Mortgage Rates January 20, 2009

Mortgage Backed Securities (MBS) Closed lower today, increasing Mortgage Rates (see Real Time Rates).  The DOW and all other major indices produced losses as the United States welcomed its 44th President. I guess the markets figured everyone was at the inauguration and wouldn’t notice the selloffs. Bank stocks took the brunt of it with State Street Corp (STT) losing 59% of its market value (this is not a typo), Citigroup cut its dividend to 1 cent today, this will qualify them for TARP Bailout funds, putting them on the verge of being nationalized.

No Tabula rasa for Barack Obama.

Will today mark the end comedy as we know it? Who are the comedians going to clown on with Bush being gone?  The bias has been all to apparent, excluding Jay Leno.

Fun Presidential Fact
Annualized total Market return (pct)
First Term      Second Term      Total
Ronald Reagan           12.1              16.1                  14.1
George H.W. Bush     14.5               —                    14.5
Bill Clinton                   17.7              13.5                15.6
George W. Bush          1.0              -6.8                  -3.0
Source: Wilshire Associates

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