capitall Posted August 28, 2009 Report Share Posted August 28, 2009 Investors still trading Fannie, Freddie, AIG shares, even though prices are likely to hit zero WISHINGTON D.C. (AP) -- Investors are still trading common shares of Fannie Mae, Freddie Mac and American International Group Inc. by the billions, even though analcysts say their prices are almost certain to go to zero. The Securities and Exchange Commission and other regulators lack authority to end trading of stocks in such "zombie" companies that technically are alive -- until the government takes them off life support. Analcysts say the wind-down strategies for the companies are almost sure to wipe out any common equity, making their shares worthless. "People have done well by trading them (in the short term), but when it gets to the end of the road, these stocks are going to be worth zero," said Bose George, an analcyst with the investment bank Keefe, Bruyette & Woods Inc. Yeah, you hear of the Greater Fool Theory, but this has taken it to new extremes. Link to comment Share on other sites More sharing options...
shorty Posted August 28, 2009 Report Share Posted August 28, 2009 Toyota Motor Corp. has decided to shut down its plant in Fremont, Calif., the last auto-assembly line on the West Coast. The decision to pole-axe all 4,600 American workers was handed down Thursday by Toyota's board. Friends of Nummi, a group that has been fighting to keep Nummi open, said the plant receives supplies from about 1,000 companies throughout California. The group estimates about 50,000 California jobs are tied to the plant. another 45,400 chop-chops possibre Link to comment Share on other sites More sharing options...
BusKow Posted August 28, 2009 Report Share Posted August 28, 2009 a pic of the year Link to comment Share on other sites More sharing options...
Jimi Posted August 28, 2009 Report Share Posted August 28, 2009 Investors still trading Fannie, Freddie, AIG shares, even though prices are likely to hit zero WISHINGTON D.C. (AP) -- Investors are still trading common shares of Fannie Mae, Freddie Mac and American International Group Inc. by the billions, even though analcysts say their prices are almost certain to go to zero. The Securities and Exchange Commission and other regulators lack authority to end trading of stocks in such "zombie" companies that technically are alive -- until the government takes them off life support. Analcysts say the wind-down strategies for the companies are almost sure to wipe out any common equity, making their shares worthless. "People have done well by trading them (in the short term), but when it gets to the end of the road, these stocks are going to be worth zero," said Bose George, an analcyst with the investment bank Keefe, Bruyette & Woods Inc. Honestly. We're like the beauty queen turned crackho whose degeneration is so exquisitely incremental, that you can't mark the turning points. This is an efficient market? This is the glory of New York City? This is the allocation of scarce capital? This is the public good byproduct of deregulation? Frenetic trading in shares of insolvent firms kept temporarily alive by public fiat? What on earth could be next??? How about... Frenetic trading in bonds of insolvent nations kept temporarily alive by foreign fiat? This is all so stupid. This rally is so fricking annoying that I want to scream my fricking head off. I am so-o-o-o with Shorty - 500 might be a reasonable place for a bounce. But there's nothing reasonable anymore about Yankee finance.... Link to comment Share on other sites More sharing options...
Charmin Posted August 28, 2009 Report Share Posted August 28, 2009 Retailers and consumers in a death spiral It apparently doesn't matter what the consumers are doing. The white house pigmen might have in mind to allow the market to levitate higher if they have someone that needs a political payback. Mr. G is in charge and I'll bet Helicopter Ben assured them he's got more helicopter runs to make. Where is the point of recognition for selling if it doesn't come around the highs of this week? Link to comment Share on other sites More sharing options...
Jorma Posted August 28, 2009 Report Share Posted August 28, 2009 Wonder if he will capitulate today....he's been leaning short for a while looking for that correction while the other speed freaks have been flipping sides like bi polar squirrels.. ..........."You gotta own it...Just Gotta have it !.....Just Gotta!".... " Look at the call action in DLTR...just gotta be in there ! Gotta love that "space"" I think when we do top we'll see some sort of euphoric needle candle and shank....not even sure volume matters anymore as it's been pathetic for so long...The pigmen will let her go when they feel like it. On the last part, the pigmen will let her go, I think those days are over. I think we have passed another milestone like we did on Black Monday 1987. My often told tale is that on Black Monday 1987 the Bond Vigilantes retired. There was a dilemma. The dollar was tanking and bonds were tanking. The Feds hands were tied as far as being particularly easy. The money supply was the fetish. Any uptick was met with bond selloffs and visions of the 70's and Milt Friedman. The market crashed that morning. Mostly because of internal dynamics having to do with futures markets in stock indexes and a silly thing called portfolio insurance. Meaning everyone hit the sell button on futures to hedge at one instant and the market froze. Greenspan, a few weeks on the job said the Fed will provide all the liquidity necessary. According to my story everyone on The Street looked at each other and said, hell yes. Screw the dollar, screw the damn worry wart Bond scolds. We'll take your money Al, and love it. Treasury bond prices exploded up at midday. The rest is history. All the old rational arguments about too much money growth and or even the damn dollar were swept aside when it was realized how all that was needed was that liquidity backstop and the Street was in business. It took a few years but The Street learned how to keep the liquidity at home and inflate asset prices endlessly, and not call it inflation. Corporate assets could be inflated almost endlessly, and it was good. It was good for America. It was good for everyone. Well everyone who counted. My idea now is that the Street, the big boys, won't push the short side anymore. That might mitigate rallies going forward but the rewards are worth it. Don't bet against the house for a short term gain. It's all a rather sloppy story Link to comment Share on other sites More sharing options...
