Morning Report: Stimulus talks resume

Vital Statistics:


  Last Change
S&P futures 3577 -2.6
Oil (WTI) 41.53 -0.31
10 year government bond yield   0.85%
30 year fixed rate mortgage   2.84%

Stocks are flattish this morning on no real news. Bonds and MBS are flat.


The CFPB will get more aggressive under a Biden Administration. Payday lenders will be the focus again, as will servicers. I expect the bureau will also pursue a lot of fair lending cases. Given that there is a time lag to develop cases, the fair lending ones may take a while.


The Index of Leading Economic Indicators rose 0.7% last month, an indication that the economy continues to improve.


Steve Mnuchin has decided to let many emergency Fed lending programs expire at the end of the year. The Fed would like to keep them. I am sure the first order of business in Biden Administration will be to re-institute them.


Chuck Schumer says that he and Mitch McConnell have agreed to resume negotiations over a COVID stimulus bill. “Last night, they’ve agreed to sit down and the staffs are going to sit down today or tomorrow to try to begin to see if we can get a real good Covid relief bill,” the minority leader said during a news conference in New York. “So there’s been a little bit of a breakthrough in that McConnell’s folks are finally sitting down and talking to us.”

13 Responses

  1. Does Treasury’s action threaten MBS market stability?


  2. Vos says: Ignore the fact that more minorities voted for Trump than any Republican candidate since 1960. The REAL story is that it was WHITE PEOPLE that voted for Trump in the greatest numbers!

    And as analysts drill down into what happened on Election Day in states and counties around the country, it’s crucial not to lose sight of what’s staring us in the face: The support Trump has always received from white people.

    This year, the majority of white Americans voted for Trump, even after a recession and a botched response to a pandemic that has left more than 200,000 dead. And if we simply treat this fact as obvious while Black and Latinx votes are worthy of analysis, we essentially give white voters a pass for backing a racist campaign — twice.

    These “news magazines” can’t go bankrupt fast enough for me. Crossing my fingers!


  3. Pretty good rant. Seems right to me.

    Liked by 1 person

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