SubscribeDaily Futures Commentary FINANCIALS March 24, 2009
Tuesday, March 24, 2009
FINANCIALS
Treasuries are expected to open lower this morning. Traders are expressing concerns that the newly proposed toxic bank plan is going to put too much burden on the taxpayer and increase the spending deficit. Investors in government bonds and notes are questioning whether the U.S. government will have the resources to pay for all of the debt they are creating.
EQUITIES
Equity markets are expected to open lower this morning based on weaker global markets. Many investors believe that yesterday’s rally may have been overblown and based on emotion. Now that investors have had a chance to dissect the government’s plan to isolate toxic assets, it looks as if the plan is going to expose taxpayers to risk with most of the reward going to private investors. In addition the proposed plan is going to be expensive. This could add to the growing federal deficit. Traders are questioning the government’s ability to pay for all of the new debt.
The fact that yesterday’s strong rally occurred after the market had already posted strong gains …
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