Good Morning,
There was big news this morning as the Financial Accounting Standards Board (FASB) voted favorably to relax mark-to-market and help financial institutions. The big change is to allow financial companies to use alternate models, like cash flow analysis, in marking assets. This will significantly reduce the writedowns banks have been taking on investments like mortgage-backed securities, and therefore encourage financing and help money flow again in our economy.
Since the March 12th Congressional hearing on mark to market, Stocks have risen 23% just on speculation a change in mark to market could be coming. Also helping Stocks is optimism that the G20 meeting underway in London will agree on ways to pull global economies out of the current recession.
In other news, the number of people collecting state unemployment benefits reached yet another new record, jumping to 5.73 million - a level that is 96% greater than in the prior year!
I recommend LOCKING ahead of tomorrow’s Jobs Report as Bonds have fallen to their worst levels of the day. I will let you know if a change of course is needed, but now is a great time to lock in any gains, especially on any loans closing in the next 3-5 business days.
In the meantime, I hope that you enjoy the rest of your day. If there is ever anything that I can do for you, please let me know.
Thursday, April 2, 2009
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