Wednesday Outlook: Awaiting the Fed

April 28, 2009



I wish my Money and Banking class in college was this easy—hell, even gym was hard by comparison to current bank stress tests. Basically it’s an open book test allowing banks to set their own evaluations on some toxic waste and hope investors take it all in stride. The false and misleading statements from CEOs like BAC CEO Ken Lewis are, in ordinary times, shocking. These days it passes for business as usual. “We don’t need any capital….we’re sound...we can return TARP money today…and so forth.” So, BAC and C do in fact need more capital. Who knew!?!

Today markets were pulled lower by iffy stress test results and pushed higher by better than expected (there’s that bullish slang again) consumer confidence numbers.

Volume remains light and one would imagine more action will result from the Fed meeting aftermath although it should be a non-event, but then so was the last one. Nevertheless, any time the Fed meets, investors pull in their horns until an announcement is made.





























































Go to page 2 - Commodities, Global Markets >>

Comment on this article >>