Schwab pulling same stunt as CFC

[alceringa]

List of the Gangsters/Banksters-

 

List of the Primary Government Securities Dealers Reporting to the Government Securities Dealers Statistics Unit of the Federal Reserve Bank of New York

 

BNP Paribas Securities Corp.

Banc of America Securities LLC

Barclays Capital Inc.

Bear, Stearns & Co., Inc.

Cantor Fitzgerald & Co.

Citigroup Global Markets Inc.

Countrywide Securities Corporation

Credit Suisse Securities (USA) LLC

Daiwa Securities America Inc.

Deutsche Bank Securities Inc.

Dresdner Kleinwort Wasserstein Securities LLC.

Goldman, Sachs & Co.

Greenwich Capital Markets, Inc.

HSBC Securities (USA) Inc.

J. P. Morgan Securities Inc.

Lehman Brothers Inc.

Merrill Lynch Government Securities Inc.

Mizuho Securities USA Inc.

Morgan Stanley & Co. Incorporated

Nomura Securities International, Inc.

UBS Securities LLC.

[Jimbo]

GOODBYE CFC GOODBYE

 

 

Yep CFC is history - wipe out - chapt 11 wanabee waiting to be put out of its misery.

 

Will the FED have to build a high security solarium for Tan Angelo?

 

RAMS GET RAMMED

 

Our very own Australian sub primer RAMS has had an amazing few weeks in its brief but certainly precipitace life as a PUBLIC COMPANY.

 

Yep the "investors" or should that be the "bagholders" in RAMS behaved like well like "SHEEP".

 

STRAIGHT DOWN THE GURGLER. from $2.50 to 55 cents.

 

But seeing the principals sold 80% of the company to the public bagholders for $600 million, what do they care??????

[Jorma]

Part of the confusion about the Feds stinginess in it's open market operations is probably because they are acting honorably, in line with their stated policy. Since Fed Funds are staying near the target range and often below they have no need to be adding liquidity through their open market operations.

 

This honesty stuff is very very confusing to people who expect lies, spin and endless streams of BS from evey place in the financial world, especially headquarters. So much so they don't even try to understand what the Fed Funds targeting policy is. They think the stated policy is BS or even less. A fairy tale for school kids while the real deals go down behind closed doors. Even when the reality of the policy is there for all to see most don't see it.

 

Good catchl by LeeWee on the Countrywide connection with the Discount Rate cut.

[Jimbo]

CUTTING THE APRON STRINGS

 

Fall street is letting the hedgies go asta la vista.

 

It will later pick the assets up at a severe (deleveraged) discount.

 

But thats what capitalism is all about.

 

 

Orica selling for $23 - might buy them back at a discount to what I sold them for.

 

A lot of hedgies were leveraged into Orica - betting on the private equity takeover of course - thinking they would all be all very clever front runners - but they could not predict or prevent the bond cliff - and it has all blown up in their faces.

So they have had to deleverage out of the stock at a loss.

 

Orica should merge it with Nobel.

[Jetlag]

If the Yen carry trade is what's its all about then can we expect the most dramatic affects on Japan's Nikkei market?

 

N225 - Not even a recovery friday

http://finance.yahoo.com/q/bc?s=%5EN225&t=5d&l=on&z=m&q=l&c=

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Charmin, Japan isn't the country of the rising sun for nothing. You can get a small edge on how the US market will do if you look at how Asia closed and how European markets are faring. Especially in a day when Tokyo gets plastered 5.5% even after Thursday's SPX hammer manipulation excellence.

I'm still divided on what prompted the FED to make this faux cut, either CFC bank run or tokyo's plunge, or maybe both who knows. I'm sure they were padding themselves on the back after thursday's manipulated close and thinking "job well done OpEx Friday is saved". Imagine their morning meeting cursing the japanese, "now we'll have to do as Kramer said! fock, we're gonna look like idiots!"

[Jetlag]

In reading more about today's Fed action, it appears likely it was specifically aimed at the Countrywide crisis. Apparently the emergency meeting was requested by the San Francisco Fed, the district in which Countrywide is located (Calabasas, CA).

 

CFC writes 20% of the mrotgouges in the U.S., so it's a big player. And they just drew down their entire credit line of $11B. I imagine the banks they borrowed from wanted Fed assurances.

 

Many are also discussing the moral hazard behind today's Fed move, especially if it is specifically designed to "bail out" one player.

