G3 Recap 12-06-10

Main Items:

  • Bernanke’s 60 minutes interview didn’t reveal anything new. He did note, by implication, that the Fed considers 2.5% to be the potential US growth rate.
  • Congress appears to be ready to extend all the Bush tax cuts for 2-3 years as well as extending UE insurance. WSJ

Overseas:

  • EU Sentix Investor Confidence declined to 9.7 in Dec vs 11.0 expected and 14.0 previously.

Commentary:

  • What an exciting day!
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4 thoughts on “G3 Recap 12-06-10

      1. Hi Dave – multiple banks could definitely go under in a disorderly fashion, as you said. However, I think that with improving profits and equity raises as well as fiscal and monetary backstops, the consensus is that they are much less vulnerable than 2 or 3 years ago.
        Having said that, if you think that 10-15 investment banks are going to collapse in a disorderly fashion in the near future, you should be holed up in a remote farm somewhere with a shot gun and canned food! I think the implicit assumption for trading is that the financial system is going to be OK – otherwise you won’t be able to pull out your profits!

        Cheers

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