Big Ben Chimes on Wall Street
The Fed Chief offers his take on Mark-to-Market.
Step inside, walk this way, you and me Ben, hey hey!
I return to my turret to find Big Ben on the little screen and his words all over my eight other screens. As I scrolled through his vibe, a few headlines stood out. Among them:
- The Fed needs to buttress protection for money market funds (this is huge from a "social order" perspective).
He urges authority to take over the biggest financial firms (read: nationalization, temporary or otherwise).
Fed should play some role in broader risk management (HELLO McFly!--Where was this proactive initiative when the writing was on the wall?)
Fed will seek legislation 'on its own account'' (help me here--does this mean they, themselves, will push for legislation or they want legislation to enable 'its own account,' namely Fed bonds).
And finally, and perhaps most importantly, he said he wouldn't support suspending mark-to-market.
Even before he offered that last bullet (stamp a ticket, 9:14) I was going to reiterate my game plan, which was to scale out of my upside trading exposure into Thursday's House Panel Subcommittee meeting (while maintaining my S&P 600 bid for 25% of my nest egg).
My vehicles, as it stands and as I sit, includes the soon to be sold FAS (trading crack), the remainder of my General Electric (GE) calls and the other half of my SSO calls. I also have some Dryships (DRYS) and Yahoo (YHOO) but those are smallish, like the hands of a carnie.
Given his opinion on M2M (grr, thanks Ben), I'm sure alotta traders are thinking the same (sell, Mortimer, sell!). That should lend itself to a press lower out of the gate and we'll take a fresh, real-time look how that supply is digested on the Buzz.
One thing for certain, Minyans, something big is coming down the pipe. Take a deep breath and remain lucid--this is what we've trained for.
Good luck today.
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