“The U.S. and macro-global economy continues to face major challenges.” – Tim Geithner this weekend
Ya think? With concerns that the timing of the global recovery may be pushed back to well-within 2010, risk aversion trades are back on, at least for now.
CIT Group is scrambling to raise liquidity and appears to be on the brink of bankruptcy this morning. A fail there would effect almost 800 manufacturers and 300,000 retailers in the small and mid size business sector. Stay tuned because this could have a ripple effect unless the FDIC steps up to have their back. I think this CIT story will run deeper than most people think, see GE Financial.
Earning kick into gear this week as INTC and GS report on Tuesday,on Thursday we see GOOG and JPM and we close the week with C, GE and BAC on Friday.
Meredith Whitney went to a “buy” on Goldman this morning ahead of earnings tomorrow, a very interesting call indeed, as she was such a big player in calling for the death of all things financial. It will curious to see if she changes her opinion with other names in he sector going forward. I guess even the most bearish scribes kneel at the alter of the all powerful Government Sachs. It truly is a losing battle to fight that tide.
Futures are flat here so far, oil is about unchanged and the greenback is slightly positive. We are in a market that is searching for anything right now, so earnings or lack thereof could be the ticket this week. Good luck out there..