Thursday, August 25, 2011

Buffett to the rescue again?

Warren Buffett jumped back into financials with both feet today plunking a boatload of cash in the coffers of "we don't need your stinkin capital" Bank of America. The stock popped sharply on the news but subsequently gave up many of those gains. Don't worry about Warren, he's a clever dealmaker and his deal will make money almost regardless of what happens to BofA.

The markets today were hit by the weaker than expected initial jobless claims data even though this data appears to have been skewed by large numbers of striking Verizon workers filing for benefits (am I the only one who did not know you could go on strike AND file for unemployment?). There was a brief rumor of a downgrade pending of Germany that really shook the market around noon. The German DAX tumbled about 4% in 10 minutes before recovering about 1/2 of that loss.

Tomorrow could be very eventful:

Q2 GDP release at 8:30.

Bernanke will reveal QEx tomorrow.

Oh, and NJ is ordering an evacuation of 750,000 residents of Cape May, NYC has cancelled all mass transit on Saturday, Wall Street sits in lower Manhattan which is just 1-4 meters above sea level. I remember a powerful Noreaster in 1990 that washed about 3 feet of water up over the sea wall and Sea Bass were swimming on the aptly named Water St.

It should be interesting!

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