Showing posts with label banks. Show all posts
Showing posts with label banks. Show all posts

Sunday, May 25, 2014

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Wednesday, November 19, 2008

Jeffersonian economics hits homes. Hello Citibank.

'I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.'

Thomas Jefferson 1802

Thursday, November 6, 2008

S&P 500 and the economy, Europe rates down, too late.

government report tomorrow is forecast by economists to show payrolls shrank by 200,000 workers, the most in five years. It seems that the market is struggling to find the right balance between positioning for Friday's employment report and setting up for next week's Treasury refunding.

The Bank of England cut its key interest rate by 1.5 percentage points today, more than anticipated, to 3 percent, the lowest level since 1955. The European Central Bank, Swiss National Bank and central banks in Denmark and the Czech Republic also lowered rates.

Futures on the Chicago Board of Trade show a 100 percent probability policy makers will lower the target rate for overnight bank loans by at least a half-percentage point at their meeting Dec. 16. Traders saw 22 percent odds the Fed could drop the rate to 0.25 percent, compared with no chance yesterday. The central bank reduced the rate by 1 percentage point last month in two cuts.

Tuesday, July 29, 2008

Budget deficit, Merrill and housing

Treasuries fell on speculation Merrill Lynch & Co.'s sale of securities linked to mortgages may signal that losses at banks and brokers are reaching a peak, reducing the haven appeal of government debt.

U.S. debt rallied yesterday as stocks slid and the International Monetary Fund said there's no end in sight to the U.S. housing slump. Two-year note yields fell 14 basis points, the most since July 14, to 2.57 percent. Treasuries underperformed European bonds and emerging market bonds as investors demanded higher yields on U.S. notes to compensate for the prospect of increased debt issuance.

The U.S. budget deficit will grow to a record $482 billion next year, the Bush administration said yesterday. Government borrowing needs will rise to $171 billion in the three months to Sept. 30, $59 billion more than predicted in April, the Treasury said in a statement in Washington yesterday. The budget shortfall reflects dwindling tax receipts because of the economic slowdown, the cost of a $168 billion stimulus package and spending on the wars in Iraq and Afghanistan.

Thursday, July 24, 2008

July 24 at the close financials and banks down


Look at the Red. Yesterday it was green and today they gave it back. We don't have much news tomorrow. I bet the summer holidays won't be starting early with this much movement going on.


Monday, July 14, 2008

Treasury could buy Fanniew Mae and Freddie Mac

Treasuries gained as stocks fell, led by financial companies, highlighting rising concern that problems for the U.S. banking system may be worsening. U.S. stocks fell, sending financial shares to their lowest level since October 1998, on heightened concern that bank failures will spread. Washington Mutual Inc. posted its biggest drop ever and National City Corp. tumbled to a 24-year low after last week's collapse of IndyMac Bancorp Inc. spurred speculation that more regional banks may be short of capital.

Treasuries initially declined, pushing the yield on the 10- year note to the highest in almost two weeks, after Treasury Secretary Henry Paulson put a plan before Congress to provide support to Fannie and Freddie, the government-sponsored enterprises that purchase or finance almost half of the $12 trillion of U.S. mortgages.

There are some that feel that the U.S. Treasury Department's plan to shore up Fannie Mae and Freddie Mac is an unmitigated disaster and the largest U.S. mortgage lenders are basically insolvent. Some bet that Fannie Mae shares will keep tumbling. Fannie Mae's market value is now about $10 billion, down from $38.9 billion at the end of 2007. Freddie Mac's market value has shrunk to about $5 billion from $22 billion at the end of last year.