Oct 20. Weak dollar supports all

Dollar continues to make new lows, providing support for stocks/metals/bonds etc.  As ZeroHedge notes, “The USD has moved from purgatory and is about to enter the first circle of Bernanke hell.”
–Today’s news includes Housing Starts expected 615k and PPI expected -0.3% with Core +0.1% from +0.2.
–A couple of items relating to housing…(Reuters) – “The Obama administration on Monday launched a program to help the depressed U.S. housing market by effectively allowing state and local housing finance agencies to borrow from the U.S. Treasury.” Also, the IRS is investigating about 100000 claims for ‘first time homebuyer’ tax credit, which is about 10% of total.  Not surprisingly there are concerns about widespread fraud, though one congressman is proposing the credit to ALL home buyers. I am wondering how the new program, which will allow state and local agencies to issue bonds thru FNM and FRE will be more of a benefit than already loosened standards of FHA, requiring only 3.5 to 5% down.
–Elizabeth Warren, chair of the Congressional Oversight Panel is speechless over bank bonuses. Paul Krugman has an op-ed piece today saying trading institutions are making money, actual lenders (BofA and Citi) are losers and money’s not getting to business.  Why lend to business when govt provides funding at near zero cost to buy safe treasuries?
–Chicago Mayor Daley said all non-union city workers will have to take 24 unpaid days in 2010.  At least they won’t have to pay the extra 30% CTA transit hike on their days off.

Posted on October 20, 2009 at 4:12 am by alexmanzara · Permalink
In: Eurodollar Options

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