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3/17/10 Midday Report: With PPI down, optometrists now try to tackle conjunctivitis

|Includes:BBI, COOL, KIT digital, Inc. (KITD)

The market is moving up again today as to the surprise of none, the Fed held rates near zero yesterday while restating their intention of keeping them low for an "extended period" (known as their menorrhagia strategy).  The Fed did say they will stop buying MBS now that they have successfully kept home prices inflated, I mean stabilized the market.  They believe private investors should now be confident enough to continue to lend without an appreciable increase in mortgage rates which should be great for all zero people looking to buy new homes.  Once again, the lone dissenter and the turd in Bernanke's punchbowl was Thomas "T Ho" Hoenig who wanted to strike the "extended period" language from the Fed's release.  T Ho keeps tryin' to dis all his sucka FOMC peeps as he is more concerned with fighting inflation and not overdoing the stimulus than he is in creating another bubble (and along those lines he is rumored to be releasing a mixed tape featuring the dis track "Ain't nuthin but a Greenspan thing").  In other US macro news, wholesale prices fell by more than estimated calming inflation fears for just a bit (of course worrying inflation fears is the bazillion dollars the Treasury printed in what Money McBags termed the "Too Big To Count" strategy).  The .6% drop in prices was the biggest drop since July and should bode well for companies who now apparently get to pay less for shit while still getting to pay fewer workers lower salaries.  The drop was led by energy with gas prices down 7.4% and crude goods (such as raw materials and Andrew "Dice" Clay's 1980s stand-up cd) down 3.5%.  However, Food prices were once again up .4% which is great for trade down edibles such as SPAM and Ramen Noodles but bad for coronary arteries and health insurance premiums.

Internationally, we haven't heard from Japan for awhile as they have apparently been reduced to a catatonic state after a non-stop epileptic fit from watching too much anime, but they're back in the news.  Channeling their inner Sesame Street, Japan is the one country not like the others as they are doubling a bank loan program to fight deflation.  Given that rates are already at zero, this is one of the only ways Japan can try to stimulate liquidity (though a game of "Find the Pokemon" with Reon Kadena and Ourei Harada may be a better way of stimulating liquidity, assuming liquidity swings that way).  The Japanese government hopes that these measures will be affective in fighting deflation and allow them to refocus on their real job of fighting Godzilla.  In other international news,...READ MORE INCLUDING ANALYSIS OF COOL...


Disclosure: Long KITD
Stocks: KITD, COOL, BBI