Ben Bernanke, Bingo, and Superman
Quote of the Day
“I don’t know the key to success, but the key to failure is trying to please everybody.” – Bill Cosby.
Time Magazine took a swipe at Fed Chairman Ben Bernanke this week saying his prediction that the recession is over joins his other bad predictions – most notably that the sub-prime crisis was contained in early 2007, how lowering the prime rate would help contain the panic, and that Grey’s Anatomy is not just a show for chicks. I made that last part up, but the fact is while his predictions have not been the best, his knowledge of how an economy works has helped keep our country afloat during this difficult time. I do join him in thinking that the worst is behind us. This week the Fed meets again. While no adjustments are expected to the prime rate, his remarks will be carefully weighed – and that could impact interest rates.
My dog Bingo would chase his tail for more than the normal allotted time that dogs normally do. When he couldn’t get it, he would turn counter-clockwise and try it that way – doing whatever he could to catch that thing. I feel like rates are the same way the last six weeks. Just when we think we’ve figured out market trends, rates shoot the other way. In my first 11 years in this industry, it was rare if rates changed more than once a week. Now they change daily, and sometimes more than once a day. It’s important to let friends/family/clients that are buying homes or looking to refinance know that – and especially not to gamble and wait to see if historic low rates drop lower. As of today, a 30yr fixed is in the low 5s/high 4s and a 5yr ARM is in the low 4s. (side note: you know that formula about adding together your childhood pet’s name and street name you grew up on – to come up with your stage name if you were to enter the adult entertainment industry? My name would be Bingo LaPorte. Curious to know yours too – email me with it.)
Quote of the Day 2
“I’m not normally a praying man, but if you’re up there, please save me Superman.” – Homer Simpson.
Timeout for Trivia
Congratulations to all of you who correctly guessed Mickey Rourke correctly (and to Ami who guessed Mickey Rooney) last week. Want to win a $5.00 Starbucks gift card this week? Simply be one of the first ten to answer today’s Who Am I? question. Good luck: “I turn 50 today. I am a talented magician, singer, and poker player – but 99% of the world knows me for lying about how I’m an architect. I appeared on one episode of Friends as a suicidal supply manager named Earl. I was also part of a successful movie back in 1990 where I played a lawyer that hated a pretty woman.”