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[May. 28th, 2009|12:31 am] |
I was pondering a catchy title, thinking I would go with this credit card story from the Consumerist:
Your Advanta Business Card account is funded by an independent trust which owns the balances you owe on your account and provides funding for new transactions. We expect the trust to stop funding activity on our accounts. The trust also restricts our flexibility to fund activity on your account. Unfortunately, as a result, effective May 30th all Advanta Business Credit Card accounts, including your account, will be closed.
This means that you will not be able to use your card or account for new transactions, including purchases, checks and balance transfers beginning on May 30th. We understand that you may have written checks on your account before May 30th and we will make every effort to honor those checks that are presented to us for payment by June 3rd. If you use your Advanta card to make automatic recurring bill payments, you will need to make alternative arrangements for those payments promptly. [HT ZeroHedge]
When I thought to check the Bloomberg ticker for the price on the US 10 year. It would appear it had a big day but not the sort that will please the US Govt, or the Fed.
The yield on the 2 year note increased 2 basis points to 0.97 percent. The yield on the 3 year note climbed 3 basis points to 1,49 percent. The yield on the 5 year note soared 11 basis points to 2.41 percent. The yield on the 10 year note catapulted 17 basis points higher to 3.72 percent. The yield on the bond rocketed 14 basis points to 4.63.
The 2year/10 year spread is a record 275 basis points. [HT Alphaville]
Which means that the US mortgage rate, (which is based off the 10 year) is likely to rise.
Then there is news that Moody's have cut Nomura's credit rating two levels.
Kind of an odd day to kick off really. I was busy ignoring it to be honest. I'll be paying more attention tomorrow |
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| news of the screws |
[May. 28th, 2009|08:00 pm] |
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The market sold off while waiting to find out if "foreigners" would continue to buy US Govt debt. They did, so markets rallied.
The news that was ignored was the housing and jobs data:
The U.S. delinquency rate jumped to a seasonally adjusted 9.12 percent from 7.88 percent, the biggest-ever increase, and the share of loans entering foreclosure rose to 1.37 percent, the Mortgage Bankers Association said today. Both figures are the highest in records going back to 1972. Fixed rates rose to 4.91 percent, Freddie Mac said, and an increase in bond yields earlier this week shows rates may continue rising.
The three-year housing decline is proving resistant to efforts by the Federal Reserve and the Obama administration to keep homeowners current on mortgages by allowing them to refinance or sell to buyers enticed by affordable terms. Prime fixed-rate home loans to the most creditworthy borrowers accounted for the biggest share of new foreclosures at 29 percent, MBA said, a sign job losses are hurting homeowners.
“If people don’t have a paycheck they can’t support a mortgage,” Jay Brinkmann, the MBA’s chief economist, said in an interview. “The longer the recession lasts the more people run through their savings reserves, leading to higher delinquencies and higher foreclosures.” [link]
Perhaps now would be a good time to think about how you're going to live, (and what you're going to live on) in the future, you know it makes sense. [HT SMI] |
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