September 9, 2010 My Kind Of Town, Chicago Is. . .
(Sorry about the delay there were Blogger Editor issues last night)
I could have started this post with “O Come O Come Emanuel”, but chose the more obvious Sinatra hit (Because Ben liked it better). Why would we be talking about the Windy City and what does it have to do about the economy and the market? Well after 21 years and 6 terms, second generation Mayor Daley is choosing not to run for Mayor of Chicago. That opens the door for a person who has wanted to be Mayor of that city since he was “a little boy”. That person would be Rahm Emanuel whom you might know as the Whitehouse Chief of Staff. He has a very interesting back round as Congressmen advisor to Clinton, loyal supporter of Clinton until Obama announced his plans to run for the Presidency then Rham or as he is known in the White House
“Rhambo” (because he gets stuff done), shifted gears and long with David Axelrod was responsible for running much of the Obama campaign and finances. He is one of the few in the inner circle with actual business experience having been a fairly successful investment banker.
The reason why this is important is that Emanuel has to file by November 1st. Assuming he does, the timing is terrible for President Obama who will have his hands full trying to keep democratic seats in place. With the poll measured discontent for incumbent democrats at the moment, Emanuel’s departure will seem like a vote of no confidence for Obama. This will possibly strengthen the inevitable shift to a loss of control in Congress and The Senate, which is deemed to be good for business. I know its sad to think that a dysfunctional government is good for business. (That doesn’t explain the swarm of business leaving California?)Keep an eye on this story.
Oh Give Me a Home
We got the mortgage application report today and it was pretty much as we guessed on Monday. It did improve, actually it improved nicely being up 6.3% from the month earlier. However as we suggested, the fe-fi number is a bulk of that increase. As a percentage though the re-fi sector was down a touch implying that more homes entered escrow. A good piece of news.
Who says Canadians are predictable?
Well this month they appear to have been. As expected they boosted their prime rate 25 basis points to 1%. Probably a good thing as mining exports (Gold) is making their economy start to boil. They are tapping the breaks.
Find A Lucky Penny Put It In Your Pocket
The consumer credit report came in with more savings than I had expected. Monday we pegged the drop at 2.5 Billion and it came in as expected at 3.6 Billion. People are holding on to their money and paying down debt. Which is a good thing but it is done at the expense of stimulating the economy.
From the White House Pet Photo Gallery