Financials are leading the way, with the S&P 500 FINANCIALS INDEX up 5.
| Value 112.20 | Change 5.13 | % Change 4.8% |
The President is ready to provide (throw at) even more money to the troubled financial industry. The gov deficit is now expected to approach $2T!! Sure hope this works. The Northern Trust story indicates problems ahead. This Chicago bank threw a whopper size party for its fat cats after receiving $1B in gov aid which they needed (or maybe didn't need). They claim the money for the party was paid with other money!!! Duhhh?? Apparently Congress learned about this by watching TV. This raises questions. Where was Congress & will the $Bs thrown around lead to other excesses? How much more meddling will there be by Congress trying to regulate banks getting all this money?
•Obama's Budget Proposes Up to $750 Billion in New Financial Industry Aid
Northern Trust CEO Defends Sponsorship of Golf Events
High yield sectors rose. MLPs, REITs & junk bonds are up while VIX dropped another 2 to the 42s (down 10 points in 3 days).
Oil is having another good day, benefiting from all the optimism in the markets
| CLJ09.NYM | ..Crude Oil Apr 09 | ...44.41 | ... 1.91 .......(4.5%) |
Labor Dept reported that unemployment claims jumped to 667K last week, up 46K from the prior week (a modest decline had been expected). The number is the highest in 26 years. The 4 week average, a less volatile number, went up to 639K, again the highest in more than 26 years.
The number receiving unemployment insurance increased to 5.1M, above expectations. Last year only 2.8M were receiving benefits. An additional 1.4M received benefits under an extended unemployment compensation program (as of Feb. 7, the latest data available) bringing the total jobless benefit recipients to 6.5M.
General Motors, still in the Dow, lost $30B last year & is burning cash fast. It's auditors will state in the annual report if they think GM will be a going concern. One tiny ray of optimism for them. Nissan in Japan is cranking up production slightly (after its major cutbacks). But that may have more to do with the ¥ weakening in the last month.
AIG has not had luck trying to sell businesses to pay off gov loans. Last night during trading for Asian markets, it was reported that they were not able to sell their Asian insurance business (i.e. asking too much). Today it's been disclosed that that can't sell their US auto business. More gov money may be needed. Sadly, this company is too big to fail.
•AIG May Take Auto-Insurance Unit Off Market as Zurich Financial Pulls Bid
New home sales plunged to a record (45 year) low (records go back only 45 years).
•U.S. New Home Sales Drop to Record Low as Job Losses, Foreclosures Mount
Reality is being ignored, maybe markets are just too much oversold. But that whopper budget deficit is very scary.
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