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Its a special last minute full hour just two days after the regular appearance Kudlow tonite: Recovering equities, bond yields and the Middle East will be the dominant theme.
On board tonight are James Pethokoukis of US News & World Report, Fritz Meyer (AIM), my pal Daniel Gross of Slate & the NYT, and Washington Post’s Steven Pearlstein on the Buyout Boom Bust
Should be interesting, given today’s action.
Great appearance on Kudlow’s show, Barry. Your comments on the tax issue over the Blackstone and other private equity groups made sense. My opinion about the oxymoron of a private equity group like Blackstone going public is very negative. The China SWF buying into the Blackstone IPO shows how naive and stupid the Chinese government is about how capitalism works. The news that Steve Schwartzman just boosted his own take from the IPO into the stratosphere at $677M makes it appear to me that the IPO take is going directly into the Blackstone partners personal bank accounts and not towards the bottomline of the private equity firm. The other participants in the Kudlow show appear as confused over this complex issue as your remarks are intelligent.
Here’s something interesting:
Top stories on finance.yahoo.com taken verbatim:
——————————————–
Wall Street Keeps the Rally Going
Mortgage Rates Soar to 11-Month High
Subprime Mortgage Foreclosures Hit All-Time High AP
WSJ to Raise Newsstand Price to $1.50 AP
Oil Above $67 on Gas Supply Concerns AP
Market Overview: Thu 4:20 PM ET Briefing.com
——————————————–
Anyone notice any incongruity there?
WSJ to Raise Newsstand Price to $1.50 AP?
Hey BR – I happen to watch the show today. You seem to be distracted with checking your emails on your Blackberry ..lol. The debate on Blackstone wasn’t that interesting?
Also on Yahoo there’s a new add:
“””
Buying Home? Find Foreclosures!
.20-50% below market values
.thousands of new listings added daily
“””
They picture a smiling couple holding a baby. Clearly they are not the ones being evicted…
“The percentage of loans in foreclosure would be well below the average of the last ten years were it not for Ohio, Michigan and Indiana, and the rate of foreclosures started nationwide would have fallen were it not for the big jumps in California, Florida, Nevada, and Arizona“, said Doug Duncan, chief economist at the Mortgage Bankers Association.
Ah, isn’t like saying, it was a wonderful play, if you overlook the fact that President Lincoln was assassinated ?
.
VJ,
What else would you expect from a trade group? He’d say the same thing no matter how bad the data was.
CPI News
May Core CIP Up 0.7%
Core CPI Up 0.1%
Futures are up huge
Both super bears Barry and MS are toast today
Yeah, core is up only 0.1%, now if only they could invent a robot that wants to shop enough to make up 70% of the economy AND doesn’t eat or use fuel. Then you’ll see the DOW hit 100,000.
Not sure about 100,000…
But we are setting up for a perfect goldi-lock scenario here..
I am raising my target for S&P to 1600 by year end.
The consumer price index showed prices rose at the fastest pace in 20 months last month as gas prices increased. However, the so-called core personal consumption price index, which excludes often volatile food and energy prices, rose a lower-than-expected 0.1 percent. The figure, which the Federal Reserve watches closely, was below the 0.2 percent increase Wall Street expected.
Stock futures rose sharply following the report. Dow futures expiring in September rose 65, or 0.47 percent, to 13,753, while Standard & Poor’s 500 index futures rose 9.00, or 0.58 percent, to 1,548.50. Nasdaq 100 index futures advanced 12.25, or 0.63 recent, to 1,9653.50.
I am raising my target for S&P to 1600 by ……july 1, 2007
consumers inflation high but the “core” inflation is tame….
if so, the new economic textbook now says that consumers can buy and spend(at any cost) their way out of inflation!!!
and as usual, everything will be bought today,
over and over and over….
Good forecast for the indexes!
At these present levels the total US market capitalisation is around 210% OF GDP (a little on the highest of historical high),what would help everywhere is GDPs to be higher in order to alleviate the leverages around the world equities markets.
Rallying the market on under-reported inflation numbers will ony prolong the pain.
It is not a coincidence that we are back to the levels of before last weeks drop since it IS options expiration and all those hoplessly perma bulls who bought long calls weeks ago have to be bailed out.
Take a long look at the last two months of “action” the biggest moves in the market (up or down) have been the cause of the Fed or hoplessly flawed data reports from the commerce department.
And I do see the irony of the headlines of yesterday……..each one of those headlines, taken seperately, would absolutley floor the market…but not in the age of printing presses and inflation ex. inflation.
and Manhattan guy…….I suppose you might want to look at the volumes that support this “rally”….pretty paltry.
But you knew that….
Ciao
MS
I created a chart for the CPI YTD annualized rate. Except for 2 months in 2005, the CPI is rising at fastetst rate for the decade.