Market Soapbox 10/02/08
THU, another broad based selloff, DJIA -348 on higher volume with devastating internals. All CRASHING.
Bonds up BIG 10 yr -18bps 3.63. $ up vs 1.3819€ & down vs 105.34y, WTI -6% $93.75, gold -4.5% $839.6; TED Spread UP BIG +26bps 3.61%
New multi yr lows GE -9%; DJTA -8.7%; XOI -7.2%; XAU -15.5%. SP500 1161, crash to 1111, close 1114. NDX 1563, gap down 1547, dive to 1491.
FRI: the largest bank failure in US history; FDIC seized WaMu... and the true ugliness has just begun.
MON: The unwind into chaos... congress rejects the unnecessary bailout, the street panics. Fortis $16 billion bailout. Wachovia collapses.
TUE: month & quarter end short covering gets 3rd largest point gain ever. 3 month Libor widening at 4.05; overnight LIBOR spikes 431 basis points to 6.88%
WEN: Auto sales: Toyota -32%; Honda -24%; Nissan -37%; 11th straight decline, longest in 17 years. ISM manufacturing still contracting 43.5 vs 49.5.
Truth or consequences: GE on the ropes, selling $12 billion in stock and $3 billion preferred at 10% to Warren Buffet.
Today, Hack... the Senate approved 74-25 $100 billion in tax cuts along with the $700 billion bailout bill. The House votes Friday.
Choke... The two-year swap spread widened to as high as 167.25 basis points from 156.25 yesterday, the most since data was first compiled in 1988.
Cough... Commercial banks and bond dealers borrowed $348.2 billion from the Fed as of yesterday, an increase of 60% from the prior week.
Weeze..The market for commercial paper plummeted the most on record as banks and insurers were unable to find buyers for the short-term debt.
The Fed reported commercial paper outstanding tumbled $94.9 billion, or 5.6%, to a 3 year low of $1.6 trillion for the week ended Oct. 1.
Dead man walking flat on the floor...
ECB steady at 4.25%; continuing unemployment surging to 3.6M; factory orders -4% at a 7 yr low; VIX >40 4th straight session.
What non farms payroll and house bailout bill voting horror awaits?
We repeat... These bailouts are not free market capitalism, they are the rape of our democracy...
and the larceny of our childrens future for the folly of a rich and priveledged few.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
Bonds up BIG 10 yr -18bps 3.63. $ up vs 1.3819€ & down vs 105.34y, WTI -6% $93.75, gold -4.5% $839.6; TED Spread UP BIG +26bps 3.61%
New multi yr lows GE -9%; DJTA -8.7%; XOI -7.2%; XAU -15.5%. SP500 1161, crash to 1111, close 1114. NDX 1563, gap down 1547, dive to 1491.
FRI: the largest bank failure in US history; FDIC seized WaMu... and the true ugliness has just begun.
MON: The unwind into chaos... congress rejects the unnecessary bailout, the street panics. Fortis $16 billion bailout. Wachovia collapses.
TUE: month & quarter end short covering gets 3rd largest point gain ever. 3 month Libor widening at 4.05; overnight LIBOR spikes 431 basis points to 6.88%
WEN: Auto sales: Toyota -32%; Honda -24%; Nissan -37%; 11th straight decline, longest in 17 years. ISM manufacturing still contracting 43.5 vs 49.5.
Truth or consequences: GE on the ropes, selling $12 billion in stock and $3 billion preferred at 10% to Warren Buffet.
Today, Hack... the Senate approved 74-25 $100 billion in tax cuts along with the $700 billion bailout bill. The House votes Friday.
Choke... The two-year swap spread widened to as high as 167.25 basis points from 156.25 yesterday, the most since data was first compiled in 1988.
Cough... Commercial banks and bond dealers borrowed $348.2 billion from the Fed as of yesterday, an increase of 60% from the prior week.
Weeze..The market for commercial paper plummeted the most on record as banks and insurers were unable to find buyers for the short-term debt.
The Fed reported commercial paper outstanding tumbled $94.9 billion, or 5.6%, to a 3 year low of $1.6 trillion for the week ended Oct. 1.
Dead man walking flat on the floor...
ECB steady at 4.25%; continuing unemployment surging to 3.6M; factory orders -4% at a 7 yr low; VIX >40 4th straight session.
What non farms payroll and house bailout bill voting horror awaits?
We repeat... These bailouts are not free market capitalism, they are the rape of our democracy...
and the larceny of our childrens future for the folly of a rich and priveledged few.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
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