Morning Report – Slow News Week 3/10/14

Vital Statistics:

 

  Last Change Percent
S&P Futures  1875.0 -3.1 -0.17%
Eurostoxx Index 3104.7 9.4 0.30%
Oil (WTI) 101.4 -1.2 -1.17%
LIBOR 0.234 -0.001 -0.55%
US Dollar Index (DXY) 79.74 0.024 0.03%
10 Year Govt Bond Yield 2.78% 0.00%  
Current Coupon Ginnie Mae TBA 105.5 0.0  
Current Coupon Fannie Mae TBA 104.2 0.0  
RPX Composite Real Estate Index 200.7 -0.2  
BankRate 30 Year Fixed Rate Mortgage 4.37    

 

Markets are lower on no real news. Bonds and MBS are flattish.
 
We have a data-light week coming up, with nothing today, and then a few reports that aren’t really market moving. The biggest one will probably be retail sales on Thursday.
 
Man Bites Dog:  CFPB is guilty of discrimination under the disparate impact theory.
 
The NAHB Leading Markets index shows that 59 out of 350 metro areas returned to or exceeded their last normal levels of economic and housing activity. This index is based on housing and jobs activity. Overall, the nation is running at 87% of normal economic and housing activity. 
 

 

Professional Investors have been driving up the price of housing in some areas to unaffordable levels. We are seeing that happen in South Florida, and probably Southern California as well. Which begs the question: What is their exit strategy? 

60 Responses

  1. Good piece by Dave Weigel on the PPACA & the Florida special election.

    “Obamacare’s Ground Zero
    Florida’s 13th congressional district may be where Democrats learn to live or die with the Affordable Care Act.
    By David Weigel ”

    http://www.slate.com/articles/news_and_politics/politics/2014/03/obamacare_s_ground_zero_is_florida_13th_congressional_democrats_want_to.html

    Like

  2. Megan McCardle on the ACA enrollment

    “It should also make us question the whole decision to include the exchanges in Obamacare, because in this telling, they’re mostly giving subsidies to folks who were already buying insurance. Of course, they may be very happy about their subsidies, but I doubt that “subsidize people who are already buying insurance” would have been in the Top 10 on anyone’s policy agenda. A clean Medicaid expansion probably would have delivered more coverage at less risk of destroying the individual insurance market.”

    http://www.bloombergview.com/articles/2014-03-07/how-not-to-help-the-uninsured

    Like

  3. From the McArdle piece.

    Before Obamacare, experts believed that a lot of people wanted to buy insurance, and they were willing to buy insurance that cost, say, 10 percent of their income, but couldn’t find insurance in that price range — or couldn’t buy it at all because of their pre-existing conditions. The numbers in the McKinsey study would suggest that this group was actually very small.

    There’s gonna be some very hard truths coming out of The Abomination.

    Like

  4. “say, 10 percent of their income, but couldn’t find insurance in that price range”

    this happens more than you’d think. Number are selected arbitrarily.

    Like

  5. It’s racist and homophobic think otherwise. Remember the real enemy, Tea Baggers.

    Like

  6. Wow!

    This might explain a lot.

    Like

  7. I’m pretty sure frackiing caused Guam to capsize.

    Like

  8. Ed Schultz thinks us Tea Baggers want to elect Dick Cheney.

    Seriously.

    Like

  9. Salon’s writers are despondent today:

    “We are all right-wingers now: How Fox News, ineffective liberals, corporate Dems and GOP money captured everything

    Is the left enjoying a moment of triumph — or has a president with no bearings left the Tea Party in charge?

    Thomas Frank
    Sunday, Mar 9, 2014 07:00 AM EST”

    http://www.salon.com/2014/03/09/we_are_all_right_wingers_now_how_fox_news_ineffective_liberals_corporate_dems_and_gop_money_captured_everything/

    &

    “How white millennials will (temporarily) rescue the GOP
    How conservatives can still forestall their demographic decline

    Alex Pareene
    Monday, Mar 10, 2014 07:45 AM EST”

    http://www.salon.com/2014/03/10/how_white_millennials_will_temporarily_rescue_the_gop/

    Like

  10. I like how they just operate from the unquestioned premise that true left is out there but can’t get organized in short time period, and that’s why they lose,

    but the TP is fake and just a gussied up Bircher movement.

    Like

  11. from JNC’s second link.

    “What replaces it might just be fiscal austerity and legal weed.”

    and what more do we want from government, really.

