Groucho Marx Was A Smart Man

Many years ago, Comedian Groucho Marx took a tour of the New York Stock Exchange. During his visit, opne of the traders asked him about his investments. Groucho explained that he puts his money into US Treasury Bonds and the trader tried to tell him he could see bigger returns if he invests in other stocks and before he could finish, Groucho told him that if you buy enough US Bonds, the returns can be quite big. I mention this clever exchange

If I ever get older in my mind, I want to get a job with Wells Fargo in the3 REO division. Friday the press carried stories about a WF commercial real estate exec that had moved into a $12 million Malibu beach house shortly after it was handed back to the bank. Cheronda Guyton, who is/was responsible for foreclosed commercial properties (which typically include high-value homes), used the house for parties and weekends frequently this summer. Heck, I never got an invite! Wells is investigating, but I doubt if they welcome the publicity.

Despite people who are and are not buying higher Loan To Value Loans, this past weekend, in honor of Pirates Day, the new DU Version 7 will be implemented by Fannie Mae.1. Fannie's release implements the maximum LTV ratio to 125% for DU Refi Plus loan casefiles, updates to Home Affordable Refinance, committing whole loans, etc. "DU Refi Plus loan casefiles with LTV ratios greater than 105% will reflect an updated DU credit risk assessment and will be limited in product eligibility to fully amortizing fixed-rate 30-year mortgages. The required borrower benefit (either a reduced monthly mortgage payment or a more stable product) will continue to apply, which lenders represent and warrant when selling the loan to Fannie Mae."

Back to the economy! Whereas last week we didn't have much news, aside from the well-received auctions which helped rates, this week we have the monthly inflation reports. The Producer Price Index (PPI) comes out tomorrow, focusing on the increase in prices of "intermediate" goods used by companies. The Consumer Price Index (CPI) comes out Wednesday, and is watched closely since it looks at the price changes that consumers see. Given the current economic environment, inflation is not a major issue, but these can definitely move the markets. We also have Retail Sales tomorrow, Industrial Production and Capacity Utilization comes out Wednesday, on Thursday we have Jobless Claims, Housing Starts, and the Treasury's announcement of the size of next week's auctions. To start the week the 10-yr is chopping around 3.38% and mortgage security prices are worse than Friday afternoon by .125.

The coach had put together the perfect team for the Oakland Raiders. The only thing that was missing was a good quarterback. He had scouted all the colleges and even the Canadian and European Leagues, but he couldn't find a ringer who could ensure a Super Bowl win. One evening while watching BBC he saw an Afganistan scene of war. In the background, he spotted a young Afghan Muslim soldier with a truly incredible arm. He threw a hand-grenade straight into a 10th story window 50 yards away. KABOOM! He tossed another grenade 65 yards, perfectly landing in a chimney. KA-BLOOEY! Then he threw another at a passing car going 50 mph. BULLS-EYE! "I've got to get this guy!" Coach said to himself. "He has the perfect arm!" So, he brings him to the States and teaches him the great game of football. And the Raiders go on to win the Super Bowl. The young Afghan is hailed as the great hero of football, and when the coach asks him what he wants, all the young man wants is to call his mother. "Mom," he says into the phone, "I just won the Super Bowl!" "I don't want to talk to you, the old Muslim woman says."You are not my son!" "I don't think you understand, Mother," the young man pleads. "I've won the greatest sporting event in the world.

I'm here among thousands of my adoring fans."

"No! Let me tell you!" his mother retorts. "At this very moment, there are gunshots all around us. The neighborhood is a pile of rubble. Your 2 cousins were assaulted and almost died last week, and I sister at home so she wont get assaulted!" The old lady pauses, and then tearfully says, "I will never forgive you for making us move to Oakland!"


Copyright (c) 2009 Christian Amstadter