From AFL-CIO president Richard Trumpka:
So, the financial services industry says it wants to “earn back the trust of the American people.”
That must mean it’s loosening up loans to small businesses and investing money in communities hard hit by the nation’s jobs crisis, right?
Actually not. According to the Financial Services Roundtable, which represents the 150 largest banks and insurance companies, “earning back the trust of the American people” means spending millions of dollars on a public relations campaign to make Big Banks look warm and fuzzy.
Here’s a message for the corporations that took $700 billion in our taxpayer bailout dollars: America’s 17 million jobless workers can’t feed their families on PR. Link to article…
From Reuters:
Fannie, Freddie may fill Fed void in mortgage market
With the Federal Reserve ending its 15-month $1.25 trillion mortgage bond buying binge on Wednesday, delinquent loan buyouts by Fannie Mae and Freddie Mac could serve as the saving grace for the $5 trillion agency mortgage-backed securities market.
The paydowns from these buyouts will put billions into the hands of mortgage investors for reinvestment and significantly reduce supply, mitigating the massive void the central bank will leave behind and helping keep yield spreads near record tights.
That is good news for the U.S. housing market since it should keep mortgage rates, which are linked to yields on Treasuries and yields on mortgage-backed securities, at historically low levels. Link to article…
MBS- FNMA 4.5 price: 100-05
10-yr Treasury Yield: 3.84%
More MBS deterioration. Slight improvement for bond yield.
From the New York Times:
Pro-Business Lobbying Blitz Takes on Obama’s Plan for Wall Street Overhaul
WASHINGTON — With the Obama administration looking to score another major legislative victory, an array of pro-business groups and fiscal conservatives are mounting a well-financed campaign to scale back or block altogether the Democrats’ plan to overhaul regulation of the financial industry.
By the time the campaign is over, opponents of regulation plans will probably have spent tens of millions of dollars to lobby Washington lawmakers, run advertisements and start petition drives. It is an effort that many of the players, from the United States Chamber of Commerce down to smaller splinter groups, see as vital to their economic survival.
“This is a re-ordering of our financial institutions for generations to come,” Paul Schott Stevens, president of the Investment Company Institute, said last week at a meeting hosted by the chamber.
Wall Street executives say that although they support increased regulation, the changes sought by Democrats could exacerbate the problems that emerged in the 2008 economic crisis rather than fix them. Among the targets of their criticism are the creation of a consumer fiscal protection agency, the establishment of a multibillion-dollar fund to head off bailouts of companies deemed “too big to fail,” and the regulation of derivatives as well as other high-risk trading instruments. Link to article…
From the San Jose Mercury News:
SACRAMENTO, Calif.—Gov. Arnold Schwarzenegger on Thursday signed a bill aimed at selling California’s vacant homes and encouraging new construction by extending a $10,000 state tax credit for first-time homebuyers.The governor signed a bill the state Legislature passed on a bipartisan vote earlier this week. It provides a state tax credit to first-time homebuyers who buy new or existing homes from May 1 until the end of 2010.
Homebuyers can claim 5 percent of the purchase price against their California taxes, or up to $10,000. Link to articel…
MBS- FNMA 4.5 price: 100-15
10-yr Treasury Yield: 3.86%
A little better for MBS, but still deteriorated for the week.
Week 4, March 2010
Before we get all starry-eyed thinking Bank of America has turned some corner towards being helpful to struggling homeowners, let’s be clear: Bank of America has agreed to reduce the principal balance of certain mortgages because of a settlement agreement with the Massachusetts Attorney General regarding its portfolio of what was deemed to be predatory loans purchased along with their acquisition of Countrywide Financial. See here for more about that. For some reason I feel obligated to begin today’s message with that because I saw many headlines yesterday declaring how BofA had begun some new program as if we should all be so proud of them. As one who reads between the lines in the financial news, sorry… I’m just not buying that line of propaganda over here. Considering BofA— along with our other largest banks— didn’t get shut down by the FDIC and have its assets divided up and sold off because the American tax payer propped them up as another “too big to fail” entity, it’s just not such a heartwarming story from my perspective. Am I glad some 45,000 homeowners may be helped? Without question. Am I pissed that more than two years after most of the nefarious and downright duplicitous behaviors of our banking behemoths have been glaring in the light of day that we still don’t have a financial reform bill for the president to sign? Yes, I am. I don’t know how to make it more clear: The banking industry will not reform itself until it is forced to by the law. And it’s up to the citizens to demand this from our representatives in Washington… ‘cuz they’re supposed to make the laws FOR US.
See here for an example of a certain revered publication not mentioning the settlement BofA agreed to until the eighth paragraph.
To contact me about financing your dream-home click here.
Weekend Wanderer’s Events
…finding the treasures in your town and beyond.
Two for This Weekend:
Oakland Running Festival: From their website: Experience all the sights and sounds that Oakland has to offer at the new Oakland Running Festival featuring Oakland’s first marathon in 25 years! Runners will begin on Broadway, race along Piedmont and College Avenues, pass by beautiful Lake Temescal and then tackle the hills of Montclair. After a breathtaking view of the Cities by the Bay, runners will journey through the vibrant neighborhoods of Dimond, Fruitvale, Chinatown and historic Jack London Square. Then it’s a final lap around sparkling Lake Merritt and a sprint to the finish at City Hall.
