Vital Statistics:
Last | Change | |
S&P futures | 4,459 | 4.2 |
Oil (WTI) | 69.14 | -0.05 |
10 year government bond yield | 1.35% | |
30 year fixed rate mortgage | 3.09% |
Stocks are flattish as we end up the week on this Friday the 13th. Bonds and MBS are up small.
Rocket reported earnings after the close yesterday. Volume in the second quarter fell from $105B in Q1 to $84B in Q2. Gain on sale margins were slammed hard sequentially, falling from 3.74% to 2.78%. The company is guiding for Q3 volume to resemble Q2, and gain on sale margins are expected to be in the 2.7% – 3% range. It looks like perhaps the margin compression is over, or at least taking a breather. FWIW, Matt Ishbia said on United Wholesale’s Q1 call that he expected Q2 to be the bottom for margins and for them to rebound into the end of the year. So perhaps some of the pressure will ease up. Rocket is up a buck and change in early trading.
Import prices are up 0.3% MOM and 12% YOY. Export prices are up 1.3% MOM and 17% YOY. China just partially shut down the world’s third largest port after an employee had a positive Delta COVID test. Shipping prices are already up 220% this year, so the inflation story will get another temporary boost.
It looks like the red-hot housing market is beginning to cool off, according to Redfin. “For the first time in over a year, homebuyers don’t need to feel rushed,” said Redfin Chief Economist Daryl Fairweather. “Although the market still feels tight and competitive, the number of homes for sale keeps creeping up as more homes are listed. Those home sellers are adjusting their price expectations or seeing their homes sit on the market. There could be even more listings coming on the market as mortgage forbearance ends and homeowners with missed payments decide to sell. And mortgage rates remain near all-time lows with no signs of an increase on the horizon.”
Consumer sentiment got whacked this month, according to the University of Michigan’s Consumer Sentiment Survey. The index fell from 81.2 in July to 70.2. This is the sixth largest drop in the index’s history, and is actually below the April 2020 low of 71.8.
As a general rule, consumer sentiment surveys often turn out to be nothing more than a reflection of gasoline prices, however this reading is probably due more to renewed COVID fears.
The drop was broad across all demographics and included both drops in consumers’ current situation and their expectations.
The 10 year yield fell about 4 basis points on the news. I suspect the expected rip-roaring 2H recovery that the Street and the media has been cheerleading for is not going to be in the cards.
Filed under: Economy, Morning Report |
judge refuses to stop the eviction ban. your results-based leftist legal system in action
https://www.wsj.com/articles/federal-judge-leaves-new-eviction-moratorium-in-place-11628870224?mod=breakingnews
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Her reasoning is legit, and she’s a Trump appointee. The argument is you can’t somehow just assume that Kavanaugh is going to vote the other way this time based on his statements since he actually voted to uphold the eviction ban the last time it came before him.
Really, this is Kavanaugh’s fault for voting to uphold an order that he himself claimed was outside the scope of the CDC’s statutory powers. The Biden administration is just successfully gaming the litigation process with bad faith filings.
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I assume that any R-nominated justice is politically just a middle-of-the road Democrat, and any D-nominated justice is a hardcore leftist
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No, she ruled with the land lords on the merits originally, but was overruled by the DC Circuit and then that was incorrectly upheld by the Supreme Court. She can’t just ignore the rulings given that her original decision was appealed and overturned.
She’s not the problem. It was Kavanaugh not voting to overturn the stay the first time. She can’t just decide that he’s going to vote the other way this time.
Edit: My mistake, you said Justice, not judge. Yeah Kavanaugh should have known better than to expect good faith from the Biden administration.
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jnc:
Really, this is Kavanaugh’s fault
Yes, it is. His previous ruling was completely nutty.
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Also worth noting:
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Great piece:
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The propping up of a corrupt foreign government that took our money and did not pay its troops but lined its own pockets didn’t work.
Again.
Echoes of ‘Nam.
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We are energy independent. Middle East Oil is much more important to China, India and Russia than it is to us.
Tag, you’re it. One of you can deal with the place.
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I’d say it’s more than echoes. No one learned anything.
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Mark, they are even evacuating with Vietnam War era helicopters:
https://www.washingtonpost.com/photography/interactive/2021/scene-afghanistan-taliban-advances-toward-kabul/?itid=hp-top-table-main
https://en.wikipedia.org/wiki/Boeing_CH-47_Chinook
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I don’t really give two shits about Afghanistan, I just hope the military put some sort of software in the equipment (that has software) that can receive a signal that renders said equipment inoperable. If we don’t have that, the DoD is even dumber than I think.
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I’m going to bet on that last one based on what we are seeing.
Left the equipment. But burned the American flags. Priorities.
I am not amazed the Democrats didn’t consider the long term consequences and forecast outcomes wrong (or when any politician or party does that, to be evenhanded)—-but I am amazed they keep getting the optics wrong, especially here. Defector surrender to the Taliban on September 11th? Demanding release of what are effectively Taliban terrorists? Leaving expensive military equipment but orders to burn any American flags at the embassy.
