wndysrf Posted January 31, 2005 Report Share Posted January 31, 2005 As usual, we'll see the occasional bailout from time to time. Remember the Mitsubishi ads? The 20 somethings all piled into a brand new Eclipse, racing through the 2nd St. tunnel, partying, on the brink of pulling over and having an orgy? From the looks of the driver and occupants, you wonder how they could afford any car payments. Of course, Mitsubishi's zero down, zero interest, zero payment program crashed and burned, sending Mistubishi's stock into a tailspin. But fear not.... From today's WSJ: Mitsubishi Motors Gets Infusion Of $5 Billion in Fresh Capital By JATHON SAPSFORD TOKYO -- Japan's Mitsubishi group of industrial and financial companies has arranged to pump more than $5 billion in fresh capital into Mitsubishi Motors Corp., the latest move in a costly effort to revive a car maker with finances deteriorating so quickly that it is now losing more than $12 million a day. ............................................. No doubt, the most crowded trade on the planet right now is the "curve flattening trade"................ Wonder if Leeson drops a bomb on Wednesday and causes a reversal........ U.S. Long Bond Shows Sparkle Amid Nascent Boom in Demand, Buying By Pension Funds, Speculative Trades Cited By AGNES T. CRANE NEW YORK -- Take a complicated overhaul agenda for underfunded pension plans, add a certain murkiness that obscures who is buying and selling Treasurys and it is no surprise a gold rush is on in the 30-year Treasury bond. One of the most-cited reasons behind the rise in the long bond this year is that pension funds are grabbing for longer securities to better match their long-term liabilities. That the Pension Benefit Guaranty Corp., the federal agency that insures private defined-benefit pensions, is facing a shortfall of $23 billion and is the subject of a proposed overhaul also has fueled speculation that longer-dated Treasurys are the ones to own. Throw in the fact that the Treasury Department stopped issuing 30-year bonds more than three years ago, and moving out to the furthest reaches of the Treasury curve looks like a no-brainer, the reasoning goes. Some reckon that speculators such as hedge funds and proprietary trading desks -- who either anticipate an eventual shift in pension-fund demand or want to take advantage of higher yields at the far end of the Treasury market spectrum -- are behind much of the hype. ....................................... And the deflationists continue to harp on the "multiple head and shoulders topping pattern" on the CRB, yet several commodities continue to get Steve McQueened and run back to new highs.......... Housing bears need to pay attention, as a construction boom here in California continues full speed........... Lumber Contracts Hit New Highs Amid Optimism By LESTER ALDRICH KANSAS CITY, Kan. -- The Chicago Mercantile Exchange's lumber futures market Friday set contract highs and closed sharply higher amid a flurry of fundamental and technical chart bullish sentiment. March-delivery lumber futures rose $9.40 to settle at $387.90 per 1,000 board feet, just under that contract high of $388.70 set earlier. May and July futures also posted new contract highs. The market started firmer, supported by follow-through buying after March's daily exchange-imposed limit higher close on Thursday, said Brian Leonard, floor trader and broker for Rosenthal Collins Group LLC. Furthermore, Brandon Court, floor trader and broker for F.C. Stone & Co., said some of the opening buying interest stemmed from increased cash market activity at the mill level late Thursday. Commercial traders and speculators responded by buying on the open to take prices higher. Additional technical chart-driven buying interest was triggered on the open when the first trade was above the triple-top of the nearby March contract at $379.00, said Bob Book, senior lumber anal cyst at TJ&R Trading Corp. A triple-top is when the market rises to a certain price level in three different trading sessions. British Columbia spruce-pine-fir cash markets remained active, and as reports of this circulated in the pit, more traders began to fill short positions and to take on fresh longs, Mr. Leonard said. A short position is a bet prices will fall, while a long position is a bet prices will rise. Market participants said a lack of commercial hedging and limited sales in the cash market also underpinned futures. A large portion of the buying interest in Friday's futures market was chalked up to commodity fund-style traders. Mr. Leonard said some were adding to already long positions as the market made new highs, and some were responding to internal market triggers as lumber breached important technical-chart levels during the rally. ................................... No other breaking news is expected until Wednesday's Open Mouth Committee...... Lumber futures shown below........ Link to comment Share on other sites More sharing options...
wndysrf Posted January 31, 2005 Author Report Share Posted January 31, 2005 HGX closes at HOD. Seems to be following the lumber.......... Link to comment Share on other sites More sharing options...
