The Fed is not addressing market liquidity. Contrary to sentiment on the street of a Wall Street “bailout,” the recovery package supports banking liquidity. This leaves us with the question of where the market will go with the banking crisis removed.
The L2 moves with respect to the Daily Treasury Statement, and announced buy backs equating roughly but fairly consistently with the demand side of market movement. Think of it as the demand side of supply and demand. Sentiment is another matter.
The revenue collected on the last day of the fiscal year 2008 staggered in a whopping 60% lower compared to the last day of 2007. The month of September ended minus 2.8% compared to September of ’07. The annual year-end comparison showed a year-over gain of only 1.5%, totaling Treasury revenue for 2008 of only 2.241 trillion. That total represents the revenue side of the Federal Budget. The public debt, not surprisingly, increased 1.038 trillion to 9.960 trillion dollars, an increase of 11.6%.
The L2 moves with respect to the Daily Treasury Statement, and announced buy backs equating roughly but fairly consistently with the demand side of market movement. Think of it as the demand side of supply and demand. Sentiment is another matter.
The revenue collected on the last day of the fiscal year 2008 staggered in a whopping 60% lower compared to the last day of 2007. The month of September ended minus 2.8% compared to September of ’07. The annual year-end comparison showed a year-over gain of only 1.5%, totaling Treasury revenue for 2008 of only 2.241 trillion. That total represents the revenue side of the Federal Budget. The public debt, not surprisingly, increased 1.038 trillion to 9.960 trillion dollars, an increase of 11.6%.
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