December 13, 2008
December 13, 2008 by admin
The stock market rallied late on Friday as investors looked past the Senate’s decision to fillibuster the auto loan bailout package. The market was off by over 300 pts in pre market activity as the news hit that the auto industry may not receive the bridge loan that they desperately need. The market got an immediate boost when the white house acknowledged that they would look to use funds from the TARP program to provide working capital until the new administration gains its foothold in Janruary.
The market also reacted favorably to a PPI report that indicated their is a low level of producer price pressure in the market. This will make it easier for the FOMC to meet and potentially further reduce the Fed Funds rate next week. With a prime rate below 5%, consumers will save who have credit card debt and home owners with home equity loans. Mortgage rates continue to hover near historic lows for 2008 and offer great opportunities for home owners looking to refinance or purchase in the near future.