May 3. A good day for America

–Obama called the death of Bin Laden a “good day for America” and I agree. Good. That’s all. Commentators were on tv implying this news might give a boost to the US, perhaps even economically. In a world of 15 minute news cycles I would tend to strongly disagree. It’s ten years after the fact, and I would guess Osama’s leadership would have diffused and re-organized by now. If instead it was like the culmination of the Godfather… Moe Greene (bin Laden) shot through the eye, Gaddafi blasted in the elevator (Don Stracci), Kim Il Jong as Don Cuneo caught in the revolving door, with other choices (insert your favorite despot here) for Barzini and Tattaglia, now that would be impressive. And, when rumors swirled that aircraft were massing at an Iraqi airbase for possible action against Iran, it looked like a more concerted effort might be at hand. But the rumors were denied. Stocks gave back early gains.
–India raised repo rate by more than expected 50 bps to 7.25%. Fed’s Sr Loan Officer Survey showed “bank lending standards and terms generally had eased somewhat further during the first quarter of this year, and that the demand for commercial and industrial loans (C&I) and for commercial mortgages increased, while that for residential mortgages continued to decrease.” A pick up in C&I loans could spur an end to accommodation. While residential real estate remains stuck in the mud, a friend informed me that farmland in Iowa and Southern IL had sold for $10k and $11k and acre…double prices from a year ago, to knowledgeable buyers.
–Silver had a wild ride Monday as several houses raised margins beyond CME minimums. Closed down over $2.50 with $6 range.

Posted on May 3, 2011 at 9:49 am by alexmanzara · Permalink
In: Eurodollar Options

Leave a Reply