Jimbo Posted September 20, 2008 Report Share Posted September 20, 2008 WHY GOLDMAN AND STANLEY TANKED I think the reversal of Oil and Gold probably exploded their commodity longs in a big way and they "lost the bank" so to say. I have no information for this. But I think this would be the "high probability" explanation. Link to comment Share on other sites More sharing options...
Jetlag Posted September 20, 2008 Report Share Posted September 20, 2008 short selling of big financials in Germany also forbidden since friday evening: Rhoiders 691098[/snapback] Are they still in time to catch up with the 4% underperformance against the other fascist market regulators? DJStoxx 600 278.18 21.41 8.34% FTSE 100 5,311.30 431.30 8.84% DAX 30 6,189.53 326.11 5.56% CAC 40 4,324.87 367.01 9.27% S&P/MIB 27,877.00 2,213.00 8.62% Verboten until 2009 !!! "BaFin said that from Sept. 20, short-selling in a group of leading German banks, insurers and other service providers would be stopped until the end of the year, following similar moves by authorities in the United States and Britain." FSA forbade short selling on financials for 4 months. I guess this was also a desperate EOQ/EOY dash to stem the losses on the balance cheats, can you say technically insolvent? Link to comment Share on other sites More sharing options...
Howl Posted September 20, 2008 Report Share Posted September 20, 2008 The biggest problem is that by assuming the obligation for all this bad paper the US government is destroying its own credit. This is a bigger disaster than the collapse of the financial system. Washington has abdicated the throne to Wall Street. 691061[/snapback] Washington abdicated a long time ago. That's why there is so much corporate welfare. And that is why they spend hundreds of billions fighting wars on other continents. The problem is that the plutocrats in the USA have lost any sense of responsibility. Apr?s moi le d?luge. It is the mentality that breeds revolutions. But let me play devil's advocate for a moment. The sub-prime problem is fixed, so now happy days and the bull market are here again. No? Link to comment Share on other sites More sharing options...
lineup32 Posted September 20, 2008 Report Share Posted September 20, 2008 If you had an auto crash and the insurance company informed you that they could fix the front bumper but the rest of the body work would have to wait until they had time to sell assets in order to raise the necessary cash, would you continue to pay for the insurance?. They also tell you that the assets are all telecom stock purchased in 1999, mostly CSCO so when the stock value returns to the level they paid for it then the insurance company can issue you a check for the full damage to your car! This seems to be the state of the CDS market and most of the counter party risk contracts that are written. Link to comment Share on other sites More sharing options...
Grand Poopercycle Posted September 20, 2008 Report Share Posted September 20, 2008 Chase today sent me a letter stating that I have been given a 25% credit line increase. I get checks from all three of my credit cards every month. Chase just offered 0% for nine months. 691091[/snapback] Well, of course. They're trying to expand credit, on both the systemic and indiv- idual firm level(s). that's how individual lenders 'grow their business(profits-report- ed, at least), and, critically, how the macro financial & economic systems keep moving forward. Those individuals & institutions that look(to the algorithims, at least) like good risks for extending new credit to will be solicited unmercifully. Link to comment Share on other sites More sharing options...
Grand Poopercycle Posted September 20, 2008 Report Share Posted September 20, 2008 China GDP 10.4% higher than last year. Export is now around 25% of GDP. 691096[/snapback] It's pretty widely accepted that the US government massages US economic statistics in a positive direction. We should accept Chinese government reports at face value because.... We're as corrupt and stupid as Olympic Games bureaucrats? Link to comment Share on other sites More sharing options...
Jetlag Posted September 20, 2008 Report Share Posted September 20, 2008 That 50bi safety net for MMFs gets dwarfed when you look at this week's redemptions alone. Still...comparing with the FDIC isn't it reasonable for investors to prefer MMFs instead of CDs if they have much more than 100 thou to invest? Would the gubermint say "we're spent out" if the 50bi got drained from defaults? Link to comment Share on other sites More sharing options...
4shzl Posted September 20, 2008 Report Share Posted September 20, 2008 Thrilling details from CR: Sec. 6. Maximum Amount of Authorized Purchases. The Secretary?s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time . . . Sec. 10. Increase in Statutory Limit on the Public Debt. Subsection b of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting in lieu thereof $11,315,000,000,000. Link Bonds, bonds, bonds, baby -- and this is just the beginning. Link to comment Share on other sites More sharing options...
