Wall Street Gamblers

Budget negotiators unveiled an agreement yesterday to cut spending by about $63 billion over two years, cutting the deficit by $23 billion.  Gamblers cloaked as Traders on Wall Street see this as further stimulus for the Fed to bow out of the quantitative easing program (AKA: tapering) all the more quickly and have punched the “sell” button more than the “buy” button today.  As a result of the speculation, pricing has declined for both Stocks and Bonds, putting more upward pressure on interest rates.  This is not a surprise to you, the faithful reader of my antic soothsaying as I have mentioned, nay demonstrated with skiers, sledders, and even a Disney attraction that rates are on the rise.  Alas, it is not too late to capitalize on today’s prime 30 Year offerings in the 4.0-4.5% range (APR will be higher, depending on the loan and down payment amounts–as closing costs and the presence of mortgage insurance affect each loan differently.)