A Rush Into Refinancing as Mortgage Rates Fall

A Rush Into Refinancing as Mortgage Rates Fall

(full article)

 

The housing market may finally be getting some relief, with lower mortgage rates already encouraging refinancing and Treasury officials considering ways to entice new buyers.

 

Last week, the Federal Reserve announced that it would buy $500 billion in mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae. Mortgage rates immediately dropped, and that led to a surge in mortgage refinancing activity for the week — even with the Thanksgiving holiday.

 

On Wednesday, people close to the discussions said that the Treasury had been talking with Fannie Mae and Freddie Mac about ways to drive down mortgage rates to as low as 4.5 percent. That rate is about a percentage point lower than the going rates for such loans.

 

(full article)

NY Times

BofA to cut 30,000 Merrill Lynch jobs

BofA could cut 30,000 jobs as it absorbs Merrill Lynch

Sources said layoffs resulting from Bank of America's acquisition of Merrill Lynch would reach at least 10,000, but some said that figure could be three times as much. Kenneth Lewis, CEO of Bank of America, is looking to save $7 billion from the merger during the next couple of years, so sources estimated that job losses would be closer to 30,000. Some of the cuts would likely come from the sale of businesses or attrition, but the bulk would probably be in investment banking.

 
(full article)
CNBC/Reuters

Treasury ignoring critical issues with TARP

Treasury ignoring critical issues with TARP, GAO says

The Government Accountability Office said the Treasury Department has not developed policies to ensure that the $700 billion Troubled Asset Relief Program is achieving its goals or to determine whether banks are complying with its restrictions. The congressional watchdog said the Treasury does not have a system for keeping up with whether banks are following TARP's limits on dividend and executive compensation.

(full article)
Financial Times

Conference Call: Why The Stock Markets Keep Falling [12/01/08]

Why the Stock Markets Keep Falling

 

When you thought it was getting better, the markets plunge again.  Down 5%. Down 9%. High volatility and downside risk is the new norm. How can you invest and retire when your stocks gets wiped out?  You can't afford to lose another 45% on the S&P 500.  What's the average investor to do?  

 

Millennium Lyon has the answers.

Register and login at www.mlgcap.com

 

During volatile markets your cash, liquid assets are most important.  They are the foundation of your lifestyle.  We provide a consistent strategy for you to keep your assets in cash equivalent accounts. These accounts allow you full, uninterrupted access to your money. Meanwhile our asset management teams can manage the value of your account to provide consistent returns.  Your money, your accounts. No lock-in period, no redemption period or early exit fees. Millennium Lyon provides a better way to manage your cash and investment accounts. Liquidity, safety and low risk with peace of mind.

 

Click here to listen to the recorded conference call: "Why the Stock Markets Keep Falling". 

 

Become a member to join our weekly conference call. If you missed the call, you can access the summary on our blog.

Click here for our conference call summary.

 

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Millennium Lyon Asset Management

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China Wealth Fund has "No Confidence" in US Banks

CIC's Lou Says He Doesn't 'Dare' Invest in Financial Companies

(full article)

 

China Investment Corp. Chairman Lou Jiwei said he wouldn't "dare" to invest any of the sovereign wealth fund's $200 billion in foreign financial firms until governments establish policies on how to shore them up.

 

"China will continue to invest abroad, with focus on developing nations," he added. "However, I don't dare to invest in financial institutions now. I have no confidence in them."

 

(full article)

 

Impact:

CIC is the leader of the Sovereign Wealth Funds.  The lack of confidence in the US & European banks is shared worldwide.  Other Sovereign Wealth Funds will turn their attention to investments in hard assets, especially in developing economies with greater long-term growth prospects.  The western financial markets may be losing a core group of institutional buyers. This is not good for US & European Equities markets. Let's see what the Saudis and Middle Eastern Wealth Funds do next.

 

Millennium Lyon Asset Management

Email:  info@mlgcap.com

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