Ford works with the SEC on a sale of bonds backed by auto loans

Politicians, in their naieve zeal to regulate, have forced a pre-birth exception to the new law that is likely to become permanent:

Ford Motor Credit delayed a sale of bonds backed by auto loans last week because of regulatory uncertainty caused by the financial overhaul. On Monday, Ford sold a billion-dollar bond by working with the Securities and Exchange Commission. Ford and
the SEC created a reprieve to a part of the law that holds credit rating agencies liable for ratings they issue. "Clearly, the SEC recognizes the importance of the public [asset-backed securities] markets, and we are glad the staff is taking temporary measures to ensure public markets continue to be available by establishing a transitional period through Jan. 24, 2011," a spokeswoman wrote.
The Wall Street Journal

The SEC realizes the importance of keeping credit markets open; laws written by lobbyists and political operatives with no actual experience of real life business operations are inevitably going to harm the economy. They will force "exceptions" until the reality of daily business makes a mockery of the law now administered by an increased burocracy at immense permanent additional expense to the taxpayer.

Market Reflections 2/3/2009

Vehicle sales were extremely weak in January in news that pushes concern over auto makers to a new level of urgency. The results will raise talk of major bankruptcies.

The news on vehicles sales surprisingly did not affect the market, at least in Tuesday's session. Shares of GM and Ford were little changed. The Dow industrials posted a strong 1.8 percent gain. Many companies warning of trouble ahead, including Dow Chemical, Cummins Engine and homebuilder DR Horton, posted gains on the session.

What did give a boost to the market was a bounce in pending home sales which, together with last week's report on existing home sales, are raising talk that low mortgage rates and falling home prices are finally giving a boost to the housing sector. The pending home sales data along with the stock market's gain pulled money out of the Treasury market where yields jumped sharply, including an 18 basis point jump to 3.66 percent for the 30-year bond.

News of a labor agreement between refiners and refinery workers hit the wires at the market close. But the news was expected and isn't likely to move oil prices which have been little changed in recent sessions at just over $40. Gold ended little changed at just over $900. The dollar fell 1-1/2 cents against the euro to $1.3036.