FED Survey Worst Ever
Stocks moved sideways today trying to digest last week’s gains. Bonds gave up some ground, and increased interest rates across the board.
The Dollar continued its gain, as did the meltdown in oil and gasoline.
Gold was the newsmaker falling $37. This brings gold into the buying range, but I recommend waiting to see where gold settles out. A better buy could be just around the corner. Oil appears to be tired of falling, but gold may not be tired, and could fall to $800 – that’s when I will say “Buy with Both Hands.”
In the news today….
The FED does surveys of banks in the US. And they just got back the worst survey EVER regarding the credit crisis. Banks are pulling in their lending more than ever before. This spells disaster for the US economy if it continues. We are at an historic high of restricted lending practices across the USA. 75% of banks said they are tightening their loans – and I mean all types of loans, not just mortgages.
Here are Friday’s numbers:
Dow Jones 30 Industrial - 11,782 (up 48 points)
10 Year Treasury Bond – 4.00% (up 0.05%)
Euro - $1.4909
Gold - $828 (down $37)
Oil - $114.45 (down $0.75)
Gasoline - $2.87 (down $0.02)
