Rate Watch 9/24/08: Carefully Floating

Bonds are improving slightly from yesterday's lock alert at midday. All eyes are on the Bailout discussion with Treasury Secretary Paulson and Fed Chairman Bernanke doing their best to sell the need for the program to the House and Senate Banking Committees. So far, it sounds as if the program would pass a vote in the House and Senate, but there will be some 'Politisizing' of the way it should be handled. Speed of the vote is critical. Credit is tightening daily and we continue to have a liquidity crunch in the Mortgage Market. I again say that the bailout move will help the Financial Markets, Stock and Bonds, over the LONG RUN, but for the short run, the market is looking at many bumps and volatility! For now I recomend carefully floating and will be watching the 4 critical reports and 3 meetings going on today which will have effect on the direction of rates.