Update: Issa says Fed in cover up, Bernanke to testify under subpoena..Market Mover: FOMC Decision and Statement…
Update 3: CNBC has the Issa story up here
Update 2: Dow as up 50 and now up 7 since FED announcement. I think the market is also scared shxt of what will happen as Congress goes after the Fed…that Issa announcement was simultaneous with the FED decision…
Update: Fed stands pat, rate unchanged, will maintain low rates for extended period (love you long time), removed the line about DE-flation, good finally! but NO EXIT STRATEGY. Bond rates up a bit as prices down a bit. Nothing in the stmt backed off quantitative easing at all, they reaffirmed it. If you are looking at it as a foreign holder of our debt, I see nothing here to reassure you, which to me suggests higher rates a comin’ from Bond Vigilantes…
Right before the announcement Darryl Issa R-CA came on CNBC backing a statement his office released saying Ben Bernanke and the FED had concealed concerns about the Merill BofA deal from OTHER REGULATORS, and Ben is appearing under subpoena to answer questions.
Not a good thing for market stability and as a shareholder I am biased on this. But if it is what I think it is, i think Bernanke and Paulson kept Sheila Bair and the FDIC in the dark on the potential losses for BofA if Merrill deal went thru..
if it helps FDIC get some of the power Team TOTUS is trying to give to the Fed (which will then promptly be given to Larry Summers in Jan) then I am all for it. the FDIC is the only regulator on the ball and Sheila Bair was warning about subprime exposure of broad market losses way ahead of everyone else…
anyway that is a WOW announcement that was buried in the FED release..Towns is trying to stop investigation into Countrywide VIP loans for Dodd and Conrad, but Issa is pushing as he can….
Best Market Lesson I ever Learned: DONT FIGHT THE FED*
Market Mover Tuesday: Housing Data and the Treasury Auctions begin….
The Mortgage Bankers Association slashed their estimates yesterday, more on that later….for the next two days, we are also waiting for language after the Fed meeting wraps up to see the exit strategy….
This morning we get sales data:
…At 10 a.m., the National Association of Realtors will report on May sales of existing homes and the Federal Housing Finance Agency will release home-price data for April.
The Treasury Department will auction $60 billion in two-year notes Tuesday. Ahead of the sale, Treasurys were falling, with the two-year note sliding 3/32 to yield 1.174%, and the 10-year note sliding 10/32 to yield 3.722%….
Update: Market Mover: Record Treasury Auctions Continue….
Update: 3:49pm EST – 10 mins to the close. DOW down 165 to 8371, S/P down 24 to 896, NAS down 55 to 1772..and absolutely Everyone is watching the US dollar….
Oil, big pullback on World Bank economic forecasts lower than expected (from the D’uh! files) Oil now down 2.62 to 66.93,
all the commodities took a big hit on that forecast today as people were shocked, SHOCKED to consider that China stockpiling commodities does not in itself, mean an end to the global downturn, since once again, it is the AMERICAN consumer that drives the global economy….
they wish and wish for decoupling and a new world leader but it aint happenin’…again….here’ an idea, how about incentivizing the creation of some PRIVATE SECTOR JOBS here in the USA with oh I dunno, a tax cut? or even better, by stopping all the insane spending and crowding out of the privagte sector, stop meddling in everything under the sun!!! /sheesh
PS CNBC chryon says WH is announcing unemployment will exceed 10% this year, and in other earth shattering news the sun rises in the East…..
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Another opportunity for the Bond Vigilantes to rein in the spending by demanding higher rates……or they could keep letting Uncle Sam play the role of Wimpy….
The Treasury announced Thursday a record $104 billion worth of bond auctions for next week, part of its herculean efforts to finance a rescue of the world’s largest economy.
The sales will exceed the previous record of $101 billion set in auctions that took place in the last week of April and consist of two-year, five-year and seven-year securities. That record was matched by another $101 billion week in May.Though next week’s total was broadly in line with expectations, worries about supply have weighed on the U.S. government bond market, which will see a mammoth $2 trillion worth of new debt issued this year.
“Maybe the Treasury market reacted a little negatively and it will continue to be like this,” said Suvrat Prakash, U.S. interest rate strategist with BNP Paribas in New York. “Supply announcements and auctions on the horizon will make the market a bit nervous about upcoming debt.”
Bond prices were lower already in anticipation of the Treasury’s announcement and continued to sell off in reaction.
Moderate in the Middle 