Monday, June 25, 2012

We Are Living in a Modern Day Depression: David Rosenberg The 'Modern Day Depression’ Is Already Here

Mortgage bond prices opened higher this morning helping knock out the small losses from Friday afternoon. Rates are being helped by continued turmoil in the euro zone.

Spain asks euro zone for $77b to recapitalize banks. This rekindles the flight to quality buying of US debt instruments such as mortgage backed securities.

We have new home sales data later this morning before pricing is set. This week has several important data releases including consumer confidence, durable goods, personal income and outlays.

Moody’s Investors Service downgraded multiple large financial institutions and banks. In February the company said it was going to examine banks with a global reach. Five of the six largest US banks had their ratings downgraded, which could effect borrowing costs and reserve requirements.

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