Mike’s Real Estate Show

Here’s Lou Barnes web link to his “Credit News” which is the same you’ll see on Inman.com news service. I highly reccomend him. He can be a bit technical but check it out and hang with him as he has some terrific insights coming from the angle of a working mortgage banker/economist!!

http://www.boulderwest.com/news/index.html

Bonds were certainly hoping for a rate cut, too, and are up-side vulnerable. However, the Fed’s worry about labor market inflation is late-year, and that threat is limited by globalization drag on US wages. Bonds are strongly protected by another global force: the immense volume of cash needing a safe place to park, largely indifferent to yield. This inverted curve (10-year T-note .57% under the Fed) doesn’t forecast economic weakness, just cheap mortgage money.