Global Correction

[bingobongo]

Yen down, oil down, gold down, $ up........and the AAA tranche bounced up and viola......DOW up 320.......dont worry this is just a dead cat bounce, the trend is still down........AAA, AA, A tranche are still circling the bowl.......

AAA tranche as of Nov 13, tranche bounced and so did DOW, NASDAQ, and S&P, but alas this is only temporary

[lannarebirth]

Analysis Of Subprime Fiasco.

Despite it's racism pretty funny:

http://nl.youtube.com/watch?v=SJ_qK4g6ntM

[sonicdragon]

Analysis Of Subprime Fiasco.

Despite it's racism pretty funny:

http://nl.youtube.com/watch?v=SJ_qK4g6ntM

Excellent

[bingobongo]

after conducting a little research, the FED pumped $11.25 BILLION (not million) into the system yesterday (Nov 13), and viola the $ is down today, gold up, the AAA tranche bounced and the DOW rocketed 320 points, this kind of greasing may help the DOW in the short turn, but the $ will turn to confetti and gold will resume its climb, regardless, this money will be eventually withdrawn

[fletchsmile]

Analysis Of Subprime Fiasco.

Despite it's racism pretty funny:

http://nl.youtube.com/watch?v=SJ_qK4g6ntM

Excellent. Didn't really find it racist tho'.

[highdiver]

Analysis Of Subprime Fiasco.

Despite it's racism pretty funny:

http://nl.youtube.com/watch?v=SJ_qK4g6ntM

the best post on economy all year...

Well dona Lana.

I think everyone including Bingo should view this.

[highdiver]

this is the part where they discuss the bankers from the UK

excelent!!

http://nl.youtube.com/watch?v=axAjb6fDsPY&NR=1

[chinthee]

That was great. I love the "High-Grade" names part. Thanks Lanna

[lannarebirth]

That was great. I love the "High-Grade" names part. Thanks Lanna

Is your sabbatical over? Don't be a stranger.

[chinthee]

That was great. I love the "High-Grade" names part. Thanks Lanna

Is your sabbatical over? Don't be a stranger.

Hah! Thanks, yeah I guess I'll hang around here again.

[lannarebirth]

But cash funds are a safe investment.....

GE Fund Latest Victim of Subprime, Mortgage Losses

Reported By:Steve Liesman

Investors in a $5 billion cash management fund run by General Electric have become the latest victims of the subprime mortgage meltdown.

CNBC has confirmed that a short-term cash management fund, which attempts to keep the value of each share at one dollar ... and offer enhanced returns above money market rates, is instead offering investors just 96 cents on the dollar.

The fund is not a money market fund, which is subject to much more stringent regulations than a cash management fund.

A spokesmen for General Electric , the parent company of CNBC, says no other GE cash management funds are offering investors less than a dollar.

The story first appeared earlier today in Barron's online and traders say it was a major reason for the sharp late-day selloff.

In recent days, several asset managers, whose funds were infected by bad subprime paper, have injected cash into their money funds to avoid breaking the buck. You may have heard that phrase on CNBC today: It's when an asset management fund offers less than one dollar per share.

The GE spokesman said the company had no plans to inject cash into the fund, called the GE Asset Management Enhanced Cash Trust.

The fund holds cash from outside investors, the General Electric pension fund and other GE employee benefit plans.

Barron's says that as of June 30, the fund has about one-third of its assets in home-equity asset-backed securities and about a quarter in residential mortgage securities (jeeeezus!)

