For decades the Federal Reserve has spoken very softly and in code which was call “Fedspeak” to avoid crazy and unnecessary swings in the markets based solely on the remarks by Federal Reserve officials. This Fed and this Chairman is unafraid to venture where no other Fed has gone before … The fastest central bank to market with Quantitative Easing (QE) The broadest range of bonds included in the QE programs with the addition of Fallen Angels (or below investment…
What is it with the alphabet soup that financial people always use? It’s true. We love our acronyms and simple representations of complex subjects. To that end, I’m afraid we’re not hearing much about a Deep V recovery. On the bright side, there is growing consensus on a U Shaped Recovery versus that terrifying concept of another depression. Over the past couple of weeks, there has been a growing consensus that the U.S. Markets may have bottomed out. Both Goldman…
Checking in on the Stock Market Another rocky week as the market bumps along waiting for the world to reopen ~ Early trading saw stock’s rise on demand from short sellers who were forced to cover their bets and buy shares they shorted. In industry lingo it’s called a short-squeeze. It might be time to watch the Big Short tonight. Trading was up on the news that we’ve reached 20% Unemployment and not 32% which the Fed ultimately anticipates. Perversely,…
In 30 Seconds or Less … Community and Regional Banks are the Superheroes of Small Business! Large Banks once again have chosen fees over Doing the Right Thing ~ It’s unfortunate as large banks have squandered a golden opportunity to re-write their public narrative from the Go-To Political Whipping Post to Heroes of Main Street. All they had to do (no small task given the crazy large #s) was shepherd small business loan applications to the Small Business Administration’s (SBA’s)…
In 30 Seconds or Less …. Markets continue to rally on the hopes of returning to normal and look past earnings results. Irrational Exuberance? As I watch the Dow trading up on news of another drug treatment that had strong results supporting severely ill virus patients and the Administrations release of the 3 Phase Re-opening plan, I’m hear former Federal Reserve Chairman Alan Greenspan’s words of warming “Irrational Exuberance!” Is that fair? Only time will tell. One thing is…
In 30 Seconds or Less ….. Just set aside your financial statements as they arrive this week. There is no point in looking. Why torment yourself as you know the first page with compare the 3/31 value to 12/31. If only we could Return to Sender! While the Dow has been on a tear, not all is rosy, yet ~ We’re just getting our first look at earnings this week. We need time to see who’s poised for a rebound…
In 30 Seconds or Less … Agreement Reached over the weekend in the Oil Price War – U.S. crude prices rose to $23.53 a barrel this morning on the good news. Now, that the global industry is not fighting amongst themselves, they can simply watch and wait for demand to return like the rest of us! Never Bet Against the Fed – The Chairman has declared war on the virus and is providing support to new parts of the credit…
In 30 Seconds of Less … Timing the Market – When the average person thinks about Wall Street and making a killing in the market, it sounds so sexy! You immediately go to the headlines of the financial gurus who called the downturn. They had the foresight to sell at just the right time, executed a strategy that made wealth because of the downturn, and of course, reinvests at just the right moment to catch the rebounding market. Their timing…
In 30 Seconds or Less …. The Good News – Do you remember what that is? The market appears to have found a floor and trading on the higher end of the range analyst suggested 2 weeks ago. A word of caution, the bottom has not been tested. More Big Banks are signaling it’s time to get into the market for their wealthiest clients in high quality US equities and remain in high quality domestic bonds. New York has…
In 30 Seconds of Less … Servicers Facing Material Liquidity Concerns & Confusion in the Mortgage Market about What’s In and What’s Not in the CAREs Act – Things just got a lot messier as the market realizes the impact of the CAREs Act 12 to 15M Agency borrowers could ask for forbearance With no specific liquidity facilities in place to help servicers (especially, the nonbank servicers), who’s going to pay for this mess? Unintended Consequences: Despite experts from the…