Daily Commentary by Larry Baer: Tick - tock - tick - tock.
The probabilities
are high the hours between now and the stroke of midnight will be filled with
intense negotiations to resolve the current fiscal crisis - but at this
juncture each party seems primarily focused on blaming the other for failing to
make the concessions necessary to avert pushing the American people and their
economy over the edge of the "fiscal cliff."
As I write (10:00
a.m. CT, Monday) there are rumors circulating in various media sources
suggesting Congress may actually come up with a "buzzer beater"
resolution - at least in regard to the issue of tax increases for the majority
of Americans. If these rumors happen to morph into fact - a dramatic last
second fiscal cliff "save" by Congress will likely spawn a rally in
the stock market at the expense of fractionally higher mortgage interest
rates.
The mortgage market
will close early at 2:00 p.m. ET today for the New Year's Day Holiday.
Wednesday's Institute
of Supply Management's
December Manufacturing Index and Friday's December Nonfarm Payroll Report will
bookend an otherwise quiet week of economic news. Both reports are
expected to show the economy is churning along at a very modest growth rate -
well below levels that might otherwise exert substantial upward pressure on
mortgage interest rates.
THE
MARKET IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
