Commercial Paper Picking Up
Stocks moved upwards – by 190 points today. Not much sanity in the market – so I think there will be some surprises soon in the market.
Bonds continued their climb in interest rates. The Dollar moved sideways.
Gold, oil and gasoline all fell in price today. Gold continues to be a fantastic buy at this price.
In the news today….
The 3rd Quarter GDP was announced today, and came in DOWN 0.3%. Remember that anything negative for two quarters in a row is a “recession” officially. This is the first negative quarter – officially.
Last week’s jobless rate was 479,000, and this continues to point to the recession continuing, and not getting any better.
One of the measure of the market working better is the amount of “commercial paper” in the market. This is now increasing – showing that the government’s efforts in the banking sector is beginning to work. The amount of commercial paper increased by $100B, and this is the first increase since Lehman Bros went bankrupt. The total market is now $1.55Trillion – a nice big market that shows how important this market really is. Just 7 week’s ago, this market was $1.82Trillion. In other words, the market is still down about $300B – so you get the magnitude of the money problem out there right now.
Here are Today’s numbers:
Dow Jones 30 Industrial – 9180 (up 190 points)
10 Year Treasury Bond – 3.94% (up 0.07%)
Euro – $1.2944
Gold – $739 (down $16)
Oil – $65.96 (down $1.54)
Gasoline – $1.47 (down $0.07)