Morning Report: 10/20/2014

Markets are lower this morning after IBM withdrew its 2015 forecast. Bonds and MBS are up small.

Earnings will dominate the week. Tonight we will hear from mortgage REIT CYS investments. Later this week homebuilder PulteGroup will report, along with more regional banks. Apple will report after the close today.

The Mortgage Bankers Association Conference will be going on today and tomorrow. Secondary desks and dealers will probably be understaffed until Thursday.

Mel Watt is expected today to unveil new measures to increase access to credit in the mortgage market this week. The biggest one is a new Fannie Mae product for the first time homebuyer with a 3% down payment. Another is a program which gives the first time homebuyer a break on mortgage insurance if they go through a counseling program. FHFA is also expected to make some clarifications regarding buyback risk.

Why were US stocks rocked so violently last week on European weakness? Remember the old adage – during a crisis, you sell what you can, not what you want to. US stocks remain the most liquid risk asset. On a side note, almost $1 trillion worth of Treasuries traded on Wednesday last week, a record. That is looking more and more like the big capitulation trade and should be the top of the bond market for a while.

Left wing Jared Bernstein on how the Fed can reduce income inequality. Proving once again that the left learned absolutely nothing from the real estate bubble. It still thinks it can prevent asset bubbles by regulating Wall Street.

15 Responses

    • nova:

      Glad i graduated about 15 years ago.

      Really interesting article. My sophomore daughter was home for Columbus day and a big topic of conversation was the new CA law along with sex on campus more generally. Money-quote from her: “People need to know the difference between rape and regret.”

      Like

  1. she gets it.

    Like

  2. Its punishment for patriarchy.

    Like

  3. It’s also basically a call for colleges to resume the “In loco parentis” role.

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  4. Worth noting again for the brazenness of the flip flop

    “Obama opposed marriage equality until May of 2012. He told me that he now believes the Constitution requires all states to allow same-sex marriage, an argument that his Administration has not yet made before the Supreme Court. “Ultimately, I think the Equal Protection Clause does guarantee same-sex marriage in all fifty states,” he said. “But, as you know, courts have always been strategic.”

    http://www.newyorker.com/magazine/2014/10/27/obama-brief

    Not just the courts. Some candidates were “strategic” when stating what they believed when running for office as well.

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  5. Perhaps Paul Krugman can turn his concern over abuse of monopoly power to something like this:

    “Caremark-managed health plans will now charge an additional $15 co-pay for any drugs picked up in a pharmacy that sells tobacco products, the Wall Street Journal’s Pharmalot blog reports Monday morning.”

    http://www.vox.com/2014/10/20/7014987/cvs-cigarettes-co-pays-pharmacies

    Like

    • jnc – from the link:

      CVS told Pharmalot this isn’t about profits and that they’ve had insurers who use Caremark ask about setting up tobacco-free networks

      What a crock!

      Like

  6. “Perhaps Paul Krugman can turn his concern over abuse of monopoly power to something like this:”

    Why do you hate the children?

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  7. OWS activist reminds everyone why OWS was a self marginalizing joke in the first place by trying to shift blame on why OWS didn’t succeed to Jon Stewart and the Daily Show.

    http://www.salon.com/2014/10/18/the_day_jon_stewart_quit_why_the_daily_show_isnt_the_satire_america_needs/

    Like

  8. Yes, but it’s selective. By design, it’s not supposed to be an objective standard.

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  9. “The first comic Jamie ever saw live before deciding to dedicate his life to stand-up comedy was Jon Stewart at Carnegie Hall. Actually, that’s not true. His first stand-up show was “The Amazing Johnathan” at the Stress Factory. But which sounds more romantic? Honestly? Political satirist at the most prestigious venue in Manhattan, or the yelling prop magician in New Brunswick, New Jersey?”

    Who cares what’s true. OWS in the first paragraph.

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  10. Like

  11. I’d say i’m shocked. but i’m not. the really sad part is that people who should know better will believe it.

    meanwhile, RCP has NH Sen in “toss up”
    http://www.realclearpolitics.com/epolls/2014/senate/nh/new_hampshire_senate_brown_vs_shaheen-3894.html

    Like

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