TIB Ticker - Freedom and Liberty: Carrying On The Legacy

July 03, 2008Daily Rates & Viewpoints From the Officers & Staff of TIB.

Freedom and Liberty: Carrying On The Legacy

You can be sure that, as our nation was being founded, our forefathers had a much better perspective on the true value of “freedom” and “liberty”, than do most of today’s Americans. They lived under an oppressive ruler who imposed arbitrary and unmerciful taxes upon them – all from half a world away and without their input. As such, their view of freedom was much more basic, immediate and heartfelt than ours often is today. It was even more important to them than their own security. Benjamin Franklin echoed this sentiment when he said, “They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety.”

Generally speaking, today’s attitude more often reflects the words Kris Kristofferson wrote in the song “Me and Bobby McGee”: “Freedom’s just another word for nuthin’ left to lose.”

Not true. And that’s an especially dangerous attitude in what could be one of the most pivotal election years in American history. While the issues may seem more clouded than in those exciting days of revolution that spawned this “grand experiment”, you can be sure that liberty and freedom still hang in the balance – every day.

The 56 courageous men who signed our Declaration of Independence did so at great personal peril. They knew full well that they would be considered traitors and that their punishment, if captured, would be death – facts that did nothing to dissuade John Hancock from making his signature the largest on the document. His explanation? He wanted to make sure that King George IV would not need his spectacles to identify him as a traitor and double the reward for his head!

We live in the greatest country that has ever graced the earth. And, each of us who are of age have the ability to carry on that grand legacy of patriotism. You don’t have to join the military or run for office, though certainly noble pursuits. All you have to do is VOTE.

Greg Todd Greg Todd
SVP/Director of Communications
gtodd@mybankersbank.com

Market Levels @ 8:01 AM

TIB Fed Funds Rate - Previous Day
Agent and Principal	1.98%	STAR Principal	2.03%

Key Indices/Commodities
1 - Month LIBOR	2.46%	Dow Jones	11215.51
3 - Month LIBOR	2.79%	NASDAQ 100	2251.46
1-Yr LIBOR	3.32%	S&P 500	1269.90
1-Yr CMT	2.35%	Spot Gold	946.60
Prime	5.00%	Spot Silver	18.05
3-yr LIBOR Swap/Offer	3.87%	Spot Crude Oil	145.13
5-yr LIBOR Swap/Offer	4.25%	CRB Index	473.15
3 Mo - Fed Fund Futures	2.17%	6 Mo - Fed Fund Futures	2.36%

US Treasury Yields		US Non-Callable Agency Yields
Yield	Maturity	Yield	Spread
1.72%	90 - Days
1.97%	180 - Days
2.52%	2 - Year	3.17%	65bp
2.81%	3 - Year	3.54%	73bp
3.26%	5 - Year	4.16%	90bp
3.97%	10 - Year	4.77%	79bp
4.51%	30 - Year
145 BPs		Yield Curve(2's-10's)

Sample 1x Callable Agency Issues
Description	Call Date	YTC	YTM
FHLB 4.05 01/23/12	7/10	4.05%	4.05%

Select MBS Levels
Description	Coupon	Yield	Spread/WAL*
15-Yr FNMA	5.50%	5.35%	203 / 5.24
30-Yr GNMA	5.00%	5.59%	177 / 8.72
*Weighted Average Life @ 12 month Historical CPR

Morning Commentary:	Reed Bateman
We’ve had a busy morning before the holiday weekend. Change in non-farm payrolls came in down 62K, slightly worse than expected, from a revised decrease of 62K last month. June unemployment was 5.5%, in line with both last month’s rate and the surveyed rate for the month. Initial jobless claims for the week of June 28th were up 16K, to 404K vs. a revised level of 388K. Continuing claims are the bright spot of the morning, decreasing 19K for the week of June 21. Continuing claims were expected to decrease by 14K to 3125K. The ECB raised its benchmark interest rate 25bps to 4.25% to fight inflation, despite a slowing economy. So, where are the markets after all the news this morning? Equity futures are up before the bell, as the market seems to have the “it could have been worse” attitude. The treasury market is down, driving yields on the 2 and 10-year to 2.47 and 3.90, respectively. Hold on, the markets could be in for a fun ride today. Have a great 4^th!

Morning Commentary:

Reed Bateman

We’ve had a busy morning before the holiday weekend. Change in non-farm payrolls came in down 62K, slightly worse than expected, from a revised decrease of 62K last month. June unemployment was 5.5%, in line with both last month’s rate and the surveyed rate for the month. Initial jobless claims for the week of June 28th were up 16K, to 404K vs. a revised level of 388K. Continuing claims are the bright spot of the morning, decreasing 19K for the week of June 21. Continuing claims were expected to decrease by 14K to 3125K. The ECB raised its benchmark interest rate 25bps to 4.25% to fight inflation, despite a slowing economy. So, where are the markets after all the news this morning? Equity futures are up before the bell, as the market seems to have the “it could have been worse” attitude. The treasury market is down, driving yields on the 2 and 10-year to 2.47 and 3.90, respectively. Hold on, the markets could be in for a fun ride today. Have a great 4^th!

Information contained herein is based on sources we believe to be reliable but its accuracy is not guaranteed. Customers should rely on their own outside counsel or accounting firm for specific circumstances. The securities, yields or levels discussed herein are for illustration purposes and are not guaranteed, not obligations of any bank, thrift or other entity and are not insured by the FDIC.

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