cwd Posted November 22, 2008 Report Share Posted November 22, 2008 The bank of the week is a real one this week. Citigroup May Get Government Rescue, Investors Say (Update1) By Christine Harper and Bradley Keoun Nov. 21 (Bloomberg) -- Citigroup Inc. will probably get rescued by the U.S. government after a crisis in confidence erased half its stock-market value in three days, investors and anal cysts said. Citigroup has more than $2 trillion of assets, dwarfing companies such as American International Group Inc. that got U.S. support this year. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke may favor a rescue to avoid the chaotic aftermath of Lehman Brothers Holdings Inc.?s bankruptcy in September http://www.bloomberg.com/apps/news?pid=206...refer=worldwide Link to comment Share on other sites More sharing options...
Jimbo Posted November 22, 2008 Report Share Posted November 22, 2008 BERKSHIRES DERIVATIVE BET Must now be deeply underwater. If the market doesnt recover by 2019 Berkshire will have to pay out $40 billion. Berkshire basically sold a gigantic long term put option on stocks, hoping of course that it will expire worthless and that the big fat fee it collected for writing the option is all profit. Who ever bought that put got massive downside protection on their stock position just at the right time. They must be sleeping like a baby these nights. :rolleyes: Great timing and great idea - who thought the deal up???? anyone know????. Still 10 years to go on the bet. But I think its this that has tanked the Berkshire share price. Link to comment Share on other sites More sharing options...
cwd Posted November 22, 2008 Report Share Posted November 22, 2008 More Banks of the Week. Friday, November 21, 2008 Bank Failures #21 and #22: Downey Savings & Loan Association, Newport Beach and PFF Bank & Trust, Pomona http://www.fdic.gov/news/news/press/2008/pr08124.html Link to comment Share on other sites More sharing options...
Jimbo Posted November 22, 2008 Report Share Posted November 22, 2008 THE FATAL FALL STREET FLAW The fatal fault for fall street is that the masters of the ex-universe were not using their own money when they traded - they were using the shareholders money. Therefore there was no DOWNSIDE for them when they took risks. There was only upside. Therefore their risk profile in completely misaligned with that of shareholders. And it was this misalignment that sunk fall street. For an ex master you were a fool if you didnt take enormous risks - the downside was just getting fired. But be right and you had say a 50% chance of being right, you made a fortune Who could resist a risk/reward profile like that - no one. :ph34r: Of course if you were wrong - and eventually you will be as you keep tossing the dice - you wipe out the shareholders but thats not your problem. Its the shareholders problem. Your fired of course, but you have enormous annual bonuses stashed away, a manhattan towhouse, a place in the Hamptons and a Victoria Secrets model girlfriend to sooth your ego while you set up a hedge fund to profit from the chaos your trades created. Link to comment Share on other sites More sharing options...
cwd Posted November 22, 2008 Report Share Posted November 22, 2008 Volatility is high, but I didn't realize how high. Volatility Increases Yet Again! November 21, 2008 In the past five market days, two have exhibited intraday volatility exceeding our 8% red flag threshold. Over the 80-year period since 1928, the average volatility in the Dow is about 1.8%. There have been only 66 days when the intraday volatility exceeded 8%. That's right ? 66 out of over 20,300 market days. If they were evenly spread, that would be about one 8% plus volatility day every 14.5 months. Here's the amazing and rather disturbing part . . . Sixteen of them have occurred since September 29th ? two in the past five days. The Crash of 1929 had only eight. Another thirty followed during the ten-year Great Depression. Four were clustered around the Crash of 1987. Only two happened during the nasty 2000-2002 bear. http://dshort.com/ Link to comment Share on other sites More sharing options...
mdporter Posted November 22, 2008 Report Share Posted November 22, 2008 VNBC now only 9/10ths of a cent away from ZERO. Link to comment Share on other sites More sharing options...
mdporter Posted November 22, 2008 Report Share Posted November 22, 2008 More Banks of the Week. Friday, November 21, 2008 Bank Failures #21 and #22: Downey Savings & Loan Association, Newport Beach and PFF Bank & Trust, Pomona http://www.fdic.gov/news/news/press/2008/pr08124.html Downey was one of the big playas in the southern california subprime/exotic mortgage market. Link to comment Share on other sites More sharing options...
