Tuesday, September 30, 2008

Americans flooded Washington with pleas for their Representatives to veto the Emergency Economic Stabilization Act according to a blog on Finance/Yahoo. No wonder it failed...

While the VIX is high at 47, the put/call ratio is just normal (1.00) and odd-lot shorts are low. Volume on the NYSE was high on Sept. 19th during that rally. Yesterday's historic drop created much less volume!

While the market's technicals are mixed, the fundamentals are clear. commercial paper is an important fundamental indicator of economic viability.

Three of the four commercial paper yield curves are normal, but the credit spread is still so wide that many businesses can't borrow at their usual rates. This short-term borrowing pays for wages, inventory, rent, utilities and other necessities. Such businesses could cut jobs and slow the GDP without the ability to borrow short-term money.

2 comments:

Anonymous said...

Deb, what do you know about Section 203 of the Financial Services Regulatory Relief Act of 2006? Can you explain the long term impact on the dollar if this is amended?

Deborah said...

I don not know the Act. Please send it to me at debweir@verizon.net.

What is your opinion of its effect on the dollar should it be amended?

Best,
Deb