Soweto Gospel Choir at The Paramount in Oakland: From their website: The Soweto Gospel Choir was formed to celebrate the unique and inspirational power of African Gospel music. The 26-strong choir, under the direction of David Mulovhedzi and Beverly Bryer, draws on the best talent from the many churches in and around Soweto. The choir is dedicated to sharing the joy of faith through music with audiences around the world.
Help Your Fellow Living Beings:
Destiny Arts Youth Performance Company: From their website: (DAYPC) is a multicultural group of teens that create original performance art pieces, in collaboration with professional artists, that combine hip-hop, modern, and aerial dance, theater, martial arts, song and rap. The productions are a dynamic, creative forum for the young people to express their fears, hopes and strategies for confronting challenging personal and social issues. The company has performed locally and nationally since 1993 for over 20,000 audience members annually. Performing dance exhibition Asylum THIS WEEKEND at Laney College!
Two Weekends from Now:
Yonder Mountain String Band at The Fillmore: From their website: Yonder Mountain String Band has always played music by its own set of rules. Bending bluegrass, rock and countless other influences that the band cites, Yonder has pioneered a sound of their own. With their traditional lineup of instruments, the band may look like a traditional bluegrass band at first glance but they’ve created their own music that transcends any genre. Dave Johnston points out “What could be more pure than making your own music.” Yonder’s sound cannot be classified purely as “bluegrass” or “string music” but rather it’s an original sound created from “looking at music from [their] own experiences and doing the best job possible.”
Pic of the Week… from my phone camera:
A view from Oakland last Sunday
MBS- FNMA 4.5 price: 100-29
10-yr Treasury Yield: 3.67%
Visit msnbc.com for breaking news, world news, and news about the economy
Week 3, March 2010
I was actually quite impressed with this particular comment by JCWTTS from the comments section of this article (could this be J.C. Watts?):
Here is what the US needs to do to actually create and maintain jobs. First, pass a bill that states, nothing that deals even casually with national security can be manufactured overseas, or manufactured by a company that is owned or controlled by an overseas corp, or manufactured overseas. So, for example, no computers made in china can be purchased by the government. No High Speed Rail can be manufactured in China or anywhere else. No upgrades to our power grid can be manufactured anywhere, no product the military uses can be manufactured by anyone else or made anywhere else. If you are building roads, bridges, energy grids, whatever, it all must be made here by us. Now that is going to start insane reprisals overseas but I feel like we can survive them. Second, and just as important, we must feed the world. We have to make a shift from big ag to organic natural seasonal and regional ag. We have to roll back pesticides and genetic manipulation and go with solid non artificial growing. It means less variety and smaller yields but healthier. We have to sell this product overseas and we have to do it at a loss initially, subsidized by our government. We are a super power for several reasons one, we can feed ourselves, two, our manufacturing base, three our military, four our economy, five our education, six our tech. We have to start spending money intelligently on those elements right now.
It is perhaps needless to say that this comment indicates a rationality that is dutifully congnizant of the extraordinary challenges our political process has in getting anything done. In my opinion, he is suggesting a pathway that potentially addresses some of the objections from globalization supporters in order to open a pathway to keeping certain types of manufacturing exclusively in the United States. Many argue, as is stated in the article by former Senator Dorgan from North Dakota, that if you claim you are against globalization “you are called some sort of xenophobic isolationist stooge who just can’t see over the horizon.” There’s certainly no easy solution to the challenge of balancing the hunger for globalization overseas with the serious job-loss situation in the United States. Using another metaphor of Senator Dorgan’s, in relative terms, our nation can turn on a small economic faucet with a jobs and economic stimulus package, but it’s the huge drain that needs to be plugged as much as anything.
See here for more on the Jobs Bill signed into law by the President today.
To contact me about financing your dream-home click here.
Weekend Wanderer’s Events
…finding the treasures in your town and beyond.
Two for This Weekend:
Organ Concert at the California Palace of the Legion of Honor: From the SF Chonicle: View extraordinary art as you listen to a free concert on The Legion of Honor’s Skinner organ, the world’s only indoor/outdoor organ. An expanded music repertory lets the organists show off the instrument’s symphonic capabilities in a world class setting.
“Arabia” IMAX at the Tech Museum in San Jose: From their website: Travel to the exotic and fascinating land of Arabia. Explore the ancient tombs of a lost city; dive through the reefs of the Red Sea; and experience the largest gathering of people on Earth. Discover an extraordinary culture and experience modern day Arabia.
Help Your Fellow Living Beings:
San Francisco Fine Jewelry and Antiques Show: This show benefits some good organizations. Check it out. From their website:
The Imagine Bus Project— Bringing art education to underserved children and youth.
The Glide Foundation— Offering diverse programs helping people of all backgrounds out of the poverty cycle and into a productive life.
The Hearing and Speech Center— Helping individuals overcome barriers so they can reach their full potential.
Two Weekends from Now:
San Francisco Flower and Garden Show Festival: From their website: An entertaining floral funfest for you and your friends. This event houses thousands upon thousands of flowers and plants with all their rich colors, fragrances and textures. Four acres of inspiring flower gardens, free seminars for all gardening levels, and shopping at 300 exhibits all strictly related to San Francisco & California gardening, outdoor living, plants and gardeners. There is a myriad of facets to the Garden Show; while the gardens, commercial exhibits and seminars are the core of the Show, there is still much more to see and so many things to do.
Pic of the Week… from my phone camera:
A little painterly photo-editing of this pic of some flowers in my neighbor’s outdoor pot.