30 Seconds or Less… To get a jumbo mortgage (over $510K & up to $3M) in this market, your best chance is to go directly to a big mortgage bank like Wells Fargo, Bank of America or Chase, (just to name a few.) What happened to the thriving jumbo market? Lack of Liquidity! Only 1 out of every 10 mortgages can be a high cost loan (up to $ 765,500) in an Agency Bond Demand for non-Agency Bonds is way…
30 seconds or Less …. How will we know when we’ve hit bottom? Defining the Duration – Getting closer with expectations of 12 weeks. Validation of timing should happen with a mid-April peak. (Pretty please with sugar on top!) Not reacting to the Horrible News – Continued numbing of the markets and the public to the horrible news that will come out over the next few weeks. The market should not swing wildly but trade within a reasonable range despite…
In 30 seconds or less … With the Federal Reserve announcing a target of 0.0% to 0.25% Fed Funds Rate (the interest rate charged to banks for borrowing money overnight), consumers have been confused as to why new mortgage rates initially dropped to 3.29%, quickly rose again to 3.65% and only now are settling at 3.5% for 30 year fixed rate conforming mortgages. Why not 0%? Duration of the Loan – Fed Funds are overnight liquidity loans and not long…
I really wish it was! Just a quick note, we didn’t expect the market to hold. We all knew, intellectually at least, that it would probably drop more. The Dow finished the worst quarter since the Black Monday Crash of 1987. Today kicks off 2nd quarter and all signs are pointing down, again. But WHY after last week’s rally, the Fed’s liquidity, and the CAREs act? The market is responding to the Administrations very stark prediction that 100K to 200K…
In 30 Seconds or Less …. Probably Not & Here’s Why The Dow continues to rally after the best week since 1938. Have we really seen the bottom? Goldman & UBS are on record as saying Not Yet while JPM says Yes! It would be the record for the fastest bottoming out as most downturns take months of ups & downs before finally finding the absolute bottom or nadir. The shortest on record was 3 months but the typical is…
30 Seconds or less… It’s the Million Dollar Question! The House of Representatives are all scrambling to get back to DC for an in-person vote on the $ 2T Stimulus Package. Antiquated rules require an in-person vote if even 1 representative does not agree to vote for the bill. (We know they won’t have any problems getting a flight back to DC! ) It was thought that the bill would pass by unanimous voice consent and not require travel. And…
Carey’s 30 Second Snapshot – The U.S. Senate passed an unprecedented peacetime $2T Stimulus Package last night which some are saying equals 9 to 10% of the GDP (remember, Gross Domestic Product or the measure of value/income created in our economy) and the House is expected to unanimously approve the bill today. (Or they’ll have to come into to work as antiquated voting laws require them to be present on the House floor to vote if any one House member…
Why in 30 Second? The Legislative Branch failed to agree on a Fiscal Stimulus Plan over the weekend and it’s leading to another challenging day. What is Fiscal Stimulus? There are a number of tools available to the Legislative Branch & the White House including but not limited to direct government checks, grants, tax relief, etc. Unfortunately, the legislative branch continues to squabble between the parties. Usually, I am deaf to it. However, this is the time when we need our…
The Long & Short of It for those who literally have 30 seconds – (AKA Carey’s Corner) The stock market has already priced in no real business getting done for 2 to 3 months (technical speak: the economy is contracting & creating a negative Gross Domestic Product – GDP). IF the estimated duration (or the expected time of a 2 to 3 month shutdown) is accurate, we’re fine. And there will be a pretty quick return to growth and an…
This site is for all my amazingly brilliant friends, those I know well and those I look forward to getting to know, who have highly successful worlds and yet physically shudder when talking about money or leadership opportunities. Since I find myself with time on my hands, I thought I’d share in plain English what you need to know about the economy and the rapidly evolving leadership space in this new normal. Welcome & Stay Safe! Susie My background is…