Jetlag Posted September 20, 2008 Report Share Posted September 20, 2008 Thrilling details from CR:Link Bonds, bonds, bonds, baby -- and this is just the beginning. 691112[/snapback] "(1) Mortgage-Related Assets.--The term ?mortgage-related assets? means residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before September 17, 2008." "I've got an equity tranche in a CDO that might interest you Hank!" Link to comment Share on other sites More sharing options...
Dharmaeye Posted September 20, 2008 Report Share Posted September 20, 2008 Washington abdicated a long time ago. That's why there is so much corporate welfare. And that is why they spend hundreds of billions fighting wars on other continents. The problem is that the plutocrats in the USA have lost any sense of responsibility. Apr?s moi le d?luge. It is the mentality that breeds revolutions. But let me play devil's advocate for a moment. The sub-prime problem is fixed, so now happy days and the bull market are here again. No? 691106[/snapback] "V is for Vendetta" movie has been playing alot on TV/ cable the last week or so. Link to comment Share on other sites More sharing options...
Mies van der Rump Posted September 20, 2008 Report Share Posted September 20, 2008 "V is for Vendetta" movie has been playing alot the last week or so. 691114[/snapback] That is SO funny you say that...i just watched it on a Hotel channel last night for the first time. Never really knew what it was about. It about tipped me over the edge into drastic action, LOL. Link to comment Share on other sites More sharing options...
mdporter Posted September 20, 2008 Report Share Posted September 20, 2008 Lawmakers Approve Revised State Budget SACRAMENTO (AP) ― Lawmakers approved the revised $143 billion spending plan Friday, ending the longest budget impasse in California history. The state Senate and Assembly on Friday passed a compromised spending plan that stretched 81 days past its due date. The $143 billion budget plan allows the state to resume payments to schools, medical clinics, daycare centers and state vendors that haven't been paid since July 1, the start of the fiscal year. At a Capitol news conference Friday, Schwarzenegger said he was pleased the four legislative leaders agreed to the budget reforms he sought, but was disappointed he was unable to fix a structural deficit that allows California to keep spending more than it takes in. state leaders are financial chumps I think those figures mean they rolled 7 billion of the budget deficit into future. Next year will be even worse. Link to comment Share on other sites More sharing options...
Slappy Posted September 20, 2008 Report Share Posted September 20, 2008 General question for any of you guys that took Bond Science in school... 1. What is the best way to play a treasury bond sell-off? Tanks in Advance Link to comment Share on other sites More sharing options...
4shzl Posted September 20, 2008 Report Share Posted September 20, 2008 Lawmakers Approve Revised State BudgetSACRAMENTO (AP) ― Lawmakers approved the revised $143 billion spending plan Friday, ending the longest budget impasse in California history. The state Senate and Assembly on Friday passed a compromised spending plan that stretched 81 days past its due date. The $143 billion budget plan allows the state to resume payments to schools, medical clinics, daycare centers and state vendors that haven't been paid since July 1, the start of the fiscal year. At a Capitol news conference Friday, Schwarzenegger said he was pleased the four legislative leaders agreed to the budget reforms he sought, but was disappointed he was unable to fix a structural deficit that allows California to keep spending more than it takes in. state leaders are financial chumps I think those figures mean they rolled 7 billion of the budget deficit into future. Next year will be even worse. 691116[/snapback] CA unemployment rose from 413,000 in August, 2007 to 1,417,000 in August, 2008. Link to comment Share on other sites More sharing options...
curious Posted September 20, 2008 Report Share Posted September 20, 2008 General question for any of you guys that took Bond Science in school... 1. What is the best way to play a treasury bond sell-off? Tanks in Advance 691117[/snapback] There are several tools but this is a game with a highest systemic risk ever. I am not sure there is any lower equilibrium in treasuries between were we are now and US default. There may not be an opportunity to take profits on successful trade. That said you can short 30yr treasuries via futures (ZB), going long double inverse ETF TBT, going long RRPIX, shorting TLT etc. that is until shorting bond instruments is outlawed. Link to comment Share on other sites More sharing options...
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