Just when you thought it was safe to go back in the water: Part Deux…Paulson to speak on TARP 10:00 am EST
UPDATE: 10:51am EST: Hank spoke, see clip in top post, he covered the new MBS purchase plan and consumer credit facility designed by the FED; he took many questions. As predicted the market (which had popped on the news of the new FED plan before the opening), has, since the presser, turned downward, down 13 now on the DOW.
The oncoming Administration has a presser later covering the ‘cuts and sacrifices’ we will be making, let’s see how that impacts the markets…
Just when you thought it was safe to go back in the water…
THE RETURN OF HANK!
Treasury Secretary Hank Paulson to update TARP implementation LIVE tomorrow at 10:00am EST. CNBC will cover it live.
If he plans to tell us the CITI plan is a template, most of us figured that out after Bill Gross let us know :0)
If he wants to FINALLY implement the FDIC mortgage modification plan, hooray. (Maybe Rep. Frank finally got through to him on housing) If not, I think we would do better to STOP talking and let the President-Elect’s team have the floor tomorrow.
There is a presser scheduled for tomorrow with Team Obama during which the President-Elect is said to be planning to call for, “cuts and sacrifices”.
Hang onto your hats, b/w the new Administration and Paulson we may be in for the proverbial bumpy ride…
UPDATE: Preliminary Revisions are due out for 3rd QTR GDP manyana, expectations are for a downward revision to a drop of .5%;. Although not much watched, this revision will include other key data:
Barclays points out that the report will also include benchmark revisions to Q2 2008 wage and salary data, as well as the first look at Q3 2008 corporate profits.
Market Update: Pop off CITI news..Economic Team Announcement..
UPDATE 2: 3:57pm EST: We gave 100 back to close up 396.97 on the DOW, up 87.67 on the NAS, and up 51.78 on the S&P.; still the best two day performance in 21 years..
The New Stimulus: Inauguration Day…Economic Team:Melody Barnes to lead on policy…
UPDATE: 12:15PM EST: The President-Elect has named Melody Barnes, of the Center for American Progress, the head of his policy council (happy dance). Ms. Barnes did a column in WaPo 2 years ago reflecting upon what a truly progressive POTUS might say at a SOTU address, it is well worth a look for some insight into the future direction of our policy:
Godot arrives!! Citi Pops on 326b deal; Waiting for Lefty: Obama advisers say tax rollbacks may wait..
UPDATE 3: 7:00am PST: CITI package announced, shares jump:
The government agreed to invest $20 billion in Citi and to guarantee as much as $306 billion of Citi’s troubled assets in a deal reached Sunday. The deal also gives the government control of executive bonuses, and limits dividend payments.“The U.S. government’s creative ring fencing of Citi’s $306 billion in troubled assets is a strong positive for the system and for Citi shareholders,” Morgan Stanley analyst Betsey Graseck wrote in an early Monday morning research note.
CITI ask is now $6.00; DOW futures up sharply on the news, up 122 as we get ready for the open…a presser later this morning will confirm the appointment of Tim Geithner as Secretary of the Treasury and Larry Summers as chief of the POTUS Council of Economic Advisers…..
Watch CNBC LIVE reports from Asian markets here
UPDATE 2: 7:50pm EST: As predicted, CITI is hurting Australian markets, and their regulators are ready with a response, I hope we have a deal announced shortly before we hit the Asian markets:
…Australian funding costs rose after last week’s plunge in Citigroup Inc. shares sparked concerns about the fate of the company and its $2 trillion of assets.
The rate Australian banks charge each other for three-month loans rose 3.8 basis points to 4.47 percent at 10:07 a.m. in Sydney. The difference between that yield and the overnight swap rate, a measure of funding scarcity, rose for a fifth day, adding four basis points to 55 basis points, the highest since Nov. 6. The measure averaged 11 points in the five years to July 1, 2007.
The Reserve Bank of Australia pumped A$3.27 billion ($2.1 billion) into the financial system today after estimating the shortfall would be A$3.65 billion. Banks on Nov. 21 reduced deposits held at the RBA by A$317 million to A$3.9 billion, the central bank said today on its Web site…
UPDATE: 7:00pm EST: Bloomberg is reporting a deal of some sort has been struck at CITI with some form of government guarantees…
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