Danny Salas

Chico, CA Interest Rates Market Report – Economic Influences – April 21, 2010

Trouble In Greece Is Helping Our MBS

You Down With S.E.C?

What is going on with the Security Exchange Commission (SEC) and Goldman Sachs?  It’s unwinding into, an already, ugly mess.  The timing of the release of the lawsuit was already under suspicion, because generally an announcement like this would occur after trading hours.  This is to not effect the market , and have an obvious effect on Stocks.  Well, the SEC orchestrated a beautiful release party, so to speak.  You see, just as they were announcing the Goldman Sachs suit, they were also announcing their huge mistakes and sub-par handlings of the Bernie Madoff fiasco and the R. Allen Stanford Fraud Cases.  It looks like the SEC missed several red flags on Stanford, much as they did with Bernie Madoff.  According to the New York Times, the SEC found several securities violations over the years, “but each time the regulators ultimately let the company off with relatively small fines, records show.”  So, there is speculation that the announcement of the Goldman Lawsuit was timed perfectly enough to squelch any media coverage regarding mistakes that the SEC made on these two huge fraud cases.

Motivation From Financial Reform

And now, it’s being reported that the government has testimony that completely contradicts the findings, of the SEC, against Goldman Sachs.  This information is helping Goldman’s Stock, but there are many questions into what the true motivating factors are, behind the SEC’s actions, lately.  Could Financial Reform have anything to do with it?  We’ll have to wait and see.

Earnings Up, NO Down, No Up…

Corporate Earnings Reports were all over the board yesterday.  Starting with McDonald’s and Morgan Stanley beating expectations.  Unfortunately, Wells Fargo and Boeing’s revenue fell short of expectations.  The big news was reported after trading hours, when Apple reported significantly better than expected earnings.  This has shot their Stock to almost record high’s of about $260 per share.  Did you, also, hear about the next phase iPhone being left on a counter-top on a bar?  Well…you think that might not have been actually planned?  That could help their Stock, too, don’t you think?

Greece VII

Is this Greece VII, or VIII?  It looks like Greece and Portugal’s credit rating is falling and that their financial assistance packages may not have been enough to get them out of financial trouble.  This is helping funds to pour into the safe-haven of United States’ Treasuries.  If this continues into next week and the Treasury Auctions, it could be extremely beneficial for interest rates.

With Greece's Continued Problems...

Locking Advice

With no real economic information to report today, and the European troubles mentioned above, I’d continue to float.

9 Days Left To Get Into Contract For Tax Credit

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