FOMC HedgeFund Meeting: Coming Up
86 replies to this topic
Posted 17 March 2005 - 03:19 PM
Had to leave the office early today....
A short one posted over at WSE.....
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The Weimar Run: Bullphoria!!!!
Posted 17 March 2005 - 05:05 PM
Miss Francis 'Fannie' Fubar, age 36, was run over by a truck today, smashed to fresh 4-year lows and left for dead in the Street.
Fannie is not merely the second largest financial entity in the country, after Citibank. Via her mortgage securitization, she's an engine of Real Estate Asset Inflation, the motor of Bubble II. With a balance sheet larger than the Federal Reserve's, Fannie is arguably a larger creator of money and credit than the Fed itself.
Make no mistake: Fannie is a vital keystone of the US Ponzi Pyramid economy. If this Engine of Asset Inflation is shut down, the Fed will face grim choices in replacing Fannie's firehose of credit creation.
One option would be to ramp up flows through Al Leeson's 'FOMC Cayman branch.' However, boosting the 'back channel' from tens to hundreds of billions a quarter poses serious 'visibility' problems.
But replacing Fannie's liquidity through the front door -- by accelerating the Fed's balance sheet growth from $50 billion to $200 or 300 billion a year -- would be a public clarion call for hyperinflation and dollar collapse.
We can't know what the desperate loonies at the helm of the Ponzi Pyramid economy will do next.
But the Fannie collapse is only the beginning, not the end, of a dismal process.
Fannie is SCREAMING DANGER to anyone who will listen. The warning is not just about FNM stock. It's about ALL paper securities, including the dollar.
The hour has grown very, very late. When the true state of Fannie's shareholders equity (or lack thereof) is revealed, an 'air pocket' could result. There's no need to be one of the bagholders. Just run like hell.
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Posted 17 March 2005 - 05:22 PM
short on SMH worked out while i was away
and hmy calls still lookin good
think i'll go down to chile more often...
Posted 17 March 2005 - 05:26 PM
Latin America got sold, I was lucky to get out of that long
Looks like it's gonna bounce hard now, though....
Posted 17 March 2005 - 05:34 PM
Oh, come on - after all, the American Dream of home ownership must not be allowed to die. And its a consumers dream source of money when their wealth caused by property appreciation is unlocked via the magic of a refi or HELOC. I'm sure the various news items we've seen on Fannie are just minor, transitory problems. Surely Fannie must be a bargain at these prices - can't you see that its a good investment for the future of America, not a fetid steaming putrescent mess? And after all, how bad could it be?
Posted 17 March 2005 - 05:36 PM
Close: Surging oil prices again weighed on sentiment, as investors found only enough comfort from respectable economic data, strong earnings reports and a flurry of new deals to close the indices in subdued fashion... While the S&P and Nasdaq eked out modest gains, the Dow closed just below the flat line, dragged lower by extended weakness in General Motors (GM 28.35 -0.66)... Getting under the skin of many an investor again were higher oil prices, as choppy trading in the commodity played havoc with equities from start to finish...
While crude oil futures earlier flirted with $58/bbl, amid concerns that OPEC's recently raised output quotas may not be large enough to meet demand, late-day profit taking actually closed the commodity to the downside ($56.40/bbl -$0.06)... Energy, however, still paced the way to the upside while strength in Steel (+1.8%) was enough to offset a stronger dollar and a sell off in Gold ($439.10/oz. -1.2%) to close Materials (+1.0%) in positive territory...
Posted 17 March 2005 - 05:42 PM
the exciting fast-paced world of international currency trading with 200:1 FX leverage has turned out to be, uhm...a little too exciting and fast-paced
so this leaves me with only three other choices
1. fire my boss and run my own home-based business earning thousands of dollars a day from the comfort of my living room wearing pajamas, as an Ebay Power Seller
2. take advantage of the unlimited demand from gourmet restaurants right here in my local area and get my share of the huge profits from growing delicious exotic mushrooms in my basement
3. follow in the footsteps of millions of other purchasers of the $495 book/cassette/CD/DVD/VHS starter package and learn how I too can build my own real estate empire using OPM
maybe I'll just jump back on the FNM highway to hell and ride it all the way down to zero
Posted 17 March 2005 - 05:44 PM
from what I gather they were expected to miss expectations - seriously. but it sounds bad if they requested a halt. up 1.13 today, no fear of buying in before yearnings even though it had disasterous results for bagholders last qtr.
Posted 17 March 2005 - 05:45 PM
Last few days there was a wipeout in emerging market debt
Hedge funds are aggresively selling this market.
Look at this chart of one of the most important EM debt funds of all..... looks like it's breaking down and about to turn into one of those waterfall events
Posted 17 March 2005 - 05:47 PM
most people who are sold high-yield bond funds don't listen when they are told about the principal risk
all they wanna think about is the yield
until arbitration time
Posted 17 March 2005 - 05:47 PM
PLMO resumes down 3 bucks from close...suck 'em in and whack 'em over the head...
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