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George, Congrats Assistant Moderator.
OT: Be out few days / Dr. Appt's.
Fed. 3day RP + 5.75B [ net Add +1.25B ]
The Slosh Report:
http://www.gmtfo.com/RepoReader/OMOps.aspx
http://www.ny.frb.org/markets/omo/dmm/temp.cfm?SHOWMORE=TRUE
US spells out Fannie-Freddie backstop plan
Sunday July 13, 8:06 pm ET
By Jeannine Aversa, AP Economics Writer
Fed offers to lend to mortgage companies, Treasury plans possible equity investment
WASHINGTON (AP) -- The Federal Reserve and the Treasury announced steps Sunday to shore up mortgage giants Fannie Mae and Freddie Mac, whose shares have plunged as losses from their mortgage holdings threatened their financial survival.
The steps are also intended to send a signal to nervous investors worldwide that the government is prepared to take all necessary steps to prevent the credit market troubles that started last year with losses from subprime mortgages from engulfing financial markets and further weakening the economy and housing markets.
The Fed said it granted the Federal Reserve Bank of New York authority to lend to the two companies "should such lending prove necessary." They would pay 2.25 percent for any borrowed funds -- the same rate given to commercial banks and Big Wall Street firms.
The Fed said this should help the companies' ability to "promote the availability of home mortgage credit during a period of stress in financial markets."
Secretary Henry Paulson said the Treasury is seeking expedited authority from Congress to expand its current line of credit to the two companies should they need to tap it and to make an equity investment in the companies -- if needed.
"Fannie Mae and Freddie Mac play a central role in our housing finance system and must continue to do so in their current form as shareholder-owner companies," Paulson said Sunday. "Their support for the housing market is particularly important as we work through the current housing correction."
The Treasury's plan also seeks a "consultative role" for the Fed in any new regulatory framework eventually decided by Congress for Fannie and Freddie. The Fed's role would be to weigh in on setting capital requirements for the companies.
The White House, in a statement, said President Bush directed Paulson to "immediately work with Congress" to get the plan enacted. It also said it believed the plan outlined by Paulson "will help add stability during this period."
Investors may not be as sanguine, however, according to Chris Johnson, an investment manager and president of Johnson Research Group in Cleveland. Stocks of financial institutions "are going to get clobbered," he predicted. "It is a situation where regulators and the government are trying to play catch up, and that means everything is not discounted in the stock prices yet."
The Dow Jones industrials on Friday briefly fell below 11,000 for the first time in two years and Johnson expects shares of investment banks and regional banks could notch even lower as investors react to this weekend's developments.
Fannie Mae and Freddie Mac either hold or back $5.3 trillion of mortgage debt. That's about half the outstanding mortgages in the United States.
Fannie was created by the government in 1938 to provide more Americans the chance to own a home by giving financial institutions an outlet to sell mortgage loans they originated, freeing more cash to make more home loans. It moved from government to public ownership in 1968 and Freddie was started two years later.
Sunday's announcements are likely to raise anew criticism that the government should have moved sooner to rein in the two companies, especially since investors widely assumed they would be bailed out if they got into trouble.
The government denied it, but what was seen by investors as an implicit guarantee of support allowed Fannie and Freddie to borrow at rates only slightly higher than the Treasury -- and lower than what their banking competitors had to pay.
"This really blows away the notion of an implicit guarantee," independent banking consultant Bert Ely said of the Treasury's plan to ask Congress to allow it to make equity investments in Fannie Mae and Freddie Mac. "It suggests a greater concern about how these companies are doing. It says the problems are deeper. It gets to the solvency of the companies, not just the liquidity."
The announcement marked the latest move by the government to bolster confidence in the mortgage companies. A critical test of confidence will come Monday morning, when Freddie Mac is slated to auction a combined $3 billion in three- and six-month securities.
Paulson's goal is to get his plan attached to a sweeping housing-rescue package. The Senate and House have each passed bills and a final package has to be hammered out. The centerpiece of the legislation is to help strapped homeowners avoid foreclosure legislation but it also contains provisions to revamp oversight of Fannie Mae and Freddie Mac.
"Treasury's plan is surgical and carefully thought out and will maximize confidence in Fannie and Freddie while minimizing potential costs to U.S. taxpayers," said Sen. Charles Schumer, D-N.Y.
House GOP leader John Boehner, R-Ohio, and Republican Whip Roy Blunt, R-Mo., said they "stand ready to work with Secretary Paulson and congressional Democrats to take appropriate steps to ensure the soundness of our mortgage markets."