 

But if you want to see real moral hazard at work, check out the withdrawals by the Tan Man over the past two months. The f'er had the cojones to even dump stock this week. He probably dumped more today on the big schwang. All told, Tan Angelo has now dumped $536,348,378 worth of CFC in just the past two years. Who knows how much more he dumped prior to that.

 

Seems to me that it wouldn't be cricket for the Fed to prop CFC up and for other banks to loan it $11B unless the Tan Man himself kicks in...oh, let's say...$536,348,378. Heck, let's just round it down to an even $500,000,000. No need to leave the poor man without enough for toiletries and such.

 

UFB.

601138[/snapback]

1. Recall that CFC is one of the gang of 21. If the Fed is going to help anyone, I would suggest that it will be one of the 21 first.

2. According to your reading/research, is there any indication of when the meeting was conducted. I would like to know if they purposefully sat on the decision until shortly before the cash market opened before making the announcement. I would also like to know if the meeting or the results of the meeting was communicated to the gang of 21 during the daily conference call with the Trading Desk to pass the word because for 20 minutes or so before the announcement the emini SP futures at least painted green 5 minute candles after the market had been down. Perhaps a coincidence, but I generally find coincidences to be low probability.

601143[/snapback]

 

Euro markets shot upwards about 8:15 ET. The "Kramer Kut" probably came across the boomberg terminal at that time.

 

edit: yup, here is the news, the headline could be even earlier than this small article:

Fed Cuts Discount Rate to 5.75%, Cites `Downside' Risks

Last Updated: August 17, 2007 08:16 EDT

 

http://www.bloomberg.com/apps/news?pid=206...90rc&refer=news

 

They had bottomed 45 minutes earlier, sure someone knew about it some minutes earlier.

[SPQR]

WOW....only 3 pages at 12:19 AM EST....everyone must be wiped out, I now I am.....oooooo-Faaaaaaaaaaaaaaaaaa

 

"Say good night Elsie"

 

"Uh"

 

"Good nite?????"

 

Incidentally, and this might be a good chart exercise for LW or someone....

 

NOW is the time for the next bubble....but where is it gonna get blown?

 

Mid-Late 1990's TECH

 

POP!

 

2000-2005 Real Estate

 

POP!

 

Where we goin' next?

 

All's I's Know's Is.....stocks that remain very flat for many years? all get their turn to blast upwards.....bad day for techs eventually turn around, bad days for the banks eventually turn around, bad days for industrials eventually turn around...etc, etc, etc

 

WHAT SECTOR IS NEXT?

601130[/snapback]

601151[/snapback]

Gold and Silver- I'm ready and waiting. Got gold in the 300's, and silver at 4.

[Jetlag]

In reading more about today's Fed action, it appears likely it was specifically aimed at the Countrywide crisis. Apparently the emergency meeting was requested by the San Francisco Fed, the district in which Countrywide is located (Calabasas, CA).

 

CFC writes 20% of the mrotgouges in the U.S., so it's a big player. And they just drew down their entire credit line of $11B. I imagine the banks they borrowed from wanted Fed assurances.

 

Many are also discussing the moral hazard behind today's Fed move, especially if it is specifically designed to "bail out" one player.

 

But if you want to see real moral hazard at work, check out the withdrawals by the Tan Man over the past two months. The f'er had the cojones to even dump stock this week. He probably dumped more today on the big schwang. All told, Tan Angelo has now dumped $536,348,378 worth of CFC in just the past two years. Who knows how much more he dumped prior to that.

 

Seems to me that it wouldn't be cricket for the Fed to prop CFC up and for other banks to loan it $11B unless the Tan Man himself kicks in...oh, let's say...$536,348,378. Heck, let's just round it down to an even $500,000,000. No need to leave the poor man without enough for toiletries and such.

 

UFB.

601138[/snapback]

 

It's amazing how much money you can steal out in the open without raising an eyebrow of suspicion.

[FauxCaster]

It will later pick the assets up at a severe (deleveraged) discount.

 

 

601148[/snapback]

 

Later smater. They are making back room deals right now -- prior to the "sudden" closure of the fund at some future date. All the choice assets will be carted off to the Old Guard under cover of darkness, and the carcass will be left for the original "investors" who should have known better. The sleaze at failing financial firms is unbelievable.

[FauxCaster]

In reading more about today's Fed action, it appears likely it was specifically aimed at the Countrywide crisis. Apparently the emergency meeting was requested by the San Francisco Fed, the district in which Countrywide is located (Calabasas, CA)....SNIP

UFB.

601138[/snapback]

 

It's amazing how much money you can steal out in the open without raising an eyebrow of suspicion.

