A couple things happened in the past two days.
Obama has agreed (not signed yet though) to the proposal that as a compromise between Republican and Democrat, we would leave the Bush Tax Cuts in place for EVERYONE and extending the payments of unemployment benefits. In addition, it looks like the proposal puts the estate tax rate at 35% with $5 million exclusion, as well as a provision for a 2% reduction in social security taxes. So now, both parties are happy and content but it is apparent both are kicking the iron down the road for the other to solve budget deficit problem. Instead of keeping both parties achieving “success” in the deal, if both have agreed to step backward to lift the tax cuts and cease extending unemployment benefits, it might be a much better world later.
On the flip side, the 10-year Treasury smashed above 3% pushing high the 10-year mortgage rates, allowing the underwater home owners to scuba dive a little further. As we know, it is rather difficult for equity market to rally with the yields, so we have to see how the s&p reacts in the days to come.
No comments:
Post a Comment