Market Observations 08/29/06
In our top story tonight, the leader of al-Qaida in Iraq, Abu Musab al-Zarqawi, is STILL dead and someone else has taken his place.
August Consumer Confidence plunging from 107 to 99.6 on rising inflation expectations. Such concern by the public and jabberwocky by the Fed over something that is supposed to be "tame & benign".
Bond Auctions: 4 week bill auction bid to cover 2.21, high yield 5.1%, indirect bidders 20.7%. $22B 2 year note auction bid to cover a solid 2.32, high yield 4.921%, indirect bidders a disappointing 22.8% .Full Details
FOMC Minutes Full Minutes
Q2 economic activity slowed, housing market cooled, consumer spending slowed considerably, business investment decelerated, demand for labor moderated.
Price inflation remained elevated reflecting increases in energy and shelter costs. Higher interest rates and energy costs influenced consumer spending.
The rate of new home sale cancellations, an important leading indicator, had spiked higher. Single-family housing starts and permits continued to fall, and inventories of unsold housing appeared to have risen significantly.
If the reported slowing of increases in retail sales continued, businesses might trim capital spending plans. Federal expenditures overall would probably be providing less impetus to aggregate demand going forward.
"Core consumer price inflation was projected to drop back somewhat later this year and next, mainly as the effects of higher energy and import prices abated." Is someone expecting the price of oil to drop into the low $50 range??
most participants thought that, with energy prices possibly leveling out... though the upside risks to inflation were significant. I guess not, so how will a "leveling out" cause the effects of higher energy costs to abate??
The decision to keep policy unchanged at this meeting was a close call and noted that additional firming could well be needed....
inflation risks remained dominant and that consequently keeping policy unchanged at this meeting did not necessarily mark the end of the tightening cycle.
Caveat Emptor as the Tech head fake continues MTD +6.9%. The RUT touched 715, violation of 716 could mean upside 730-740, OR a reversal heading for 690. Anyway the wind blows....
This is the anniversary of Hurricane Katrina and the Bush administration's national emergency response debacle. Our condolences to the victims and evacuee's who have been treated like second class citizens.
It's a glowing testimony to the fact that the Bush administration and the neo con's that run it, really don't give two shit's about the American public. Someday, way too late, the general public will come to this realization.
For those who are still clueless and not in the know, tonight on HBO at 8PM, Spike Lee's "When the Levee's Broke" is a revealing documentary on the latest national tragedy and disgrace brought to you by your friendly neighborhood neo con's.
Keep it tween da ditches, we take it day by day and keep our eyes peeled to the sky, because it could be a name brand that pancakes us. Just my opinion, I could be wrong, this is The Nattering Naybob and your NOT!!!
August Consumer Confidence plunging from 107 to 99.6 on rising inflation expectations. Such concern by the public and jabberwocky by the Fed over something that is supposed to be "tame & benign".
Bond Auctions: 4 week bill auction bid to cover 2.21, high yield 5.1%, indirect bidders 20.7%. $22B 2 year note auction bid to cover a solid 2.32, high yield 4.921%, indirect bidders a disappointing 22.8% .Full Details
FOMC Minutes Full Minutes
Q2 economic activity slowed, housing market cooled, consumer spending slowed considerably, business investment decelerated, demand for labor moderated.
Price inflation remained elevated reflecting increases in energy and shelter costs. Higher interest rates and energy costs influenced consumer spending.
The rate of new home sale cancellations, an important leading indicator, had spiked higher. Single-family housing starts and permits continued to fall, and inventories of unsold housing appeared to have risen significantly.
If the reported slowing of increases in retail sales continued, businesses might trim capital spending plans. Federal expenditures overall would probably be providing less impetus to aggregate demand going forward.
"Core consumer price inflation was projected to drop back somewhat later this year and next, mainly as the effects of higher energy and import prices abated." Is someone expecting the price of oil to drop into the low $50 range??
most participants thought that, with energy prices possibly leveling out... though the upside risks to inflation were significant. I guess not, so how will a "leveling out" cause the effects of higher energy costs to abate??
The decision to keep policy unchanged at this meeting was a close call and noted that additional firming could well be needed....
inflation risks remained dominant and that consequently keeping policy unchanged at this meeting did not necessarily mark the end of the tightening cycle.
Caveat Emptor as the Tech head fake continues MTD +6.9%. The RUT touched 715, violation of 716 could mean upside 730-740, OR a reversal heading for 690. Anyway the wind blows....
This is the anniversary of Hurricane Katrina and the Bush administration's national emergency response debacle. Our condolences to the victims and evacuee's who have been treated like second class citizens.
It's a glowing testimony to the fact that the Bush administration and the neo con's that run it, really don't give two shit's about the American public. Someday, way too late, the general public will come to this realization.
For those who are still clueless and not in the know, tonight on HBO at 8PM, Spike Lee's "When the Levee's Broke" is a revealing documentary on the latest national tragedy and disgrace brought to you by your friendly neighborhood neo con's.
Keep it tween da ditches, we take it day by day and keep our eyes peeled to the sky, because it could be a name brand that pancakes us. Just my opinion, I could be wrong, this is The Nattering Naybob and your NOT!!!
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