Would seem to me they are losing the thread when they can’t even do basic optics right—or even close. But what makes bad optics may be different now and I’m just too old to grasp it.
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You don’t have to worry about optics when you control the media, the social media companies and the search engines.
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Americans, rightfully, want out and I honestly don’t think this will stick to Biden. Any POTUS was going to pay the price, the military and NatSec establishment are/were going to ensure that.
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Weren’t we mostly out, as it was? Small footprint, no troop engagement. No combat casualties in a year?
Would have preferred we hadn’t gone in, at least not like we did, but maintaining the “tiny hands” on, small footprint approach established in the last year of the Trump administration was (relatively) low-cost and would have prevented this outcome (had Trump maintained that himself, which may not have happened).
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I hope so, George. Media frenzy for foreign war is always easily aroused.
This is not new with the press. In 5th grade, my oldest daughter Hannah was in a class assigned to read the NYT every morning. After two weeks of NYT begging RWR to send marines to Beirut, he did. 240 or so of them were killed. The NYT immediately crucified RWR.
Hannah said “Boy, I’m never going to run for President.”
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Another good example of media stampeding and politicians unwilling to resist it. The brass that wouldn’t let the sentries have ammunition to avoid an “incident” and the mindset that comes with a belief in a mission for the military beyond the scope of General T. Sherman are absolutely to blame, up to and including Reagan.
https://en.wikipedia.org/wiki/Beirut_Memorial
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Mark:
Hannah said “Boy, I’m never going to run for President.”
She learned the wrong lesson. What she should have concluded was that she should never pay any attention what to the NYT has to say.
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Fair enough. But even so–in sufficient severity and quantity, there’s always a risk stuff makes it to the general populace by osmosis. They should be at least a little more concerned about the optics, I would think.
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What’s sad is that there are millions our there that will believe this.
They want to keep this up through 2022.
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I am sure that is the gameplan, but it is going to be hard to do. People are already so burned out with this shit
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The NY Post typically doesn’t follow along with the rest of the MSM.
Note that the argument they are making is against lockdowns:
“Living the entirety of their lives in lockdown has seriously stunted their cognitive development.”
The non NY Post version:
https://www.theguardian.com/world/2021/aug/12/children-born-during-pandemic-have-lower-iqs-us-study-finds
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Hi guys, just checking in to say hi and let you know I’m paying for the domain name for another year. I planned to turn it over to Scott but I keep losing his email or deleting it……….LOL
Still kicking here although Walter is struggling a bit. I’m working out, taking trips to CO to help with the little ones, hiking with my new hip which is awesome, and in general doing great!
Hope you’re all doing well!
BTW, I know quite a few babies born during the pandemic and none of them appear to have lower IQ’s, quite the opposite really, but they do seem to have a bit of hesitance around strangers. Not sure whether that’s a bad thing or not these days??????
Afghanistan is a Shit Show going back 20 years, and gosh………….who could have predicted our failure there?????
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Hi Lms! Great to hear from you and sorry to hear about Walter, I hope he’s able to improve soon!
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Thanks McWing……….he’s okay, just getting old…………LOL Luckily he has me to remind him which freeway exit to get off on and make sure he gets to his Dr appointments. Hoping to force him into retirement in a couple of years after the next pacemaker surgery and head to CO, but we’ll see!
We’ve been really busy this summer getting together with family and old friends so that’s been great after last year’s scary times and isolation.
I went back to the gym in May but gave it up again last month because of all the new infections and the family and friends visiting us………I worry about them. Planning to go back the middle of September, come Hell or Highwater!
What’s up with you?
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Finally my contractor was able to start work on my house that was damaged back during the February freeze so I’m happy about that and all in all the wife and I are very fortunate.
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Or anywhere? Nation building is not our strength.
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Germany and South Korea seemed to come out better, but that was a different generation. There also wasn’t as much concern for “democracy” in the initial years there either.
Ironically, Iraq seems to have done better than Afghanistan.
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lms:
I planned to turn it over to Scott but I keep losing his email or deleting it
sccinuk@yahoo.co.uk
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BTW, lms….if you lose it again, you can always come here and just look at my avatar. My email address is right underneath my name. See above.
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Yes I do know that but for some reason it never goes through! No worries I’ve already paid for another year……….LOL
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I have sent an email to your address above. Let me know if you don’t get it, or can’t respond.
BTW, a common mistake that people make when trying to send me an email is to send it to .com instead of .co.uk.
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Sorry to hear about Walter, but glad you guys are doing OK otherwise. Did you resolve all of your tenant and real estate issues?
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We did JNC……..sold the house last year and ponied up the cap gains………….not fun though. I’m trying to unwind some things so if something happens to Walter……….I’ll be organized!
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Hi LMS — thanks for checking in! glad that new hip is treating you well!
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