$460B Fallout
Stocks fell on the fear of falling housing prices, and poor economic data. Bonds went no where.
The Euro is poised to test its all time high tomorrow. The Dollar continues to amaze me with its rapid fall.
Oil lit on fire today as there was a very poor inventory numbers reported, and the dollar kept falling. Gasoline is predicted to hit $4.00 a gallon at the pumps in about 2 months. I bet you’re looking forward to that!!!!!!
Gold continued its upward momentum, and will probably break into new highs in a week or two. I hope some of you got into gold when it hit the recent lows.
In the news today….
Goldman Sachs predicts that the total sub-prime and other credit loan write offs will be about $460B – and only 25% of that number has been written off so far. In addition to the lousy sub-prime securities, credit card loans, auto loans, commercial loans and industrial loans make up a big chunk of this prediction.
Durable goods fell 1.7% in February.
Demand for manufacturing equipment fell 13.3% in February.
Orders for non-defense capital goods fell 2.6% in February. (this is a good measure of the business sector).
All these economic statistics together show how we are falling into the pits of a recession in all sectors of the economy (except government spending of course.)
Secretary of the Treasury, Paulson, says that merchant banks like Bear Stearns need to be regulated like Commercial Banks. I guess that Bear Stearns fiasco just scared our Secretary of Treasury.
Here are today’s Numbers:
Dow Jones 30 Industrial - 12,423 (Down 110 points)
10 Year Treasury Bond - 3.49% (No Change)
Euro - $1.5850 – ready to test all time high tomorrow.
Gold - $949 (Up $14)
Oil - $105.80 (Up $4.58) - oil has light on fire.
Gasoline - $2.74 (Up $0.06)
