Market Soapbox 10/08/08
WEN, wild triple digit swings, DJIA -189 on heavy volume with poor internals. All DOWN cept DJTA, NDX, XAU +17%.
Bonds down +14bps 10 yr 3.64, $ down vs 1.3617 & vs 99.66y, WTI -1% $88.87, gold +3% $909, TED spread UP +35bps 3.91%.
SP500 996, gap down 988, rise 1021, dive to 970, close 984. NDX 1329, gap down 1295; rise 1386; dive to close 1330.
FRI: The House approved the bailout.Essentially the worlds largest pawn shop just got bigger; and the bill does nothing to address the real problem: recapitalization of the system.
MON: bail all you want... Fed announced it is planning to double the outstanding Term Auction Facilities (TAF) balances to $900 billion
Overnight Libor +37 bps to 2.37%; DJIA under 10K. At the low; the SP500 dropped 92 points = 920 DJIA pts; B of A cash strapped panhandles for $10 billion.
TUE: Overnight Libor rate rising 157 basis points to 3.94%. And the worlds largest pawn shop got even bigger... Fed now bailing out $1.6 Trillion CP market.
Today, cut all you want... the global contagion continues... Nikkei -9.4%; Hang Seng -8.2%. FTSE -4.1%; CAC -4.5%; Dax -4.7%.
A global response... The Fed cut to 1.5%; The ECB, BOE, Bank of Canada and Sweden's Riksbank each reduced their benchmark rates by 50 bps. China cut by 29 bps.
Bail all you want.. AIG to get additional $37 billion from NY Fed. Same store sales: Target -3%; Kohl's -5%; Saks -11%; JCPenney -12%; WalMart +2.4%.
Can't touch this... all the bailing and cuting yet... carry trade... the Yen cracked 100 vs $ and the TED spread widened to 3.91 with 90 day Libor at 4.52%.
Get your tickets: Bernanke and Paulson sitting in an 18 ft skiff, with their "poles" firmly in hand, staring at the ever growing beach as the tide sucks out,
on the beach looking down, Congress bailing all the sand they can to their banker friends with little pails and sand shovels... behind them all...
a 100 ft tidal wave ready to crater the shoreline and sweep under everything built on it. Here's a clue, duck down fast, its your only hope.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not
Bonds down +14bps 10 yr 3.64, $ down vs 1.3617 & vs 99.66y, WTI -1% $88.87, gold +3% $909, TED spread UP +35bps 3.91%.
SP500 996, gap down 988, rise 1021, dive to 970, close 984. NDX 1329, gap down 1295; rise 1386; dive to close 1330.
FRI: The House approved the bailout.Essentially the worlds largest pawn shop just got bigger; and the bill does nothing to address the real problem: recapitalization of the system.
MON: bail all you want... Fed announced it is planning to double the outstanding Term Auction Facilities (TAF) balances to $900 billion
Overnight Libor +37 bps to 2.37%; DJIA under 10K. At the low; the SP500 dropped 92 points = 920 DJIA pts; B of A cash strapped panhandles for $10 billion.
TUE: Overnight Libor rate rising 157 basis points to 3.94%. And the worlds largest pawn shop got even bigger... Fed now bailing out $1.6 Trillion CP market.
Today, cut all you want... the global contagion continues... Nikkei -9.4%; Hang Seng -8.2%. FTSE -4.1%; CAC -4.5%; Dax -4.7%.
A global response... The Fed cut to 1.5%; The ECB, BOE, Bank of Canada and Sweden's Riksbank each reduced their benchmark rates by 50 bps. China cut by 29 bps.
Bail all you want.. AIG to get additional $37 billion from NY Fed. Same store sales: Target -3%; Kohl's -5%; Saks -11%; JCPenney -12%; WalMart +2.4%.
Can't touch this... all the bailing and cuting yet... carry trade... the Yen cracked 100 vs $ and the TED spread widened to 3.91 with 90 day Libor at 4.52%.
Get your tickets: Bernanke and Paulson sitting in an 18 ft skiff, with their "poles" firmly in hand, staring at the ever growing beach as the tide sucks out,
on the beach looking down, Congress bailing all the sand they can to their banker friends with little pails and sand shovels... behind them all...
a 100 ft tidal wave ready to crater the shoreline and sweep under everything built on it. Here's a clue, duck down fast, its your only hope.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not
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