Monday, February 9, 2009

The Kirk Report

The Kirk Report

Stimulus Stew

Posted: 09 Feb 2009 04:06 PM CST

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On Hold

Posted: 09 Feb 2009 07:48 AM CST

Geithner
Good morning. Premarket futures are under pressure as Wall Street is put on hold for another day.

Plans to announce the highly anticipated bank bailout have been put on hold until 11:AM tomorrow. In addition, the stimulus plan has still not passed, even though there is some confidence they can reach a final vote soon.

Additional headlines include news that the U.S. bank bailout to rely in part on private money, the Treasury has announced that insurers will be eligible for TARP funds, and the government is considering a forced bankruptcy for GM & Chrysler. Finally, regulators closed three more banks on Friday.

Other than more earnings reports, nothing of significance is on today's calendar beyond any new details on the bailout and stimulus. Obama is scheduled to speak to the country at 8:PM regarding these plans. It is difficult to know whether Wall Street will continue the "buy ahead of the news" trade we saw last week as more details leak out, but the main focus obviously will be the reaction once the plans are revealed tomorrow.

Have a great Monday!

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