“They recognize that if you let, as the United States did in the early part of 2008, the momentum of these concerns build, they’re very hard to arrest, much more expensive to arrest,” Geithner said.

“So you’re going to see them act with more force in the coming weeks and months,” he said.

“I am very confident they’re going to move in the direction of expanding the effective financial capacity of that set of financial ring fences because they have no alternative and they recognize that and they’re going to do it,” Geithner said.

Full article

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DOW DOWN 390, NASDAQ DOWN 82, S&P DOWN 37

It was a high volume day too

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Global breakdown

[youtube:http://www.youtube.com/watch?v=QbG6M28UkFg 450 300]

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but your politicians spent your money frivolously and now you must face austerity 

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3 dissenting votes

Fed to purchase $400 billion by 2012 6 -30 years

will roll over at auction

fed to reinvest principal of mortgage at auction

long term inflation rates remain stable

fed expects recovery to pick up

downside risks remain in global markets shocks

Twist of $400 billion

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Exports rose 2.8%

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There used to be a law that banks could not grow based on acquisition only. But Bernanke fought to supersede this law for BofA a few years back when a congressional committee questioned if BofA should be allowed to make said acquisition.

Full article

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Upgrades

CARB – Carbonite initiated with a Buy at Canaccord Genuity

TW  – Towers Watson ests raised at Stifel Nicolaus

SAP – SAP AG upgraded to Outperform from Market Perform at Wells Fargo

MGM – MGM Resorts upgraded to Overweight from Equal Weight at Morgan Stanley

SBSI  – Southside Banc assumed with Market Perform at Keefe Bruyette

PER – SandRidge Permanian Trust initiated with a Mkt Perform at Morgan Keegan

JPM – JPMorgan Chase initiated with an Overweight at Evercore

RL – Polo Ralph Lauren upgraded to Outperform from Neutral at Cowen

TRV – Travelers upgraded to Buy from Sell at Goldman

VMW – VMware initiated with a Buy at Merriman

PHM – PulteGroup upgraded to Buy from Neutral at UBS

CHKM – Chesapeake Midstream Partners initiated with Outperform at Credit Suisse

VC – Visteon initiated with a Buy at BofA/Merrill

AWH – Allied World Assurance resumed with a Neutral at Goldman

Downgrades

CVH – Coventry Health Care downgraded to Underperform at Wedbush

MCP – Molycorp downgraded to Neutral from Overweight at JP Morgan

PRU – Prudential target lowered to $66 at FBR Capital

AIXG – Aixtron downgraded to Neutral from Buy at UBS

LINE – Linn Energy initiated with a Neutral at Credit Suisse

TPX – Tempur-Pedic initiated with a Neutral at Goldman

FDX – FedEx ests and target lowered to $120 at Dahlman Rose

FIO – Fusion-io initiated with an Underperform at Sterne Agee

MRVL – Marvell downgraded to Market Perform from Outperform at JMP Securities

SLRC – Solar Capital initiated with a Hold at Stifel Nicolaus

AIXG – Aixtron downgraded to Underperform at Chevreux

HLS – Healthsouth downgraded to Fair Value from Buy at CRT Capital

QSFT – Quest Software initiated with a Hold at Capstone

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Gapping up 

CISG +5.3%, KONA +15%, RIO +1.9%,  SNY +2%, ABX +1.5%, GOLD +1.5%, BBL +1.4%, KEX +3.7%,  AEM +2.6%, HL +1.9%,

NOK +2.2%, RCL +3.4%, APD +0.5%, MGM +4%,

Gapping down

LYG -2.3%, GILD -2%, RAH -1.5%, NCT -9.7%, MLNX -3.5%, NFLX -2.6%, JAZZ -4.6%,  UBS -1.1%, SLV -1%,HME -4.6%, WES -4.2%, ARAY -4.1%,

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In Play

On the Wires

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Building permits were 620k

Full report

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Market go down

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Damned if you do…….

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A wait and see approach

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Japanese bond yields have fallen sharply as of late which some analyst say is a clear sign recession is coming.

Full article

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Madrid saw strikes from teachers protesting over austerity measures. About 43% of all teachers walked out; strike may foreshadow what is to come.

Full article

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Crude is trading up $0.91 @ $86.61

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Most markets and U.S. futures trade higher on anticipation the fed will bring relief to equities through operation twist.

Some Asian markets pare losses 

Europe climbs despite new record debt swaps for Italy

 

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Gold is trading up $10 @ $1,790.11

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