Texas Insider Report: NEW YORK, NY – Congressional infighting over the “Fiscal Cliff” may well continue on into the New Year. Grover Norquist’s no new tax pledge has hit the proverbial reality wall. Note also that almost all the TEA-Party backed candidates lost their bid for election or re-election. Where is the justice in this?!
- The 30-year home mortgage rate reached a Post-War record low of 3.34%.
- Applications for refinancing’s represent 80% of the volume.
- Home sales, although higher than at the recent lows, are still struggling.
- 30% of the distressed sales are for cash.
- Pre-payment on Mortgage-Backed Securities (MBS) increased. (Low quality mortgage-backed securities often backed by subprime mortgages.)
- MBS securities are continuing to accelerate.
- Rental market continues tight.
- Vacancy rates all over the nation are at record lows.
On the tax front, lower prices for energy extraction are lowering tax receipts for those states where these resources exist. The consumer gets a break at the trough, but the tax man takes it away to make up for the lost revenue.
Again, where is the justice?!
Congressional infighting over the Fiscal Cliff will continue into the New Year, and with Grover Norquist’s no new tax pledge looking more and more like it will hit the preverbal reality wall, 219 House Republicans in the new Congress have signed up … when making such a commitment seemed like pledging to buy a snow shovel in Hawaii if the temperature fell below freezing.
Still another 39 Senators have to cross a bridge to compromise, or stand tall and be counted out in the next election. What do you think will be the count when it counts?
Four House members have already walked away. As they say in sports talk, it is not how close the score that counts, but who won. Rematches only have gratitude in boxing.
The Birth of a Nation emerged from wars for Independence, Mr. Lincoln’s War, a devastating Dust Bowl, and a War of the Worlds (II) – only now to be perched on the “Fiscal Cliff”.
Things have definitely been worse for our ancestors.
T-Party backed candidates lost their bid for election or re-election, and interestingly, even 9 candidates backed by the Chamber of Commerce lost as well.
And irony of ironies, this from the Bloomberg Wire the other day … Don’t Bet Against the Fed!!
Now is the time for all good men & women to come to the aid of their country.