Rate Watch 12-9-08

Cautiously Floating: Current Rate Trend is Sideways.
Law makers have drafted a bill to aid automakers with 15 billion in loans.
Some interesting news about the “Uptick Rule”. News from Washington is that many members for the House Financial Services Committee as well as 85% of the companies on Wall Street are in favor of re-instating the Uptick Rule. The Uptick Rule is a former rule established by the SEC that requires every short sale transaction be entered at the price that is higher than the price of the previous trade. The reinstatement of the uptick rule would do a lot to quiet the excessive volatility in both Stocks and Mortgage Backed Securities Markets. This rule was removed in July 2007 and the volatility for both stocks and bonds has gone wild ever since.