The Daily Dish - February 17, 2010

The Cavalier Nation sits on the edge of their collective seats. Deal? Or no deal? Here’s where it looks like things stand:

Cavs # 1 preference is Amar’e Stoudemire. They have an offer out there to Phoenix. J.J. Hickson, Zydrunas Ilgauskas, and a 1^st round draft pick. It also looks as if talks have intensified with Washington. The rumored deal the Cavs have out there with the Wizards is Zydrunas Ilgauskas, Jamario Moon, and a #1 pick for Antawn Jamison and veteran point guard Mike James. In both deals, the Cavs would likely be able to resign Big Z after 30 days, at which point he would be bought out by the team he is dealt to. Fallback position for the Cavs appears to be Indiana’s Troy Murphy and/or the LA Clippers’ Corey Maggette, both of who could probably be had for Z’s expiring contract and filler.

A couple weeks ago I mentioned that I bought one of those Keurig one-cup coffeemakers and how much I love the thing. Things are starting to get out of hand though. I just bought a second one for my office, and am now up to 6-10 cups of coffee a day. Here’s an actual e-mail correspondence yesterday between me and my buddy Paul, who I now blame for this evil addiction:

Swerb: Just so you know, you’ve created a monster. Now have a second Keurig in my office. I’d ask you if there was a 1-800# help line, but my right hand is shaking too badly to dial the phone.

Paul: That’s hilarious because my brother (who also works with me) got a Keurig with his wife for X-Mas and the two of us have debated getting one and bringing it into work so we could have it during the day. Our rationale NOT to was that we’d be sucking down 7-8 cups of coffee a day too. I’m due an “upgrade” for my machine because of accumulated points from Keurig.com and we may just be bringing the old one here to the store. Welcome to the party pal.

Swerb: I’m saving all these emails … I think I may be able to implicate you in a lawsuit when I perish from caffeine withdrawals the next time I am forced to be away from one of my Keurigs for 24 hours straight.

Paul: “One of my Keurigs” is possibly the best line I’ve read in a while. You know about the version for your car, right?

Swerb: There’s a car Keurig?

Paul: Calm down, just kidding. You know how this works now … you have to get someone else hooked.

Swerb: You mean kind of like how married guys encourage all their buddies to get married? Try and bring others into “our world”?

Paul: You’re a quick study my young apprentice.

Swerb: Alright, I’m going to throw together a Keurig Power Point and get it out to some people I feel may be susceptible. While enjoying a fresh brewed cup of the Tully’s extra bold Kona blend.

Quote of the day …

“People ask me what I do in winter when there’s no baseball. I’ll tell you what I do. I stare out the window and wait for spring.” ~ Rogers Hornsby

Market …

Upbeat tone to the markets this morning, thanks in large part to a better than expected housing starts # for January. Housing starts represents the number of residential homes construction has begun on during each month. When the shovel goes in the ground … that’s a housing start. The report serves as a future indicator of future new home sales 6-9 months down the road. Also, new home sales mean people have to buy things to put in them, so it also serves as an indicator on some level for consumer spending, by far the biggest component of the US economy. Needless to say, the housing start #’s have not been robust these last few years:

But the January numbers were better than expected. Work began on 591,000 houses at an annual rate last month, up 2.8% from December, figures from the Commerce Department showed today in Washington. Expectations were that housing starts would come in at about 570-580k. Housing starts have now risen 21.1% in the past year, the largest year-over-year increase since April 2004.

In other news yesterday on the homebuilding front, The National Association of Home Builders said yesterday that its housing market index rose two points in February, a sign that low interest rates and federal tax credits are boosting demand for new homes. The builders group said the index reached 17 in February, after falling for two consecutive months. The increase may also signal builders are feeling better about their prospects following data that the job market could be improving. Meanwhile, interest rates for mortgages are hovering around 5 percent, pushed down by the Federal Reserve’s program to buy mortgage-backed securities. And, builders say they are seeing the effects of the tax credits of up to $8,000 for first-time buyers and $6,500 for current homeowners who move.

Yesterday was a big day for the stock market, as the Dow jumped 170 points. Overseas debt concerns eased, and more focus was put on domestic affairs. At least for now, encouraging jobless claims # last week, better than expected earnings reports, and some positive economic news has instilled a positive tone to the markets. Good for stocks, not so good for safe haven fixed income investments like treasuries and mortgages. The mortgage-backed securities markets are in slow-bleed mode right now.

News …

~ Housing Starts Post Sharp Rebound

http://finance.yahoo.com/news/Housing-starts-post-sharp-rb-4278026676.html?x=0&sec=topStories&pos=main&asset=&ccode=

~ Mortgage Apps Down Even as Rates Near Record Lows

http://www.cnbc.com/id/35435909

~ Biden Defends Stimulus, Slams “Dysfunctional” Congress

http://www.cnbc.com/id/35436578

~ Home Builder Confidence Increases in February

http://www.cleveland.com/business/index.ssf/2010/02/homebuilder_confidence_increas.html

~ Shadow Inventory Still a Concern; Reason to Extend Fed’s MBS Program?

http://www.mortgagenewsdaily.com/02162010_s_amp_p_shadow_inventory_still_a_concern_reason_to_extend_fed_s_mbs_program.asp

~ Mortgage Delinquencies Soar in Fourth Quarter 2009