Transcript for Why Are Mortgage Prices Going Up?
Futures up today after some big jumps in Japan the Nikkei doubt in fact poised to start the morning in the -- for now the fourth straight day. So for little more insight into that I want to bring an errant pass from Yahoo! finance breakdown top business headlines this Friday morning -- TGI FTO. And happy Friday to -- the lot of plus miles of the folks worked very hard for the weekend but before we get to that. Good news the positive sentiment on this mortgage rates some concern here. -- they've they've shot up pretty dramatically mean after Ben Bernanke's testimony and speech last week. Get a huge selloff in the bond market. And mergers are tied to the bond market so you are seeing the the ramifications of that. And now thirty year fixed rate mortgage is now well over 4%. I was -- long -- there at 350. Or thereabouts and so it's definitely gonna put a strain on the housing market all because of lower bond prices is that -- only contributing factor. And that's really I mean it is definitely. Your mortgage rates are tied to the bond market to the ten year treasury reader this thirty year bond yields. And when those rates go up but they -- opposite direction of prices of bond prices that bond yields have risen and you see it translated directly into mortgage rates. All right obviously affecting everyone -- -- -- -- -- very close -- -- -- as the Fed will continue to hold those meetings and make those announcements take a look at what the -- is doing right now down almost have any points below that psychological 151000 mark. Obviously gonna keep an eye on them as early moments of trading. A wanna talk a little bit about Paula -- obviously her name is certainly been in the headlines a lot lately. A lot of companies have been pulling out and breaking their relationships with her QBC among the latest. Wal-Mart target the Food Network also added to the list dean admitting that she had used racial slurs. In the past and now a lot of these companies are saying they don't want any association with her side this is really become a serious financial concern for her. Yeah it's it's a huge put her mean -- -- is that her business is worth between fifteen and twenty million dollars a year the dean ran in which he makes personally. And obviously -- -- the Food Network once they pulled the plug on her show. That was her great platform where she was able to sell. A lot of these other products whether they were her books or. That the cookware other products -- she would sell some of these other stores like Walmart and Target. And so. You know that the empire around her started to crumble -- for sure and it's it's a huge blow to that business no doubt about it. What are the things that he knows -- strikes me as this fascinating is that whenever a high profile. Spokesperson not -- necessarily she was represented Wal-Mart -- QVC but obviously in very close association -- Is when a situation like this arises. That that the time lag between some companies when they pulled their sponsorship for they pulled -- association. And it always kind of fascinates -- -- -- whether it's a trickle effect or whether is there they -- it's literally sitting in conference rooms and -- out their options of how they -- per. -- Yeah I mean a look weak and we limited corporate culture where there is there's no appetite for risk. And that's both goes for. But also they had no tolerance. For any kind of controversy so no major corporation. Wants to be associated with any individual. Where there's even -- -- -- Of a problem and an apology and obviously very controversial that things that she admitted to saying. I'm very sensitive or insensitive remarks that she made -- so if your more major corporation. And you see that your assertion was someone who now has this taint on them it's it's not. Doesn't think -- then decide -- know what we're better off just cutting ties and moving on right now that said -- has her fans and her supporters. And there may be some backlash against the Food Network is already heard from those folks. There's been an increase in -- in book -- and the past week maybe some of these other retailers. We'll hear from -- these fans -- there are you know looked at as this much smaller group than the larger society out there who may be offended by what she said and so again the corporation's. It's very cut and try to see you know it we're gonna cut ties and move on. Right absolutely expects QVC when they released their letter yesterday -- exactly how they came to that decision. On in severing ties with dean had -- not the fact that that she's certainly does a lot of supporters that have been coming to her defense but the same time. They agreed that the figure the desperate to go forward for all the parties involved -- customers first and foremost being on their minds. Was two was to sever ties at least -- Let's speak with -- critics about the bottom line right if these companies thought that there were enough -- -- fans out there that they would benefit from sticking -- they would -- that. Reading Eric they're making the calculation that there are more people who who are offended -- who wouldn't -- -- musician equality now than those she still supporter. -- right now let's -- now no doubt no doubt about that -- which hears from and it's a former New Jersey governor Jon Corzine. In some trouble could he go to jail and -- -- it may -- let's back it up a little bit why is he in trouble. Race is on course and after you left public office an -- you know. He lost. A -- to be reelected as governor is that he started running commodities trading firm called MF global. Which included. -- a couple years ago and they were accused of using customer funds. You help support the company's balance sheet and that's a major no no on Wall Street and so now there are there are civil charges being filed against Jon Corzine so. -- than usual here is that the charges have come against him as an individual. -- and that he's not being given an opportunity to settle but these are not criminal charges so I don't believe there's any chance right now that he could go to jail. But clearly his career on Wall Street is over. And his reputation has taken a huge hit and you know -- no tears being -- for him he made literally hundreds of millions of dollars on Wall -- so he's gonna live very comfortably but his career appears to be over as far as Wall Street is concerned and we're talking about one point 2.3 billion dollars right is that is that the figure that I haven't seen around. Yeah that's that's this the amount of customer funds that they were accused of basically -- wing. Or -- depending how you look at it right help prop up the company's. Balance sheet when things are getting really -- and MF global. