LET THE GAMES BEGIN! And as the Olympic torch arrived in Athens, the fire in the stock market continued to fizzle. Just on the heels of a disappointing Jobs Report, Greenspan and the Fed went ahead with the expected .25% hike to the Fed Funds Rate last Tuesday, and even offered continued optimism on the economic climate ahead. But Traders didn't seem to buy in to Big Al's happy thoughts, as they cast a cool eye at record high oil prices, lack of job growth, corporate earnings disappointments and a record high US trade deficit.

Now remember that while Stocks dislike bad news, Bonds and home loan rates love it...so while the optimistic economic comments on Tuesday gave Bonds a little hit initially, the remainder of the week's action helped Mortgage Bonds recover and left home loan rates essentially unchanged for the week.

"CAN YOU HEAR ME NOW? HOW ABOUT NOW?" HAVE YOU EVER BEEN "HEARD", BUT COMPLETELY MISUNDERSTOOD? WHY DO SO MANY MISCOMMUNICATIONS HAPPEN, IN BUSINESS, IN RELATIONSHIPS, IN LIFE? READ THIS WEEKS MORTGAGE MARKET VIEW, AND LEARN A FEW SIMPLE YET BRILLIANT KEYS TO COMMUNICATING EFFECTIVELY AND AVOIDING MISCOMMUNICATIONS.

The week ahead has more than a few wild cards in play. What lies in wait? Soaring oil prices combined with worries about the economy may continue to hang heavy over the stock market this week, which would help Bonds and home loan rates retain their present levels. But with a busy Economic Report calendar this week, Traders will get more clues about inflation and the economy, starting off with the Consumer Price Index on Tuesday. If the release hits expectations, it would suggest continued economic improvement. This could help to break up the stock market gloom, and could pressure Bonds lower to test the 200-day Moving Average as seen in the chart below.

However?with the Olympic Games in full swing this week, the high threat of terrorist activity is fueling a continued "flight to quality" stance as the events proceed. In uncertain geopolitical times, Traders and investors tend to move money away from Stocks, and into the "safe haven" of Bonds. In the absence of super hot economic news this week, this "flight to quality" movement also should help to support Bonds at their current positions.

In the absence of major economic surprises this week, home loan rates should be able to hold their present levels.

Make Magic Happen With Communication

"Can you hear me now?" Ah, but hearing and understanding are two totally different things. Ever had someone fail to deliver on a promise, fail to follow up, fail to communicate their ideas to you or just not have their act together? While it's easy to get a little upset over these disappointments from people you are paying for services, you can also look at this as a blessing. Thank goodness there are so many folks who just don't "get it"?as this makes it so easy to be successful when you do know how to communicate effectively.

Don't you just love it when your sales person or agent really "gets it"? They understand you and you understand them ? you just click! Sure, price is important, but wouldn't you pay a little more to work with someone who has great communication with you? Most of us would. Communication could solve so many problems but it breaks down so often. It really is hard to get an idea out of one person's head and into another's. If someone has a concept in his or her brain, they understand it or see it clearly. This is also a handicap. Because it is so clear to one person, they assume the person they are communicating to can also see it clearly?but in many cases, they can't. This may also explain why superstar athletes rarely make great coaches - they can't understand why it doesn't come as naturally for others.

"Lamont, ya big dummy!"?Fred Sanford of "Sanford and Son"

Let's begin taking a closer look at how we transfer ideas back and forth by naming the person who is sending the communication as the "sender" and the person receiving the information as the "receiver". A common breakdown in communication occurs when an idea is relayed from the sender to the receiver but the receiver does not have clarity or a good understanding of the message. The receiver will often smile, nod and even say they understand. Now, why the heck would they do that if they really don't understand? Nobody wants to appear dumb or like they aren't with it. Just not knowing the concept in the first place can be enough of a blow to someone's ego, but now add that the individual still doesn't really get it after it has been explained and you have a potential cause for embarrassment. This embarrassment is enhanced if the incident takes place around others or in a public setting. So the receiver makes believe they understand, while actually being clueless. And this hurts the sender as much as the receiver, because the idea they believe they have successfully relayed was actually lost altogether.

Open Wide?it's Time to Eat

So how do we master the art of great communication? It starts with the sender putting himself or herself in the position of the receiver. The sender has to "spoon feed" the information. Here's a visual. Take some applesauce and a spoon, then put those items in front of a hungry person?seems pretty obvious, they should go ahead and eat. But what if that person were just 5 months old? You would certainly have to "spoon feed" them. Eventually, that little 5-month old will get the hang of it. And most receivers are just like the 5-month old?wanting to learn so they can then understand?which are two importantly different things.

The first rule of great communication is for the sender not to assume that the receiver knows the subject matter. Begin spoon-feeding the material slowly and solicit feedback as you go. This will help you pace the speed of your spoon-feeding. Some receivers may already have a good grasp on the information but your patience and concern will be a welcome breath of fresh air for them. Remember to never be condescending, just concerned and non-assuming.

Recap the journey

The next rule is to remember that the receiver cannot see inside the sender's head. This is the most difficult challenge for the sender to overcome. Rarely are ideas formulated in one shot. In other words, most ideas travel along a thought process. There are twists and turns and processes of elimination along the way. An idea in the sender's head has already gone through this process. But when an idea is communicated, the sender usually just fires the end result out to the receiver, without the benefit of taking them through the journey. If the sender paves the way for the receiver first by giving a brief tour as to how they arrived at the idea or concept, the receiver will have a much easier time following along and, most importantly, understanding what is inside the mind of the sender and how it got there. When people begin to communicate this way, it eliminates so many misunderstandings. You can truly see why the sender feels the way they do and how they arrive d at their position.

Who's on first?

Abbot and Costello made us laugh by taking misunderstandings and turning them into comedy. Misunderstandings happen too often and, while sometimes funny, they can wreak havoc on your business or relationship. Clarity is king. Go back to how you learned and understood the concept you are trying to communicate and clearly express that to the receiver.

Once successful communication begins, it can be very exciting. Peoples' minds begin to race with more ideas to build onto the original one. But the parties need to remember how the great communication got started. Be careful not to assume everyone is still on the same page. Confirm, recap, summarize as you go. This will ensure that you are not talking about two different things.

The thought exchange

Once the receiver is on the same page, they become the sender?and if done effectively?this can become a fluid exchange of ideas and thoughts in a wonderfully harmonized manner that takes place at lightning speed. This is because both minds can almost see what is happening inside the others. We have all been there. You are so in sync with someone that you say the same thing at the same time, you find yourselves able to correctly finish each others sentences or arrive at the same conclusion together?or best yet, you differ but grow by understanding the rationale for the difference. It's magic!

The Economic Calendar is particularly busy this week, and most of the action is set for Tuesday and Thursday. The first big mover this week will be the Consumer Price Index on Tuesday, which is a strong measure of inflation. Since concerns on inflation continue to hover, this report will be watched closely by Traders and Federal Reserve "Inflation Fighters" alike. Thursday will be another big day, as Initial Jobless Claims will be released at 8:30am ET followed by the Philadelphia Fed Manufacturing Index at noon.

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.