Edited November 15, 2007 by lannarebirth

[bingobongo]

on Nov 13, when the DOW rallied 320 points, notice the DARK BLUE (aka sloshing) bar in the chart for that day....do you notice something?......and the smaller dark blue bars on Nov 14 coincides with lower markets.....strap in kiddies, the FED cant hold the dam forever......and Asia and Europe will follow

that is where the 11.25 BILLION i referred to in my previous came from (51.5-40.25)

the dark blue bar (sloshing) represents FED money injection into the system to alleviate the seized up credit markets

this info has 1 day lag and are estimated going forward, so Nov 15 data is estimate

Edited November 15, 2007 by bingobongo

[disgruntled]

I'm leaning more towards sitting on the sidelines now. I can't see my stocks staying where they are. If I get out I'll save a little then I'll get back in when things aren't so crazy. Only the real experts can do well in this crazy up and down market. But of course the experts will insist that anyone can make a profit. There are endless articles: 10 stocks that will weather the storm. How you can profit from this market. Making money in a deary market. etc etc The market people want our money whether things are bad or good. I know a motorcylce shop owner who sells bikes; he's gald to sell them but would never let his own kids have one.

Generally the feeling from what I am hearing is that things aren't going to get better until sometime next year at the earliest. Maybe its better to wait after all.

[bingobongo]

you cant put band-aids on a leaking dam forever.......its coming

Fed Pumps Over $47 Billion Into Financial System

The Federal Reserve on Thursday pumped its biggest temporary daily infusion into the U.S. banking system since just after the September 11, 2001 attacks as short-term lending rates rose on both sides of the Atlantic.

http://www.cnbc.com/id/21821095

Edited November 16, 2007 by bingobongo

[keemapoot]

you cant put band-aids on a leaking dam forever.......its coming

Fed Pumps Over $47 Billion Into Financial System

The Federal Reserve on Thursday pumped its biggest temporary daily infusion into the U.S. banking system since just after the September 11, 2001 attacks as short-term lending rates rose on both sides of the Atlantic.

http://www.cnbc.com/id/21821095

And what? There's plenty more of that where it came from. I mean really, consider the size and influence of what the Fed does and everything else pales by comparison.

What are you looking for exactly?

[disgruntled]

I think yesterdays selloff in Ny is really the beginning of down days now. There's just too much news against things going up. The markets are turning red fast at the moment.

[tingtong]

sometimes when everybody thinks it is the end of the world, that is exactly when things turn around. never know. sure, now there is many pessimist in the moment.

[lannarebirth]

sometimes when everybody thinks it is the end of the world, that is exactly when things turn around. never know. sure, now there is many pessimist in the moment.

Really? Everyone I know is bullish. I went the other way at yesterdays US close. Pretty dangerous in light of seasonality but let's see what happens. Futures say, so far so good. Bond rally is saying something.

[samran]

Maybe as a reality check:

The Australian economy (as far as Alan Greenspan is concerned) is sometimes seen as a bit of a predictor of what happens in the US, that is, the economic cycle with housing, interest rates etc is usually a couple of years ahead in OZ.

Now, I clearly remember not to long ago around 2001 - 2002 the Australian economy was a seen to be bogged down, the AUD was at all time lows against the greenback, and a basket of other currencies (the Barmy army were chanting "It's gold, its round, three dollars to the pound, eng-er-land - eng-er-land), there was a brain drain from Australia, the housing market was depressed for a bit etc, etc, etc.

Fast forward to the past three years, and the Australian economy is going gang-busters.

Now, mining boom aside, maybe Mr Greenspan has a point?? It is easy to be negative about the US economy at the moment, but he's been in the business for a number of years.

[chinthee]

Samran, OZ was deeply hit by the dotcom bust as well during those times. One of my companies was in that category and we had to wind down Sydney operations during mid 2001. I remember at the time discussing with the attorneys that business failures and dotcom implosion had been very hard on Australia. Not sure that time frame you mentioned is representative of year-on-year conditions.

*Actually it started with the dotcom bust, but soon spread to all telecoms and technology. That led to consolidation in the Aussie market too.

Edited November 21, 2007 by chinthee

[samran]

Samran, OZ was deeply hit by the dotcom bust as well during those times. One of my companies was in that category and we had to wind down Sydney operations during mid 2001. I remember at the time discussing with the attorneys that business failures and dotcom implosion had been very hard on Australia. Not sure that time frame you mentioned is representative of year-on-year conditions.

