Market Down Thx Obama
Good news; it looks as though the speculators are felling the markets. Gold, silver, gas, crude, stocks are down today along with the market averages. The bad news is that investors are going to cash and U.S. Treasury bills. But for how long.
Bank Deposit Fee
Bank of New York Mellon Corp will begin charging customers that have too much money in the bank. FoxBusiness .com is reporting:
According to a letter reviewed by the Journal, Bank of New York plans to charge 0.13%, plus an additional fee if the one-month Treasury yield falls below zero. The unusual charge will take effect August 8 and be slapped on accounts that have an average monthly balance of $50 million “per client relationship,” the paper reported.
The banks are facing more and more cash on hand that companies, traders and others are setting on for new buys. A lot of that money is shifting to T-bills.
Gold and other commodities
Cash is king and those that were short on cash today, got into cash. That pushed the price of metals, petroleum products and most agri-products down. It did not help that others dumped stock to get into cash.
Unemployment
Friday the numbers are out on unemployment, the Bureau of Labor Statistics is expected to report a gain of at least 75,000 jobs for the month of July with the official rate remaining at 9.2 percent.
It is expected if tomorrow’s gains, gains are expected, are less than expect the markets may continue to tank as investors look to get into cash.
Cycle
The cycle happens in 4 basic parts. Expansion, crisis, recession, and recovery; but we were not allowed to finish the crisis part of the cycle before we begun to step in the recession section. Bush/Obama bail out the banks and Obama had to save the auto companies. A proper cycle would have put them in bankruptcy.
With continued government intervention we might well bounce between crisis and recession.
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