We usually Zig when other’s Zag, as such, we decided to itemize a few GOOD THINGS that happened in the financial world this week, as those who have been Zagging of late, are mostly of negative items:
1. The Debt Ceiling was lifted and a plan was established: Most compromises or agreements are a form of give and take. While parties from different sides of the fence may view the Debt Ceiling agreement uniquely, an agreement and compromise is just that, and we now have one in place.
2. According to the latest BEA report, personal income was up and personal spending down from the prior month. This bodes well for the balance sheets of many who have been drowned in negative rhetoric for not saving enough.
3. Spain Successfully Auctioned almost $5 Billion in 3 and 4 year bonds: Easing some of the default fears, the Spanish government was able to float almost $5 Billion of new bonds, as just a few weeks ago, many thought this would be impossible. The rates issued where higher than earlier 2011 year issues (4.9%) but well below the made up, but followed, 6% frightening new issue float rate.
4. Interest Rates Fell: Mortgage rates, credit lines, and various other forms of debt have seen their rates fall. Many, present party included, have been watchful for higher rates. As rates fall, financing costs get easier, providing wind for our economic sail’s.
5. Gasoline Prices dropped this week: Just as interest rates have fallen, so have prices at the pump. Lower pump prices allows for a few extra dollars to stay in our pockets at “fill up” time, and also helps with prices on the items we pull off the shelf in our grocery store.
While there are certainly a few not-good things that happened this week, we will let those Zaggers tell us repeatedly about those items. We hope you enjoyed our good things as you head into your weekend.
Have A Great Day!
JK
PS. I will be out of town today and Monday, but back in the office on Tuesday.