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Armed with the idea of paying back the clients of the company. Because again it's like no you -- I we we put our money with a brokerage firm -- -- treating it. If that brokerage firm goes under we have an expectation -- -- our personal money should be safe in this case it wasn't. And that's where it appears -- MF global and Jon Corzine. Cross the line and -- and potentially broke the law. Now we'll have to wait and see how that case is going to be. Falling out. And speaking of fallout gold prices they have definitely been following lately what's going on here and this is a serious amount of concerning what it -- into gold was -- was. Overvalued for the longest time -- settling down to kind of what a lot of traders with think is the reality. -- well it looks like -- selling out at around 12100 dollars an ounce and if you're called it wasn't that long a goal was -- at nineteen dollars an ounce of people are talking about it's gonna go to 3000 or 5000. I think fundamentally what's happened is that. You know the people who -- fans of gold or gold bugs if you will. I believe that because of what the Federal Reserve was doing that the dollar would be trashed we would have massive inflation in this country and in in that scenario goal would you really really well. Well the reality is that despite all the Fed what they're doing inflation hasn't really taken hold in the dollars actually gotten stronger. Relative to the Euro certainly -- relative to the Japanese currency and so goal is priced in dollars as the dollar does better gold falls. Add that to the lack of real inflation taking off here in this country minutes -- really -- scenario from gold. And then you had a lot of hot money a lot of momentum traders who got into gold in recent years. At the first heart trouble they're downtown and then just feeds on itself moments in his double edged sword it works on the way down faster actually and it does on the way out and go to suffer from that right now. A complex equation and I appreciate you prix -- down -- isn't a lot of obviously variables that. I talked a little bit about Research in Motion of course the company that makes Blackberry and the Blackberry that just will not go away a lot of people are just so addicted to the iPhone that they just. They they can't even imagine having a Blackberry now -- I am obviously not posting some good numbers. No they they were -- really bad numbers I think it posted a big loss when history was looking for a small profit. -- subscriber numbers are down. -- there had been a lot of hope for this quarter that that the new Blackberry phones the disease ten in the Blackberry ten software would. Helped give Blackberry a boost it has not materialized. Let's not forget you know Blackberry is not just dealing with the iPhone -- they're dealing with Samsung HTC -- -- the android phones. That are out there as well and they used to have a monopoly virtually on the corporate market on the enterprise market. And that is gone away a lot of corporations they don't I have an iPhone that's. You know Yahoo! property but they let me use it. And a lot of corporations say you know it blackberries annually in out there and they are clearly. -- a lot of trouble analysts that -- that. Yeah Ellison and tradition is it if that bring your child the work -- is looking Bihac is better there was this there was. And young -- young gentleman could be replacing you Aaron. You know I don't think anything for granted and I'm gonna have a thought that that young man about why he's trying to hone in on my -- I hear about them. You know this -- -- tell about his competition in -- I welcome it. As the younger smarter faster I agree we -- be there are sent -- got to -- -- -- I was keeping way what's the what's ahead. Hey and speaking of what's ahead Google looks like they want to get into the gaining market they want -- have an android counselor these rumors or is this. Actually get become reality. It's rumor right now but I would not be shocked and often becomes -- reality there's also talk that apple is working -- -- gaming console. I mean there's a couple things to note first of -- Wall Street Journal estimates. This is its 45 billion dollar a year business so. If your apple -- -- you're not getting a piece of that -- say hey I want some left for me but also the gaming console. Is potentially. Sort of the holy Grail device that can be the controller. For your TV and your Internet and your gaming and removal and apple. And any other major technology company can't afford to not try to participate in that -- is that seems to be where things are headed so. Again it's it's speculation right now but I would not be shocked -- if this is true and who will does -- the council. It is clearly erase these companies want to be your one stop shop for exactly entertainment business education everything. Are exactly are well let's look at the outlook for over -- ago the Dow down about 56 points at 141968. Air task from Yahoo! finance have a great weekend and tell your young partner there to have a good weekend as well. -- again.
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