TALF

TALF stands for Term Asset-Backed Securities Loan Facility. This is Tim Geithner's and Ben Bernanke's much hyped $1,000,000,000,000 thingy that was supposed to fix the banks, and boost consumer borrowing and auto loans. Unfortunately, nothing's happening with the TALF. In fact, the $500,000 limit on compensation for bank execs has disappeared from the TALF agreement, which was revised March 3rd. So far, no bites. Not a nibble. So, my question is:

If you have a $1,000,000,000,000 lending plan, and nobody wants the money, how much is lent out?

Also, the TARP is now down almost $112,000,000,000. Taxpayers, pull out your wallets.

I do see one ray of sunshine today, and that is that the market is down 200 on a day when retail spending was +0.7% instead of expectations of -1.1%. I think one sign of capitulation is when the market starts ignoring good news. And one other thing: gasoline usage is now up for three weeks in a row. Perhaps the consumer has made some headway repairing his/her balance sheet. I'm not ready to go long yet, but I think I should close a short today, maybe sell SDS.

In another shocking, SHOCKING, development, China declined to announce any additional stimulus. Instead, they announce expected GDP growth of 8%. The market was disappointed, to say the least. In other news from China, Over Two-Thirds of Chinese Economists Favor Gold Over US Bonds. 33% actually believe that China should sell US bonds. Here's the interesting part. I like this guy: "One economist thinks China’s current gold reserve of 600 tons is an unnecessary load and that the opportunity should be grasped to sell off a bunch of it at a good price."

On the other hand, one in five US homeowners who now owe more than their house is worth.

Another tidbit comes from England, where they keep track of hedge fund leverage. This number has dropped to 1.11X. This may not be bearish, however, it's not necessarily bullish either. It's just a sign that forced selling and extremely high volatility (such as VIX over 60) is probably going to go away.