Still Trimming
Jeff's comments:
"Volume expanded fractionally over Tuesday's reading, as the % of issues above their own 20 day moving average came very close to the 80% threshold. This market is challenging the natural resistance level of 1500, and with libor at a 7-yr high and 2yr swap spreads widening, there appears to be a disconnect between equities and fixed income. We continue to stress that we have seen little evidence supporting a new bull phase in recent price data, and our latest sentiment work shows bullishness seeping back into this market as investors seem to believe the worst is over. To us, this all looks distributive, and if that scenario is right, and credit markets are a more accurate reflection than equities, stocks become a more natural sale at this juncture."
I also just read about some legislating being drafted by Chris Dodd and Barney Frank that will be very bad for lenders and investment banks. The legislation goes well beyond fee caps and requiring more paperwork. It will impose FIDUCIARY duty on mortgage lenders and allow borrowers that got foreclosed on to SUE the investment bank that securitized their mortgage if it included predatory features such as a prepayment penalty. Yes, I'm serious. The easy money is going away and a tougher credit chapter is beginning.
"Volume expanded fractionally over Tuesday's reading, as the % of issues above their own 20 day moving average came very close to the 80% threshold. This market is challenging the natural resistance level of 1500, and with libor at a 7-yr high and 2yr swap spreads widening, there appears to be a disconnect between equities and fixed income. We continue to stress that we have seen little evidence supporting a new bull phase in recent price data, and our latest sentiment work shows bullishness seeping back into this market as investors seem to believe the worst is over. To us, this all looks distributive, and if that scenario is right, and credit markets are a more accurate reflection than equities, stocks become a more natural sale at this juncture."
I also just read about some legislating being drafted by Chris Dodd and Barney Frank that will be very bad for lenders and investment banks. The legislation goes well beyond fee caps and requiring more paperwork. It will impose FIDUCIARY duty on mortgage lenders and allow borrowers that got foreclosed on to SUE the investment bank that securitized their mortgage if it included predatory features such as a prepayment penalty. Yes, I'm serious. The easy money is going away and a tougher credit chapter is beginning.
posted by Never-Limp at 8:45 AM
1 Comments:
I can't imaginge any of these nutty laws being discussed will get signed into law, but it seems there should start being a risk premium because of them which isn't in place yet.
something like this would be 10x worse than the best outcome of what bush announced last week.
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