Bruce Krasting's blog
More "Permanent" OMO Buys - Where's the Exit?
Submitted by Bruce Krasting on 08/17/2009 13:19 -0500Fed chases the market with today's POMO buy. Another good day for the dealers. How long will this Treasury paper stay on the Fed balance sheet? Forever.
NOAA - Record Hot Water
Submitted by Bruce Krasting on 08/16/2009 10:31 -0500The economy is in hot water. The oceans are too. Record global water temperatures will mean bigger, more frequent storms this year. There is record hot water in the Gulf of Mexico. The pro forecasters are calling for a lite storm season. The next 45 days will prove them right or wrong.
FHFA Report on Restructurings – Everything is Going Fine
Submitted by Bruce Krasting on 08/13/2009 23:18 -0500FHFA is patting it's self on the back again. They have been very busy in D.C. The question is are they doing the right thing?
On Fed Intervention and the Blogs
Submitted by Bruce Krasting on 08/13/2009 15:06 -0500Another successful auction brought you by FRB NY. This topic has been in the blogs for a week. Does this answer the question, "Is the Fed intervening in the bond market?"
Treasury's New Solution: "Greenies"
Submitted by Bruce Krasting on 08/12/2009 20:36 -0500The Fed's decision to wind down their bond purchase program puts more pressure on Treasury. Geithner and Co. are working on a plan to solve these minor problems. Greenies are coming.
Wall St. Solution to the Health Care Crisis: An IPO
Submitted by Bruce Krasting on 08/10/2009 12:23 -0500Hats off to Wall Street creativity once again. Not all of the old deep thinking has been lost. A potential 'hot deal' runs afoul of the ever diligent SEC.
Keynes on Clunkers: “I Hate It”
Submitted by Bruce Krasting on 08/09/2009 19:34 -0500Clunkers is a big success. But that depends on how you define success. A lot of cars will be sold, but most of this consumption will be financed by the private sector. As an economic stimulus it does very little for us.
FNM Has .9 Trillion of Troubled Loans - 8K
Submitted by Bruce Krasting on 08/07/2009 09:58 -0500Fannie reports on its loan book. 32% of its total is 'trouble' classes. Big losses to come.
Fannie is Trading Derivatives Hard, and Losing
Submitted by Bruce Krasting on 08/06/2009 18:37 -0500Fannie's churning derivatives as usual. About $100 billion a day. They also lost a few Bil in the process. Who's on the other side of this? Fannie's pals on Wall Street,
Three Dogs Jump Big - Who Knew?
Submitted by Bruce Krasting on 08/06/2009 08:13 -0500There is no such thing as coincidence in the stock market. Except yesterday in the ward of the state stocks.
CS Says, “Storm Risk Reduced”. Buoy 42001 says, “Watch Out”
Submitted by Bruce Krasting on 08/05/2009 20:53 -0500Colorado State is the big gun when it comes to forecasting hurricanes. They see a lite year. I see big risk. Can anyone compute the El Nino/La Nino Vol? There is a lot of hot water in the Gulf.
Swiss vs USA - Where Does This Go Next?
Submitted by Bruce Krasting on 08/02/2009 21:34 -0500Next week the 'deal' for UBS is due out. How big is the fine going to be? Some estimate as high as $5.5 bil. $20 billion+ of withholding taxes has been applied to these accounts. Where is the money?
Successful Week for Treasury?
Submitted by Bruce Krasting on 08/01/2009 09:42 -0500The Treasury sold $109 billion of new coupons last week and rates fell by 25BP. How did they do that??
FHFA is One Year Old - No Cause for Celebration
Submitted by Bruce Krasting on 07/30/2009 20:24 -0500No punch bowl at this party. Lots of slides of the mortgage mess. Did Mr. Lockhart confirm the rumor that the Agencies are going to merge with Ginnie Mae?
Successful Auction?
Submitted by Bruce Krasting on 07/30/2009 12:59 -0500Another surprise in bond land. This time an upside. The dealers do not know how to price all this paper.
