Market Soapbox 10/09/08
THU, the crash of 08 continues, DJIA -679 on higher volume with disasterous internals. All CRASHING.
Bonds down 10 yr +14bps 3.78. $ up vs 1.3562 & down vs 98.932y, WTI -4% $84.88, gold +1% $919; TED Spread UP BIG +32bps 4.23%
SP500 984, gap up to touch 1005, then fall into oblivion to close at 909. NDX 1330, gap up 1349, rise to 1369, collapse to 1261, close 1275.
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: Fed announced it is planning to double the outstanding Term Auction Facilities (TAF) balances to $900 billion.
Overnight Libor +37 bps to 2.37%; At the low; the SP500 dropped 92 points.
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.
WEN: The Fed cut to 1.5% as multiple central banks coordinated cuts; the Yen cracked 100 vs $ and the TED spread widened to 3.91 with 90 day Libor at 4.52%.
Today, Central banks in Hong Kong; Taiwan and S. Korea cut rates. The short selling ban was lifted; 90 day libor surging to 4.75.
DJIA off 8% below 9K; Australia is already down 5.5%; the Nikkei -9%.
16% or 12 million or nearly 1 in 6 homeowners underwater... bought in the last 5 years? 29% underwater.
AIG redux? Hartford Financial received a $2.5 billion capital investment from Allianz SE & MetLife priced a 75 million share offering at $26.50 per share.
VIX above 60, 1st time ever; off their highs: Oil -42% below $85; Financials -55%.
Keep your eyes peeled to sky, it could be a name brand: GM & GMAC placed on negative credit watch.
Tomorrow, Shrub Jr. will address the nation to tell Americans they should remain "confident".
As if anyone would put credence in a word uttered by this disgrace...
The "idiot in chief" wants to "assure" the country that "Hank" and other administration officials are making "every effort to stabilize our financial system."
If you didn't read today's earlier post, you should. The joke of a bailout bill has actually accelerated this market crash.
Readers of these pages cannot say they have not been amply forewarned.
Too much accounting alchemy has frozen the system solid. Whats that crashing sound?
Since Oct 1st; the last 7 sessions: DJIA -20%, and the fat lady isn't even humming yet.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not
Bonds down 10 yr +14bps 3.78. $ up vs 1.3562 & down vs 98.932y, WTI -4% $84.88, gold +1% $919; TED Spread UP BIG +32bps 4.23%
SP500 984, gap up to touch 1005, then fall into oblivion to close at 909. NDX 1330, gap up 1349, rise to 1369, collapse to 1261, close 1275.
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: Fed announced it is planning to double the outstanding Term Auction Facilities (TAF) balances to $900 billion.
Overnight Libor +37 bps to 2.37%; At the low; the SP500 dropped 92 points.
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.
WEN: The Fed cut to 1.5% as multiple central banks coordinated cuts; the Yen cracked 100 vs $ and the TED spread widened to 3.91 with 90 day Libor at 4.52%.
Today, Central banks in Hong Kong; Taiwan and S. Korea cut rates. The short selling ban was lifted; 90 day libor surging to 4.75.
DJIA off 8% below 9K; Australia is already down 5.5%; the Nikkei -9%.
16% or 12 million or nearly 1 in 6 homeowners underwater... bought in the last 5 years? 29% underwater.
AIG redux? Hartford Financial received a $2.5 billion capital investment from Allianz SE & MetLife priced a 75 million share offering at $26.50 per share.
VIX above 60, 1st time ever; off their highs: Oil -42% below $85; Financials -55%.
Keep your eyes peeled to sky, it could be a name brand: GM & GMAC placed on negative credit watch.
Tomorrow, Shrub Jr. will address the nation to tell Americans they should remain "confident".
As if anyone would put credence in a word uttered by this disgrace...
The "idiot in chief" wants to "assure" the country that "Hank" and other administration officials are making "every effort to stabilize our financial system."
If you didn't read today's earlier post, you should. The joke of a bailout bill has actually accelerated this market crash.
Readers of these pages cannot say they have not been amply forewarned.
Too much accounting alchemy has frozen the system solid. Whats that crashing sound?
Since Oct 1st; the last 7 sessions: DJIA -20%, and the fat lady isn't even humming yet.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not
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