Euro Starting To Weaken
Everything moved sideways based on no news. The Dollar crept up on fears of a “global recession” as this is seen as good news for the Dollar. The Euro weakened because the Europeans are coming to know that there will be a recession in Europe in the near future. That means no more rate hikes in Europe – as the European Central Bank finds itself in the same dilemma as the FED.
In the news today…..
Freddie Mac declared that it lost $821M dollars in the 2nd Quarter 2008. It also wrote off $2.5B in questionable loans. More than half of the loss was attributable to Alt-A loans (no doc loans) written in 2006 and 2007. These loans are turning out to be as risky as sub-prime loans.
Here are today’s numbers:
Dow Jones 30 Industrial – 11,656 (up 40 points)
10 Year Treasury Bond – 4.05% (up $0.04)
Euro – $1.5408
Gold – $883 (down $3)
Oil – $118.58 (down $0.59)
Gasoline – $2.95 (down $0.01)
