NI CONGRESS. Unfortunately that was my first input today on my Bloomberg to see what comment was made by some US politician depending on what side of the bed he or she got out on. This page will have to be up on my computer all day, everyday until a deal is finally announced on how to finance our ever growing welfare state. At least for the morning, I’ve seen no negotiating for the camera yet. On the impact from the other wing of the government, the unelected Federal Reserve, the MBA said refi apps fell 1.5% on the week, down for the 7th week in the past 8. Positively though, purchase apps did rise by 2.6%, up for a 3rd week to the most since June.
In Europe, if Greece gets a new deal, ‘why can’t I’ is what’s being assumed by the market as bonds in Portugal, Ireland, Spain and Italy all continue to rally. Spanish yields are at one month lows and the Italian 10 yr yield is at the lowest since June ’11. The Irish 2 yr yield is below 2%. The quote of the day highlighting the worst nightmare of every money printing loving central banker comes from BoE Deputy Gov Charlie Bean who said today on QE, “The bang for buck might be a bit less now than it was in 2009. That doesn’t mean to say that you don’t want to do any more of it, it just means that to get the same effect, actually you have to do even more than before.”
In Asia, the Shanghai index closed lower again, to the lowest since Jan ’09.
