Big news over the weekend is the rescue plan seems to have support and will be voted on today. Until this important legislation is passed, it seems we will continue to run in place and rates will continue to move sideways. I prefer to use rescue plan and not bailout as the government is not just giving the money to wall street. The government is getting assets which it can later sell to recoup the $700 billion and maybe just make a profit as it did during the savings and loan rescue of the 90's.

This week brings us a lot of important economic reports which historically move the markets, however, we have already had the release of 4 reports and it seems no one cares. We really need this bill to pass so the market can start acting like it should.

Todays reports:
1. Personal Income - economists where expecting a .2 increase after a -.6 fall last month, the number came in at a

disappointing -.5, this should be good news for mbs!
2. Personal Spending - economists where expecting a .2% increase after a .1% increase last month, the number came in

at a disappointing .0%, this should be good news for mbs!
3. Personal Consumption Expenditure, which measures inflation and as stated many times, inflation is the mortal enemy of mortgage rates. Economists where expecting a .2% increase after a .2% increase last month, the number came in right on at .2% but the year over year number is at a higher then the fed likes level of 2.6%, this is mixed news as the monthly number came in where expected but year over year is still above where the Feds want it to be.

Tomorrow bring us the release of the Chicago PMI, which measures the strength of the manufacturing segment of our economy and the release of Consumer confidence. Wednesday brings us the release of ISM index, another report on the strength of our manufacturing segment, and the ADP National Employment report which shows the number of new jobs created. This report is of less significance then the non farms payroll report which will be released Friday. Also on Friday we will get the rest of the employement numbers including national unemployment rate, hourly earnings and average work week.

In more news today, it is being reported that Citigroup will acquire Wachovia banking operations, another victim of the credit crisis. But like everything else lately, this big news item will take a back seat to the $700 billion rescue plan.