Stocks are lower this morning on no real news. Bonds and MBS are up and the 10 year is flirting with a 1.6 handle
Initial Jobless Claims fell to 267k last week, while consumer comfort dipped slightly.
The Fed re-affirmed their dovish bent in the March FOMC minutes, which were released yesterday afternoon. In discussing the global financial situation, the money quote was: “Nonetheless, many participants indicated that the heightened global risks and the asymmetric ability of monetary policy to respond to them warranted caution in making adjustments to the stance of U.S. monetary policy.” The markets have been saying that via the Fed Funds futures for a while now. An April hike is off the table. With the US economy improving, while the rest of the world deteriorates, the Fed doesn’t have to be aggressive in hiking rates. We are in uncharted territory here with zero and negative interest rates. They are going to be cautious raising rates when the rest of the world is cutting rates. 2016 could be shaping up to be a great year for mortgage bankers.
The German Bund yield is now a single-digit midget, trading at a 9 basis point yield. The Japanese 10 year yield has been negative since February.
Hedge fund giant Apollo is into the “seller financed” market for low income / bad credit borrowers. It is a hybrid purchase / rental model, where the seller keeps the title and the borrower is responsible for upkeep. Some have called this a predatory model. “Whether the process is called a land sale, contract-for-deed, bond-for-title or something else, the idea is the same: While it gives some low-income Americans a path, though long and winding, to homeownership, it can also be a way for investors to profit from borrowers who don’t qualify for mortgages.”
Filed under: Economy, Morning Report |
Contracts-for-deed have been widely used in TX for many years. The Lege has passed protections for the Buyer, over time, and it can be a useful mechanism.
I sold a home on such a contract back in 1980 or so, to a Nurse Practitioner who had recently moved to Austin. After one year, she refinanced and paid me off in full.
She was a good credit risk on her new job, but was thousands short of a down payment, until after a year in her new position.
FRIST!
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Jonathan Chait has apparently been reading PL:
http://nymag.com/daily/intelligencer/2016/03/oh-good-were-arguing-whether-marxism-works.html
http://nymag.com/daily/intelligencer/2016/03/reminder-liberalism-is-working-marxism-failed.html
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well, i learned today that Cruz is Hitler 3.0 and those kids are heroes.
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And that you don’t know anything about Medicare or health care costs.
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that’s seriously annoying.
well i’m an engineer and deisgned a medical device one. ooh. glad a lobbyist got it through the FDA process for you.
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Good article on media bias for and against Sanders.
“Is the media biased against Bernie Sanders?
Updated by Ezra Klein on April 7, 2016, 2:10 p.m. ET”
http://www.vox.com/2016/4/7/11378858/sanders-media-bias
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Good article on media bias for and against Sanders.
Generally, a revealing, and for once, self aware piece, I think.
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Jesus, women are stupid.
http://nypost.com/2016/04/05/gay-talese-has-nothing-to-apologize-for/
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Not all women are feminists, which all the complainers were (and some were dudes, don’t forget, saying it was absurd that Gay Talese wasn’t inspired by any female writers when he was young and he was evil or something for saying it).
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George, if you don’t know about Milo Yiannopoulos, you should.
http://www.breitbart.com/author/milo-yiannopoulos/
http://www.vox.com/2016/4/4/11355876/milo-yiannopoulos
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The author of the Milo piece revealed A LOT about themselves.
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What’d they expect with their wrongthink?
http://overlawyered.com/2016/04/ag-subpoenas-cei-climate-wrongthink/
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This should be interesting:
“Liberia is outsourcing primary schools to a startup backed by Mark Zuckerberg
Updated by Jennifer Williams on April 8, 2016, 8:20 a.m. ET”
http://www.vox.com/2016/4/8/11347796/liberia-outsourcing-schools
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So Springsteen is canceling his NC concert.
How did allowing drag queens to use the womens’ room become a cause celebre of the left?
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Tranny hater!
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It is amazing that accommodating 0.3% of the population’s potty desires is now a national issue…
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On an actual policy note, here is a critique of the anti-inversion crackdown, with ammo for everyone, but the part I most agree with is rationalizing the corporate tax structure to eliminate tax arbitrage invitations. First, lower the American top corporate rate to 25%, then close the most egregious loopholes.
