An Ant Posted September 20, 2008 Report Share Posted September 20, 2008 I thought happy days are here again. Morgan Stanley still in deal talks Link to comment Share on other sites More sharing options...
alceringa 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] Actually, the abdication was not to what is left of "Wall Street". The abdiction is to China, which holds mind numbing amounts of this paper. And remember, the paper ultimately represents a stake in American homes. The US government is not destroying its own credit so much as it is transferring right of ownership of J6Pack's house to the People's Bank of China. And Joe6Pack hasn't figured that out yet. These events are markers of the beginning of the end of the American Century and the start of the Chinesse Century. Link to comment Share on other sites More sharing options...
Jorma Posted September 20, 2008 Report Share Posted September 20, 2008 Great post. I posted it over on the WSE. http://wallstreetexaminer.com 691056[/snapback] Here a guy picks up Russ Winter's Godfather protection racket idea in a different context. Think of Paulson with the congress critters last night saying 'Nice economy you got there. It'd be a shame if somethin' happened to it.' http://wulfgar.typepad.com/a_chicken_is_no...shing-idea.html Link to comment Share on other sites More sharing options...
4shzl Posted September 20, 2008 Report Share Posted September 20, 2008 Both Mish and CR have posted comments on the following article from tomorrow's New York Times: It was a room full of people who rarely hold their tongues. But as the Fed chairman, Ben S. Bernanke, laid out the potentially devastating ramifications of the financial crisis before congressional leaders on Thursday night, there was a stunned silence at first. Mr. Bernanke and Treasury Secretary Henry M. Paulson Jr. had made an urgent and unusual evening visit to Capitol Hill, and they were gathered around a conference table in the offices of House Speaker Nancy Pelosi. ?When you listened to him describe it you gulped," said Senator Charles E. Schumer, Democrat of New York. Link As I read this, I begin to suspect that the Administration and the Fed may encounter some serious push-back on the Hill in the very near future. If you've ever worked with U.S. Senators, you know that: "Now listen up, people, this is the way its gotta be . . ." is generally not the kind of presentation that wins votes. With a national election six weeks away, the temptation to rock the boat at the expense of Bush/Paulson/Bernanke has got to be irresistible. Don't be surprised if some of the boat-rockers are on the Republican side of the aisle. As ZB dropped below 118 at the end of the day, I took profits on part of my position in keeping the TJ's dictum that only gains that are real are the ones you take off the table. If things get really "complicated" again this weekend, I won't be surprised if next week produces another attractive opportunity to short the long end of the Trashury curve. Link to comment Share on other sites More sharing options...
lineup32 Posted September 20, 2008 Report Share Posted September 20, 2008 This year the entire shadow banking system leveraged gear has crashed. the monoline's, structured credit products such as SIV's, AAA rating has lost it's luster, and last but not least the CDS. I doubt these can rebooted at least not anywhere near the scale that existed prior to these large gov't bail outs. When AIG coun't keep up the AAA rating without gov't backing then the whole house of cards came apart. Nothing left except the clean up crew and the debts. Link to comment Share on other sites More sharing options...
Charmin Posted September 20, 2008 Report Share Posted September 20, 2008 '?You have the credit lines in America, which are the lifeblood of the economy, frozen.? Mr. Schumer said. ?That hasn?t happened before." http://www.nytimes.com/2008/09/20/washingt...vXQ&oref=slogin In the last month I've gotten at least 3 offers in the mail from my credit card companies to write checks with low interest rates for a year or two. Credit lines frozen? Link to comment Share on other sites More sharing options...
MrHanky Posted September 20, 2008 Report Share Posted September 20, 2008 '?You have the credit lines in America, which are the lifeblood of the economy, frozen.? Mr. Schumer said. ?That hasn?t happened before." http://www.nytimes.com/2008/09/20/washingt...vXQ&oref=slogin In the last month I've gotten at least 3 offers in the mail from my credit card companies to write checks with low interest rates for a year or two. Credit lines frozen? 691071[/snapback] Big change if you read the fine print on those...... I used to use those cheap interest rate checks all the time for short term trading funds because the fee was 3% with a max of only 75 bucks with bank of america. They changed the fine print in june to 3% and no limit. I cashed a 40k check in july from them at a 2.99% rate special...Got the bill and they charged me more than an $800.00 fee I freaked out and called them...They agreed to reverse the entire transaction if i return all of the funds immediately....And of course I did. Link to comment Share on other sites More sharing options...
Charmin Posted September 20, 2008 Report Share Posted September 20, 2008 Big change if you read the fine print on those...... I used to use those cheap interest rate checks all the time for short term trading funds because the fee was 3% with a max of only 75 bucks with bank of america. They changed the fine print in june to 3% and no limit. I cashed a 40k check in july from them at a 2.99% rate special...Got the bill and they charged me more than an $800.00 fee I freaked out and called them...They agreed to reverse the entire transaction if i return all of the funds immediately....And of course I did. 691072[/snapback] Yeah, the criminals never cease to try and dupe us. We need "Big change" Revised front page photo from http://www.nytimes.com/ Link to comment Share on other sites More sharing options...
