We have a bumpy road ahead on the economy, with
retail sales falling 1.1% and the Producer Price Index (PPI) falling 1.2%, both of which indicating that there are still deflationary and recessionary pressures out there.
In regulation, there is finally an Obama choice to run the TARP, Fannie Mae CEO Herb Allison, replacing Bush holdover Neel "Cash and Carry" Kashkari, who along with Hank Paulson, should be in jail for the fraud perpetrated on the US taxpayers.
We also have some news from the moniliner insurers, after a long break, with Moody’s downgrading Ambac to junk status.
Dead man walking.
That being said, there are more signs that credit is thawing, with the LIBOR, the rate big banks charge each other for loans, falling at the fastest rate in 3 months.
In currency, we have news from Asia, where Singapore has devalued its currency by lowering interest rates in an attempt to stem its recession, the idea being that its export based economy would be boosted by a falling currency.
This is a fairly limited option for most nations, as many nations that need the help are debtor nations, while Singapore is a creditor nation.
Meanwhile, the US dollar is up vs. the Euro and down vs the Yen.
Oil fell below $50/bbl today.
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