Two bits of news didn't help the market much at the open. QCOM reported disappointing guidance, which hurt an already weak tech sector. and Wachovia announced a $1.1 billion decline in its CDOs.
The Lehman Chief Global Bond Strategist said this credit crunch is worse than Long-Term Capital Management, and that it is the "deepest correction" ever in structured finance. But remember, historically financial crises turn out to good buying opportunities for investors in hindsight.
I see the big culprit this morning as the Yen. You know I have been focused on this currency, and it is spiking higher tomorrow. It is no coincidence that the 3-day surge in the Yen correlates to the 3-day drubbing in US stocks.
Oil is higher this morning, trading just north of $96. And the yield on the 10-year is down to 4.23%, reaching a 2-year low. The bond ma! rket continues to signal that the Fed is too tight here, and I hope they step up to add more liquidity to this credit crunch.
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