Officials from Treasury, the Fed and other regulators worked in close consultation throughout the weekend after growing investor fears about the companies' finances sent their shares and the overall market plummeting last week.
Shares of Fannie Mae plunged 45 percent last week and are down 74 percent since the beginning of the year. Freddie Mac shares fell 47 percent last week, and have fallen 77 percent so far this year.
Freddie Mac Chairman Richard Syron said Sunday that preliminary second-quarter results show that his company had "a substantial capital cushion" above the 20 percent minimum surplus it is required to maintain.
Fannie Mae President and CEO Daniel Mudd said he believes the steps could send a calming message. "Given the market turmoil, having options to access provisional sources of liquidity if needed will help to strengthen overall confidence in the market. We will continue to do our part to provide liquidity, stability and affordability to the housing market now and in the future."
A senior Treasury official said any increase in the line of credit -- now at $2.25 billion for each company-- would be at the Treasury secretary's discretion. The same would apply to any equity investment made by the government.
The official, who spoke on condition of anonymity, also sought to send a calming message about Fannie's and Freddie's financial shape, saying: "There's been no deterioration of the situation since Friday."
The Fed's offer of funds is viewed as a temporary backstop until Treasury can get its plan in place. The collateral they would have to pledge -- Treasury securities and federal agency securities -- is more narrow than the collateral commercial banks and Wall Street firms must pledge for emergency lending privileges.
If one or both of the companies were to fail, it would wreak havoc on the already fragile financial system and the crippled housing market. The problems would spill over in the national economy, too.
Paulson on Friday said the government's focus was to support the pair "in their current form" without a takeover.
Hoping to bolster confidence, Senate Banking Committee Chairman Chris Dodd, D-Conn., told CNN on Sunday that Fannie and Freddie are financially sound.
"What's important here are facts," Dodd said. "And the facts are that Fannie and Freddie are in sound situation. They have more than adequate capital -- in fact, more than the law requires. They have access to capital markets. They're in good shape. The chairman of the Federal Reserve has said as much. The secretary of the Treasury has said as much."
Last week Fed Chairman Ben Bernanke and Paulson, appearing before the House Financial Services Committee, made a point of saying that the regulator of Fannie and Freddie, the Office of Federal Housing Enterprise Oversight, has found both companies adequately capitalized.
AP Business Writers Stephen Bernard and Joe Bel Bruno in New York contributed to this report.
W@G1 QQQQ 07/14/08 for a07/16/08 close
46.13 Farooq
45.85 bob3
Futures (2) + World Indices
http://www.cme.com/trading/dta/del/globex.html
http://money.cnn.com/data/premarket/
World Indices (2) Mini Charts
Updates every 60sec ~ Watch the dates!!
http://www.wwfn.com/commentary/oscharts.html
http://www.allstocks.com/markets/World_Charts/Asian_Stock_Markets/asian_stock_markets.html
Chichi2, Very nice job i-Box.
Especially signature charts and color tones.
Thank you for all the hard work.
Bob
Fed. Ops: 43.50B Matures this week.
Mon: 4.50B 3day
Wed: 20.00B 28day
Thu: 5.00B 14day
>> 14.00B 7day
========================================================
Temp Ops:
Perm Ops:
========================================================
Public Debt:
Limit ~ $9,815 T
7/10 ~ $9,502 T [A bit Deeper in Debt.]
=========================================================
The Slosh Report:
http://www.gmtfo.com/RepoReader/OMOps.aspx
http://www.ny.frb.org/markets/omo/dmm/temp.cfm?SHOWMORE=TRUE
Thanks Guys /e
Fed. 3day RP + 4.50B [net add +1.75B ]
The Slosh Report:
http://www.gmtfo.com/RepoReader/OMOps.aspx
http://www.ny.frb.org/markets/omo/dmm/temp.cfm?SHOWMORE=
OT: Chichi2 l do not remember, btw
have you replaced your swim trunks with new Speedo :))
Fed.(2)3)7day RP + 14.00B [net drain-0.25B ]
Fed.(3)1day RP + 2.75B
The Slosh Report:
http://www.gmtfo.com/RepoReader/OMOps.aspx
http://www.ny.frb.org/markets/omo/dmm/temp.cfm?SHOWMORE=
No, She was on twice past month
you may want to search her name.
