Shrinking Commerical Paper
FedEx the largest air-cargo carrier cited "financial volatility" and high energy costs for its reduced outlook. EPS trimmed from $7.40 to $6.70 to $7.10 a share.
Electronics retailer Circuit City reported its 4th straight quarterly loss after it lowered prices on flat- panel televisions. The loss was 38 cents per share, stock battered 16%.
Gold to a 27- year high $740; crude oil an all time high over $82; while bonds continued to pull back with the 10 year yield rising to 4.64%
Former Fed Head Alan Greenspan: "Remember, we still have a problem out there, which is a large overhang of unsold newly constructed homes.
...home values are very important because they contribute to household wealth and support borrowing to finance consumer spending."
Towing the party line... Greenspun doesn't think that home prices will fall more than 10%.
Doin the Hanky Skanky... Treasury Secretary Hank Paulson: "although the recent reappraisal of risk, coupled with weakness in the housing sector...
may well result in a penalty, the fundamentals point to continued U.S. economic growth."
Meanwhile in the debt markets... The U.S. commercial paper market shrank for a 6th week, extending the biggest slump in at least 7 years.
Short-term debt maturing in 270 days or less fell $48.1 billion in the week ended yesterday to a seasonally adjusted $1.87 trillion.
including a $32.1 billion decline in financial commercial paper. Asset-backed debt dropped $15.6 billion.
Outstanding asset-backed commercial paper has slumped $253.4 billion. The declines have slowed each week from a peak of $77.1 billion in the week ended Aug. 22.
Commercial paper outstanding has declined $354.5 billion, or almost 16%, since the week ended Aug. 8.
A little help... AA financial commercial paper 30-day yields fell to 4.72% yesterday, down from 5.42% on Sept. 5.
Electronics retailer Circuit City reported its 4th straight quarterly loss after it lowered prices on flat- panel televisions. The loss was 38 cents per share, stock battered 16%.
Gold to a 27- year high $740; crude oil an all time high over $82; while bonds continued to pull back with the 10 year yield rising to 4.64%
Former Fed Head Alan Greenspan: "Remember, we still have a problem out there, which is a large overhang of unsold newly constructed homes.
...home values are very important because they contribute to household wealth and support borrowing to finance consumer spending."
Towing the party line... Greenspun doesn't think that home prices will fall more than 10%.
Doin the Hanky Skanky... Treasury Secretary Hank Paulson: "although the recent reappraisal of risk, coupled with weakness in the housing sector...
may well result in a penalty, the fundamentals point to continued U.S. economic growth."
Meanwhile in the debt markets... The U.S. commercial paper market shrank for a 6th week, extending the biggest slump in at least 7 years.
Short-term debt maturing in 270 days or less fell $48.1 billion in the week ended yesterday to a seasonally adjusted $1.87 trillion.
including a $32.1 billion decline in financial commercial paper. Asset-backed debt dropped $15.6 billion.
Outstanding asset-backed commercial paper has slumped $253.4 billion. The declines have slowed each week from a peak of $77.1 billion in the week ended Aug. 22.
Commercial paper outstanding has declined $354.5 billion, or almost 16%, since the week ended Aug. 8.
A little help... AA financial commercial paper 30-day yields fell to 4.72% yesterday, down from 5.42% on Sept. 5.
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