Guest Posted January 31, 2005 Report Share Posted January 31, 2005 re: Mitsubishi Motors... why aren't bad and failing companies allowed to fail anymore? Always a rescue just around the corner, tax dollars used to benefit the few. No penalties for poor decision making. It's like the normal rules of life are suspended when a group of individuals incorporate. Link to comment Share on other sites More sharing options...
wndysrf Posted January 31, 2005 Author Report Share Posted January 31, 2005 Good day on CFC and NEW. FRE and FNM still trading like sick dogs, though.................... FRE closed near the LOD. Whether or not these two can recover will tell us if there is another leg up in the Bubble Sectors. Link to comment Share on other sites More sharing options...
soup Posted January 31, 2005 Report Share Posted January 31, 2005 wndy: Fof gods sakes, housing is freaking over. Sales are down and inventories are at 40 year highs. But as far as the hgx goes, that is what the big funds are long. The price of the homebubblers HAS NOTHING TO DO WITH THE FUNDAMENTALS OF THE RESIDENTIAL REALA ESTATE MKT. THese are guys are fornicateing lemmings and would not know how to properly value assets if their fornicateing life depended on it. Link to comment Share on other sites More sharing options...
wndysrf Posted January 31, 2005 Author Report Share Posted January 31, 2005 wndy: Fof gods sakes, housing is freaking over. Sales are down and inventories are at 40 year highs. But as far as the hgx goes, that is what the big funds are long. The price of the homebubblers HAS NOTHING TO DO WITH THE FUNDAMENTALS OF THE RESIDENTIAL REALA ESTATE MKT. THese are guys are fornicateing lemmings and would not know how to properly value assets if their fornicateing life depended on it. <{POST_SNAPBACK}> Not so, Soup..... RE is still booming here in California, Phoenix, Vegas, etc. Hasn't slowed down yet................ We continue to make construction loans and get paid off on a daily basis, and the selling prices are almost always higher than our original appraisal value. We are being very careful, not being too aggressive, but don't want to be left behind either.......... Link to comment Share on other sites More sharing options...
wndysrf Posted January 31, 2005 Author Report Share Posted January 31, 2005 For the gold bulls.......... Getting very close to a turn.......... Link to comment Share on other sites More sharing options...
soup Posted January 31, 2005 Report Share Posted January 31, 2005 wndy: yeah whatever. Why no go buy a mcmansion, gtd double? HUH? Link to comment Share on other sites More sharing options...
Sudaca Posted January 31, 2005 Report Share Posted January 31, 2005 re: Mitsubishi Motors... why aren't bad and failing companies allowed to fail anymore? Always a rescue just around the corner, tax dollars used to benefit the few. No penalties for poor decision making. It's like the normal rules of life are suspended when a group of individuals incorporate. <{POST_SNAPBACK}> I don't think there are any tax dollars involved here. It's private money going into the money pit. Probably some guy trying to save the company long enough to get some debt paid back before the company defaults or something. Link to comment Share on other sites More sharing options...
soup Posted January 31, 2005 Report Share Posted January 31, 2005 vegas: Where they fornicateing lowered prices by a 100+ grand? Give me a fornicateing break with all this bubble talk. Link to comment Share on other sites More sharing options...
wndysrf Posted January 31, 2005 Author Report Share Posted January 31, 2005 Where is GTNWORSE?? Does he still own CAMP? Up $7.50 AH, a 100% gain.......... Link to comment Share on other sites More sharing options...
soup Posted January 31, 2005 Report Share Posted January 31, 2005 SUDS: THere is govt money behind that. Link to comment Share on other sites More sharing options...
soup Posted January 31, 2005 Report Share Posted January 31, 2005 Oh well I am out of here. HAve fun at marks bubble camp. Where linear thinking dominates in a non linear world. Link to comment Share on other sites More sharing options...
wndysrf Posted January 31, 2005 Author Report Share Posted January 31, 2005 ARBA clocked for 10% AH.......... Dippers were burned on this one...... Link to comment Share on other sites More sharing options...
Ned38 Posted January 31, 2005 Report Share Posted January 31, 2005 I'm showing CAMP up a penny AH Link to comment Share on other sites More sharing options...
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