30-Dec-2009


10 Second Headlines of the Week – 30-Dec-2009

Housing

  • China: Housing bubble threatens China’s Boom.
  • Fannie Mae: On Christmas Eve the Obama Administration lifted the lending cap on Fannie Mae and Freddie Mac, the two mortgage giants. The US government could cover unlimited losses over the next 3 years.
  • Case-Schiller: According to Case-Schiller’s report on data through October, “the turn-around in home prices seen in the Spring and Summer has faded with only 7 of the 20 cities seeing month-to-month gains…”

US Treasury

  • PIMCO: US corporate balance sheets appear to be much stronger than the Fed’s
  • PIMCO: Market fundamentals are highly supportive for corporate bonds, particularly banks.
  • US Treasury bonds are set for their worst year since 1978. If you purchased a 10 year US Treasury bond in December 2008, you have lost a net 10.89% of your value in the past year. (Yield went from 2.22% to 3.80%)
  • GMAC may receive a 3rd round of bailout funds. They could collect $3.5 billion of additional aid on top of the $13.5 billion they have already received.

Middle East

  • Russia’s Lukoil and Norway’s Statoil signed an initial deal with Iraq to develop one of its largest oil fields.
  • According to Larry Jeddeloh, founder of TIS Group, the war in Yemen is essentially becoming a proxy war with Iran. (The US is fighting Al-Qaeda in Yemen vs Iran).

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