Biden: It’s a depression for millions of Americans

Oct 21.  Interest rates declined Tuesday, with ten year yield down 6 bps to 3.33% and red pack eurodollars up nearly 11.5 bps. 
–Economic data were weaker than expected with Core PPI -0.1% and Housing Starts subdued.  Beige book today.   Weekly ABC consumer comfort index came out at -50, the lowest in three months.
–From ZeroHedge: “With the Fed en route to purchase nearly one and a half trillion in Agency and MBS paper (for now), it has found eager sellers in the face of PIMCO. MarketWatch reports that PIMCO sold $30 billion in agency paper in Sept alone, and has sold over $80 billion year to date.”
–Geithner says core TARP programs are ending. I would say they were never really clearly defined, but the factor that truly provided troubled assets with relief was when the FASB decided to relax mark to market accounting. PiPP (remember that?) will be capped at $30 B
–Interesting story circulating that some gold bricks in official depositories are filled with tungsten.  Tungsten (W) and Gold(AU) have the same density at 19.3, so possible fraud is hard to detect without drilling through the bricks. 
–Huffington Post “A government watchdog [Neal Barofsky]said the $700 billion bailout for the financial industry played a major role in rescuing the economy over the last year but also engendered anger and distrust among Americans because of secrecy and confusion about the way the program was handled.”

Posted on October 21, 2009 at 4:32 am by alexmanzara · Permalink
In: Eurodollar Options

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