Market News

[350zCommTech]

CNBC announce that the Fed is allowing primary lenders to swap a basket of mortgages for Treasuries for 28 days.

It is over my head but the futures went wild.

This is BS PPT in action. Just as the markets are about to fall off a cliff. It's basically free f#$##$%$% money to the primary dealers, like Goldman Sacks, and taking any mortgage backed securities as collateral. Nobody else will buy them so the Feds steps in. This pure BS. Dollar going into the shitter and the interest rates are shooting to the moon. $120 oil? F fund getting killed. How are higher mortgage rates going to help people? This is all for Wall Street.

Fed expanding securities lending program

By Ruth Mantell
Last update: 8:31 a.m. EDT March 11, 2008

WASHINGTON (MarketWatch) -- To promote liquidity and "foster the functioning of financial markets more generally," the Federal Reserve said Tuesday it's expanding its securities lending program. The Fed will lend up to $200 billion of Treasury securities to primary dealers secured for a term of 28 days, rather than overnight, as in the existing program. Securities will be made available through an auction process. Auctions will be held on a weekly basis, beginning on March 27. The Federal Open Market Committee has also authorized increases in its temporary reciprocal currency arrangements with the European Central Bank and the Swiss National Bank.http://www.marketwatch.com/News/Sto...1D60-9EB1-4CE7-A048-866B8A01BB3C}&siteid=mktw

 

[Aspiration]

This is BS PPT in action. Just as the markets are about to fall off a cliff. It's basically free f#$##$%$% money to the primary dealers, like Goldman Sacks, and taking any mortgage backed securities as collateral. Nobody else will buy them so the Feds steps in. This pure BS. Dollar going into the shitter and the interest rates are shooting to the moon. $120 oil? F fund getting killed. How are higher mortgage rates going to help people? This is all for Wall Street.

Hey 350,

Do you suppose this massive deflation of our money is Ben's way of solving the falling home values issue for Joe 6-pack homeowner complaining that his home value is falling? By flooding more money into the market eventually the value of the house with inflation will justify the currently high bubble prices. Joe 6-pack will be happy because his home stopped falling in value - not realizing his $1 million house can't be sold and used to buy as much stuff anymore. Meanwhile I just feel more poor. Anyways, that's my conspiracy theory.

 

[Aspiration]

Wow. Well I guess that is one way to solve the illegal immigration problem - make it so bad that no one wants to be in the US! :suspicious:

 

[350zCommTech]

Hey 350,

Do you suppose this massive deflation of our money is Ben's way of solving the falling home values issue for Joe 6-pack homeowner complaining that his home value is falling? By flooding more money into the market eventually the value of the house with inflation will justify the currently high bubble prices. Joe 6-pack will be happy because his home stopped falling in value - not realizing his $1 million house can't be sold and used to buy as much stuff anymore. Meanwhile I just feel more poor. Anyways, that's my conspiracy theory.

That could certainly be there plan. Cutting rates is about the only thing they know how to do. Will it work this time? It's defenitely worked for oil, gold and food, but it ain't gonna work homes.

 

[Silverbird]

I think the Fed is just using the only tools they have, but continuing to tighten a screw is not a permanent fix if the screw itself is stripped. But the Fed isn't going to go the other way, lest the attached pieces fall apart on their watch. But that's going to happen anyway at this rate.

Less metaphorically, the Fed cannot make investors trust to buy non-ultra safe bonds.

 

[James48843]

Mixed signals-

The S&P is now beginning to fall back after the opening surge.

It wasn't enough of a surge to break the P&F chart.

I may have screwed up placing a buy order this morning-

Let's see how the day goes.

I jumped the gun.

 

[DrFaustus]

I dunno James ... the charts are showing a positive jump right now. Maybe today's gains will hold. I gotta believe its a blip in the overall trend though.

 

[BooDog]

I think this is a morning rally and we're going to see lots of profit taking with a bust by the end of the day. Wish we could day trade.

Good call. I was thinking we could finish the next couple days even to a little gain. There is a lot of pressure on the hedge funds to double up on their collateral with the banks which i thought may cause a bit more of a sell off through out but still, not a bad day so far.

 

[weatherweenie]

Briefing.com 3pm ET
The Dow is posting its largest one day percent gain since 2003.