601153[/snapback]

 

What's more out in the open than double-column accounting? Your deposit is my asset to loan funds on. Simple! Just don't ask for it back in an untimely manner.

[crazy_ate]

Hey, looky who made the cover of Barron's.....BWAAAAHHHHHHHH!!!

 

 

THANKS TO HIS NIGHTLY Crapvision SHOW Mad Money, Jim Cramer has become the chief cheerleader for the bool market, or what was the bool market until a few weeks ago. Last spring, he was giddily exhorting the Dow Jones Industrial Average toward 15,000, with no troubles in sight. Earlier this month, as the Dow tumbled in the direction of 13,000, he had an on-air meltdown, complete with screaming, sobs and predictions of financial doom. The clip quickly made the rounds on YouTube. Friday, after the Fed cut the discount rate, he said that the Dow's run to 14,500 had begun. With dramatic pronouncements like that, it's no wonder that more than 100,000 viewers tune in each weeknight for his antic mashup of sound effects, Streetwise advice and stock picks.

 

Link

[Schonthaler]

In reading more about today's Fed action, it appears likely it was specifically aimed at the Countrywide crisis. Apparently the emergency meeting was requested by the San Francisco Fed, the district in which Countrywide is located (Calabasas, CA).

 

CFC writes 20% of the mrotgouges in the U.S., so it's a big player. And they just drew down their entire credit line of $11B. I imagine the banks they borrowed from wanted Fed assurances.

 

Many are also discussing the moral hazard behind today's Fed move, especially if it is specifically designed to "bail out" one player.

 

But if you want to see real moral hazard at work, check out the withdrawals by the Tan Man over the past two months. The f'er had the cojones to even dump stock this week. He probably dumped more today on the big schwang. All told, Tan Angelo has now dumped $536,348,378 worth of CFC in just the past two years. Who knows how much more he dumped prior to that.

 

Seems to me that it wouldn't be cricket for the Fed to prop CFC up and for other banks to loan it $11B unless the Tan Man himself kicks in...oh, let's say...$536,348,378. Heck, let's just round it down to an even $500,000,000. No need to leave the poor man without enough for toiletries and such.

 

UFB.

601138[/snapback]

 

It's amazing how much money you can steal out in the open without raising an eyebrow of suspicion.

601153[/snapback]

 

*********************

 

Incorrect spellings to protect the innocent. This was a video interview on Bloomberg you can still catch it, so the following is only an individual interpretation subject to human error.

 

Another revelation late yesterday: Pimco is also connected to the CFC mess.

 

McCallie was on Bloomberg and was jubilant about the FED's action.

 

McCallie is certain of a 50 basis point cut on or before Sept 18th. And when asked about PIMPCO's involvement with CFC he absolutely declined to comment.

 

More amazing McCallie stated that FED needs to be fully at 100 basis points lower than it is today.

 

McCulley implied that the FED needs to rent out a big Stadium and announce the 50 basis point cut with a boolish horn, my paraphrase.

 

Another take away, was McCallie?s point that these moves should result in a resumption of risk taking. In other words the banks will be able to again loan money and finance deal making.

 

One must realize that these plans have been in place for months. The only issue was timing which even more amazing lined up with LeeWhee's 1380 scenario and it lined up with OpEx. The official ten percent correction is over has dictated.

 

The Swiss, Japanese, Taiwan carry trade will be back and all is right with the world again.

 

Announce: Everyone come back and blindly place your bets, you won?t loose. The official ten percent correction is over has dictated.

 

Our good friend, Ponzi is back. But for how long?

[DrStool]

Just a theory - maybe some of the experts on the board can confirm or deny.? Countrywide is a member of the Gang of 21, but they are not a bank.? They can borrow at the discount window, but can they borrow at the Fed Funds window?? Perhaps cutting the discount window was specifically aimed at propping up Countrywide.

601012[/snapback]

 

Absolutely correct, Done Coxe covered that on his call today.....

 

This stock had lines outside their offices yesterday to withdraw their money...

This will be the next Enron.....by the way CFC became a thrift in April to avoid the regulations of Federal banking institutions..They are now regulated by OFHEO, and the Tan man sold 330 million in stock since the spring.....This has GMTFO all over the stock...

601013[/snapback]

 

 

Maybe I didn't ask the question right.  Countrywide mostly has MBS to offload.  Can MBS be sold to the Fed at the Fed Funds rate, or does it need to be sold to the Fed at the discount rate?

 

The Fed has been keeping the actual Fed Funds rate below the target, obviously there is relatively little demand at that rate.  But clearly there is almost unlimited demand to offload MBS onto the Fed.  It feels like there is some kind of link to the relatively unusual move of dropping the discount rate and not the Fed Funds rate.