Fed. 14day RP + 5.00B [ sofar *
The Slosh Report:
http://www.gmtfo.com/RepoReader/OMOps.aspx
http://www.ny.frb.org/markets/omo/dmm/temp.cfm?SHOWMORE=
=========
Public Debt:
Limit ~ $9,815 T
7/02 ~ $9,473 T * Huge increase
*7/08 ~ $9,499 T
Futures (2) + World Indices
http://www.cme.com/trading/dta/del/globex.html
http://money.cnn.com/data/premarket/
World Indices (2) Mini Charts
Updates every 60sec ~ Watch the dates!!
http://www.wwfn.com/commentary/oscharts.html
http://www.allstocks.com/markets/World_Charts/Asian_Stock_Markets/asian_stock_markets.html
Al talkHeads only Ron Insana Louise Yamada /e
Fed. 1day RP + 2.00B [net Drain -2.00B ]
The Slosh Report:
http://www.gmtfo.com/RepoReader/OMOps.aspx
http://www.ny.frb.org/markets/omo/dmm/temp.cfm?SHOWMORE=
W@G2 QQQQ 07/09/08 for a07/11/08 close
44.50 rayrohn
46.20 Farooq it could be 46.95 but decided to go with first.
46.70 Myself prev red candle top. Would like to say 100ema.
44.60 bob3
Fed.(1)2) 1day RP + 4.00B [net Drain -8.50B ]
Fed.(2) 28day 1day forward + 20.00B
This repo operation has 1 collateral tranche
The Slosh Report:
http://www.gmtfo.com/RepoReader/OMOps.aspx
http://www.ny.frb.org/markets/omo/dmm/temp.cfm?SHOWMORE=
Capstone Turbine: Thinking outside the micro box
Tuesday July 8, 6:20 am ET
Darrell Delamaide
If you think the market for hybrid and electric vehicles will explode in the near future and you want to be on board for the ride, or you’re convinced that we’ll still need to rely on hydrocarbon fuels for the foreseeable future and want a stock that gets you into offshore drilling, look no further than Capstone Turbine Corp. (NasdaqGM:CPST - News
http://biz.yahoo.com/smallcapinvestor/080708/9809.html?.v=1
Fed. 1day RP + 12.50B [ net All Add]
The Slosh Report:
http://www.gmtfo.com/RepoReader/OMOps.aspx
http://www.ny.frb.org/markets/omo/dmm/temp.cfm?SHOWMORE=
W@G1 QQQQ 07/07/08 for a07/09/08 close
45.54 Farooq #msg-30479130
45.45 rayrohn
44.00 bob3
43.50 Myself °¿° #msg-30477648
Futures (2) + World Indices
http://www.cme.com/trading/dta/del/globex.html
http://money.cnn.com/data/premarket/
World Indices (2) Mini Charts
Updates every 60sec ~ Watch the dates!!
http://www.wwfn.com/commentary/oscharts.html
http://www.allstocks.com/markets/World_Charts/Asian_Stock_Markets/asian_stock_markets.html
Fed. Ops: 50.00B Matures this week. *
Tue: 10.00B 4day
Wed: 20.00B 28day
Thu: 5.00B 14day
>> 10.00B 7day
========================================================
Temp Ops:
Perm Ops:
========================================================
Public Debt:
Limit ~ $9,815 T
7/02 ~ $9,473 T * Huge increase
=========================================================
The Slosh Report:
http://www.gmtfo.com/RepoReader/OMOps.aspx
http://www.ny.frb.org/markets/omo/dmm/temp.cfm?SHOWMORE=TRUE
AAA's Daily Fuel Gauge Report
http://www.fuelgaugereport.com/sbsavg.asp
AAA's Daily Fuel Gauge Report
http://www.fuelgaugereport.com/sbsavg.asp
Happy 4th of July all...
Happy 4th of July all...
Take care of health Guys #1. My week
hospital last yr over 100K & still counting.
Happy 4th to all !!
Good W@G Farooq
ah chit another red alert here air quality
Fed.(2)3) 7day RP + 15.00B [net +2.00B ]
Fed.(3)4day RP + 10.00B
The Slosh Report:
http://www.gmtfo.com/RepoReader/OMOps.aspx
http://www.ny.frb.org/markets/omo/dmm/temp.cfm?SHOWMORE=TRUE
**Correction Tues +10.50B [net + 2.
ECB raises benchmark rate to 4.25 pct
Thursday July 3, 8:03 am ET
By George Frey, AP Business Writer
European Central Bank raises benchmark interest rate to 4.25 pct amid inflation pressure
FRANKFURT, Germany (AP) -- The European Central Bank raised its benchmark interest rate Thursday by a quarter percentage point to 4.25 percent in an effort to reign in escalating inflation in the 15-nation euro zone.
