This week, I have to hide my schadenfreude for the equities market as it was a sweet week for rates and housing in general. Even with some good reports on the jobs front, bad news in Europe and a crazy fluke provided what amounted to jet fuel to the lending market with rates dropping to 2010 lows.
European Financial Crisis
The primary driver this week was the Greek debt crisis in the European Union. Although it had looked as if an agreement was close with the European Central Bank, unrest in Greece arose in response to proposed austerity measures. The resulting violent protests as well as a general anger among the population of Germany and other financially stronger countries showed that our friends across the pond have a long way to go in resolving their own issues. Additionally, new fears arose that the crisis could spread further into Europe with a future crisis in Portugal emerging as an especially troubling possibility.
Typo Caused the Dow to Drop
The most interesting event this week occurred on Thursday with a whopping drop in the Dow resulting from an apparent mistake on the part of a trader. This individual allegedly mistyped an order initiating a sell request for 1 billion shares of Proctor and Gamble as opposed to intended 1 million. At one point, the index dropped to 9869. This further improved rates, so if you locked today then you did very well indeed.