601014[/snapback]

 

Countrywide Securities Corporation is one of the Fed's 21 primary dealers. They are a direct participant in the Fed's daily open market operation repo auctions. In addition, any depositary institution can borrow at the discount window, but this is essentially only an emergency facility for banks that do not have access to the Fed Funds market, for whatever reason. The rate at the discount window has been set at a premium of 1% above the Fed Funds rate since the Fed changed the policy on use of the discount window in January 2003. Yesterday's move effectively lowered the premium for these emergency loans to problem children by 1/2%.

 

Is this a big deal?

 

No.

 

The Fed does not buy securities at the discount window. It makes emergency loans there.

 

The Fed does not buy MBS securities. At least they haven't yet. They hold no such securities in the System Open Market Account. http://www.newyorkfed.org/markets/soma/sys...ccholdings.html And in fact, as this accounting shows, they reduced the SOMA by over a billion in the week ended 8/15, and cut another $6 billion on Friday. Although the Fed Funds rate had traded well below the Fed's target of 5.25% throughout the week, at Friday's Open

Market Operations they had gotten the rate back to 5.35%.

 

The market's recovery was based in part on the expectation that the Fed may buy some of these MBS. That expectation may prove to be one of those false assumptions that Soros talked about. I haven't done the charts yet this weekend, but I suspect that the trend driven by the false premise may last all of a day and a half. We'll see.

 

My own guess is that the Fed will allow the worst of the crap credit and the crappy players to disappear from the firmament, but will save its firepower to save the biggest players in the banking system when the time comes. And that time is coming.

 

I was away yesterday afternoon, and I was listening to Gloomboomberg in the car. (I like Gloomboomberg Radio by the way. They tend to do real reportage and be pretty even handed.) One of the pundits, I think MacCulley of Pimco (but don't quote me on that) made the point that the real reason for the rally was the Fed's statement in the morning because the Fed suddenly woke up and the downside risk to the economy had ''increased appreciably.'' Well, Surprise, surprise surprise! Can you imagine that?

 

''Financial market conditions have deteriorated, and tighter credit conditions and increased uncertainty have the potential to restrain economic growth going forward. In these circumstances, although recent data suggest that the economy has continued to expand at a moderate pace, the Federal Open Market Committee judges that the downside risks to growth have increased appreciably. The Committee is monitoring the situation and is prepared to act as needed to mitigate the adverse effects on the economy arising from the disruptions in financial markets.''

 

The players took this as a signal that the Fed will cut the Fed Funds rate imminently and that that is wildly boolish, if we judge by the result as wildly boolish.

 

It sounds to me that the Fed is saying that the Wall Street Journal's ''Best Economy in World History'' may just be on the verge of collapse. The market's knee jerk reaction was to judge that as boolish.

 

We'll just have to see about that.

 

Anyway, there's been a lot of nonsensical speculation floating about these parts the last couple of days. My job is to supply you with the facts and let you decide for yourself what you think is likely. I hope that this little clarification helps you to think clearly on these matters. I report, you decide.

[fxfox]

The long term view

 

Nasdaq 100 monthly log chart with log fibos

 

Chart ?ffnen

 

Chart ?ffnen

 

 

S&P 500 monthly log chart with lin fibos

 

Chart ?ffnen

 

Chart ?ffnen

[patents]

THANKS TO HIS NIGHTLY Crapvision SHOW Mad Money, Jim Cramer has become the chief cheerleader for the bool market, or what was the bool market until a few weeks ago. Last spring, he was giddily exhorting the Dow Jones Industrial Average toward 15,000, with no troubles in sight. Earlier this month, as the Dow tumbled in the direction of 13,000, he had an on-air meltdown, complete with screaming, sobs and predictions of financial doom. The clip quickly made the rounds on YouTube. Friday, after the Fed cut the discount rate, he said that the Dow's run to 14,500 had begun. With dramatic pronouncements like that, it's no wonder that more than 100,000 viewers tune in each weeknight for his antic mashup of sound effects, Streetwise advice and stock picks.

 

601156[/snapback]

 

TV is for entertainment purposes for the masses. If you want information/education, read a book.

 

Cramer is nothing more than an actor, comedian, or other mouthpiece spouting the party line like any propaganda machine.

 

Give the guy a break. What do you expect for a TV personality on such a business network? WE are the ones who have created such a monster.

 

The constant mentioning of him just seems to feed the effect.

 

Pardon my venting.