ADVERTISEMENT
The move comes despite worries in some quarters that it could dampen growth. Bank president Jean-Claude Trichet was expected to explain the decision at a news conference, with attention focusing on whether more increases are coming.
Trichet has stressed that his main objective is to keep prices stable, and all but promised an increase this month at last month's meeting. But he has also suggested that repeated interest rate hikes are probably not likely.
Inflation has been troubling central banks around the world as commodity prices including oil and food have spiked in a surge of new global demand. While higher interest rates slow inflation, they can also slow economic growth as money becomes more expensive to borrow; Trichet appears to have targeted inflation as the bigger threat.
At the ECB's June meeting, Trichet said members of the bank's governing council stated a case for raising rates to combat inflation even then.
On Monday, the EU statistics agency Eurostat said inflation in euro nations hit a record 4 percent in June, double the ECB's inflation target of below or around 2 percent.
The Bank for International Settlements -- a sort of central bank for central banks -- also said Monday that world headline inflation has risen significantly to 4.75 percent.
Higher euro zone interest rates tend to send its currency higher against the dollar as investors park money where it earns more interest. Meanwhile a sinking dollar generally boosts the price of oil, which is denominated in the U.S. currency, as more buyers move in.
Earlier Thursday, oil reached another record high. Light sweet crude oil for August delivery on the New York Mercantile Exchange.rose $2.28 to a record $145.85 a barrel in electronic trading by midday in Europe.
"The fact that a hawkish note from the ECB today could hit the dollar hard and in turn push oil prices to fresh record highs and on toward that massive $150 a barrel level also needs to be taken into account," said James Hughes, a currency analyst with CMC Markets in London.
"Couple this with the likes of the euro zone retail sales data and there's going to be an awful lot to digest in the near term," Hughes said.
http://www.ecb.int
Fed. 14day RP + 5.00B [ sofar
The Slosh Report:
http://www.gmtfo.com/RepoReader/OMOps.aspx
http://www.ny.frb.org/markets/omo/dmm/temp.cfm?SHOWMORE=TRUE
**Correction Tues +10.50B [net + 2.
ECB, EUROPEAN CENTRAL BANK, JEAN-CLAUDE TRICHET, INFLATION, RATE HIKES, ECONOMY, EURO
By Jeff Cox,
Special to CNBC.com
CNBC.com
| 02 Jul 2008 | 01:30 PM ET
When European Central Bank President Jean Claude-Trichet announces his decision Thursday on interest rates, investors will be paying far more attention to what he says than what he does.
A quarter-point interest rate hike is considered almost a certainty, and few expect that event alone will generate much of a ripple in US markets.
But if Trichet indicates that inflation-fighting, presumably through rate hikes, will become his bank's top priority in the months ahead, it would resonate through US markets and around the world, raising questions about European economic stability and pushing up oil prices further.
"This is an important test for Trichet," says Quincy Krosby, chief investment strategist at The Hartford. "Trichet could very well want to signal to the markets that they're going to fight this inflation and they're going to do it whether or not the economy slows down even more as a result—that they are not going to cave to politicians."
Political ramifications will be an integral part of the equation, as Trichet fights off angry assertions from various European leaders, particularly French President Nicolas Sarkozy, that the euro is grossly overvalued and contributing to the economic slowdown spreading through the continent.
"This isn't Trichet vs. the Fed, this isn't Trichet vs. the talking heads on television. This is Trichet vs. the politicians in the euro zone," Krosby adds. "This is about Trichet's independence and the European Central Banks' independence at an inflection point, which is always the most trying time."
It's a complex battle the ECB president must wage, and how that plays out for the US investor is equally complicated.
A one-off ECB interest rate hike most likely is already priced into the US market and would have little or no effect on the day-before-the-holiday light volume that's expected for Thursday. Anything beyond that, though, would be felt more deeply and likely resonate for days ahead on U.S. markets.
The dollar's weak standing against the euro has amplified the surge in oil costs, and that pattern probably would continue. The broader stock market has invariably declined on days when oil goes up and is likely to continue that pattern until the energy trade falls apart.
Banks also would suffer under further strengthening of the euro, which would widen yield spreads and tighten credit and liquidity. From a trading perspective, that would mean more weakness for a sector that can hardly stand more bad news.
"Anytime you try to predict these things, it's a crapshoot," says Weiss Research currency analyst Jack Crooks, who sees Trichet indicating a one-off rate hike. "If I'm wrong and he comes out tomorrow and says, 'The more we look at this, inflation is such a concern we're going to be aggressive going forward,' then I think you're going to have a big impact on the markets."
