Market Soapbox 10/23/08

THU, wild swings, DJIA +172 on higher volume with poor internals. All DOWN cept XOI, SP500, DJUA.

Bonds down 10 yr +8bps 3.67. $ down vs 1.2972 & vs 97.778y, WTI +2% $69.4, gold -1% $721.9; TED Spread up BIG +30bps 2.57%; Libor flat 3.54

SP500 899, rise to 922, drop to 858, bounce to close 908. NDX 1240, rise to 1264, plunge to 1177, bounce to close 1239.

FRI, consumer confidence all time largest decline; Building permits SFR starts both hit a 27 year low.

MON:, 50% of all California homes sold in the last month had been foreclosed upon in the previous 12 months; median sales price -33%.

TUE: Libor and Ted spread pulling back; Kerkorian dumping all his Ford stock; 107 companies have reported; average profit declines are 27%.

WEN: Wachovia $24 billion loss, which included a $19 billion writedown and $119 billion portfolio of troubled loans. They will take down an already shaky Wells.

THU: Initial claims +15K to 478K; 400 pt DJIA swing from low to high. YTD $ index +11.5%; RIMM -60%

More white collar welfare or the 60 yr fixed loan... FDIC Chairman Blair stated that unaffordable loans could be converted into loans...

that are sustainable over the long term. Say what? if its unaffordable, thats what it is.

Was someone talking about MAKING money on this deal? The Fed announced that since taking over Bear Stearns in June, the assets have declined $2.7 billion or 9.2%.

Burning it at both ends... AIG tapped another $8 billion last week, bringing the total to $90.3 billion of taxpayer money, never to be seen again.

Merry Xmas...With a line of $125 billion since 09/16, this burn rate sez that without further funds, AIG will be officially BK by Jan 1st.

Concrete shoes sink fast...Yoy FHFA Home prices -5.9%, the biggest decline since 1991, when the data starts. Q3 Yoy Foreclosure filings +71.

FDIC end of June, U.S. banks held $9.9 billion of foreclosed properties, up from $8.5 billion three months earlier.

Last WEN 10/15: NDX 1130 could give another bounce on the way down to 975. Today NDX 1177, new multi year low.

Often wrong, but never in doubt, this is the Nattering Naybob and you're not.

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