It just doesn’t get any more exciting than last night’s USA/Canada hockey game. The energy inside that building and on the ice was off the charts. And behind amazing individual performances from Brian Rafalski and goalie Ryan Miller, the Americans shocked the world (and the throng of Canadian hockey fans in attendance) and knocked off the host Canadians 5-3 in an absolutely thrilling affair that was America’s biggest hockey upset since The Miracle on Ice, and their first win in hockey over Canada since 1960.
Not a good Olympics for Canada so far. From the ominous start on the luge track to the funky weather, to the fact they have just 9 medals as a country, to last night’s loss to the Americans … it has been a major disappointment for the Canucks so far in Vancouver. For America on the other hand, it’s been a super Olympics. Dominance by the American ladies on the slopes, the comeback story of Bode Miller, Apollo Anton Ohno’s march into the record books, 24 medals in total to lead the games. And a win last night in hockey over the vaunted Canadians.
Spent the night in enemy territory Saturday night as my family and I went to Pittsburgh for my grandma’s 70th birthday. My sister and her boyfriend live there, and my gramma wanted to check out the new Rivers Casino, which recently opened right there in the heart of the city. Stayed right across the street from PNC Park, which is really a nice baseball stadium. Looking forward to taking a little roadie with my son there when the Tribe plays there the weekend of June 18-20. Also had dinner at a cool little restaurant called Atria’s, right inside PNC. There are some things to like about Pittsburgh. PNC Park, Yeungling, Station Square, and the general look and feel of the city, which is very hilly … which gives it a cool look, especially given some of the neat architecture there.
Some things I could live without: the one way streets, Heinz Field, everything in the city being colored black and gold (most miserable color tandem), and the fact that about 70% of all clothing worn by all the people there in that city has the Steeler logo on it. I could never live there for that reason alone. It’s just too much.
Quote of the day …
“Great moments… are born from great opportunity. And that’s what you have here, tonight, boys. That’s what you’ve earned here tonight. One game. If we played ‘em ten times, they might win nine. But not this game. Not tonight. Tonight, we skate with them. Tonight, we stay with them. And we shut them down because we can! Tonight, WE are the greatest hockey team in the world. You were born to be hockey players. Every one of you. And you were meant to be here tonight. This is your time. Their time is done. It’s over. I’m sick and tired of hearing about what a great hockey team the Soviets have. Screw ‘em. This is your time. Now go out there and take it.” ~ Kurt Russell, as US Olympic hockey coach Herb Brooks, from the movie “Miracle”
Market …
We saw stocks rally and mortgage rates push higher last week amid mostly positive economic indicators (low inflation, better than expected housing data) and earnings reports. Also, on Thursday, the Fed shocked the markets by raising the rate in their overnight discount window from 0.50% to 0.75%. The Fed made clear that this in no way reflected a change in broader monetary policy or its economic outlook, and that this was simply a return to more normal levels for one Fed tool now that the financial crisis has eased. As a result, there was very little impact on mortgage rates. According to Fed officials, a move to begin to tighten overall monetary policy, which almost certainly would cause a significant reaction, is still expected to be at least several months away.
Another significant development we got last week was the release of the minutes of the last Fed meeting, which revealed that “several” Fed officials favored starting the sale of the Fed’s MBS portfolio “in the near future.” Investors were not expecting that Fed MBS sales would begin any time soon. Simply put, adding to the supply of MBS being sold means that yields would need to move higher to attract buyers. Since mortgage rates are basically fueled by MBS yields, mortgage rates rose after the news.
This week’s economic slate gets off to a slow start with no releases of note today, and just consumer confidence tomorrow. On Wednesday we get new home sales data for Jan, on Thursday we get durable goods orders and first time jobless claims. On Friday we get preliminary 1Q GDP data, Chicago PMI, existing home sales data, and consumer sentiment. Also, on Wednesday, Fed honcho Big Ben Bernanke testifies before Congress.
News …
~ Mortgage Rates End Week on Three-Day Skid; Fed Rate Hike Not to Blame
http://www.mortgagenewsdaily.com/consumer_rates/135983.aspx
~ Poll: Economists See “Healthy Expansion” Under Way
~ Ex-US Treasury Secretaries Back Volcker Rule
http://www.cnbc.com/id/35516716
~ Lowe’s Profits Beat Estimates; Sees Sales Rising
http://www.cnbc.com/id/35518283
~ Gridlock is Good for Bernanke Dollar in Fight Over Rate Audits
http://www.bloomberg.com/apps/news?pid=20601087&sid=adW1eVcUJM4I&pos=4
~ Stock Futures Point Higher Amid Economic Optimism
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