Market Soapbox 10/14/08
TUE, tech tanks -5%, DJIA -77 on higher volume with miserable internals. ALL DOWN cept XAU, XOI.
Bonds up 10 yr -4bps 4.02, $ up vs 1.3637 & down vs 102.118y, WTI -4% $78.63 gold down $839.5, TED spread down -26bps 4.31%. 3 mo Libor still at 4.64.
SP500 1003, gap up 1009, rise to 1044, plunge to 972, close 998. NDX 1429, gap up 1470, dive to 1350; close 1364.
FRI: SP500 bounces from down 7.3% at today's low: SP500 -46% from its all time high. A near term bottom perhaps, a sucker rally or dead cat bounce is due.
MON: MEOW and how... A global blanket guarantee of bank deposits and a direct injection of $2.3 Trillion in capital.
DJIA largest point gain ever. Do not be fooled...
We will see at SP500 1020 or 1050 if this bounce has any legs. It could last two days or two weeks;
Whats next? Lower profits, more layoffs, 8% unemployment; real negative GDP...
Today, the cat bounced into SP500 1050 and fell on corporate profit concerns.
1st in line... Kalifornia trying to avoid a month end BK by paying 4.5% on short term bonds;
Seeking to avoid the biggest BK in muni history; or at least be 2nd after Kalifornia...
Jefferson County, Alabama, approved another agreement with creditors allowing it to avoid making full payments on its $3.2 billion of bond debts until Oct 31st.
No joke... The FDIC will guarantee the newly issued unsecured debt from banks through mid 2012.
Meaning that if a bank fails, holders of newly issued debt will be paid by the FDIC.
Don't laugh like you did when I nattered FNMA & FHLMC would be in receivership... who will file BK 1st? neither muni; probably the FDIC itself.
Inherit this... The 2009 Bush budget deficit could be close to $2 trillion, or 12.5% of GDP, more than twice the record of 6% set in 1983 under Uncle Ronnie.
Nattered again... With all the bailouts and many states panhandling the Feds; the treasury will have to borrow more by selling more debt;
driving up interest rates even further; yesterday, 10 yr above 4% 1st time since Aug.
Little Ricky's Parachute... GM will close SUV plants in Moraine, Ohio & Janesville, Wisconsin two years early,
devastating both local economies which have been dependent on the plants for years.
Instead of planning and building a smarter mouse trap; brainchild CEO Rick Wagoner,
wants to trim $15 billion to stay afloat, and so he can collect a bigger bonus.
We have a request for Ricky boy, set an example for all the derelict whores on the hill, bankers & CEO's; man up and do the honorable thing,
take out an insurance policy naming the employees as beneficiary; then commit Hari-kari or jump out a 30th story window.
Now thats the kind of golden parachute we need...
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
Bonds up 10 yr -4bps 4.02, $ up vs 1.3637 & down vs 102.118y, WTI -4% $78.63 gold down $839.5, TED spread down -26bps 4.31%. 3 mo Libor still at 4.64.
SP500 1003, gap up 1009, rise to 1044, plunge to 972, close 998. NDX 1429, gap up 1470, dive to 1350; close 1364.
FRI: SP500 bounces from down 7.3% at today's low: SP500 -46% from its all time high. A near term bottom perhaps, a sucker rally or dead cat bounce is due.
MON: MEOW and how... A global blanket guarantee of bank deposits and a direct injection of $2.3 Trillion in capital.
DJIA largest point gain ever. Do not be fooled...
We will see at SP500 1020 or 1050 if this bounce has any legs. It could last two days or two weeks;
Whats next? Lower profits, more layoffs, 8% unemployment; real negative GDP...
Today, the cat bounced into SP500 1050 and fell on corporate profit concerns.
1st in line... Kalifornia trying to avoid a month end BK by paying 4.5% on short term bonds;
Seeking to avoid the biggest BK in muni history; or at least be 2nd after Kalifornia...
Jefferson County, Alabama, approved another agreement with creditors allowing it to avoid making full payments on its $3.2 billion of bond debts until Oct 31st.
No joke... The FDIC will guarantee the newly issued unsecured debt from banks through mid 2012.
Meaning that if a bank fails, holders of newly issued debt will be paid by the FDIC.
Don't laugh like you did when I nattered FNMA & FHLMC would be in receivership... who will file BK 1st? neither muni; probably the FDIC itself.
Inherit this... The 2009 Bush budget deficit could be close to $2 trillion, or 12.5% of GDP, more than twice the record of 6% set in 1983 under Uncle Ronnie.
Nattered again... With all the bailouts and many states panhandling the Feds; the treasury will have to borrow more by selling more debt;
driving up interest rates even further; yesterday, 10 yr above 4% 1st time since Aug.
Little Ricky's Parachute... GM will close SUV plants in Moraine, Ohio & Janesville, Wisconsin two years early,
devastating both local economies which have been dependent on the plants for years.
Instead of planning and building a smarter mouse trap; brainchild CEO Rick Wagoner,
wants to trim $15 billion to stay afloat, and so he can collect a bigger bonus.
We have a request for Ricky boy, set an example for all the derelict whores on the hill, bankers & CEO's; man up and do the honorable thing,
take out an insurance policy naming the employees as beneficiary; then commit Hari-kari or jump out a 30th story window.
Now thats the kind of golden parachute we need...
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
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