1/29/10

Most rates are level this morning. Positive economic news sent the Dow rallying early, while treasuries and mortgage bonds took a hit. The trend has since reversed itself, and bonds are turning positive. The US economy expanded at the highest rate in 6 years in the 4th quarter last year and was a full percent better than the expected growth. The consumer (which drives 2/3 of the economy) is seemingly happier, and is depleting manufacturer inventories. A happy consumer makes Wall Street healthy, wealthy, and…… we’ll leave the last part out. Nevertheless, companies are finally starting to hire again and it seems like employment will be the last step to recovery this time.