HOPELESSNESS!
That's the way it feels this morning out there. Dead cat bounce at the open for the overall market and we await the vote on the bailout package. Frankly speaking I think the dragging out of this legislative event has made things worse and my expectation is that the market will roll over and sell off after a rally off the news..assuming it passes. And if it fails then the DOW will have a 9 handle and MLPs will follow as the MLP index hurdles to the 190 level...which would take it back to a level not seen since early in the decade.
Cramer gave a nod to a few mlps last night and they open higher this morning like Linn (LINE), Kinder Morgan (KMP), and Enterprise Products Partners (EPD). The index is up 2 points and back over 220. Dow up 100 at this moment. Crude is down this morning. Nothing on the upgrade downgrade list and no corporate developements.
joseph cioffi's Source Page - Associated Content
3 comments:
Joe,
I agree. The bailout passes and the market will yawn. MLPs up early, but I expect them to fall before the close.
No reason to buy anything (although the WFC/WB deal helps the FDIC).
The Fed must have realized the investor fear they created with the LEH, + WM wipeouts of sharehlders and bondholders.
I'd think that the half dozen weak banks might be resolved shortly perhaps like the WFC/WB deal.
The WB/C deal was designed imho to strengthen C.
Maybe the FDIC will backstop a RF, SOV, NCC with C to stengthen C.
If the sickest banks are taken out,
even with FED help, that has to help credit market confidence.
There was also a risk free ( for banks ) commercial paper facility ( over 100 billion ) that the fed set up about a week ago that there hasn't been much spoken about.
HS
When GE needs to pay 10% plus warrants to get financing, it makes all yield vehicles look a lot less cheap.
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