Rate Watch 1-12-2009

Cautiously Floating:
Oil prices are tumbling this morning to near $38 a barrel on concerns that slumping demand will outweigh output cuts by OPEC. Due to the present economic slowdown, Oil consumption is expected to fall by 1 million barrels a day this year in the US alone.Currently, Bond prices are down, but may rebound a bit later if the Fed steps in with some buying. Therefore, I recommend floating for now. With so many variables affecting the market, it's more important than ever to have an advice-based strategy when structuring your loan, and I appreciate you trusting me with this role."