Before the Bell 09/18/2008

[0:25] ..." the government that could help people out so it's not just the United States the world it's filling with this issue. I think that's just for getting this morning -- this kind of all all of the tactics to teach. The first started 180 billion dollars as the release the money to make sure that the companies have been short term money -- to work with. Not just the US it's the European Central Bank Canada Japan and Swiss bank Bank of England so. We're seeing -- worldwide financial crunch everybody's starting projects and right now. And"...

[2:38] ..." able to borrow that money so we're seeing a classic case of interest rates to supply and demand yesterday. Yeah common you know if you so that this flight to quality were bigger companies. Are talking to others. The latest is looks like Morgan Stanley is -- to local we -- they think they need to get together that's on the heels of Merrill Lynch Bank of America joining forces -- but could leave you know broke its actual loans that want the original investment banking model."...

[0:14]" Well I -- there wasn't there yesterday but just want to calming influence they want some strong sources in the and that usually means to destroy and company -- the strong balance sheet or. -- different story but it that the government that could help people out so it's not just the United States the world it's filling with this issue. I think that's just for getting this morning -- this kind of all all of the tactics to teach. The first started 180 billion dollars as the release the money to make sure that the companies have been short term money -- to work with. Not just the US it's the European Central Bank Canada Japan and Swiss bank Bank of England so. We're seeing -- worldwide financial crunch everybody's starting projects and right now. And the the world -- world is starving for US dollars so they're flooding the markets right now and it's not at the very subtle fashion thrown them so we'll see what that does this morning. -- this interest fellow yesterday would have helped but it really is the short term safety which is more prevalent in the fact is. They're the company just they were just put the money wherever they could. They were actually getting paid nothing -- by government securities yesterday and it's some cases. They actually lose some of their principal. Just for the opportunity. You need to know that they're going to get their money decks -- there was one of the worst I've ever seen in the in the in the history in terms of the short term bond trading so a lot of it was -- precipitated by recovered yesterday provident mutual fund money market funds are proactive -- And so again I think a lot of it was the energy in Lehman's short term notes that were in -- This morning police a little bit positive as opposed the -- because tropical start to be right now six point two. That was of 43 that they accept -- and have to or prices produce evidence are just a little under a hundred dollars and cold yesterday that the biggest one day ever again that's the crisis metal and today it's also a point five point nine almost point six sparks. It's 76 go to the markets of it."

[2:05]" Yes. Brilliant Turkey because -- got ten year treasury yield now back to they were before was born and and in the fifties. And if you look at it it's three point 46% as some looking at a right now so that the rates are lower because there's such high demand for the high quality investments. Which your government securities so because of supply and demand that keeps the rates slow. If you wanted to apply for a mortgage -- guess what they'd jump up and became more expensive. Because it's the risk of owning a home it's perceived to be more arms so they're going to charge you more to be able to borrow that money so we're seeing a classic case of interest rates to supply and demand yesterday. Yeah common you know if you so that this flight to quality were bigger companies. Are talking to others. The latest is looks like Morgan Stanley is -- to local we -- they think they need to get together that's on the heels of Merrill Lynch Bank of America joining forces -- but could leave you know broke its actual loans that want the original investment banking model. Unemployment claims came out there and doesn't result of good stuff hitting Louisiana Washington Mutual get their shop themselves around system but it happened with. With the mortgage issues they've had overseas were also seeing massive consolidation war it's agreed to buy each -- ask for route 22 billion dollars in this worldwide consolidation he. Even -- buffet line looks like it's a news this morning that one of -- companies an American holdings. It maybe by consolation for over four billion dollars so between matter in the SEC trying to stop the short selling. And -- by the way. -- is that volatility index it was really really high yesterday and that usually means to sign of the change in the meant and so -- just -- today."