mdporter Posted November 22, 2008 Report Share Posted November 22, 2008 SACRAMENTO ? Gov. Arnold Schwarzenegger and legislative leaders continued to hunker down Friday in hopes of navigating the state out of its latest budget mess. But the thorny question of how and where to find more money continued to frustrate negotiations. While several money-generating ideas are under discussion ? such as raising annual car registration fees and imposing a new tax on oil extraction ? none has gained the support of GOP leaders. Because tax increases require a two-thirds vote in California, at least two Republican senators and six Assembly members would need to go along. A week of long but so far fruitless talks left little hope that lawmakers would agree soon on a fix to the massive $11.2 billion deficit that has materialized in just the past few months. That shortfall is for the current fiscal year ending in June; looking a year beyond, the deficit could reach a combined $28 billion by mid-2010, budget forecasters estimate. Source The solution is obvious. Raise taxes and the California eCONomy will just be killed off faster. So why not slash payrolls by cutting pay of the top earners and laying people off? Killing off all the pork programs from the last eight years? The pols are just making it harder for themselves. Link to comment Share on other sites More sharing options...
mdporter Posted November 22, 2008 Report Share Posted November 22, 2008 looks like some of these miners might be in for some upside: Link to comment Share on other sites More sharing options...
jickiss Posted November 22, 2008 Report Share Posted November 22, 2008 jickiss is back! jickiss is back! and faithfully posts Day 003 of the doolar/gold INDICATOR. this indicator, as it DECLINES will show the Doolar dropping and gold rising..... stay tuned! jickiss!!!!!!! Link to comment Share on other sites More sharing options...
mdporter Posted November 22, 2008 Report Share Posted November 22, 2008 Jickiss, your CDE was up big today. Link to comment Share on other sites More sharing options...
shorty Posted November 22, 2008 Report Share Posted November 22, 2008 I sure hope this chubby etc. crap blows over.....it is just a paSSing fad, right? Wish there were some financial ads once in a while. Link to comment Share on other sites More sharing options...
shorty Posted November 22, 2008 Report Share Posted November 22, 2008 SACRAMENTO ? Gov. Arnold Schwarzenegger and legislative leaders continued to hunker down Friday in hopes of navigating the state out of its latest budget mess. But the thorny question of how and where to find more money continued to frustrate negotiations. While several money-generating ideas are under discussion ? such as raising annual car registration fees and imposing a new tax on oil extraction ? none has gained the support of GOP leaders. Because tax increases require a two-thirds vote in California, at least two Republican senators and six Assembly members would need to go along. A week of long but so far fruitless talks left little hope that lawmakers would agree soon on a fix to the massive $11.2 billion deficit that has materialized in just the past few months. That shortfall is for the current fiscal year ending in June; looking a year beyond, the deficit could reach a combined $28 billion by mid-2010, budget forecasters estimate. Source The solution is obvious. Raise taxes and the California eCONomy will just be killed off faster. So why not slash payrolls by cutting pay of the top earners and laying people off? Killing off all the pork programs from the last eight years? The pols are just making it harder for themselves. Californica flushes $50 Billion per year down the public education rathole to churn out dumbed-down morans, most of whom cannot name a single member of the cabinet or even tell you which party has the majority in Congress or name a single Supreme Court justice or name the seven continents or do double digit arithmetic in their mushy heads or tell you what city the United Nations building is in, etc. Shut down the entire worse-than-useless scam immediately. Close all the K-12 schools, turn out the lights, sell off all the buildings and the real estate, fire all the teachers and adminaSStraitors. Instant mega-surplus for the state budget. The surplus can be rebated each year to the taxpayers. The profits from liquidating the properties can be distributed in a one-time tax-free lump sum, probably at least $50,000 per taxpaying family. Some of those properties are in great commercial locations and could be put to actual productive use, so they'd bring in top dollar. The kids can learn ten times as fast on the internet from the best of the best of the best world-class teachers in every subject, and the fired teachers can find productive work in the private sector. Link to comment Share on other sites More sharing options...
hokahay Posted November 22, 2008 Report Share Posted November 22, 2008 A 3 minute short film about a sleep-deprived office worker, who accidentally discovers a black hole. This one is fun! http://www.wxpnews.com/7WB7T0/081118-Black-Hole hahahaha, At first I thought your message said a SHEEP-deprived office worker. Link to comment Share on other sites More sharing options...
Jetlag Posted November 22, 2008 Report Share Posted November 22, 2008 Your fired of course, but you have enormous annual bonuses stashed away, a manhattan towhouse, a place in the Hamptons and a Victoria Secrets model girlfriend to sooth your ego while you set up a hedge fund to profit from the chaos your trades created. Oh yeeahh Link to comment Share on other sites More sharing options...
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