Economic Update

NOVEMBER 17th , 2009

• Unemployment surpasses 10%• Tax credit for 1st time homebuyers• Reuter’s/ University of Michigan Consumer

Sentiment Index• US$ Index• Trade Deficit

Key Points

• October unemployment 10.2%

• Builders and factory workers lead claims

• Creation of jobs

Unemployment

Changes to Homebuyers Tax CreditChanges:

expand income limits homes up to $800,000 existing homeowners for

primary residenceProblems:

End of tax credit: prices will reset

Variable rate mortgages

Other Indicators• Consumer Sentiment

– 70.6% in October to 66.0% in November• 73.5% in September

• Dollar Index– 75.229 to 74.738

• Trade Deficit– Widened to $36.5 billion in September from a revised

$30.7 billion in August

Consumer Sentiment

Consumer Sentiment

Dollar Index (DXY)

Dollar vs. Gold

TED Spread

LIBOR-OIS Spread

VIX - 7.23% Implied