Treasurys affecting the stock market...
The Fed is buying back treasurys causing fluctuations in the value of various length notes. And they are planning to buy many more, specifically inflation indexed bonds mature in the next 7 years. It has a positive effect on the market, and the longer dated treasurys performed the best. This probably means that purchasers of American debt to not expect our economic conditions to improve any time soon. Wall Street Journal provides an interesting article that contains an interactive chart to see the effects of the buy backs on various level treasurys. But the effects on the stock market are showing some sectors are gaining strength back.
http://online.wsj.com/article/SB123859169588078053.html
The FDIC is increasing fees charged to banks for their insurance. It's only a matter of time until these fees are passed onto investors. But the banks are still going to pay the fees for backing their debt because it is more appealing in the market than unsecured debt. The fee is going up an addition 0.25 percentage points of their existing fees. It is difficult to speculate the impact of the increased fees. However, a change in rate can greatly affect the bottom line over time. So, it may be safe to say that their will be dramatic changes in long term debt backed by the FDIC. Although, the FDIC would like to encourage financial institutions to become more independent in issuing their own debt. I think the question becomes, what investor would be willing to do that after living through our current situation?
http://online.wsj.com/article/SB123863158276180829.html
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