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What Will They Think Up Next


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I don't think it's coincidence that the great investment banks went mad at the same time they went public. That they took the whole system with them and thus killed themselves is just a measure of how mad everyone got. Still, the flaws of the great publicly held corporations are being laid bare now. When the investment banks were private partnerships they were hardly saints but at least they had some restraint. When they started playing exclusively with other peoples money all restraint was lost.

 

Noland finally rang in late today and noted that all hell really broke lose after they let LEH go down the tubes. With so much happening last week gigantic events were forgotten within hours but I think he may be on to something. That the LEH failure started the crash. He thinks that was a miscalculation by Paulson but I'm not so sure.

 

After all, now Paulson is set to become, indirectly, the richest person in the world with no legal restraint on him at all. One might say he becomes the most powerful person in the world, for a few months. Now that GS is set to become the worlds biggest bank and the beneficiary of the very very best deals on distressed assets, with short term funding provided by the Fed, he'll probably go back there soon enough. By which time being Treasury Secretary of a bare ruined Treasury will have gone from most powerful job in the world to the worst.

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The democrats have not been scared enough, apparently.

 

Bush team, Congress negotiate $700B bailout

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When was the last time the Bush administration used scare tactics? Answer - the Iraq war - remember..."If we don't do something about Iraq now there will be mushroom clouds in our future"......Now how did that turn out? :rolleyes:

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the proshares site says precious little about the halt to SKF trading last friday.

 

here be some insights from a detailed morningstar spiel:

 

So long as ProShares is unable to find counterparties to short the index, it will continue to allow only redemptions and not creation of new shares. This will prevent the ETFs from trading at a discount, but it will allow them to trade at a substantial premium (as no authorized participants can arbitrage the premium away by creating new shares and selling them until the premium disappears). We've already noticed the SKF trade at a 5%-6% premium over net asset value. . . .

 

Investors who already own SKF or SEF can sell the funds at any time because trading has recommenced, and since redemptions are still allowed, there is little risk of selling at a discount. In fact, there may be a good chance of selling at a significant premium sometime before this situation resolves itself.

 

http://news.morningstar.com/articlenet/art...253823&pgid=rss

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the proshares site says precious little about the halt to SKF trading last friday.

 

here be some insights from a detailed morningstar spiel:

 

So long as ProShares is unable to find counterparties to short the index, it will continue to allow only redemptions and not creation of new shares. This will prevent the ETFs from trading at a discount, but it will allow them to trade at a substantial premium (as no authorized participants can arbitrage the premium away by creating new shares and selling them until the premium disappears). We've already noticed the SKF trade at a 5%-6% premium over net asset value. . . .

 

Investors who already own SKF or SEF can sell the funds at any time because trading has recommenced, and since redemptions are still allowed, there is little risk of selling at a discount. In fact, there may be a good chance of selling at a significant premium sometime before this situation resolves itself.

 

http://news.morningstar.com/articlenet/art...253823&pgid=rss

691315[/snapback]

 

So you can sell but not buy? Or you can buy, but only at a premium?

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Attention all Stoolies that are US Citizens:

 

This week it is your duty as Americans to let Congress know that they are not to pass this crappy bailout legislation. It doesn't matter if you think it is futile to try. Each day you must fax your senators and your house rep (and not with a recycled fax). Each day you must call both their local and Washington offices.

 

If you don't do this, Paulson and his Goldman Sachs banker boyz win. All the Boyz win. They will laugh all the way to the bank on our dimes, then they will live to steal even more from us, our kids, and our grandkids.

 

THIS HAS TO STOP.

 

No bailouts of US institutions that were criminally negligent an unresponsible

 

NO BAILOUTS OF ANY FOREIGN BANKS at US Taxpayer expense, just because they bought shitty paper and want their money back.

 

NO BAILOUTS of GM or Ford, of bad student loan debt, or bad car loans.

 

JUST SAY NO, AND DO IT EVERY FREAKIN' DAMN DAY.

 

If you don't, we're toast.

 

Sincerely,

 

me, my wife, and my little girl Emma

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Although Congress Critters mainly respond to lobbyists rather than citizens as I mentioned before, I have to admit that if enough of us contact them often enough it will have an effect. Lobbyists finance campaigns-- but if no one believes the lobbyist-financed political ads, the Congress Critter will have no votes and will be put out of office. Although many of them are dumb, they are probably not too dumb to grasp this concept.

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When was the last time the Bush administration used scare tactics? Answer - the Iraq war - remember..."If we don't do something about Iraq now there will be mushroom clouds in our future"......Now how did that turn out?  :rolleyes:

691314[/snapback]

 

Exactly.

 

Bush Administration failed to show the evidence of the WMD and anyway went to war. I was disgusted.

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So you can sell but not buy? Or you can buy, but only at a premium?

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seems as though you can both buy and sell existing shares, but at a premium.

 

if a bunch of new money heads toward these two inverse funds, new shares won't be created for the time being; instead, the demand will go up for existing shares, which will be good for those already holding SKF shares and not so good for those about to shell out for the privilege.

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THE GREAT WALL OF FALL STREET

 

$700 billion of firewall to stave of the default virus.

 

How long will it last.

 

They need to borrow it all from the FCB's.

 

In order to save the FCB's :ph34r:

 

I wonder if the FCB's realise they are paying for their own rescue.

 

Beacause they certainly are not getting the money from John Q taxpayer or Fall street bankers.

 

The fall street bankers certainly arent lining up to recapitalize these institutions with their bonus money.

 

They are lining up at the gold window. B)

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