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.
