February « 2009 « Buy the Rumor Sell the Fact

Archive for February, 2009

Bailout verdict? Not good

Tuesday, February 10th, 2009

The verdict for the new bailout plan is in, and it stinks. Treasury Secretary Timothy Geithner announced the new $1.5 trillion financial rescue plan this morning, and the Dow Industrials promptly dropped 300 points. The Senate then approved the stimulus plan by a vote of 61 to 37. The massive market sell-off continued throughout the day, with stock indexes dropping 4-5% after Federal Reserve Chairman Ben Bernanke discussed economic rescue plans with the House of Representatives, according to Market Watch. Headed into the close, the Dow was hovering around 7,800. Ouch.

Tags: bailout, Ben Bernanke, DJIA, Dow Jones Industrial Average, Timothy Geithner, Treasury Department
Posted in Markets, economy | 2 Comments »

How's this for a laugh?

Monday, February 9th, 2009

If you have a few free minutes and want to see how you would do with managing the U.S. economy, try The Bailout Game. Not only does this cover all the bailouts that have taken place, it gives you a choice on how you want to manage this economic crisis. And don’t worry, if you need help, you can always hit the Ask Alan Greenspan button.

Tags: Bailout game
Posted in Uncategorized | No Comments »

There's this new thing, called the Internet…

Thursday, February 5th, 2009

I kid ELX! The Electronic Liquidity Exchange (ELX), which announced its launch in December of 2007, came up with a name in March of 2008, then sponsored a splashy cocktail party at last year’s FIA Boca conference, has finally gone online.

The exchange also was famously compared to laxative Ex-Lax by CME Group chief executive Craig Donohue at last year’s Boca conference. ELX, whose investors include a consortium of investment banks along with GETCO and Peak6-Breakwater, expects to offer quarterly futures contracts on two- and five-year Treasury notes, the 30-year bond, and long-term Treasury notes and has filed an application with the CFTC to become a Designated Contract Market. Now you can visit their Web site and read all about it.

Tags: Craig Donohue, ELX, U.S. Treasury futures
Posted in General | 1 Comment »

Did the market rally?

Wednesday, February 4th, 2009

Congressional hearings on the Madoff scandal are continuing today and at one point, this is what was reported (New York Times Dealbook):

1:18 p.m. | An “annoyed” congressman: Mr. Kanjorski signals that he doesn’t want to hear that the S.E.C. can’t discuss the ongoing Madoff investigation. He notes that the lack of cooperation by the S.E.C. over the last several weeks is “unacceptable” and he threatens to shut down the agency if they don’t start cooperating. Mr Kanjorski says one of the officials asked to testify said he was exempt, prompting the congressman to call the head of the S.E.C. because he was so “annoyed.” He called the opening statements “oatmeal.”

Tags: Bernard Madoff, Congress, Securities and Exchange Commission
Posted in Regulatory/actions | No Comments »

Funeral for a frenemy

Tuesday, February 3rd, 2009

Good bye Trader Monthly, home of the Trader Dater, food porn and source of wrist watch envy.

I for one will truly miss you. Every month you served up fresh meat for Gordon Gecko wannabes. But, and this does need to be said, some genuinely good writing and actual insights into the minds of New York’s trading elite. You provided opportunities to see into the people, their values (such as they are) and how they think.

(more…)

Tags: Trader Monthly
Posted in economy | No Comments »

Grounded for Groundhog Day

Monday, February 2nd, 2009

World’s most famous groundhog Punxsutawney Phil saw his shadow today, forecasting six more weeks of winter. As we said on Friday, the Dow Jones Industrial Average is in a deep freeze of its own. It traded in negative territory for 93 percent of the day on Friday, according to Dow Jones.The Dow also logged its worst January performance in its 113-year history in 2008 and in January had its biggest monthly point and percentage drop since October 2008.