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What's Up On Wall Street - Matt Nesto, Yahoo! Finance

Jun 22, 2012|

Matt Nesto from Yahoo! Finance tells us What's Up On Wall Street.

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Hey you know it's Friday who's got Matt nest so joining us and Judy we get a winner to our gas card you know. I I think we did it -- who went. Jonathan for a decision on in Pendleton in eating given over here -- John pepper won the gas card -- It would do any coffee cart at this hour right yeah we could definitely doing a coffee cart. You've elicited Meg Ryan again it is you've got to listen Meg Ryan making that that sound effect she made in that movie when Harry -- everybody knows which when we're talking about. Yeah yeah can we hear it again just to remind everybody that he sounds like no my mom says if I have to play it only play it for that one right when you hear Meg Ryan making that sound. Tripoli to 052263. Tripoli to 052263. Dow up 82 points S&P up eight NASDAQ up nineteen. Tenure US treasury at one point 664 gold Mary is trading up. Seventy cents to 1566. All right well let's go to our good friend down in New York Matt Nesta though from Yahoo! finance in that carries the -- -- Until well sorry guys. Good good they the the bank downgrades that we got yesterday was that pretty much in line with what your expectation government. I mean I guess so it I mean I would say Morgan Stanley. -- embarked on campaign. -- sent a lot she's I don't think we're gonna get desperate notch downgrade is simply was saying that was never really other tables and they've masterfully. Played the the 20 -- downgrade as a victory. But yeah I would say it was in line with expectations which were zero and that reaction on just. Put a piece -- -- coming up shortly our site. You know talk about it is basically the markets and particularly banks stocks in general see this as. Sort of bottom and banks and mean it's. And absolute contrary indicator mean Moody's it's been called absurd to believe it's after but the market is clearly. You know -- about Moody's and rating agencies it just doesn't care what they say anymore. Yet because the when you look at the underlying financial like I was looking at some of the quarterly reports for the banks and Citigroup has tier one capital -- 14%. Wells Fargo eleventh was a Goldman Sachs got downgraded. And their cap ratio is fourteen point seven I mean that's really. Threat and all of this couple inspected JPMorgan has the most recent example of these big debate global banks trading. But you still you know have the that hedging programs. That they face outside the risks. Potentially. Even though you know we've seen JPMorgan gets -- would do just fine they've been banged -- been beaten up and Jamie Dimon has taken his lumps and you know -- that the bank has taken a blow in the industry is taken ahead as well terms of their efforts to try to. You know effect. Potential legislation. But you know that to the system went on. Yup you know it it it seems like it's. Too little too late but is it possible I think Woody's point was that the year there industry has changed. Meaning that there are not going to be the same high profit type institutions that they used to be do you buy that. Well I think deficit I mean I just think that point spectacle lending but that you know about summit that decision or an observation that needed to be made. Last night or last week or last month or last year we that's been in the fact it's and so away. -- I mean it's just so -- it's laughable. Yeah I mean it's four years later they've done this five years ago. When Meredith Whitney you really Meredith Whitney was the first one that came out on the banks was -- Well -- and at inducted in her a cup couple people that -- serve him the most famous for coming out and then -- you know we got some problems here. Being a little bit -- out. So eight Ali if you do is to -- five years after Meredith Whitney -- follow her OK. I get it I. I get a pay out what the Fed did they came out this week. Basically said they're gonna keep interest rates low through the end of 2014. I don't know what felt like I I for the life of me that I can't imagine what else that that can do to help spur the economy on you got any ideas. Well they you know they -- so it's you know spend money. Do things that I I don't. Making lower rates even lower is gonna the Sutley. And companies out higher or is gonna suddenly get consumers. Spending in buying in and feeling confident. Or do anything to help the housing market. And you know the truth of the matter is. You know Ben Bernanke heard people refer to the Bernanke put that essentially he's gonna always be there to save the day and make sure that that you know things. Will be okay. On the eve of the book that that that whole notion he can't walk away but the -- -- kind of quietly pleading. With the fiscal side with the congress to do their part. Which just take the tax and Serbia the table and to take the other fiscal -- reasonably. With the budget -- that off of the table and that go along way in terms of helping. On the economy -- a lot more than it would take you already record low rates but few basis points -- war. You know -- you say that the lower rates don't help housing but I I I would disagree with that and even borrow money on a thirty year fixed mortgage at 377 that's got to be. Even if it's not inspiring a lot of housing purchases it's got help people household debt and people -- refinancing -- decrease in the amount of money they spend on their house. A wise men want still -- it's like throw in the light -- so the best swimmers. Yeah that's true mr. -- to a life. It easy you know what that the they're the only ones can get it right. That's right click turtle at a gas card and your show. If lucky few out there was that. -- -- -- know it you have to know somebody in order to win that gas card right now. Which are trying to trying to go to -- too as we know your text numbers you know leave you know you'd. We we eat eat eat Texan for the gas cars a copy coffee carts coming up -- you and. Not about race. If I mean I I think refinancing is sure. And that's where all all the action has been and you put purchased disperse single family owner occupied houses. Those are. Not about our you know it was only a small part made on interest rates are -- not that time. I mean IDR you'd think people are on the sidelines looking at illustrated he's I think Condit would just got to wait another. Couple of months collateral out these rates now they've they've ever have a baby their movement their music a little like the house elegant neighborhood they got to raise it got to. Take you know that things like that. Life events. Make people by itself properties held a lot more than record low interest rates moving. Yeah but the record low interest rates that -- when you look at your pain in -- like one of the gals that I work with in the office she said Barry -- were they just raised my rate to four grand a month. On the lot by a place of sick you know it now I think that that accident that's a strike if she she did the math but if I got. What about a dude that's a red decisions that that's about the effect that the effect of the dynamic so remarkably that is not have and they they would. More low mortgage rates. -- -- the low mortgage rates make it less expensive for her to buy a place and it is to rent. Right you know that -- I think it it doesn't hurt but I'm not -- it's it's hard to bizarrely it's that correlated. Rates and purchasing art backcourt that anymore would be given you rate can double for Brian a lot of good effect historic averages. All right well I'll take you work for Matt thanks for joining I think -- after her weaker -- to stay cool. That's Matt -- joining us from Yahoo! finance in New York City. I was talking oh my cousin he says it's like little being in New York City last night was like walking headlong into hair dryer he says just -- Our clothes dryer -- and a sticker had one of those things heat yesterday any no matter what you were wearing had to send it to the -- And it grosses it was pretty tough out there.