Trading Now

Trading Now

Tuesday, August 25, 2009


*remember that TV commercial of the guy who had everything: the big house, the new car, The nice pool, the riding lawnmower? "I'm in debt up to my eyeballs!"
Treasury is about to borrow $90B today in relative short term treasury auctions.
1 month bills
1 year bills
2 year notes

*it's because we kmow it's not going to get us a job, let alone work over the long term
Obama administration prepares for reaction to national debt
The White House is well aware that there might be political consequences to its upcoming report on national debt. Analysts said U.S. President Barack Obama likely will take such worries into account in his arguments for overhauling the health care system. Public concern about national debt has reached the point at which Americans are giving debt reduction a higher priority than stimulating economic growth, according to a recent poll. Financial Times (tiered subscription model) (24 Aug.)

*the court system does their job: protecting the less monied interest, even if the new old chairman doesn't like it.
Judge orders Fed to release records on emergency lending
The Federal Reserve argued that documentation related to emergency loans to financial institutions should not be subject to the Freedom of Information Act because doing so would harm the competitive positions of the borrowers. U.S. District Judge Loretta Preska rejected the argument and ordered the Fed to publicly disclose the information within days. Bloomberg (25 Aug.)

*american workers are waiting too
Economists keep waiting for second-half recovery in U.S.Economists are still confident that GDP in the U.S. will expand this quarter, but there is little evidence that the economy is growing. Most of the indicators used to call the end of a recession declined in July. Of the four indicators followed by the National Bureau of Economic Research, only one, industrial production, headed up, rising 0.5% last month. MarketWatch (24 Aug.)

*next the fed will be taxing your cash that you wisely prefer to leave in your money market account instead of placing it in the largest ponzi scheme, the stock market.
Money-market mutual funds should be regulated, Volcker says
Paul Volcker, an economic adviser to U.S. President Barack Obama and a former chairman of the Federal Reserve, raised concerns about money-market mutual funds and their effect on the broader financial system. "Banks remain the functioning heart of the financial system, and they are protected and regulated," Volcker said. "To the extent they have competitors that have different ground rules, kind of free-riders in my view, weakens the financial system." Bloomberg (25 Aug.)

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