 

[offtrack]

The rally looks like it has a few day's legs after this move. I wanted to get out in TSP for the quick gain but I'm holding my gains from plays yesterday in my Roth

 

[weatherweenie]

[BRIEFING.COM] S&P futures vs fair value: +0.9. Nasdaq futures vs fair value: +2.0. Futures are off their best levels as they point to a muted start to the trading day. A disappointing outlook from WellPoint (WLP) prompted the managed healthcare group to drop 17% on Tuesday. The group is set for another decline today, this time because Humana (HUM) cut its full year 2008 to $4.00 to $4.25 per share, from $5.35 to $5.55 per share. Meanwhile, european markets are trading higher. The FTSE is up 1.7% and the CAC 40 is up 1.6%.​

 

[weatherweenie]

[BRIEFING.COM] S&P futures vs fair value: +0.3. Nasdaq futures vs fair value: +3.2. It is shaping up to be a flat start as traders take a breather after yesterday's large run. Freddie Mac's (FRE) CEO said this is the worst U.S. housing market in about 100 years, according to CNBC. Oil is down 0.2% to $108.54 per barrel after hitting an all-time high yesterday

 

[weatherweenie]

HONG KONG, March 13 (Reuters) - The dollar hit a record low against the yen and euro on Thursday and shares fell as euphoria subsided about the latest helping hand from the U.S. Federal Reserve and reality - $110 oil and recession fears - returned.
The Fed's attempt to ease credit market strains by offering to accept mortgage bonds as collateral had sparked the biggest daily gains for five years on the Dow Jones industrial average .DJI and Nasdaq .IXIC on Tuesday, but nagging worries about the state of the U.S. economy overcame that initial optimism.

http://www.reuters.com/article/marketsNews/idINSP1445220080313?rpc=44

 

[weatherweenie]

08:32 am : S&P futures vs fair value: -20.7. Nasdaq futures vs fair value: -21.2. After regaining some ground, futures dip as three economic reports hit the wires. February retail sales fell 0.6%, which is less than the expected rise of 0.2%. Excluding autos, sales fell 0.2% (consensus +0.2%). There were 353,000 weekly unemployment claims (consensus 357,000), unchanged from the previous reading. Finally, import prices rose 0.2% month over month, which was less than the expected rise of 0.8%. Separately, gold futures surpasses the $1000 mark for the first time ever.

 

[weatherweenie]

[BRIEFING.COM] S&P futures vs fair value: +5.0. Nasdaq futures vs fair value: +10.5. Futures spike on a better than expected inflation reading on now point to a positive start to the trading day. Just reported, February CPI was uncchanged, compared the expected rise of 0.3%. Excluding food & energy, CPI was also flat, which was less than than the expected rise of 0.2%. That leaves CPI up 4.0% year over year, and core CPI up 2.3% year-over-year.

 

[weatherweenie]

LONDON, March 14 (Reuters) - European shares rose 1 percent on Friday, with banks and miners standout gainers, after U.S. inflation data gave the Federal Reserve more room to cut rates.

http://www.reuters.com/article/marketsNews/idCAL1451447920080314?rpc=44

 

[weatherweenie]

NEW YORK (AP) -- JPMorgan Chase says that in conjunction with the Federal Reserve Bank of New York it will provide temporary funding for Bear Stearns.

http://biz.yahoo.com/ap/080314/bear_stearns.html

 

[James48843]

From today's news about the Labor Department report on February inflation:

" But for February, energy prices posted a 0.5 percent decline with gasoline prices falling by 2 percent, the biggest drop since last August.


Food costs, which have been surging, also moderated a bit, rising by 0.4 percent following a huge 0.7 percent jump in January.
The price of vegetables, fruit, poultry and pork all declined. But the price of cereal and bakery products shot up by 1.8 percent, its largest monthly increase since January 1975. Part of the rise in food costs reflects higher energy prices which raise transportation costs. Also food prices have been under upward pressure because of the increased demand for corn to use in the production of ethanol. The flat reading for core inflation in February left underlying inflation rising by 2.3 percent over the past 12 months, still above the Federal Reserve Board's comfort range of 1 percent to 2 percent."




I gotta ask this question:

Is there a single person on this board who actually believes that prices for February were "flat", and that there was NO INFLATION last month?

Give me a break.

Gas prices alone- February 1st to February 29th, according to gasprices.com:

On January 31st, 2008: Average price of one gallon at the pump, across the U.S= $2.98

On February 29, 2008: Average price of one gallon at the pump, across the U.S. = $ 3.18

That's a one-month rise of 7%. Or an annual rate of 84%.

And since February 29th, the US Average price of a gallon of gas has increased to $3.29 on March 13th.

Give me a break.

 

[Gumby]

James,

I agree. The government is cookin' the books on this one. I have no idea how they arrived at these numbers. Looks bogus to me. Do they really expect people to believe these lies???

From MarketWatch:


Energy prices decreased 0.5% in February, the biggest drop since last August. Economists said that gasoline prices dropped at the beginning of the month when the government survey was conducted but that prices then jumped as the month progressed.

Story Here

 

[Silverbird]

James,

From MarketWatch:

Energy prices decreased 0.5% in February, the biggest drop since last August. Economists said that gasoline prices dropped at the beginning of the month when the government survey was conducted but that prices then jumped as the month progressed.

Story Here

Labor Department needs their old byline writers back, it's reported in February, not for February if you are using data collected in February unless someone in Labor's got that sekret crystal ball. Sigh.