An Interesting Move

China made an interesting move a few hours ago while the free world was asleep: the dragon let it’s currency float in the market.  Whether it was a fun experiment (much like asking your wife “what’s wrong”), a mistake (see previous parenthetical analogy), or a calculated move to swing world markets is unsure.  One thing is sure, the Yuan lost 2% against the Dollar last night which is the largest devaluation of the yellow currency in over 20 years.  Speculations over intentions will rage and I have no control over, or much understanding about, the motivation and many of the ramifications.  This much I understand: Stocks are down and Mortgage Pricing is up, which means that interest rates are staying low today.

Pigs is Pigs

Money is flowing out of Bonds and into Stocks this morning after news that the latest $59,000,000,000 Greek bailout proposals mays appease creditors and keep the country in the European Union.  Greece will most assuredly need to usher in tax increases and spending cuts to make payments this time around.

China’s whipsaw stock market is also making headlines again today as it closed this time on the upside.  Regarding the economies of both countries, the question is whether there is real sustainable growth based on sound fundamentals or just fabricated headlines to appease big brother.  No matter how you doll it up, a pig is still a pig I say.  Disclaimer: I am in no way asserting that these countries, their citizens, or anyone descending from–or with ties to–these nations are anything less than the best of human kind.  My assertion is simply that a healthy economy requires more than lipstick and rose-colored glasses.

Speaking of pigs, I had a delicious Brown Sugar Bacon and Pit Smoked Ham Sandwich on a King’s Hawaiian Bun at a reputable dining establishment down the street from my office (okay you got me, it was Arby’s) this week.  What made the experience even more sweet is that when I got to the drive thru window to pick up my food, the gal handed me my bag and informed me that the car ahead had picked up the tab.  It was the most gratifying lunch that I had all week and has caused me to look for more opportunities to be kinder than I need to be.

“Turning the Corner”

Jack Lew, the U.S. Treasury Secretary, said this morning that our domestic economy has “turned the corner”, citing sustainable growth due to healthy business activity and a robust jobs market.  I definitely see that here in our local market. Abroad, China is seeing its trade performance slip and Greece is rejecting bailout assistance from the EU.  On the news and not the commentary, Stocks are down and Bonds are up–though Mortgage Bonds are definitely in a mini down trend (see graph) putting upward pressure on interest rates.