    Like

  12. More Klan than Bircher but pretend the Klan were always Republican.

    Like

  13. I wonder if Teh Krugman actually believes this?

    So what I found myself thinking about was the common trope on the right that the economic crisis is the result of overlarge welfare states. This is generally stated not as a hypothesis but as a fact. But what do the data say?

    http://mobile.nytimes.com/blogs/krugman/2014/03/08/redistribution-and-the-lesser-depression/

    Like

  14. Also there was a “Get Covered” on the Ed Schultz show. Doesn’t seem like wise use of advertising dollars.

    Like

  15. So what I found myself thinking about was the common trope on the right that the economic crisis is the result of overlarge welfare states. This is generally stated not as a hypothesis but as a fact. But what do the data say?

    I don’t know anyone who makes that argument. I would love to find a piece that asserts Medicare, Medicaid, or AFDC caused the real estate bubble.

    Krugman doesn’t just massage people’s statements to create strawmen – me makes them up out of whole cloth.

    Like

  16. Let’s hear it!

    http://talkingpointsmemo.com/cafe/today-we-honor-abortion-providers

    Good time for us to remember this from SCJ Ruth Ginsburg:

    Frankly I had thought that at the time Roe was decided, there was concern about population growth and particularly growth in populations that we don’t want to have too many of. So that Roe was going to be then set up for Medicaid funding for abortion.

    Like

    • McWing: (from the link):

      In 1996, March 10th was declared National Abortion Provider Appreciation Day.

      Declared by who?

      Like

  17. ” having admitting privileges has nothing to do with a doctor’s competence or a woman’s safety.”

    so? most of what I deal with every day has nothing to do with patient safety.

    Like

    • nova:

      so? most of what I deal with every day has nothing to do with patient safety.

      I’ve raised this issue here at ATiM a couple of times before. There seems to be a belief among pro-choicers that abortion providers should be exempt from the same regulatory regimes that all other medical service providers have to operate under.

      Like

  18. Only a misogynist would ask “who.”

    Like

  19. Fucking Libertarians… they might get hold of the reins of power and leave you alone! The horror!

    Like

  20. i’m sending that Koch donation piece to the hospital lobbyists I know.

    Like

  21. ” same regulatory regimes that all other medical service providers have to operate under.”

    try setting up a shop to sell a wheelchair to a Medicare patient. it’s incomprehensible without someone who knows the rules.

    Like

  22. There was a real drought of Immigration posts from Hack Sargent and I was getting worried.

    His concern for the long term viability of the Republican Party is touching.

    Like

  23. I think Krugman is referring to Europe when he writes about the welfare state piece, specifically the issues with Greece.

    Like

  24. J, I agree he was referring to Europe, but it still holds true, I don’t know any rightwing economists blaming the Euro crisis on the Welfare State.

    Like

  25. Greece was known to be a problem due to corruption and poor tax collecting / tax paying on the part of the govt./citizenry. Also, cheap money – borrowing is a moral hazard, no? Isn’t that the problem that was cited among the PIIGS?

    Like

  26. I think some of you know our youngest landed the plum job coming out of School of Mines the year she graduated. She had her choice of 7 jobs but chose the one everyone wanted because she got to stay in CO. Eventually she may have to go to Houston for a year or two but only if she wants to. They won’t pressure her too much. Anyway, she just finished the review process for her first year and found out the results today.

    If anyone knows any high school or college kids interested in geology, encourage them to study petroleum………………Jeebus. She just got a 10.5% raise, a 30K bonus and another 40K in stock. Her project has been deemed the number one play in the Denver office this year and she got the go ahead to begin drilling arrangements. Her first well…………………who knew a somewhat shy kid from “Horsetown USA” would end up being an Oil Tycoon (a bit of an exaggeration but still pretty cool). And she’s still a liberal to boot!

    Had to brag!

    Like

  27. Congratulations to your daughter!

    Ya know, Houston is a great city! Very cosmopolitan.

    Like

  28. Thanks McWing. She already spends quite a bit of time there but isn’t overly fond of it……………she’s the outdoor type and really loves CO, UT, WY and MT. Her oil field is in WY but part of the Green River basin which is where she did her research except in UT. Not sure she’ll be able to drag her boyfriend with her if she decides to go for a year or two. She’s having a tough time right now because she tore her ACL, MCL and Meniscus skiing about 3 weeks ago. She was supposed to be in WY this week on a skiing trip so this news today cheered her up considerably. I’m going out there April 7 to help her get past surgery on the 8th.

    I’m serious about geology!

    Like

  29. “go ahead to begin drilling arrangements”

    Drilll baby Drill!

    That’s excellent news.

    I have family in the petroleum business. advocacy, natch.

    Like

  30. Congrats lmsinca.

    “I’m serious about geology!”

