I blogged earlier in the week about the still-new Fed Chairman Ben Bernanke, predicting that "Bernanke will carve out his own niche in US history before this is all over." He's doing it.
The US Dollar rallied this week, routing speculators and investors in commodities who were betting that inflation would return with a vengeance, and that gold, silver, corn, oil and other commodities would hedge their bet.
If inflation were to return to the level of the 1970's, all commodities would cost more in dollar terms. Hence the bet. Bernanke's .25% cut in the benchmark rate last weekend, followed by its .75% cut two days later, stabilized the market to such an extent that the CRB Commodities Index, which Bloomberg reports hit a record on February 29th, lost more than 8% of its value in the last few days.
You'd have to go back to my days with Miss Moy in the third grade (1956) to see such a precipitous drop in commodities.
It looks like Ben is getting it done, and this is good news for Tucson, Arizona!
I'm Mike in Tucson, your preferred Tucson, Arizona mortgage lender.
Think of me as your local expert.
content copyright Michael Jones
photo courtesy FLIKR
I show up ON TIME. I do WHAT I SAY I'm going to do. I FINISH what I start. If I mess up, I 'FESS UP & I fix it. In the mortgage business, these 4 things are why you'll want to do business with me.
Memorial Day Hike: Mt. Lemmon Summit to Catalina State Park (Part 4)
Memorial Day Hike: Mt. Lemmon Summit to Catalina State Park (Part 3)
Memorial Day Hike: Mt. Lemmon Summit to Catalina State Park (Part 2)
Memorial Day Hike Down Mt. Lemmon to Catalina State Park, Tucson, Arizona (Part 1)
Little Walnuts Walking on Sticks. A Gambel's Quail in my Geranium Pot.
Interest Rates: This Morning (First Thing) Will Be a Good Time to Lock
Birding in Tucson, AZ: Madera Canyon and the Elegant Trogon
Looking For A Sign? The End Is Near.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2008 ActiveRain Corp. All Rights Reserved
Ok Mike... I am going to show my ignorance here and ask what all that means?
Hanging head in shame that I dont get what you posted about!
Susan
Mike,
It's nice to hear good news for a change!!! Thanks, Fran
The Feds are trying very hard to turn this mess around.
Those of us in the industry will see the sun shine again...
Just have to survive for now........
Mike: I only hope you are correct about Ben Bernanke this time around. I cannot remember even one time when I have seen him either on cable, or on C-Span in front of a Senate committee... where he had even a basic grasp of things. So far, he has not inspired any confidence in me, nor in many others, as far as I can see. Let's hope it works.
Mike - Interesting stuff! Thanks for sharing your info and knowledge on this.
we are still in for a wild ride!
Your Friend in Charlottesville Virginia!
Let's hope that trend keeps going. That is of course if you did not make the commodities bet.
I love this. Commodity traders are speculators. I have about as much sympathy for them as I do the real state speculators that bought into the real estate boom in 2006.
Great post.
Mike - I think he's headed in the right direction. That being said, they raised rates for a long time, and may have contributed to the slow down we are having. I believe they said they wanted to slow down the economy, it worked.
placeholder
Mike - So far so good this week, however the situation is still shaky can't wait to see what the new week will bring. The confidence level might rise if this coming we is calm.
Mike - I'm not sure one person can fix the mess our economy is in. After all it has taken years to get us to this point.
Good news for Tucson is good news for Michigan. We all need good news.
Holding--I wouldn't say steadily, but holding at least!! This is good news and my hopes are that combined with spring fever and these great rates, we'll be able to pull ourselves out of this mess. I don't think it's over but, I do think we're looking upwards at least! Thanks for the great info--as always!
In the WSJ today it was spilled that major banks are contemplating a MBS bailout from a feasability perspective. I think that if the Treasury put their backing behind that plan we might see some "real" help for borrowers moving forward. There has to be a HUGE incentive for purchasers to get us out of this slump, and 30 year fixed's in the 4.875-5.125 range for 6 months would be the ticket. This would allow prices to stay a little firmer and get some of the inventory off the books!
Mike- I was shocked, thats for sure. I fully expected to see at least a .25% jump in the 30 year rate and monday started out the other direction. By the end of the week I was glad the market was closed Friday! What a ride, and to think that we are just reaching the end of the 1st quarter! = )
placeholder
Mike - good news is always welcome!