Would Bernanke play the bongos naked?
January 27, 2010
Inspirational Quote of the Day:
“Do not go where the path may lead, go where there is no path and leave a trail.” – Ralph Waldo Emerson.
Wuss’up This Week:
The Federal Open Market Committee meets today and all eyes and ears will be on what Ben Bernanke says afterwards. No rate changes are expected, but many analysts and traders believe rate hikes are on the horizon. Futures contracts show traders are pricing in a 77% chance the Fed will raise rates by November. Others argue those positions will be wrong because the economy isn’t strong enough for the Fed to change rates. What do I think, Mortgage Fans? I think there is over an 80% chance that I will order Chinese food for lunch today. I also think the traders may be right.
Besides the Fed’s report today, Friday is also a big day of reports that can affect interest rates. Two 4th quarter reports – the GDP and Employment Cost Index (GPD measures our economic production, and the ECI measures inflation) are published Friday morning; a weakness will lead to lower rates. Also on Friday the University of Michigan Consumer Sentiment Report is published. This is a report that indicates consumers’ willingness to spend. (My Visa bill will support heavy spending). Personally, I don’t think a university whose basketball and football teams are/were not ranked in the Top 25 should be in charge of a report like this.
Inspirational Quote of the Day 2:
“If I could only have one food for the rest of my life? That’s easy – Pez. Cherry-flavored Pez. No question about it.” – Vern (Jerry O’Connell), Stand by Me (1986).
Timeout for Trivia:
Congratulations to those of you last week who correctly guessed Michael Bolton. Want to be entered into a quarterly drawing to win cool stuff? Simply email me the correct answer to this week’s Who Am I? question. Good luck: “It was on this date back in 2001 that my movie about weddings was released, but there’s no way in real life I would get married. Why would I? I can play the field forever, man, because I was once named People Magazine’s Sexiest Man Alive. And what’s not sexy about being arrested for smoking cannabis while playing the bongos naked.”