Markets might see a sharp turn around here as VIX closed just below the collapse of Lehman back in sept when it broke for the upside otherwise this indicator is trash to me and time to throw in the bin. If it works as it is, So we are here for sure a sharp sell off this week for the markets and it is same with the international markets as they are in line with US equities.
Most of the traders they gauge 200ma as the longer term base and if you see s&p's is right around that area and this week will a blow off tops in every aspect, And looking at the precious metals they are showing more signs for the save heaven.
Japan Economy Shrinks Record 15.2% as Exports, Spending Plunge
May 20 (Bloomberg) -- Japan’s economy shrank by a record last quarter as exports collapsed and consumers and businesses slashed spending, a decline that probably marked the low point in the country’s worst recession since World War II.
Gross domestic product fell an annualized 15.2 percent in the three months ended March 31, following a revised fourth- quarter drop of 14.4 percent, the Cabinet Office said today in Tokyo. The economy contracted 3.5 percent in the year ended March 31, the most since records began in 1955. Full Story
U.S. Considers Stripping SEC of Powers in Regulatory Overhaul
May 20 (Bloomberg) -- The Obama administration may call for stripping the Securities and Exchange Commission of some of its powers under a regulatory reorganization that could be unveiled as soon as next week, people familiar with the matter said.
The proposal, still being drafted, is likely to give the Federal Reserve more authority to supervise financial firms deemed too big to fail. The Fed may inherit some SEC functions, with others going to other agencies, the people said. On the table: giving oversight of mutual funds to a bank regulator or a new agency to police consumer-finance products, two people said.Full Story
Banking Index has shown some remarkable bounce lately from the march lows and doubled its value. Index has reached to significant point where it is due for the correction or making new lows on the index if it does not hold the 30's region.
Recently we have seen so many bottom callers and bullish case on the economy and banking industry about their stress test been passed but I really doubt on the stress test results as many banks lately have diluted their shares to attract more investors which will bring down the price of banking shares down.
I have put together the FDIC opening new offices in Florida area, What does that tell us ? My comments more banks are due to fail. Look for the list of banks failed and also more and more regional bank losses due to commercial real estate in their regions.
FDIC to Open a Temporary East Coast Satellite Office
FOR IMMEDIATE RELEASE May 8, 2009 Media Contact: David Barr (202) 898-6992 dbarr@fdic.gov
The Federal Deposit Insurance Corporation (FDIC) today announced it will open a temporary satellite office in Jacksonville, Florida, to manage receiverships and to liquidate assets from failed financial institutions primarily located in the eastern states.
After conducting a competitive leasing acquisition process, the FDIC entered into a short-term agreement to lease space at 7777 Baymeadows Way in Jacksonville. The decision was based on mission needs and workload.
The new office will provide facilities for up to 500 nonpermanent staff and contractors. Staffing will be based on the workload needs of this office, based on the number of closings in the eastern states, the resulting number of receiverships, and the post-closing workload.
Throughout its history, the FDIC has used these offices to keep temporary asset resolution staff closer to the concentration of failed bank assets they oversee. As the work diminishes, the temporary satellite offices are closed. Full Story
Local Banks Face Big Losses Journal Study of 940 Lenders Shows Potential for Deep Hit on Commercial Property
Commercial real-estate loans could generate losses of $100 billion by the end of next year at more than 900 small and midsize U.S. banks if the economy's woes deepen, according to an analysis by The Wall Street Journal.
Such loans, which fund the construction of shopping malls, office buildings, apartment complexes and hotels, could account for nearly half the losses at the banks analyzed by the Journal, consuming capital that is an essential cushion against bad loans. Full Story
