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This is incredible new technology —

In the not too distant future, doctored photos are going to be increasingly difficult to detect . .

Adobe:

One of the biggest requests we get of Photoshop is to make adding, removing, moving or repairing items faster and more seamless. From retouching to completely reimagining an image, heres an early glimpse of what could happen in the future when you press the delete key. How might you use this new capability in your workflow?

Cramer, late last week (prior to its passage), on health care reform:

First, it is the single biggest impediment to the stock market going higher.

As I write this (late Thursday morning), the market (S&P500) has tacked on ~1.3% so far this week, with healthcare, pharma, etc. — all the companies Obamacare was going to kill — chugging right along (I note a new 52-wk high on BMY).

Might it be:

A) That the market — forward-looking beast that it is — had already priced in health care reform?

B) That healthcare reform is not the dire economy-killer many made it out to be?

C) That Cramer is still the best contrary indicator in the history of mankind?

While some are citing the Trichet comments on Greece for topping out the US stock market today, I believe it is solely the action in the US bond market following the 2nd day in a row of poor auctions. We all know Greece is getting help no matter what, it’s just a matter of what form it comes in. Higher interest rates just as the Fed is ending their QE program create a major challenge to an economy that is still fragile and trying to get its traction. Coincide higher rates too with the end of the home buying tax credit with still high inventories and the housing market will immediately be put to the test. Mortgage rates are up 17 bps in just 2 days.

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I will be on BLOOMBERG’s Taking Stock with Pimm Fox and Karen Moskow this afternoon from 3 – 4 pm EST.

The discussion is about Housing, the Rally, Financial reform.

In the debate to overhaul financial regulation, there’s no one remotely like Ms. Warren. She has divided Washington in her push to create a new consumer financial protection agency.

click for video

Source:
Behind Consumer Agency Idea, a Tireless Advocate
JODI KANTOR
NYT March 24, 2010
http://www.nytimes.com/2010/03/25/business/25warren.html

Chairman Ben S. Bernanke
Before the Committee on Financial Services, U.S. House of Representatives, Washington, D.C.
March 25, 2010

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Chairmen Frank and Watt, Ranking Members Bachus and Paul, and other members of the Committee and Subcommittee, I appreciate the opportunity to discuss the Federal Reserve’s strategy for exiting from the extraordinary lending and monetary policies that it implemented to combat the financial crisis and support economic activity. As you know, I previously submitted prepared testimony for a hearing on this topic that was canceled because of weather conditions. I request that that testimony be included in the record of this hearing. This morning, in lieu of repeating my previous prepared statement, I would like to summarize some key points from the earlier testimony and update the Committee on recent developments.

Broadly speaking, the Federal Reserve’s response to the crisis and the recession can be divided into two parts. First, our financial system during the past 2-1/2 years experienced periods of intense panic and dysfunction, during which private short-term funding became difficult or impossible to obtain for many borrowers. The pulling back of private liquidity at times threatened the stability of financial institutions and markets and severely disrupted normal channels of credit. In its role as liquidity provider of last resort, the Federal Reserve developed a number of programs to provide well-secured, mostly short-term credit to the financial system. These programs, which imposed no cost on taxpayers, were a critical part of the government’s efforts to stabilize the financial system and restart the flow of credit to American families and businesses. Besides ensuring that a range of financial institutions–including depository institutions, primary dealers, and money market mutual funds–had access to adequate liquidity in an extremely stressed environment, the Federal Reserve’s lending helped to restore normal functioning and support credit extension in a number of key financial markets, including the interbank lending market, the commercial paper market, and the market for asset-backed securities.

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Following the weak 5 yr auction yesterday and with the highest yield since mid Jan, the 7 yr auction was not good as the yield was 3-4 bps above the when issued and the bid to cover at 2.61 was the lowest since May ’09 and below the one year average of 2.67. The combined indirect and direct bidders were the lowest since May ’09 as dealers took down 50% of the auction. To repeat what I said yesterday, I don’t know if it was the healthcare bill and the budget/debt concerns associated with it, the enormous supply we face as a result, or the Fitch downgrade of Portugal, or a reaction to the creep up in LIBOR rates or a delayed reaction to the improving economy, however modest but something has changed this week in the US Treasury market and the cost of borrowing is going up as it is in Europe too.

For all of the people expecting a double dip — this chart seems to suggest otherwise. Consumer spending has been more impressive than expected. Perhaps the easy year over year comparables is part of the reason why.

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courtesy of the Chart Store

In his Wednesday edition of Cashin’s Comments, Art wrote the following:

Marinating With The Mavens – Last night, we had drinks and dinner and drinks with several Wall Street legends and luminaries. Among those present were David Rosenberg, Walter Murphy, Ray DeVoe and Richard Yamarone along with a few more friends and co-workers who shall remain nameless to protect the innocent.

Given the list above, you might guess that the majority of players leaned to the skeptical on the recovery and, in some cases, the rally. While that was so, opinions varied widely on a variety of topics like a possible bond bubble, the fate of the Euro, taxation burdens and government activism in the marketplace. Over the next few days, I’ll try to decipher my notes (wet napkins don’t you know). If successful, we’ll run through some of the topics. It was a great deal of fun.

As one of  “the innocent,” I was both flattered and humbled to have sat with this small group of mavens, all of whom have forgotten more about the markets than I could ever hope to know.  I only wish I’d stayed longer than I did and not departed prematurely.

Walter Murphy toiled alongside the legendary Bob Farrell for many, many years (I’m inclined to say 25).  He now runs his own shop, Walter Murphy Global Advisors, LLC. Walter’s work is well worth checking out and, if you’re so inclined, subscribing to.