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IDS World Markets Fri 3rd August 07


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Feels like the wheels are starting to come off, doesn't it?

 

Yes and I got two unanswered questions

In Belgium every account has a state insurance of only 20 000 euro per account and 20 000 euro per share deposit .

So how do I find out my bank is safe ? ( Are there safe banks left ?)

 

Second question ; If I buy puts or sell short and the counterparty goes brook do I get a cent of those 1000% gains I made on paper ?

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The New York Times

By KEITH BRADSHER - Published: August 3, 2007

 

Since Blackstone went public on June 22, the company?s shares have fallen steeply, pushing down the value of the Chinese government?s investment by more than $425 million in just six weeks.

 

Chinese bloggers, and even some financial media, have not taken the hammering lying down. They are assiduously tracking the dwindling value of the government stake, and some bloggers and postings in Internet chat rooms are bitterly questioning Beijing?s stock judgment ? often in particularly Chinese terms.

 

http://www.nytimes.com/2007/08/03/business...=th&oref=slogin

595959[/snapback]

 

I wonder how they'd react if they knew that they are the numba 1 certifiable bagholders of the housing bust.

 

"In a sign that the Chinese government may be less comfortable with the marketplace of ideas than they are with the stock market, the blogger?s entry was visible on the Web site on Thursday afternoon, but had disappeared by Thursday night."

 

Sounds like the "troublemakers" have been gathered and reeducated

 

china1.jpg

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Second question ; If I buy puts or sell short and the counterparty goes brook do I get a cent of those 1000% gains I made on paper ?

 

my understanding of spreadbetting is that it's a gentlemens agreement and therefore not legally binding and so if they go bust you do not get your winnings :(

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Nonfarm payroll employment continued to trend up (+92,000) in July, and the

unemployment rate (4.6 percent) was essentially unchanged, the Bureau of Labor

Statistics of the U.S. Department of Labor reported today. Employment grew in

several service-providing industries. Average hourly earnings rose by 6 cents,

or 0.3 percent.

 

NFP

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Nonfarm payroll employment continued to trend up (+92,000) in July, and the

unemployment rate (4.6 percent) was essentially unchanged, the Bureau of Labor

Statistics of the U.S. Department of Labor reported today.  Employment grew in

several service-providing industries.  Average hourly earnings rose by 6 cents,

or 0.3 percent.

 

NFP

595965[/snapback]

 

That's pretty weak! That should be bullish news today. Might get the talking heads going on about a rate cut by the end of the year.

 

Last night someone brought up the idea that productivity will be impacted by the housing bubble collapse. I have been having the exact same idea. I think a lot of people are going to be trapped in one location for a long time with houses they can't afford to sell. So rather than moving every 5 years or so to a place with better job prospects they'll just make due where they are as best they can. In the US mobility of workers has been a big advantage in the past versus other nations.

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Nonfarm payroll employment continued to trend up (+92,000) in July, and the

unemployment rate (4.6 percent) was essentially unchanged, the Bureau of Labor

Statistics of the U.S. Department of Labor reported today.  Employment grew in

several service-providing industries.  Average hourly earnings rose by 6 cents,

or 0.3 percent.

 

NFP

595965[/snapback]

 

That's pretty weak! That should be bullish news today. Might get the talking heads going on about a rate cut by the end of the year.

 

Last night someone brought up the idea that productivity will be impacted by the housing bubble collapse. I have been having the exact same idea. I think a lot of people are going to be trapped in one location for a long time with houses they can't afford to sell. So rather than moving every 5 years or so to a place with better job prospects they'll just make due where they are as best they can. In the US mobility of workers has been a big advantage in the past versus other nations.

595966[/snapback]

Whoever said that last night is a damned fool....

 

:lol: :lol: :lol:

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Feels like the wheels are starting to come off, doesn't it?

 

Yes and I got two unanswered questions

In Belgium every account has a state insurance of only 20 000 euro per account and 20 000 euro per share deposit .

So how do I find out my bank is safe ? ( Are there safe banks left ?)

 

Second question ; If I buy puts or sell short and the counterparty goes brook do I get a cent of those 1000% gains I made on paper ?

595961[/snapback]

Pretty sure that the puts would be fine. THat's what margin & a clearinghouse are for: to assure that counterparties remain sufficiently solvent to make good on their contracts, and to cover in those instances when things go awry..

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Nonfarm payroll employment continued to trend up (+92,000) in July, and the

unemployment rate (4.6 percent) was essentially unchanged, the Bureau of Labor

Statistics of the U.S. Department of Labor reported today.  Employment grew in

several service-providing industries.  Average hourly earnings rose by 6 cents,

or 0.3 percent.

