This past week, the Citizens Against Government Waste (a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government) came out with their yearly Pig Book Summary. This profiles the most startling examples of government pork, breaks them down, and presents the annual "Oinker" Awards. All 10,160 projects are listed in a searchable database on CAGW’s website http://www.cagw.org/. Examples of pork in the 2009 Pig Book include:
- $3.8 million for the Old Tiger Stadium Conservancy in Detroit;
$1.9 million for the Pleasure Beach water taxi service in Connecticut;
$1.8 million for swine odor and manure management research in Ames, Iowa;
$380,000 for a recreation and fairgrounds area in Kotzebue, Alaska;
$143,000 for the Greater New Haven Labor History Association in Connecticut;
$95,000 for the Canton Symphony Orchestra Association in Ohio; and
$71,000 for Dance Theater Etcetera in Brooklyn for its Tolerance through Arts initiative.
It’s interesting to see that even in these times, the abuse of funds continues. Anyway…thanks for taking the time to read this, have a great week and congratulations to the Huskies!
This Morning…Monday, September 21, 2009:
We have the Conference Board’s Leading Economic Indicators today at 10AM EST, but after that there is no scheduled economic news until Thursday. In its place we have 3 Treasury auctions, starting with the 2-yr tomorrow, then the 5-yr Wednesday and the 7-yr Thursday, along with the FOMC meeting. Don’t look for any change in overnight rates (remember that they do not set mortgage rates – supply & demand does that). Later in the week we have Existing Home Sales, New Home Sales, Durable Goods, and Consumer Sentiment. This morning, mortgage prices are roughly unchanged from Friday afternoon.
Last Week:
Mortgage bond prices fell last week pushing mortgage interest rates higher. Producer Price Index (PPI) data release last Tuesday was much higher that expected and sparked inflation fears. That data set the tone for negative trading early in the week. Thankfully, the Consumer Price Index (CPI), a better gauge of overall inflation, was lower that expected helping interest rates recover.
This Week:
The record debt will once again take center stage. We are hopeful that foreign demand will remain strong. The Fed meeting will be the most significant event this week. While no adjustments are expected, the Fed remarks will be carefully weighed.
EconomicIndicator
Leading Economic Indicators
Monday, Sept. 21,10:00 am, et
Up 0.7%
Important. An indication of future economic activity. A smaller increase may lead to lower rates.
2-year Treasury Note Auction
Tuesday, Sept. 22,1:30 pm, et
None
Important. $43 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates.
5-year Treasury Note Auction
Wednesday, Sept. 23,1:30 pm, et
None
Important. $40 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates.
Fed Meeting Adjourns
Wednesday, Sept. 23,2:15 pm, et
No rate change
Important. Few expect the Fed to change rates, but some volatility may surround the adjournment of this meeting.
Existing Home Sales
Thursday, Sept. 24,10:00 am, et
Up 1.7%
Low importance. An indication of mortgage credit demand. Significant weakness may lead to lower rates.
7-year Treasury Note Auction
Thursday, Sept. 24,1:30 pm, et
None
Important. $29 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates.
Durable Goods Orders
Friday, Sept. 25,8:30 am, et
Down 0.1%
Important. An indication of the demand for "big ticket" items. Weakness may lead to lower rates.
U of Michigan Consumer Sentiment
Friday, Sept. 25,10:00 am, et
70.0
Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.
New Home Sales
Friday, Sept. 25,10:00 am, et
Up 1.6%
Important. An indication of economic strength and credit demand. A decrease may lead to lower rates.
Market Forecast:
If foreign demand remains strong for the Treasury auctions this week, rates should remain the same or even improve. This would depend on whether or not investors increase selling and profit-taking on stocks. The Fed meeting will be the most significant event this week. While no adjustments are expected, the Fed remarks will be carefully weighed.
Some Humor:
A boy enters the confessional at the local Catholic church.
"Bless me Father, for I have sinned. I have been with a loose girl."
The priest asks, "Is that you, little Joey Pagano?""
Yes, Father, it is.""And who was the girl you were with?"
"I can't tell you, Father. I don't want to ruin her reputation."
"Well, Joey, I'm sure to find out her name sooner or later so you may as well tell me now. Was it Fran Rubino?"
"I cannot say."
"Was it Erin Calabrese?"
"I'll never tell."
"Was it Nina Faneli?"
"I'm sorry, but I cannot name her."
"Was it Tonia Russo?"
"My lips are sealed."
"Was it Suzanna Pomilia, then?"
"Please, Father, I cannot tell you."
The priest sighs in frustration. “You're very tight lipped, and I admire that. But you've sinned and have to atone. You cannot be an altar boy now for 4 months. Now you go and behave yourself."
Joey walks back to his pew, and his friend Franco slides over and whispers, "'What'd you get?"
Joey replies, "Four months vacation and five good leads."
The material contained in this newsletter is provided by a compilation of third parties to real estate, financial services and other professionals for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is not without errors.
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