Brent Nyitray
Fairlington Blade
Let the mutherfuker burn!
jnc4p
Kevin S. Willis
Michigoose
lmsinca
markinaustin
Arcanaut
novahockey
quarterback
ScottC
yellojktVital Statistics:
| Last | Change | Percent | |
| S&P Futures | 1403.9 | 5.7 | 0.41% |
| Eurostoxx Index | 2471.7 | 19.0 | 0.77% |
| Oil (WTI) | 103.52 | 0.7 | 0.72% |
| LIBOR | 0.4682 | 0.000 | 0.00% |
| US Dollar Index (DXY) | 78.81 | -0.376 | -0.47% |
| 10 Year Govt Bond Yield | 2.15% | -0.01% | |
| RPX Composite Real Estate Index | 170.13 | 0.4 |
Markets are higher this morning on no major news except for the increase in the European firewall. There is probably an element of end-of-the-quarter window dressing to it as well.
Personal Income came in +.2%, lower than expectations, while Personal Spending increased .8% higher than expectations. Inflation data came in as expected. Overall, no reaction in the futures. Chicago Purchasing Manager, Michigan confidence, NAPM, and some revisions are coming out later this morning.
The NYT notes that Moody’s may lower the credit ratings for B of A, Citigroup, and Morgan Stanley in mid-May. The side effect of this downgrade would be to kill their derivatives businesses, as the lower rating will force them to put up much more collateral against their derivatives books, and force many large buy-side clients to trade elsewhere. This could be the impetus to turn Citi and B of A back into plain old commercial banks.
Goldman is raising money for a new fund to buy distressed home loan bonds without government backing. The documents state this is a bet on improving fundamentals in U.S. housing. The story also goes on to say that Goldman bid on mortgage bonds from AIG in a Feb 8 auction, and decided to hold the merchandise instead of selling it. Most of these bonds are trading in the 50s. Non-agency MBS have done well this year as credit conditions have eased – enough that some funds are paring their bets.
Filed under: Morning Report |
All Things in Moderation 
If Goldman is putting out that they’re betting on housing, I’m going to short the XHB.
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KBH can’t get out of its own way after its miss last week, and the market has largely yawned at LEN’s beat, so maybe that isn’t a bad trade.
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Hey since the SCOTUS is bringing the known world to an end soon, who wants to join me in buying a back yard shelter. Or even better, land in Idaho. I’ve been watching Doomsday Preppers and have already started on my ponytail.
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jnc and mark and brent:
In the “you told me so dept.”
Go look at my post from 1:58 today in PL, and the responses I got.
It’s worth a laugh.
——-Almost all of us here, perhaps all of us here, understand that the Commerce power is limited both to what is in commerce and by the rights guaranteed in the Constitution. We understand that the elasticity is in the definition of what is in commerce. These simple ideas are too difficult for PL, john. They do not understand the difference between a political issue and a legal issue. They did not understand that if the mandate was viewed as a “command” with a legal penalty the broccoli analogy was not foolish. They did not understand why the government had to argue this was NOT a tax for the anti-injunction statute purpose but WAS a tax for the purpose of proving the mandate is not a command. It’s too hard for PL, on the whole; although some there would understand, you drew Liam and drindl. Mark
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banned:
I hope you got short rates early today. Massive sell-off going on.
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scott
I got out of that game. I played it on the downside ok earlier, but I can’t call what the Fed is going to do anymore. Twist extension or no, easing or no?
I’m heavily weighted commodties now, in longer dated calls.
I’ve been chasing platinum for two week now, but nobody will accept my house in foreclosure type bid! LOL
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banned:
It’s crazy. Wise to stay away for now. But you’ll be back in it eventually, I’m sure.
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“Markets are higher this morning on no major news except for the increase in the European firewall.”
So they are actually going to avoid a collapse? Or is this another kick the can? Or is it too early to tell?
“Euro zone pumps up bailout fund to nearly $1 trillion
By Michael Birnbaum, Updated: Friday, March 30, 12:15 PM
BERLIN — European finance ministers agreed on Friday to bolster the total capacity of their bailout funds to $933 billion, a temporary measure to convince investors that they are serious about helping struggling countries repay their debts.”
http://www.washingtonpost.com/world/euro-zone-pumps-up-bailout-fund-to-nearly-1-trillion/2012/03/30/gIQAneD7kS_story.html?hpid=z3
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jnc:
I believe there’s a lot of European election activity coming up, hence the bigger number
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That’s another thing I’ve been chasing unsuccessfuly Eurozone calls.
Nobody loves the discount guy.
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banned — the idea that what the commerce clause gives, it can also take away, shouldn’t be hard to grasp. yet here we are.
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Hard to grasp should be the name of several WAPO blogs
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“bannedagain5446, on March 30, 2012 at 12:14 pm said: Edit Comment
jnc and mark and brent:
In the “you told me so dept.”
Go look at my post from 1:58 today in PL, and the responses I got.
It’s worth a laugh.”
To paraphrase Donald Rumsfeld:
You post on Plum Line with the participants you have, not the participants you might want or wish to have at a later time.
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