What is good is bad!
By Darrin Stobaugh
What is good is bad!
So it appears the 10-year Notes have experienced a rally not seen since April. What is fueling this? The jump in jobless benefits and now a change in view that the Federal Reserve may increase the monetary stimuli. When parts of the economy are in need of help, it improves the Bonds. I know this is Bond Market 101, but it just seems crazy sometimes day to day. So let’s look at the bright side. Additional stimulus to the monetary policy is good, as that should keep rates low for not only home lending, but business lending as well. This helps improve the economy but degrades the Bonds. For more of the Good News Bad News Bears, check out: http://www.bloomberg.com/news/2012-08-23/treasury-yields-near-one-week-lows-as-u-s-jobless-claims-rise.html
Federal Contradiction?
It appears that one Federal Reserve Chief is trying to dampen the thought of the Federal Reserve adding more stimuli to the monetary policy. St. Louis President, James Bullard, was said to have been “sent on a mission of clarity”, analysts said. In his opinion, the FOMC release was “a bit stale”, and stated he was opposed to further easing of the monetary policies. The bright side of this is that he is only one of the Presidents of the Federal Reserve, and that there are still others that do back the possibility, although since the release of the minutes yesterday from the quarterly meeting, they have not come out and said as much. For more Federal contemplation, click: http://www.marketwatch.com/story/us-stocks-retreat-as-stimulus-debated-2012-08-23?link=MW_story_popular
Is Reality Catching up With Fantasy?
It appears it has. The Star Wars hover bike has been developed!! No more bumpy bides or terrain you cannot bike across! This hover bike, developed by Aerofex, have designed and built the Star Wars-like bike and while it has its limitations, like not going 90 mph or turning on a dime around trees, it still is quite a bike! For more out of this world creation, hover your mouse over: http://thefw.com/real-life-star-wars-speeder-bikes-may-be-on-the-way/
Today’s rates are starting their decline, hovering down by a couple jumps!
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