Update @ 11:07 — Looks like the credit markets are easing up now. Fed funds rate has dropped to 2.5% now…
Briefing.com just posted the following note about what’s going on in the credit markets today. This is what many, including Art Cashin this morning, are very concerned about:

Floor Talk: Equity markets rebounding but [...]

From a Bloomberg article about the second U.K. hedge fund this week to blow up due to subprime mortgage investments (via Jack Stevison):

“The losses are going to be phenomenal” for funds worldwide holding subprime debt, said Peter Schiff, president of securities brokerage Euro Pacific Capital in Darien, Connecticut. “My guesstimate in the subprime world is [...]

PIMCO’s Bill Gross covers the Bear Stearns/subprime crisis in his July 2007 investment outlook, which is entitled “Looking for Contagion in All the Wrong Places”. Here are some snippets:

Many of these good looking girls are not high-class assets worth 100 cents on the dollar. And sorry Ben, but derivatives are a two-edged sword. Yes, [...]

the other day Jeff asked me to contrast the short term 10 year treasury yield chart I posted with a longer term chart. Here’s the short-term chart I posted last night which shows a clear uptrend since March:

Jeff mentioned that there’s been a lot of debate about whether or note the longer term trend [...]

Today was another one of those extreme days that Worden loves so much. (I can’t wait for tonight’s Worden Report.) Breadth was very weak and volume surged across the board. Rising interest rates were the culprit today and just like on May 24th, the rate-sensitive utilities sector took it on the chin. [...]

Here’s a pretty dire article about what the recent rise in interest rates may mean for the economy. It may be a bit ‘Chicken Little-ish‘ but it does raise some valid concerns.

Tags: Bond-Market, Interest-Rates

This is what I like to see from a company - the Fed lowered rates an hour ago, and I just got this e-mail from E*Trade:
We wanted to be the first to let you know that the Fed just cut the Fed Funds rate by ¼%.
In fact the Fed Funds Rate is now at [...]