Financial Update by Maurice Soussé

Happy Friday,

Greece is BROKE!!!!!!!!!! Why can’t the European Union just say it? No one is talking about the elephant in the room. Greece will most likely default on their debt and obligations this weekend. Moody’s downgraded Greek banks by two notches this week siting fragile liquidity and funding issues.

Italy was also downgraded by Standard’s and Poor’s this week as the EU forced a 55 billion austerity plan. Folks, three world is falling.

Except, the United States is looking pretty great!!! Our markets were hammered this week with huge losses in the stock market due to the European Financial Crisis? Why does that affect us? It truly is a global economy. But CEO’s all over the nation has proven we can save cash, cut costs and still produce great dividends in a 1-2% Gross Domestic Product environment. If you look at the value of US companies and the price to earnings ratios on the blue chip stocks, our market is highly undervalued. The stock market is all about perception and people who panic sell quickly. This causes a tumbling effect that reverberates throughout out the markets.

So…..what does that mean to us??? The FED released Operation Twist this week shuffling $400 billion worth of notes. They are selling $400 billion of short term notes and buying $400 billion of long term notes? This move helps to push the 10 year Treasury bill lower driving down long term interest rates to consumers. Hence .lower mortgage rates.

The 10 year Treasury bill hit record lows.

The 30 year and 15 year conforming rates are incredible and the 5 and 7 year jumbos are really something. Underwriting times on purchases are still at only 5-6 days for us which is incredible compared to our competition!

As you work this weekend, remember what Ralph Marston said; “What you do today can improve all of your tomorrows”.