Some sad news on the home front as Ragnar's father passed away Tuesday night. He flew out west to be with his family.
The tape today was all over the place. The SPX had a 53 handle intraday swing. The retail sales number was "surprisingly" positive. Hello??? How about every retailer was de-stocking. They marked down most of their inventory to get rid of it because they are scared they'll be stuck with it. That is not good for margins; just because sales are up doesn't mean you are actually profitable. Let's see if next months sales are positive as well.
If you don't think the government manipulates the markets look at the timing of the release by the White House on the mortgage modification program. It caused the markets to rip in the last hour. But let's take a look at what the plan really is: "The U.S. will subsidize monthly mortgage payments after a new home value is set..." We can stop right there. They are going to revalue the house and then most likely adjust the mortgage down. That means someone has to make up that difference or eat the loss. If I read it correctly the government will let the resident pay what they can and then make up the difference. The bank gets what they have the debt priced at so they have no loss. That means the tax payer is getting crammed down on. If they don't make up the difference then the bank takes the loss. Nothing has changed.
I had drinks with a broker who also happens to be a friend. It was not the usual business drinks. A friend launched his fall fashion line. So we went down to the West Village and got to watch a fashion show, have some drinks and catch up on business.
I am going to swim tomorrow morning as we have a three day weekend and will be able to hit the gym. We are having dinner with MP tomorrow night at her place. No big plans for Mr. Clifford's favorite holiday, probably a movie with TK.
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