"In our lifetimes, we have rarely seen anything of this magnitude."
Brinker tried to get a handle on how this disaster affects the world of money. He said, "In terms of trying to quantify the economic impact of this.... I don't like doing this.... On a global scale it is about seven tenths of one percent of global business activity."
|Mar 15||Empire Manufacturing||Mar||17.0||15.43|
|Mar 15||Export Prices ex-ag.||Feb||NA||0.9%|
|Mar 15||Import Prices ex-oil||Feb||NA||0.8%|
|Mar 15||Net Long-Term TIC Flows||Jan||NA||$65.9B|
|Mar 15||NAHB Housing Market Index||Mar||17||16|
|Mar 15||FOMC Rate Decision||Mar||0.25%||0.25%|
|Mar 16||MBA Mortgage Index||03/11||NA||+15.5%|
|Mar 16||Housing Starts||Feb||570K||596K|
|Mar 16||Building Permits||Feb||573K||562K|
|Mar 16||Core PPI||Feb||0.2%||0.5%|
|Mar 16||Current Account Balance||Q4||-$110.0B||-$127.2B|
|Mar 16||Crude Inventories||03/12||NA||2.52M|
|Mar 17||Initial Claims||03/12||387K||397K|
|Mar 17||Continuing Claims||03/05||3750K||3771K|
|Mar 17||Core CPI||Feb||0.1%||0.2%|
|Mar 17||Industrial Production||Feb||0.6%||-0.1%|
|Mar 17||Capacity Utilization||Feb||76.5%||76.10%|
|Mar 17||Leading Indicators||Feb||0.9%||0.1%|
|Mar 17||Philadelphia Fed||Mar||28.0||35.9|
Top CD Rates at Largest US Banks
When we did our last survey of rates at the largest banks, a 5-year CD at the largest US Bank, Bank of America, was only 1.40%. Chase and Citi paid 2.5% and 1.50%, respectively.
Unfortunately, short term rates remain extremely low. Thus, I've kept most of my "cash reserves" in high rate savings accounts with the top rate now 1.30% at American Express. See Best Savings Account Rate Survey
A half hour into the show, Brinker took his first call.
Darin from Rohnnert Park told Brinker he thinks the dollar could become worthless if they keep buying US Treasuries with quantitative easing programs because he doesn't believe they can cut it off in time. Brinker agreed that this would happen if they don't end the easing as planned but he didn't seem compared that the US dollar will lose its status as the World's reserve currency with all the troubles the Euro faces. Darin worried the US was already going down the tubes following Greece. Bob said the reason California can not pay its debt is because "they have a dysfunctional government that thought they could borrow their way to prosperity."
1800-934-2221 "Ed's on the Line from the Show Me State of Missouri." Ed raised a point I thought of last week when took major profits in my TIPS mutual funds on Friday. Ed suggested the Japanese would use their major US Treasury holdings as a source of funds for rebuilding. Bob said it would not be an ongoing issue but it would be a source of funds. My fear is the Japanese will not roll-over their US Treasuries into new issues so they don't take a loss. They can then use these funds to rebuild their infrastructure and make low cost loans to rebuild homes and small businesses. This will have the effect of countering the Federal Reserve's QE2 policy which will push rates higher.
I sold the majority of my managed TIPS mutual funds at Fidelity for my own "core portfolio" and may sell more held at Vanguard this week. See: