Monday, February 26, 2007
Greenspan Day
Not much really happened today. The Dow was down 15.22 points on the session to close at 12,632.26. The SPX fell 1.82 points to 1,449.37. We are still in green.
The day started brightly for the markets following news that TXU had accepted a leveraged buyout from a private group of investors. This is the largest private equity deal in history. There has been a lot of negative stuff in the press recently about private equity deals so it will be interesting to see how TXU will fare from this deal. There was also merger news from other companies which helped lift the mood.
However all this good news was brought to an abrupt end by Alan Greespan (remember him, the former Fed Chief) and Iran.
Alan Greenspan made recession related comments in a speech in Hong Kong today. Apparently it was reported that Mr. Greenspan said the six-year economic expansion in the U.S. could come to an end in 2007. Stocks didn’t fall far on this news, maybe because it hasn’t been confirmed and because current Fed leaders aren’t as bearish on the U.S. economy as he is!
On the Iran front Iranian television reported that the country had made its first rocket launch in to space and this is not expected to sit lightly with the U.N. or the United States. In fact, various papers in the US reported that the US has already created bombing plans for Iran in case things don’t get worked out.
Oh dear. If you ask me these markets are just looking for an excuse to go down.
Until next time.
The day started brightly for the markets following news that TXU had accepted a leveraged buyout from a private group of investors. This is the largest private equity deal in history. There has been a lot of negative stuff in the press recently about private equity deals so it will be interesting to see how TXU will fare from this deal. There was also merger news from other companies which helped lift the mood.
However all this good news was brought to an abrupt end by Alan Greespan (remember him, the former Fed Chief) and Iran.
Alan Greenspan made recession related comments in a speech in Hong Kong today. Apparently it was reported that Mr. Greenspan said the six-year economic expansion in the U.S. could come to an end in 2007. Stocks didn’t fall far on this news, maybe because it hasn’t been confirmed and because current Fed leaders aren’t as bearish on the U.S. economy as he is!
On the Iran front Iranian television reported that the country had made its first rocket launch in to space and this is not expected to sit lightly with the U.N. or the United States. In fact, various papers in the US reported that the US has already created bombing plans for Iran in case things don’t get worked out.
Oh dear. If you ask me these markets are just looking for an excuse to go down.
Until next time.
# posted by Paul @ 5:03 PM 
