Financial Update by Maurice Soussé

Debt Ceiling? Does anyone actually think we won’t raise it, increase Federal spending and ruin our country’s credit rating? Please…. This entire debate is all political posturing. There have been 106 increases to the Federal Debt since 1940. President Obama has already raised the debt three times on Feb 17, 2009, December 28, 2009 and February 12, 2010. These are everyday Washington activities. It is strange how the public can go into paralysis sitting the “debt ceiling” and its effects on their personal lives. Bet your hard earned money the debt ceiling will be raised!

What is this doing to interest rates? The 10 year yield is trading at 2.85% this morning which is down from last week’s email. Bond traders aren’t even listening to the rhetoric as they know that investors will flock to safety pushing interest rates down actually lowering the borrowing costs to the government. Stocks may not fair as nicely.

Interest rates are holding steady and looking great today with the 30 year fixed hovering between 4.125% to 4.375% depending on FICO score and down payment. Rates are just great.

Douglas Malloch says “you have to believe in happiness, or happiness never comes”.