*Actually it started with the dotcom bust, but soon spread to all telecoms and technology. That led to consolidation in the Aussie market too.

I was working for Accenture at the time, where they were giving as many people as they could a year off with 20% of their salary (at which point I moved to Thailand!).

But the AUD was pretty low around then, confidence in the economy was pretty low, and housing prices were in a funk. Point is though that the Australian economy is quite robust and diversified (though running a high current account deficit), and that the US is quite robust and flexible as well.

I'm just guessing that low interest rates in the US and the low dollar are going to partly act as a tonic for what is happening there at the moment, and perhaps faster than people think.

[chinthee]

^Yes, those are good points. I agree with the parallels between the US and Aussie economies. And, to the point, the robustness and overall mass of the US economic engine can't be denied. Overall I agree the low dollar will probably help, even though being painful for those of us who still earn dollars.

One worrying point is the growing trend among some oil producing companies to denominate in Euros rather than dollars.

[Naam]

sometimes when everybody thinks it is the end of the world, that is exactly when things turn around. never know. sure, now there is many pessimist in the moment.

Really? Everyone I know is bullish. I went the other way at yesterdays US close. Pretty dangerous in light of seasonality but let's see what happens. Futures say, so far so good. Bond rally is saying something.

for me the rally in US-Treasuries remains a mystery. 10y-UST today 4.00% flat!

[Naam]

^Yes, those are good points. I agree with the parallels between the US and Aussie economies. And, to the point, the robustness and overall mass of the US economic engine can't be denied. Overall I agree the low dollar will probably help, even though being painful for those of us who still earn dollars.

One worrying point is the growing trend among some oil producing companies to denominate in Euros rather than dollars.

there is only one producer (Iran) and two countries (Japan and China) which pay €UR for crude. otherwise it's USD and business as usual.

[chinthee]

^Yes, those are good points. I agree with the parallels between the US and Aussie economies. And, to the point, the robustness and overall mass of the US economic engine can't be denied. Overall I agree the low dollar will probably help, even though being painful for those of us who still earn dollars.

One worrying point is the growing trend among some oil producing companies to denominate in Euros rather than dollars.

there is only one producer (Iran) and two countries (Japan and China) which pay €UR for crude. otherwise it's USD and business as usual.

Chavez has been threatening, and lobbying other producers....

[lannarebirth]

I've made this point before, but to repeat, The dollars strength based on the "petrodollar" argument is specious. Almost all currencies are almost instantaneously convertible to another with almost no slippage.

Edited November 21, 2007 by lannarebirth

[chinthee]

Petrodollar warfare and dollar hegemony are controversial subjects. There are experts with views on both sides.

[lannarebirth]

Petrodollar warfare and dollar hegemony are controversial subjects. There are experts with views on both sides.

Yes, that's true. I've seen "experts" such as Paul Craig Roberts be on both sides of the same issue.

[chinthee]

Petrodollar warfare and dollar hegemony are controversial subjects. There are experts with views on both sides.

Yes, that's true. I've seen "experts" such as Paul Craig Roberts be on both sides of the same issue.

Ah yes, the "father of Reaganomics." A highly considered economist.

[IMA_FARANG]

I don't think a global bust is coming, nor do I believe this fed intervention to bail out their member banks options desks is going to put a floor under this market for very long. It might though, and it would be instructive for you to look at the events of Oct 15, 1998 to confirm that.

the yen carry trade is unwinding (nikkei down 850 points last night)........have you noticed gold ands silver and oil climbs as the dollar weakens against all major currencies? right.......nothing to see here, all is well.....NOT

Markets will fluctuate.

The stock market....known as the Great Capitalist Con Game....goes up and down at the whim of cetain very wealthy individuals and institutions. Now that they have had 8 years of the bought-and-paid for flunkies (headed by their imbecilic patsy, that floppy-eared fool from Texas, George Bush) they are rolling up their profits and consolidating their gains. As always their profits will be at the expense of the middle-class and the workers.

Hang on boys, it's going to be a hard ride, and as you will haveto pay the bill as always.