Philadelphia Fed and other Updates

Posted: July 17, 2008 at 10:05 am by Lisa

The Fed set 7 day and overnight repo’s, accepts $7B and $10B, respectively. Yep, no problems here. Oil prices are moving back up, but hanging in around the $135.50 area. Market is all over the place. Positive Spin Award goes to CNBC again for their reporting on JPM earnings and the Freddie Mac bond sale. JPM profit down 53%, and they thought it was great that it wasn’t worse. 57% of Freddie bonds were bought by central banks, and they said it shows confidence by foriegn central banks. They are even a bit excited that the Philly Fed number isn’t as bad as last month: (told you any bad news would be dismissed)

*JULY PHILADELPHIA FED: -16.3 V -15E; PRICES PAID: 75.6 V 69.3 PRIOR
- New Orders: -12.1 v -12.4 prior
- Employment: -7.3 v -6.9 prior
- Inventories: -7.5 v -12.6 prior
- Six-month business conditions outlook: 18.0 v 21.3 prior<

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Comments

6 Responses to “Philadelphia Fed and other Updates”

Jim on July 17th, 2008 10:51 am

One big issue ‘that can’t be dismissed so easily…yesterday’s CPI coming in 2.4% above May; 5% Y/Y; core 2.4% Y/Y. Worse since 1991.

IMHO, this may only only be the beginning of higher reported CPI due to the higher oil prices. Treasury rates are likely headed higher which will only compounded the already weak residential/commerical real estate market and USA economy.

Yes, US oil consumption is down 5% but China and India’s growth more than offsets our decline. Oil (sweet, light crude) prices are headed higher by YE. unless the FED raises interest rates to keep the US dollar above 71.8, which only compounds the problems.

This bear market bounce corrects the massive oversold condition and sets up another leg down.

How can USA have an economic recovery w/o job creation rather job disappearing at an accelerating rate.
Lisa on July 17th, 2008 11:19 am

“How can USA have an economic recovery w/o job creation rather job disappearing at an accelerating rate.”

It can’t.
Opitz on July 17th, 2008 11:19 am

Lisa, this link is for you!
http://pctuning.tyden.cz/images/stories/Novinkari/ctibor.skuta/cervenec%202008/stock.gif
Lisa on July 17th, 2008 11:22 am

LOL Thank you, Opitz, loved it!
Bob Brashear on July 17th, 2008 11:33 am

Look, if you are going to post links like that, at least put a “spew coffee through nose” alert on it.
ecklebob on July 17th, 2008 11:53 am

Thanks Opitz!