Some Good Thoughts

Saw that Bear (BSC) was up in after hours on the news that Jimmy Cayne was going to resign as CEO. He may stay on the board though. I liked Cayne as he worked his way through the ranks and was a trader at one point (if my memory serves me correctly). Maybe this creates the psychology for a bounce in the financials as the group has really been slammed. Not a bottom, but a sharp bounce. Would be nice to see.

This info is from Bloomberg article titled, "Asset Backed Paper Grows first Time Since August"

On the 21st week, the amount of outstanding Asset Backed Commercial Paper rose to $774 Billion. "How about that" as the fabulous baseball announcer Mel Allen used to say. The amount of Asset Backed Commercial Paper has substantially dropped from its peak of $1.2 trillion. The question these stats raise is where did those who needed funding go when the ABCP shut them out? That question can be analyzed another day because this article is going to focus on good thoughts.

From Reuters, 3 month Dollar LIBOR dropped to 4.54 and 1 month LIBOR dropped to 4.44. A good sign as the spreads above the Fed Funds rate have narrowed.