    You mean you don’t automatically make that kind of money in art history?

    Like

  31. Look, Imma be honest…

    I don’t give a shit aboot SXSW.

    Like

  32. Jnc, haha, our other daughter is actually a starving artist……

    Like

  33. well, now she can be inpsired by that dirty, dirty oil money

    Like

  34. Congrats to your daughter, Lulu!

    And that must’ve been one helluva skiing accident to rip her knee up like that–yikes!

    Like

  35. Amusing article re Immigration and Democratic with Republicans. Amnesty will fundamentally split the Republican Party and the D’s know this. It’s funny to watch the foot stomping.

    http://www.politico.com/story/2014/03/immigration-reform-104483.html

    Like

  36. Thanks Michi, they think her MCL will heal on it’s own, but they’re using part of her own hamstring to replace her ACL (instead of a cadaver), it completely snapped, and repairing her meniscus on the same day. She has a great Denver doc though so fingers crossed for a full recovery. She’s gonna want to ski next year!

    Like

  37. Valadao and Denham are two of the three House Republicans who have endorsed a comprehensive immigration reform plan written by Democrats, and have been privately lobbying their colleagues on the benefits of an overhaul.

    Uh, that’s not quite enough and exceedingly telling of IR’s toxicity on the right.

    Read more: http://www.politico.com/story/2014/03/immigration-reform-104483.html#ixzz2vbHVyqTA

    Like

  38. We have a social security demographic problem… We can solve it a few different ways:

    1) Invent a time machine and change fertility rates 40 years ago
    2) Drastically cut benefits
    3) Drastically raise taxes
    4) Allow for more immigration.

    I personally prefer the first option, but think the fourth is the next best option.

    Like

  39. Agreed, I’m Open Borders / Instant Citizenship guy. The R base however does not trust Obama to enforce the law (hell, they don’t trust R’s either) and has not been adequately prepared for the unsustainability of ALL the entitlement programs.

    So, why choose this upcoming cycle for suicide?

    Like

  40. See if you can spot the problem.

    Like

  41. what’s the most you would have your fellow Americans sacrifice to reverse it?

    Their first- and second-born children. If they’re childless, their dog.

    Oh, and their guns. Every single one of them.

    Like

  42. Hah! Ok, I’d agree to the kids and the dog!😧

    But in all seriousness, what’s the most that should be required?

    Like

    • As I wrote on 3/7 Reid is a jerk.

      Like

      • Mark:

        UTTERLY PAINLESS WAY FOR FEDGOV TO SAVE $105M/YR IN WASTE:

        I wonder if this includes the value of the pennies (and nickels) that get taken out of circulation each year. Just as there is a cost for the materials that go into new pennies, presumably there is some gain from the materials that come out of pennies that the treasury removes from circulation.

        Like

      • Mark:

        As I wrote on 3/7 Reid is a jerk.

        It is somewhat remarkable that what Reid said about a private individual isn’t a significant scandal. That such an attack by a sitting Senator on the Senate floor wasn’t bigger news is testimony, I think, to 1) how partisan the media is and 2) how accustomed the right has become to such attacks in general. When was the last time we saw such a thing on the Senate floor? Ted Kennedy did it to Bork, but Bork was not just a private individual. Probably not since the McArthy era.

        Like

        • I agree. As I wrote on 3/7:

          Harry Reid is a jerk. Specifically, he personally attacked the Koch brothers as “unamerican”.

          Public attempted intimidation of private citizens,by ranking members of Congress, for exercising their rights as private citizens, is bullshit, and ought to be called down by Ds, who have apparently forgotten the lessons of the McCarthy era.

          Changing campaign finance laws, mainly by making all contributors public, if for no other reason than to expose foreign influences, is a legitimate cause. Attacking citizens personally for making permissible contributions reeks of Putinism.

          Like

  43. “It is somewhat remarkable that what Reid said about a private individual isn’t a significant scandal.”

    I think that the general presumption by the media is that the Koch’s aren’t “private individuals” but rather significant players in the political process who have a platform of their own. Ala Donald Trump & birtherism.

    I think that Reid also benefits from lowered expectations. After the whole Romney tax return lying episode, Reid is easily dismissed as a pure hack, regardless of being the Senate majority leader.

    Like

    • jnc:

      I think that Reid also benefits from lowered expectations. After the whole Romney tax return lying episode, Reid is easily dismissed as a pure hack, regardless of being the Senate majority leader.

      I am sure that is true. But the R’s have their share of hacks who say outrageous things (and usually much lower profile than Reid), and the media rarely gives them a pass just because they’re hacks.

      Like

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