Daily Archives: 01/12/2011

And when the European MBS market collapses, will the Fed buy that also?

helicopter-ben

By John Galt December 1, 2011 – 05:30 ET A brief note in reference to this Bloomberg-Business Week article from yesterday: European CMBS Outlook Worsens as Borrowers Fail to Repay Loans According to the article, only 5 out of 35 European commercial mortgage backed securities were repaid at the end of October. With over €14 billion of CMBS due to rollover in 2012 and a large portion of that residing in Germany, the question has to be asked after yesterday’s actions if the Fed will…

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12.1 U.S. Market Preview: The Thrill is Gone

SMOKED_CIGAR

By John Galt December 1, 2011 – 05:25 ET Now that the thrill is gone and so is the short covering rally, reality will return to the markets and in a violent sort of manner. Look for today to be a very mild trading day with weak volume and conviction compared to yesterday’s thrill ride. The markets should trade up or down within a 0.5 to 1% range at the most with 1265 on the S&P 500 cash acting as upward resistance. That number is…

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