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To date nearly half of the $350 Billion of the $700 Billion TARP (Troubled Asset Relief Program) fund, approved by congress and earmarked to “bailout” financial institutions, has been distributed. At week’s end about $17B remained uncommitted, that is, until President Bush and TreasurySecretary Paulsen went on a pre-Christmas spending spree.

Two things are certain: 1) If there is money in the bank, Washington cannot resist spending it and; 2) The Administration does not want the big three auto manufactures debacle to erupt on their watch – solution: to dish-out just enough to carry the big three through the inauguration and leave it on the desk of the new President and Congress.

The Labor Department did give us a surprise in this morning's release of weekly unemployment figures. They reported that new claims for benefits fell drastically last week. They were expected to be at 575,000, but today's release announced that only 492,000 new claims were filed. Fortunately, this data is not considered to be of high importance to the markets therefore the impact on mortgage rates has not been significant.

The bond market is currently down 14/32, but we will see an improvement in this morning's mortgage rates of approximately .250 - .375 of a discount point due to strength late yesterday.

To date nearly half of the $350 Billion of the $700 Billion TARP (Troubled Asset Relief Program) fund, approved by congress and earmarked to “bailout” financial institutions, has been distributed. At week’s end about $17B remained uncommitted, that is, until President Bush and TreasurySecretary Paulsen went on a pre-Christmas spending spree.

Two things are certain: 1) If there is money in the bank, Washington cannot resist spending it and; 2) The Administration does not want the big three auto manufactures debacle to erupt on their watch – solution: to dish-out just enough to carry the big three through the inauguration and leave it on the desk of the new President and Congress.