost their minds when he was nominated. Thomas is not a legitimate member of his own race, since he doesn’t hold the views Toobin approves for him to hold. And Toobin lives in one of the tiniest bubbles of DC/NYC/Ivy/Democrat/Official Media liberalism there is. He is oblivious to everything but what happens at his DC cocktail parties with members of the DNC and Journolists. He spent years screwing Jeff Greenfield’s daughter on the side. That’s just who he is. He speaks and writes for the 11 people who read the New Yorker.
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“Whitaker. Motherfucking. Chambers, on February 21, 2014 at 12:32 pm said:
Is hatred of Clarence Thomas a tribal indicator
That must be expressed frequently?”
Yes. When forced to acknowledge that he’s not an idiot:
“For better or worse, Thomas has made important contributions to the jurisprudence of the Supreme Court. He has imported once outré conservative ideas, about such issues as gun rights under the Second Amendment and deregulation of political campaigns, into the mainstream. Scalia wrote District of Columbia v. Heller, which restricted gun control, and Kennedy wrote Citizens United v. Federal Election Commission, which undermined decades of campaign-finance law, but Thomas was an intellectual godfather of both decisions. ”
all that’s left is to attack his demeanor on the bench.
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Toobin is an ignoramus. If he had the capacity to be embarrassed, this would embarrass him.
http://justicethomas.blogspot.com/2007/09/why-doesnt-thomas-speak-often-at-oral.html
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“I just think that it’s more in my nature to listen rather than to ask a bunch of questions. ”
Oh my God. There’s an introvert on the bench!
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Why waste your time researching and writing something useful when you can just reel off another Thomas smear?
Toobin probably had to get ready for a weekend in Aspen or Jackson Hole. Maybe St Barts. Trashing Thomas is quick and easy and pays the same.
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Thanks QB, that was a fascinating link.
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damn, hosers.
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Thanks for that link QB. Note also that Toobin contradicts his own earlier writing:
Edit: see also:
http://www.the-american-interest.com/wrm/2011/08/28/new-blue-nightmare-clarence-thomas-and-the-amendment-of-doom/
&
http://www.outsidethebeltway.com/the-triumph-of-clarence-thomas/
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More embarrassment for Toobin.
http://www.politifact.com/georgia/statements/2012/apr/16/clarence-thomas/clarence-thomas-gives-supreme-court-history-lesson/
They publish these “eight years silent” stories every so often. It is all ridiculous. Calabresi is correct: Thomas has been an intellectual heavyweight and very independent. He does express my own views more consistently than any other justice.
If you have ever been involved in any kind of panel discussion, argument, or debate like the Supreme Court, you also understand the dynamics Thomas describes. More vocal people tend to dominate. Quieter people who are more focused on and content to process what they are hearing come out looking even more reticent than they are, just because the vocal people vie for speaking time.
The whole thing is silly. They hate Thomas because he isn’t authentically black. He committed the cardinal sin of being a race traitor to liberalism.
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damn, hosers.
Argh! I’m stuck in an airport and couldn’t watch. I guess I won’t watch a replay.
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Another immigration post from Hack Sargent. This one ought to do it.
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NY State Senator proposes that parents be forced to take “parenting classes” if they want their kids to move from 6th to 7th grade. (Yes, it’s a Democrat.)
There really is no limit to the authoritarian nature of the left. Never again should anyone mockingly say “There ought to be a law”. Today’s hyperbole is tomorrow’s Democratic policy.
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Has he offered up what he’s willing to exchange for a path to citizenship?
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OT: Good piece on why Windows 8 is failing.
http://winsupersite.com/windows-8/what-heck-happening-windows
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jnc:
OT: Good piece on why Windows 8 is failing.
I bought my daughter a laptop with Windows 8 when it first came out. Since then I have had to buy 3 more laptops, and each one has been a Mac. Never again for windows.
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Has he offered up what he’s willing to exchange for a path to citizenship?
He was re-elected. That means whatever he wants is the will of the people. You’ll get nothing and like it, bagger..
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I don’t know how many (if any) of you guys this will apply to, but I found this list of former crushes and thought of you. Happy Friday!
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Never again for windows.
Only as long as I can stick with Windows 7 (or skip over 8 at some point). But by the same token, I’ll never, ever go with Mac. . . which means Linux/Android for me!
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You are a couple of decades off with most of those, Michi. Don’t even know who some are.
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I am an equal-opportunity hater. I hate both Windows and Mac.
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qb:
I am an equal-opportunity hater. I hate both Windows and Mac.
At home I use my ipad almost exclusively. The Mac laptops were all for the females in the house, who seem to love them. The youngest is stuck with the windows 8 hand-me-down.
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You are a couple of decades off with most of those, Michi.
I thought I might be. . .
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Since Mac transitioned to Intel processors, it’s a pretty good choice. BootCamp allows you to run Windows XP or Windows 7 on it natively which is nice.
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There is a good deal of dedicated legal software that does not run on the Mac or on Linux but only on Windows. Thus I use Windows and Linux. I have used the Mac OSX and liked it but I like Linux better.
I think W 8.1 customized to run the W 7 desktop on a computer is faster then W 7. Quite a bit faster and uses less resources. So while I would not compare it favorably to the OSX or to Linux I do think W 8.1 is better than W 7.
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I use parallels if i need to run a windows based program on my mac, which is pretty rare.
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Essentially all science writing is done in Windows. The easiest way to upload a ms to a journal is Word, the easiest way to submit a poster to a meeting is PowerPoint, data is essentially always in Excel.
Until journals and meeting organizers change that (and equipment manufacturers change their equipment control and data output from robots away from Office software) things aren’t going to change.
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There is no substitute for Excel…
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“72 / 28 right brained…
You’d think you were an economist or something, Brent!”
FYI, The wife weighed in this result and doesn’t believe it for 1 second…
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lms:
Weird. No sooner did I mention it yesterday than Ace links to it last night: Test your manliness
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FYI, The wife weighed in this result and doesn’t believe it for 1 second…
Heh!
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That question about being lost? The answer with using your phone, whirling around to orient yourself, walking 50 m in the wrong direction before turning around and heading in the right one?
Done that more times than I can count since I’ve moved here.
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Mich:
Done that more times than I can count since I’ve moved here.
Well, you are a woman…
I don’t know if I have asked this here before, but on a car GPS system, who here sets it so that the direction of the car moves as you turn (ie north always up regardless of which direction car is moving) and who here sets it so that the map moves as you turn (ie car always pointed up regardless which direction the car is moving)? I have long had a theory that this tendency is a male/female thing. Not at all sure how “transgendered” people fit the theory.
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I don’t know if he was the last one…
http://m.huffpost.com/us/entry/4832847?&ncid=tweetlnkushpmg00000016
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McWing:
It’s Chomsky. ‘Nuff said.
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I don’t *use* GPS. I sniff the wind and taste the dirt to get where I’m going.
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McWing:
I don’t *use* GPS. I sniff the wind and taste the dirt to get where I’m going.
Clearly you are more manly than I.
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BTW, I do not believe Europe will respond in any tangible way to a split Ukraine.
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I’m gonna post an open thread.
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