Today is the 50th anniversary of Sputnik, the Russian’s (and world’s) first satellite. Back then it was joked that “Russian rockets flew up and America’s blew up”. Probably 95% of people still in the mortgage business weren’t around for the event, but it is generally considered to be the beginning of the Space Race and led to the Space Shuttle (the benefits of which include Tang, Velcro, the song “Rocket Man”, and pay option ARM’s).

Countrywide has hired “crisis management” experts from a public relations firm to help boost their reputation. Employees of CW are being encouraged to “commit themselves to the company's efforts to restore its good name by signing a pledge and wearing rubber wristbands bearing the slogan ‘Protect Our House’." "I want employees to look down at their wristbands and remember our fundamental mission to help customers achieve the American Dream and to help them withstand those malicious outward attacks and to motivate them to continue our journey with unwavering conviction," states one memo.

Bear Stearns is combining its mortgage origination lending businesses, Bear Stearns Residential Mortgage and Encore Credit, into a single unit under the name Bear Stearns Residential Mortgage Corporation. The combination will allow the firm to right-size the business to current market conditions and increase efficiency and thus an elimination of 310 jobs across its mortgage origination businesses.

Yesterday rates worsened slightly mostly due to an ISM survey that showed non-manufacturing business activity index declining less than expected. It moderately decreased in September, falling to 54.8%, but was above consensus expectations and gave fixed-income prices a reason to drop and rates to rise. To further compound things, mortgage demand decreased 2.7% last week. Purchases decreased 1.8% and refinance applications decreased 3.8%. Overall applications are still 2% higher than four weeks ago and unchanged from its year-ago level. We’ve already had Jobless Claims (+16k to 317k) and later will see the Commerce Department’s Factory Orders data for August. Current forecasts are calling for a decline in new orders of approximately 2.8%. An unexpected rise could drive mortgage rates higher, while a weaker than expected reading should push them slightly lower tomorrow. And speaking of tomorrow, the Labor Department will post September’s Employment report at 5:30AM PST. This report will reveal the U.S. unemployment rate, number of new payrolls added, and average hourly earnings. These are considered to be very important readings of the employment sector and can have a huge impact on the financial markets. Analysts are expecting to see a slight increase in the unemployment rate to bring it to 4.7%, an increase in new payrolls of approximately 100,000 and a 0.3% increase in earnings.

The Seven Dwarfs go to the Vatican, and because they are "The Seven Dwarfs" they get ushered in to see the Pope. Dopey leads the pack.
"Dopey my son," says the Pope, "what can I do for you?"
Dopey asks, "Excuse me, Your Excellency, but are there any dwarf nuns in Rome?"
The Pope wrinkles his brow at the odd question, thinks for a moment and answers, "No Dopey, there are no dwarf nuns in Rome."
In the background a few of the dwarfs begin giggling. Dopey turns around and gives them a glare, silencing them, and turns back to face the Pope.
"Your Worship, are there any dwarf nuns in all of Europe?"
The Pope, puzzled again, thinks for a moment and then answers, "No Dopey, there are no dwarf nuns in all of Europe."
This time all the other dwarfs burst into laughter. Once again, Dopey turns around and silences them all with an angry glare.
Dopey turns back to the Pope and says, "Mr. Pope, are there ANY dwarf nuns in the whole world?"
The Pope answers, "I'm sorry, my son, there are no dwarf nuns anywhere in the world."
The other dwarfs collapse into a heap, rolling, and laughing, pounding on the floor, tears rolling down their cheeks as they begin chanting: 
"Dopey kissed a penguin! Dopey kissed a penguin!"