Charmin Posted September 20, 2008 Report Share Posted September 20, 2008 "Short sellers support the market as it goes down." As for the financials, Tom Obrien explains it this way... Clip from Friday's podcast at http://www.tfnn.com/mp3s/TOS091908.mp3 TOS091908_clip.mp3 Link to comment Share on other sites More sharing options...
DrStool Posted September 20, 2008 Author Report Share Posted September 20, 2008 Actually, the abdication was not to what is left of "Wall Street". The abdiction is to China, which holds mind numbing amounts of this paper. And remember, the paper ultimately represents a stake in American homes. The US government is not destroying its own credit so much as it is transferring right of ownership of J6Pack's house to the People's Bank of China. And Joe6Pack hasn't figured that out yet. These events are markers of the beginning of the end of the American Century and the start of the Chinesse Century. 691067[/snapback] Au contraire, the PBOC already holds these rights via its ownership of 62% (along with other CBs) of the Agency debt of Fannie and Freddie. The Federal Government, by assuming potentially trillions in debt will see the cost of servicing that debt rise to the level of the banana republic which the US has become. Link to comment Share on other sites More sharing options...
DrStool Posted September 20, 2008 Author Report Share Posted September 20, 2008 Both Mish and CR have posted comments on the following article from tomorrow's New York Times:Link As I read this, I begin to suspect that the Administration and the Fed may encounter some serious push-back on the Hill in the very near future. If you've ever worked with U.S. Senators, you know that: "Now listen up, people, this is the way its gotta be . . ." is generally not the kind of presentation that wins votes. With a national election six weeks away, the temptation to rock the boat at the expense of Bush/Paulson/Bernanke has got to be irresistible. Don't be surprised if some of the boat-rockers are on the Republican side of the aisle. As ZB dropped below 118 at the end of the day, I took profits on part of my position in keeping the TJ's dictum that only gains that are real are the ones you take off the table. If things get really "complicated" again this weekend, I won't be surprised if next week produces another attractive opportunity to short the long end of the Trashury curve. 691069[/snapback] From this point on every day will be an attractive opportunity to short Treasuries. Big change if you read the fine print on those...... I used to use those cheap interest rate checks all the time for short term trading funds because the fee was 3% with a max of only 75 bucks with bank of america. They changed the fine print in june to 3% and no limit. I cashed a 40k check in july from them at a 2.99% rate special...Got the bill and they charged me more than an $800.00 fee I freaked out and called them...They agreed to reverse the entire transaction if i return all of the funds immediately....And of course I did. 691072[/snapback] Now I know why you moved to Vegas. Link to comment Share on other sites More sharing options...
Yaryman Posted September 20, 2008 Report Share Posted September 20, 2008 The president explains the new short selling rules. "The Securities and Exchange Commission has issued new rules temporarily suspending the practice of short selling on the stocks of financial institutions. This is intended to prevent investors from intentionally driving down particular stocks for their own personal gain." An when a CEO lies about how good things are going... It's for the good of humanity. Did anybody ever teach these people right from wrong? Link to comment Share on other sites More sharing options...
Charmin Posted September 20, 2008 Report Share Posted September 20, 2008 Countdown: 9 days Non-shorting financials: 799 "This Order shall be effective immediately and shall terminate at 11:59 p.m. EDT on October 2, 2008, unless further extended by the Commission." http://www.sec.gov/rules/other/2008/34-58592.pdf IF we continue in a 1969 fashion for 9 days and the market becomes very overbought and the financials also are overbought, do you think they'll extend the deadline? AA Alcoa starts earnings on Oct. 7. We'll probably realize by then that the rally was not on earnings. Link to comment Share on other sites More sharing options...
Charmin Posted September 20, 2008 Report Share Posted September 20, 2008 The president explains the new short selling rules. "The Securities and Exchange Commission has issued new rules temporarily suspending the practice of short selling on the stocks of financial institutions. This is intended to prevent investors from intentionally driving down particular stocks for their own personal gain." An when a CEO lies about how good things are going... It's for the good of humanity. Did anybody ever teach these people right from wrong? 691078[/snapback] As Peter Schiff would say "The road to financial hell, or in this case socialism, is certainly paved with ?good? intentions." http://europac.net/externalframeset.asp?id=14031 Link to comment Share on other sites More sharing options...
capitall Posted September 20, 2008 Report Share Posted September 20, 2008 As Peter Schiff would say "The road to financial hell, or in this case socialism, is certainly paved with ?good? intentions." http://europac.net/externalframeset.asp?id=14031 691080[/snapback] Was it David who first talked about the program to privatize profits and socialize losses? I am still in shock. Can not believe the the United Socialist States of America are socializing seemingly unlimited losses from so many companies. It does boggle the mind. Link to comment Share on other sites More sharing options...
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