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  • Up, up, and away...

    In This Issue..

    * TALF...
    * Dollar falls even more...
    * Commodities...
    * Still disappointing...

    And Now... Today's Pfennig!

    Good day...And a Fantastic Friday to you! It's the end of another week that not only brought us the beginning of spring but also a major shift in the currency market. The effect from the Fed's decisions on Wednesday carried over into yesterday's trading session with the dollar engaged in another large sell off. How long and how far would be the big question marks right now but until another major event comes along, the dollar should continue to get sold.

    As I just touched on, the dollar was still down and out suffering from a two day hangover yesterday as a result of the quantitative easing measures the Fed has decided to pursue. We also gained some insight into the TALF that I mentioned yesterday which is intended to resurrect both consumer and business lending. They will expand to accept securities backed by four types of loans that include leases of business equipment and rental car fleets, securities backed by loans extended by mortgage servicers to cover missed payments by homeowners, and securities for floorplan loans. The Fed also said that this announcement was a first step in expanding the TALF and that a number of other asset classes are under review....
  • Hold on to your hat...

    * Fed opens the pocket book...
    * Creative measures...
    * Inflation/dollar debasement concern...
    * Currencies soar...

    Good day...And a Tub-Thumpin' Thursday to you. Well, yesterday was certainly one wild Wednesday for the record books. It started out like any other day we've had over the past week or so with the dollar down and many of the currencies up a bit, but nothing really out of the ordinary. Then it happened...the Fed adjourned and hit the markets with a big one.

    Many of the market participants weren't looking for an announcement or plans from the Fed to buy Treasuries today, but instead, were anticipating further discussions on how to proceed. It appears there has been disagreement on how to provide aggressive actions with interest rates already at rock bottom. The way they saw it, there were three options. One was to increase the TALF to buy frozen assets, another way was to expand purchases of mortgage backed securities and agency securities, or to begin buying long term Treasuries....
  • A "Stock Tip From The Top Guy!"

    * Australia's economy contracts.... * Bank of Canada cuts rates to .50% * Meeting margin calls... * TALF... ** A 'Stock Tip From The Top Guy!' Good day... And a Wonderful Wednesday to you! My beautiful bride is getting ready to leave this morning. I'm not used to 'talking' to someone when I get up at my usual early hour! She'll be gone in a few, as I write, and then it will be my little buddy, Alex, and your Pfennig writer on their own for 5 days! YAHOO! Well... After a day of waxing eloquently about the how well the Aussie economy was doing compared to the rest of the world, they go and post a contraction in their economic growth! UGH! That's the way to show me up! The Aussie economy shrank in the 4th QTR by .5% VS the forecast of .2% growth... The news scared the markets into believing the Asian problem will be worse off than previously thought. Oh Come On! Australia is STILL doing better than most countries, especially those that I listed in yesterday's Pfennig!...