The Big Picture - Macro Perspective on the Capital Markets, Economy, Technology, and Digital Media

The Fed lowered rates to minus 1%, and hinted at buying Treasuries

Markets responded positively to the potential opportunity to suckle some more at the teat of the taxpayer.

I’m on the Acella train back from DC, but we may as well open the floor for a full open thread! Whats going on, what’s interesting, what’s off topic?

~~~

What say ye?

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Source:
Data Show College Endowments Loss Is Worst Drop Since ’70s
KATIE ZEZIMA
NYT, January 26, 2009

http://www.nytimes.com/2009/01/27/education/27college.html

As a record number of heads of state gather with business moguls in Davos, WSJ’s Andy Jordan wonders whether the World Economic Forum’s focus will be on finger-pointing or collaboration to halt the current global financial-markets slide.

1/27/2009

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Source:
Crisis Solved: Give Money to Healthy Banks, Let FDIC’s Bair Handle the Dying
Aaron Task
Yahoo Tech Ticker, January 21, 2009 05:59pm EST

http://finance.yahoo.com/tech-ticker/article/161718/Crisis-Solved-Give-Money-to-Healthy-Banks-Let-FDIC%27s-Bair-Handle-the-Dying

click for interactive map

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Source:
Some States’ Jobless Rates Top 10%
JEFF BATER
WSJ, JANUARY 27, 2009, 5:24 P.M. ET

http://online.wsj.com/article/SB123307958229020395.html

See also:
First Quarter Layoffs: Selection of Job Cuts by Major Companies

http://blogs.wsj.com/economics/2009/01/08/first-quarter-layoffs-selection-of-job-cuts-by-major-companies/

I am speaking at an AEI panel today, with Tim Bitsberger,  Joshua Rosner of Graham Fisher & Co., Walker Todd, of the American Institute for Economic Research, and R. Christopher Whalen of Institutional Risk Analytics.

Summary:

The credit crunch and financial panic of 2008 triggered a remarkable series of government interventions and bailouts, including huge government investments in financial firms and ballooning of the Federal Reserve balance sheet. What have been the effects of these massive interventions, and what do they imply for the future? What is 2009, with a new administration and Congress, likely to bring? What should be done or not done? At this event, a panel of experts will address these and other questions.

If you are in the neighboehood, come on by.

Barclays Capital, Featuring David Goerz of Highmark Capital; William Dudley Named Head of NY Fed; Home Prices Plunge at Record Level; Fed Meeting Preview; Investing in a Slowdown

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Source:
Geography Is Dividing Democrats Over Energy
JOHN M. BRODER
Published: January 26, 2009

http://www.nytimes.com/2009/01/27/science/earth/27coal.html

Trader’s Narrative sends along this chart:

Here’s their explanation:

Head and shoulder formations are one of the most fundamental technical patterns. They are arguably one of the easiest to recognize on a chart and are almost always found at turning points in price. Right now we are seeing the S&P 500 Index (SPX) carving out what looks to be the right side of a head and shoulder formation.

The defining element of this patterns is not only the striking silhouette it leaves behind on price charts but also the volume that accompanies it. For downtrending reversals, like this one, we want to see heavy volume come in as the right shoulder is created. Ideally, a burst of activity both in price expansion and volume cements the pattern as it decisively breaks through the neckline.

Futures are strong, and we are looking at a much more positive open on who-knows-what basis. (Yahoo?)

I am off to speak at a conference in DC — way too much travel, remind me why I agreed to this? — so real time posting will be light.

I have a few posts queued up that are quite interesting — also, see the Cafe and Digital Media for some terrific work.