Consumer Confidence
Everything moved sideways today, with only an 8 point loss in stocks.
In the news today….
Stress Test – It was leaked today that Bank of America and Citigroup both “failed” the stress test, and they need more capital to keep operating. Here are the crazy facts:
- The Stress Test was a “wimp”, but these two big banks both failed.
- This was very embarrassing to both bank CEO’s as they both have come out lately stating they are okay, and don’t need more help, and they’ll survive. Just another reminder that bank president’s LIE.
- Naturally, no one every “fails” a stress test (certainly not one from Geithner), as it isn’t a pass/fail mark. However, it is natural to think that if they need to raise money from a wimpy test, they definitely are in trouble – ergo they failed.
CALPERS – the California State Pension fund has decided to vote AGAINST the re-election of the Board at Bank of America. At last someone is taking a strong stand against failure.
Housing Values – got a reasonable report today. The “rate of decline” is decelerating. This means that housing prices will continue to fall, but not as fast as in the past. This data came from Case Schiller for February. You will hear people say that housing is now at the bottom – don’t believe them.
Consumer Confidence – rose to 39.2 (ignore the number) and was the 4th highest rise in consumer confidence in the past 38 years. So, what does this mean?? Why did it happen?? Consumers were reacting to the recent rise in the stock market. If stocks fall again, you can expect the consumer confidence to fall again too. However, the press will latch onto this report and tell you that everything is rosy. Think for yourself.
Here are the last numbers for today:
Dow Jones 30 Industrial – 8017 (down 8 points)
10 Year Treasury Bond – 3.00% (up 0.08%)
Euro – $1.3140
Gold – $894 (down $15)
Oil – $49.92 (down $0.22)
Gasoline – $1.40 (down $0.04)
