Jan. 12 (Bloomberg) -- President Barack Obama plans to raise as much as $120 billion over several years through a fee on financial institutions to help recoup losses from the Troubled Asset Relief Program and reduce the federal deficit, according to an administration official.
and then...
Deputy White House press secretary Bill Burton today refused to confirm any administration plans for a bank fee, saying “that’s one idea that’s out there.”
What's going on? More rumors and positioning. Jan options expire this Friday. The Volatility Index (VIX) hit a low of 17 yesterday and rose to 18.74 today. Increased the "vig" on outstanding bets.
The huge bonuses being paid to Wall Street executives is causing anger on "Main Street". Many believe that "they" caused the recession and are now being rewarded. I think this is causing some huge political maneuvering and most the political "hard-lining" has little teeth. Act like you're mad; but don't really do anything.
The technicals on financials are at or approaching huge support. In my opinion, they should hold. JPM earnings on Friday should be a good indicator of where we are heading. Hold positions for now and keep a keen eye on the "red zones".
