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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (104443)	11/17/2009 5:41:18 PM
From: SouthFloridaGuy	Read Replies (1) \| Respond to of 116555

Job market is not great, but you can't have a 65% equity market rally and high yield bonds up 50% and have this not help the NYC economy. I expect to see a lot of moves next year as I go through my 3rd Wall St. shuffle (the period after a bear market where people leave weak firms for big packages at strong firms). The big banks are healthy now. The easiest way to gauge that is looking at the Ted Spread. There is a relative dearth of lending because of total uncertainty as to what Mr. Obama/Geithner/Bernanke are going to do with regard to regulatory capital requirements. My suspicion is that regulation will come in the form of capital requirements rather than breaking things apart and reworking the financial system. I think this is a good thing. There are a lot of aspects of the financial system which are good. Securitization is one of them. Having issuers put skin in the game is an easy way to solve the moral hazard problem. There are many more examples of course.

To: Jim McMannis who wrote (104443)	11/17/2009 5:41:23 PM
From: SouthFloridaGuy	1 Recommendation Read Replies (2) \| Respond to of 116555

Job market is not great, but you can't have a 65% equity market rally and high yield bonds up 50% and have this not help the NYC economy. I expect to see a lot of moves next year as I go through my 3rd Wall St. shuffle. The big banks are healthy now. The easiest way to gauge that is looking at the Ted Spread. There is a relative dearth of lending because of total uncertainty as to what Mr. Obama/Geithner/Bernanke are going to do with regard to regulatory capital requirements. My suspicion is that regulation will come in the form of capital requirements rather than breaking things apart and reworking the financial system. I think this is a good thing. There are a lot of aspects of the financial system which are good. Securitization is one of them. Having issuers put skin in the game is an easy way to solve the moral hazard problem. There are many more examples of course.