DrStool Posted August 28, 2009 Author Report Share Posted August 28, 2009 Crazy Not To Feel Crazy- Professional Edition by Lee Adler, Thursday, August 27, 2009, in Professional Edition, Today's Markets | Permalink |Comments (0) Edit The market continues to frustrate bears and make bulls supremely confident. That’s often a recipe for a negative surprise. At this point there’s little sign of one. Of course if there was, it wouldn’t be a surprise. For sure, many charts are on the razor’s edge. So nothing would be a surprise. Confused? Welcome to the real world, which right now is so full of ambiguity and bizarre happenings, like the rallies of the AIG, FNM, and FRE zombies, and Treasuries refusing to give ground in the face of massive supply, you’d have to be crazy not to feel that you were losing your mind. Click here to download complete report in pdf format (Professional Edition Subscribers). Try the Professional Edition risk free for thirty days. If, within that time, you don’t find the information useful, I will give you a full refund. It’s that simple. Click here for more information. Link to comment Share on other sites More sharing options...
Jimi Posted August 28, 2009 Report Share Posted August 28, 2009 Source Link to comment Share on other sites More sharing options...
cwd Posted August 28, 2009 Report Share Posted August 28, 2009 I don't think anyone knows whats gonna happen here but every tool the media used in the past two bubbles they are using in this rally. Today's bear market lasted two hours. The other day...an hour if that. Maybe that means we are getting closer to some sort of pullback. The most noticeable similarity to the past two moral hazard moonshots is the lack of pullbacks which is forcing people earning zero % ( Grennies housing bubble) back into the market at sheet prices. In this yet to be "named bubble" the government is the new "host" like some monster in the movie in Alien and the the new trimmed down Wall Street mafia Families have finally enticed people to come back into the breeding ground for gamblers where no one knows or cares what anything is worth...just that its moving up....or down in very rare cases. The word 'investor' should be stripped from the wall street vocabulary....the Fed and fraudsters have destroyed the markets and the essence of "fair" price discovery...this is the pool we play in knowing it can go far beyond we imagined and get shanked because Art Crashin flicked a booger at Bob Lesko at the most unexpected time wiping out billions of dollars of market cap in six hours.. I have come to a conclusion that we have to have bubbles or we will crash. Mal investment, inefficient use of capital, thuggery, front running, the Du Page county Fair cow auction price target game, any news is good news, "discounting" bullsheet, "you gotta be in", I pledge allegiance to the Fed Flag Pole patterns, stepping over a lowered bars, ....we should be used to this. No one's gonna sit around waiting for a U bottom. We trade in dog years. The trick is to know when to have no fear of buying crap and when it's ending. As for why I look at the markets as only a collection of numbers...the 4 horsemen that saved today are essentially bankrupt. It is what it is...a busted system making the same mistakes over and over that's going up without pullbacks....for now. I think this stage of the ramp is late in the game but I'm sure the pig men want to go out with a blaze of high volume glory. Even then, I'm not sure it's worth shorting for longer then a day given the fact the government is gonna be throwing sheet at the wall and coming up with new gimmicks the rest of the year. Just keep an open mind. This is gonna end in tears again but remember how long the last two bubbles lasted. Great post. Link to comment Share on other sites More sharing options...
mdporter Posted August 28, 2009 Report Share Posted August 28, 2009 Toyota Motor Corp. has decided to shut down its plant in Fremont, Calif., the last auto-assembly line on the West Coast. The decision to pole-axe all 4,600 American workers was handed down Thursday by Toyota's board. Friends of Nummi, a group that has been fighting to keep Nummi open, said the plant receives supplies from about 1,000 companies throughout California. The group estimates about 50,000 California jobs are tied to the plant. another 45,400 chop-chops possibre The East Bay is going to take up the keister for sure. There won't be any tech jobs for these people to apply for. NUMMI was the last big manufacturing plant in the area, everything else is gone. Lots of overpriced home mortgages were tied to that plant. Maybe me and Jimi can get a place on closeout in Milpitas. Jimi the Bay doesn't smell too weird there, really. Link to comment Share on other sites More sharing options...
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