Bernanke Sees Improvement

Bernanke is seeing improvement in the financial institutions. I think we will see a few more reports like this over the summer as the Fed sets up to finally address the inflation issue. Due to the elections the Fed will be afraid they might be seen as trying to influence the outcome so they will hold off on interest rate hikes. If the "good news" comes earlier we may see hikes sooner and then a lull during the election. Be sure to watch Wednesday's CPI report.

Citigroup Fire Sale!

Everything must go at Citigroup, well almost everything.

Buffett's Credit Crisis Insight

Liquidity Translation

The Fed continues to open up liquidity through the Fed window and lower interest rates but what has it done for the banks? The banks are able to work their day to day functions but they haven't opened up their own lending windows.

JPMorgan Calls in Bears' Note

Last week the Fed created a new program allowing large banks to provide liquidity to other financial institutions. JPMorgan (JPM) then took Fed money and loaned it to Bear Stearns (BSC) for the outlined 28 days. JPM decided to just go ahead and buy out Bear Stearns over the weekend in a very interesting move. JPM has certainly been harmed by the credit crisis too but, the diversity of product and overall size puts them in a position to expand.