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2/2/10 Midday Report: Volcker to Banks: "Prop trade this!"

|Includes: Art Technology Group Inc. (ARTG), COOL, TSYS

The market is bouncing back today even though it is a relatively quiet day news wise (though not as quiet as a Lindsay Lohan straight to video movie premier or a Trappist monk game of hide and seek).  Pending home sales in the US rose 1% after falling 16% last month thanks to renewed tax credits and something called math.  Sure the 1% rise is good, but it is still down 15% from October, so let's not break open the bottles of Dom and tins of beluga just yet.  The biggest problem with home sales is that frictional unemployment has dropped the frictional and is just plain old unemployment.  People are no longer moving between jobs and thus moving to new houses because, to close the transitive logic,  there are no jobs.  Also, Paul Volcker is supposed to testify in front of the Senate Banking Committee today where the 82 year old will rant about proprietary trading at banks, how he used to walk 2 miles up hill both ways to get to school, and then wonder why none of the dames look like Clara Bow anymore.  The banking industry awaits Lord Volcker's testimony like a necrophiliac awaits the cremation of a loved one.


In global macro news, Australia held their interest rates flat which was somewhat of a surprise since their economy is healthier than a vial of Jack LaLanne's urine (and that is for my older readers, but I can assure you young'ens out there that there is nothing on this planet healthier than the dickwater of the workout guru Mr. LaLanne who even at the age of 96 still can still rip a man's heart out with his pinky finger).  For those sheltered Americans out there, Australia... read more....

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