 

NFP

595965[/snapback]

 

That's pretty weak! That should be bullish news today. Might get the talking heads going on about a rate cut by the end of the year.

 

Last night someone brought up the idea that productivity will be impacted by the housing bubble collapse. I have been having the exact same idea. I think a lot of people are going to be trapped in one location for a long time with houses they can't afford to sell. So rather than moving every 5 years or so to a place with better job prospects they'll just make due where they are as best they can. In the US mobility of workers has been a big advantage in the past versus other nations.

595966[/snapback]

Whoever said that last night is a damned fool....

 

:lol: :lol: :lol:

595969[/snapback]

 

What do you think will be the impact on wages if any?

 

Because workers have less mobility they'll have less flexibility in accepting higher salaries far away from home. OTH companies are limited to the local "pool" of workers.

 

Maybe in the end the only negative impact is in productivity as you mentioned.

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Nonfarm payroll employment continued to trend up (+92,000) in July, and the

unemployment rate (4.6 percent) was essentially unchanged, the Bureau of Labor

Statistics of the U.S. Department of Labor reported today.  Employment grew in

several service-providing industries.  Average hourly earnings rose by 6 cents,

or 0.3 percent.

 

NFP

595965[/snapback]

 

That's pretty weak! That should be bullish news today. Might get the talking heads going on about a rate cut by the end of the year.

 

Last night someone brought up the idea that productivity will be impacted by the housing bubble collapse. I have been having the exact same idea. I think a lot of people are going to be trapped in one location for a long time with houses they can't afford to sell. So rather than moving every 5 years or so to a place with better job prospects they'll just make due where they are as best they can. In the US mobility of workers has been a big advantage in the past versus other nations.

595966[/snapback]

Whoever said that last night is a damned fool....

 

:lol: :lol: :lol:

595969[/snapback]

 

What do you think will be the impact on wages if any?

 

Because workers have less mobility they'll have less flexibility in accepting higher salaries far away from home. OTH companies are limited to the local "pool" of workers.

 

Maybe in the end the only negative impact is in productivity as you mentioned.

595972[/snapback]

 

Look to countries that have a much less mobile workforce as a model. In general you see much higher unemployment and hence lower wages. Start-up and smaller firms in one part of the country can't attract needed talent and labor from another part so innovation suffers. Skilled workers are forced to take jobs outside of their fields in usually lower paying areas because of a local gluts of workers with the same skill set. Meanwhile shortage of this same skill set exist in other parts of the country. The work force can't adapt as well to local boom bust cycles. Some industries are very mobile, for example construction. If workers can't move from a bust area to the next boom market the cycle feeds on itself. In the end people make due but they don't maximize their potential.

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HUI 3 day cycle projection 348-49.

 

Feels like the wheels are starting to come off, doesn't it?

 

Yes and I got two unanswered questions

In Belgium every account has a state insurance of only 20 000 euro per account and 20 000 euro per share deposit .

So how do I find out my bank is safe ? ( Are there safe banks left ?)

 

Second question ; If I buy puts or sell short and the counterparty goes brook do I get a cent of those 1000% gains I made on paper ?

595961[/snapback]

 

With the puts, there may be counterparty risk. Not with selling short, since the cash is "theoretically" in you account when you sell the stock. But in either case, if your broker or clearing firm is Bear (and I think they are the largest clearing firm) and they go bust, then you are going to have to rely on the SIPC up to the limits of coverage.

 

As for safety of principle of short term cash assets, I would rely only on sovereign short term Treasury or Ministry of Finance instruments of your home country. If you go outside, then you face currency risk.

 

Nonfarm payroll employment continued to trend up (+92,000) in July, and the

unemployment rate (4.6 percent) was essentially unchanged, the Bureau of Labor

Statistics of the U.S. Department of Labor reported today.  Employment grew in

several service-providing industries.  Average hourly earnings rose by 6 cents,

or 0.3 percent.

 

NFP

595965[/snapback]

 

That's pretty weak! That should be bullish news today. Might get the talking heads going on about a rate cut by the end of the year.

 

Last night someone brought up the idea that productivity will be impacted by the housing bubble collapse. I have been having the exact same idea. I think a lot of people are going to be trapped in one location for a long time with houses they can't afford to sell. So rather than moving every 5 years or so to a place with better job prospects they'll just make due where they are as best they can. In the US mobility of workers has been a big advantage in the past versus other nations.

595966[/snapback]

 

When you're under water, just hand in the keys and go.

 

For most people, such a thought wouldn't have entered their minds a year ago. That's going to begin to change as more and more people find their homes are worth less than their mortgage balance. If they think there are greener pastures elsewhere, they'll go.

 

People whose houses are in foreclosure have a lot of mobility. Back in the 30s, millions roamed the country looking for work.

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