Sunday, June 14, 2009


In case you hadn't noticed, this market is going nowhere, literally. We've had over a week's worth of trading in which the Dow moved less than 1%, the longest streak in quite some time. During those days, the market had been up or down more than 100 points several times, only to see the last 15 minutes of the day sap or improve gains dramatically (electronic trading/hedge funds? yep.). Even with futures pointing to triple-digit moves, by the end of the day, we've been left with no answers. Here are some things from the past week that I think still need answers.

1. 30-year treasuries keep rising and mortgages hit 5.59% this week (without points, much higher). What happens when we go above 6% and the current and shadow inventory crush home prices again?
2. Is TARP a scam to build reserves in banks so they can buy treasuries at discounted rates (can they buy $1.5 trillion though)?
3. Lewis vs. Bernanke in battle of perjury. Ohio Rep. Dennis Kucinich already stated he thought Lewis perjured himself this week before Congress. But how will Bernanke and Paulson refute the email evidence when it's their turn to testify?
4. Will the G-8 minions succumb to more U.S. pressure to ignore huge holes in their banks' balance sheets, or will they heed Germany's hyper-inflation warning stemming from the U.S. printing press?
5. And, on an unrelated note, can someone explain to me why Boston's Dustin Pedroia and David Ortiz have combined to hit 5 HR this year in almost half a season? Oh wait, I think I got it....

1 comment:

Anonymous said...

I think Rockefeler said that he woudl rather make 1% off 100 people's efforts rather than 100% off his own... Where do we capitalize in today's market?
Tents? Mac and Cheese? Fising Poles? Guns? Sleeping bags?

I wonder how long the FASB will allow banks to keep their Enronesquie off balance sheet accounting vehicles rolling?

For as much of a nut as Kucinich is, trust me, he is getting a few others to stand with him this time... and now it might start getting a bit ugly... As always he fights for the little guy!!!

A jittery market could and should push gold and oil up... something tells me a bigger plan is being hatched... and someone beside us shorts are going to be left holding the bag... As of now, it is clear that TARP was only a program to oil the wheels of big banking...

I think you can I can put balls outo f the park if we are pumped up on HGH... crazy stuff. Move over Bonds here comes AX...