Do Central Banks Even Matter?
There are some, though, who wonder whether interest rate changes can even have an appreciable move on stocks any more.
The Federal Reserve Bank has tried in vain to stem the slide in the US economy, but continued inflationary pressures from commodities, particularly grains and oil, have prevented a recovery and weighed on the stock market.
Whether the ECB's monetary policy has equally negligible effects on the US markets will be another dynamic watched closely.
"As oil goes, so go the investors, and I'm not sure it matters all that much who, what or where alters interest rates up, down or sideways," says Diane de Vries Ashley, managing partner of Zenith Capital Partners. "I think the interest rate factors have ceased to have the same impact that they would have under more normal circumstances.
"Without the oil price shocks and inflationary effects stabilizing to some degree, I honestly don't think an interest rate move makes any difference whatsoever."
In fact, de Vries Ashley thinks an ECB rate hike could even provide a psychological boost among investors who would be relieved that at least somebody somewhere is doing something to combat inflation.
"If you get one area of the world that feels itself moderately stabilized and getting some parts of its economic picture under control, you can stop worrying about it," she says.
Likewise, analysts at Schaeffer's Investment Research aren't expecting a major effect from the ECB decision, but for another reason: They think stocks are actually near a bottom, and even terrible news about the euro might serve only as another catalyst for a much-needed stock market capitulation, which marks a level of fear and panic-selling that attracts investors back in.
Ryan Detrick, an analyst with the firm, says the market has been holding its March lows even as it ventures near bear-level percentage drops, something he sees as encouraging.
"We think we're getting pretty close to a potential major bottom. We've noticed a huge influx of extreme negativity," Detrick says. "We think that so much of this negativity is probably very well priced in. The expectations are very, very low for the second half of the year. That's what it could take to have a nice second half."
© 2008 CNBC.com
http://www.cnbc.com/id/25495507/
George, has Brinker any sell or
indication to step aside during this grind.
Fed. 1day RP + 6.25B **[Net Drain -4.25B ]
The Slosh Report:
http://www.gmtfo.com/RepoReader/OMOps.aspx
http://www.ny.frb.org/markets/omo/dmm/temp.cfm?SHOWMORE=TRUE
**Correction Tues +10.50B [net + 2.25B
W@G2 QQQQ 07/02/08 for a 07/03/08 close {this is a 1 1/2 day W@G}
46.50 bob3
46.31 rayrohn
Army ~ Navy Contracts *
United Technologies gets $46.3M Army pact
Tuesday July 1, 6:51 pm ET
United Technologies gets $46.3 million Army contract for 4 UH-60M helicopters
WASHINGTON (AP) -- A subsidiary of United Technologies Corp. recently won a $46.3 million contract from the Army for four UH-60M helicopters, material inspection and the installation of power unit kits, the Pentagon said Tuesday.
Shares of Hartford, Conn.-based United Technologies fell $1.02 to close at $60.68.
=======================
Lockheed Martin gets $6.6M Army contract
Tuesday July 1, 6:54 pm ET
Lockheed Martin gets $6.6 million Army contract to redesign light armored vehicle
WASHINGTON (AP) -- A unit of Lockheed Martin Corp. recently won a $6.6 million contract from the Army to redesign a light armored vehicle and upgrade its command and control system, the Pentagon said Tuesday.
Shares of Bethesda, Md.-based Lockheed Martin added $2.43, or 2.5 percent, to close at $101.09.
==================================================
*
Force Protection gets $43M Navy deal
Tuesday July 1, 6:56 pm ET
Force Protection gets $43 million Navy deal to provide parts and equipment for MRAPs
WASHINGTON (AP) -- Armored vehicle maker Force Protection Industries Inc. received a $43 million contract boost from the Navy to provide parts, training equipment and material for previously purchased mine-resistant, ambush-protected vehicles, the Pentagon said Tuesday.
Shares of Ladson, S.C.-based Force Protection added 9 cents, or 2.7 percent, to $3.40 in aftermarket trading, after closing at $3.31.
l love ya /e
Fed auctions $75 billion to ease credit stresses
Tuesday July 1, 10:02 am ET
By Jeannine Aversa, AP Economics Writer
Fed auctions another $75 billion to ease credit stresses, more loans on tap this month
WASHINGTON (AP) -- The Federal Reserve has auctioned another $75 billion in loans to squeezed banks to help them overcome credit problems and announced it will provide a fresh batch of the loans this month.
http://biz.yahoo.com/ap/080701/fed_credit_crisis.html?.v=4