Of course, I would also favor allowing the deduction of dividends paid, to eliminate the double taxation. But that is farther down the road than the article.
http://www.economist.com/news/business/21696542-open-warfare-breaks-out-between-white-house-and-americas-tax-shy-multinationals-pfiasco
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80% of international trade tonnage is moved on ocean going ships. These run on giant diesel engines. There are multiple long term problems with this. First, the enormous quantity of diesel burned by a big ship is wasteful.
They get maybe 40 gallons per mile at less than full speed. They use more than a 100,000 gallons to cross the Atlantic Ocean. There are maybe 90000 big diesel ships operating.
Second, they are seen as a huge polluter – they generally use high sulphur diesel. And of course:
Third, Global Warming.
So the first obvious answer is nukes, but the USN is not about to share that technology. So the second obvious answer is – sails.
http://www.economist.com/news/science-and-technology/21696488-wind-power-makes-another-comeback-we-are-sailing
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An interesting take on the short handed Supremes:
https://www.washingtonpost.com/opinions/the-supreme-court-stays-true-to-its-democratic-mission/2016/04/10/9b49e460-fd9b-11e5-9140-e61d062438bb_story.html
I think Roberts has a well earned rep as a consensus builder. Comes in handy on a divided Court.
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While Dr. Doom has couched this article as a criticism of a Federal District Court decision, I think it is intended as a [perhaps subtle] criticism of Sanders’ campaign.
This stood out:
Oh, and yes, the episode also showed that making the breakup of big banks the be-all and end-all of reform misses the point.
FWIW, I cite Krug here as a left leaning polemicist who is criticizing the central feature of the Independent Democratic Socialist’s stump speech.
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I have begun to pay attention to the nuts and bolts of the campaigns. Trump never planned on winning, apparently, because he had no ground game for delegates. Sanders claims he will win over Super-delegates. Because he has never been a D [Party person] he has no chance of winning over the great majority of D Party people who constitute Super Delegates. Maybe both these anger candidates know or knew this and are just bitching and moaning now. Or maybe they never understood.
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government greed…
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Another reason why Houston has been so economically dynamic, less restrictive zoning. It’s the Wild West here (at least outside the Loop).
http://marginalrevolution.com/marginalrevolution/2016/04/why-is-mobility-declining.html
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Jesus, the butthurt.
http://www.dailymail.co.uk/news/article-3531895/Boston-Globe-unveils-lampoon-Donald-Trump-edition-Sunday-newspaper.html
This outta bump up his moribund campaign.
Next we’ll see this abandoned,
https://en.m.wikipedia.org/wiki/Goldwater_rule
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This makes me want to vote for him
https://www.washingtonpost.com/news/the-fix/wp/2016/04/10/the-boston-globe-is-going-to-extraordinary-lengths-to-stop-donald-trump
Edit: Corked.
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The goal has to be to motivate fence sitters to vote Trump, or just really motivate his supporters to go the extra mile. Or the press remains delusional about how a majority of Americans regard them and think the average blue collar worker still views them like Cronkite in the 1960s.
I expect it’s the latter. “Now that we’re telling our devoted minions what we really think of Trump, they’ll totally not vote for him.”
Don’t even get into the part where the front page completely ignored American civics. In 1 year Trump got everything he wanted through the house and senate, got all his bureaucratic appointees confirmed, and—most dubious—actually took literal action on his pledges? Rather than, say, “deporting 11 million illegals” by putting additional teeth in e-Verify?
So what they’re actual effect is: Draw attention to him, agitate and energize his base, make conservatives who don’t like him say “the enemy of my enemy is my friend” and hold their nose and vote for him … Maybe Donald Trump paid for it?
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Pull this leg, it plays Jingle Bells:
http://dailycaller.com/2016/04/10/obama-guarantees-theres-no-political-influence-in-hillarys-fbi-investigation/
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Roger Stone going scorched earth on conservative talk show hosts
http://dailycaller.com/2016/04/08/gop-establishment-money-funding-mark-levin-glenn-beck-erick-erickson-to-attack-trump/
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