Fed 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.
The 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.
Another 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?"
The 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.
Hats 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.
Clunkers 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.
Fannie'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,
Colorado 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.
Next 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?
No 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?
