Fed's Beige Book lends some interesting economic reading for the future

*things are deteriorating, BUT at a slower pace. Remember that parachute? Still falling but slowly falling. The ten year yield hit 4.0% today, which is good for China, and bad for the rest of us. This means higher mortgage rates, unless of course the Fed decides to shove all the needed refi's into Fannie and Freddie, get you representatives phone numbers handy, this you should not let happe. Why? Because they are allowing the 10Yr yield to go up so China and Saudi Arabia will continue to buy and get their yields, and also to allow commodities prices to go through the roof so the BANKS can claim they have earnings for 2Q. Once the banks let Ben and Timmy know that they have reached the mark, then Fed will come in and buy 10yr or lower the stock market so people will RUN to the 10yr and then dollar will go up and oil will come down. See the magic of it all? Wait until 3 and 4Q when the banks still have not been able to earn their way out of their mess because the rest of us are so broke we will have no place to go cept the White House, to COMPLAIN!
Beige Book Keeps Looking in Rear-View Mirror

The Federal Reserve’s Beige Book is noting improvements in most local economies, although as you might expect there is the normal pause or caution still underlying the combined reports. The overall economy was still described as weak but with slowing declines as five of twelve districts showed moderating declines.

There is also the notion of improvement in expectations, but the underlying theme is for no great expectations of a boost this year. The decline in manufacturing was present, but the outlook is better than in the prior report. The survey noted continued softness in retail spending but an uptick in home sales and construction. Also seen was a weakness in lending that was stable as credit conditions remain tight. On the labor front, the jobs market was still noted as weak with flat or falling wages. Also noted was the notion of flat prices, or still falling in some instances. Go here for full report...