Hedge funds gotta make money, they got cut off at the knees with the whole short selling ban.

Emergency! Emergency! Everyone to get from streets!

can we stop with the fake announcements in the comments for fun? it is too hard now to tell when they are a joke.

I saw on CNBC. Today is last day for oct short covering and longs wants much more to let shorts cover.

WTF?!?

wow! what a shocker. when is case-shiller out?

Anonymous writes:
can we stop with the fake announcements in the comments for fun? it is too hard now to tell when they are a joke.

I second that, Comrade

CR,

What is the spot price ?

Greenspan's Left Nut writes:

If anyone is paying attention, they'd notice the price is only on the front-month contract. This is a front-squeeze, the representative price is ~$110/barrel.

Indeed. The future is up. The force is strong with this oil.

Comrades,

Yes short squeeze, but it's still up.

Nostrovia,

It's Financial Bukkake and we are all stars!
NOM NOM NOM
Who's popping next? Corn, you ready? Goldy?

Dow down 240

All your hoopajoop are now belong to us.

What market needs here is a right proper equity flush going into the close.

Agreed. But I'd also be completely unsurprised if it gets just the opposite.

Dow down 260

Dow down 240

Ha! Take that, short sellers. Your reign of terror is over.

$ biggest fall since Euro came into existence.

long RSX

Chris writes:

$ biggest fall since Euro came into existence.

This is really bad, they will intervene again next.

Bucky has fallen and can't get up!!!

I'm really starting to think the US can't afford $700 billion for this bailout. Not that I was ever totally convinced we could, but this is getting out of hand.

Wish I had the stones to add to my SRS position on Friday....

Hoopajoop! It's the new black.

Capital flight out of a dying currency and markets where there is no way to hedge risk due to government intervention on short sellers. Market failure.

I've been hearing that a weak dollar is awesome for America. Exports, man. Don't you guys listen to Sean Hannity?

Breakdown : The continuous 10-yr futures contract is in need of a no short selling rule. The upward channel that has guided prices off mid-Jun lows has given out, as has modest support near 114-24. A Fib retracement level near 114-06 is likely calling prices lower but the 200-day ema near 114-20 is propping in the meantime. A close below the 200-day has not been seen since late Jul and will add to the bearish sentiment. Rallies are offered near 115-05.

Bob writes:
I'm really starting to think the US can't afford $700 billion for this bailout.

Only George Steinbrenner can afford to blow that much on a bad deal.

OT, but from Bloomberg, a two-sentence story that Paterson has announced that NY will start regulating some CDS as insurance.

Comrade CDSC,

"Don't you guys listen to Sean Hannity?"

I may not have much sanity left, but I sure as hell going to waste it on that gasbag.

Nostrovia,

Sean Hannity should be deplored by Americans of every stripe. he is a certified idiot.

i think the $130 headline is bogus, expiry of near month.. a technical squeeze.. tomorrow the near month will be $106 to $110..

By refusing to intervene in the currency market is PoBC and OPEC sending a warning signal? Interesting if true.

Demand destruction in the US has been firmly established.

economic theory question:

Is a temporary reduction in demand the same thing as demand destruction?

or does DD require some structural change in the economy?

i.e. Joe decides gas is too expensive and starts riding his bike to work. When gas drops again, he resumes driving, and the demand comes right back. Was the demand actually "destroyed", or is this example more one of substitutio

Long time lurker, first time poster. Anyway, I thought this was interesting. WAMU is looking for a very experienced litigation attorney preferably someone with experience in class actions. whocodanode.

Third add from top:
Daily Journal - California's Largest Legal News Provider

880 Visitors Online

I'm keeping an eye on the Executive Order page:

404 Page Not Found | The White House

Dow down 240

Jack Bauer: The Shorts have made it into the building! I'm going in!

Serious question. What would happen if they decided NOT to go ahead with this ridiculous 1.8 trillion dollar bailout?

Seriously, what would happen?

Eve of destruction, tax deduction, city inspectors, bill collectors,
mod clothes in demand, population out of hand, suicide, too many bills,
Hippies moving to the hills. People all over the world are shouting, 'End the war.'
And the band played on.

Ball of Confusio

There is only one cure for what ails you:

YouTube - RickRoll'D 

Breaking!

"I can see oil from my house in Alaska!" 1st Dude Todd Palin "FUCKIN A!"

What would happen if they decided NOT to go ahead with this ridiculous 1.8 trillion dollar bailout?

Banks would fail. FDIC would go broke. Several trillion in "Main Street" deposits would go poof.

And so it begins.......

"Sept. 22 (Bloomberg) -- Goldman Sachs Group Inc., granted permission yesterday to transform into a bank holding company, may raise capital to buy assets if it finds ``attractive'' opportunities, a spokesman said.

``We are opportunistic in our business activities and if we see assets that are attractive, we might raise capital in order to be able to acquire them,'' said Lucas van Praag, a spokesman in New York."

This is incredible. Paulson has been able to conveniently time the news in recent months to protect his buddies from getting slaughtered when options expire. I'm guessing his friends aren't particularly big in commodities so he didn't care much about oil prices when he leaked his bailout plans 11 days ago.

Hopefully this will make Congress look long at hard at the consequences of Treasury's $700 billion handout. We just one one nasty one.

The Bush administration has accepted changes to its $700 billion Wall Street bailout plan that would give the government a stake in institutions unloading assets under the plan, the chairman of the House of Representatives Financial Services Committee said on Monday.
UPDATE 1-US Treasury agrees equity stake in bailout--Frank
| Reuters

Seems to me they are trying to kick the can down the road past Nov 5?

"I killed and gutted a Hoopajoop! Mmmmmmm Hoopajoopburgers!" 1st Dude Todd Palin "FUCKIN A"

Banks would fail. FDIC would go broke. Several trillion in "Main Street" deposits would go poof.

For real? Seriously?

Just got the following spam:

The next crash in Wall Street and stock markets around the World are all part of a well defined Plan.

New manipulated events will bring panic and anarchy, then World War III.

The Internet will soon be disabled from the beginning of this War.

With all respect, You need to understand Now since in few months it will be more difficult to communicate.

Soon, Elections and Democracy will be a memory of the past.

Without any clue about being manipulated from the Freemasons, confused citizens will be fighting to divide the World on two fronts:

Israel, USA and Europe on one side

Russia, China and Arab States on the other.

In the end, the Freemasons will betray all their allies, like they always did. Betrayal is their Strength (see 9/11).

Now it is necessary to talk with each other for one new Global Movement embracing Wavevolution and Equality.

A well organized Movement can prevent panic and anarchy from occurring during the transition.

What would happen if they decided NOT to go ahead with this ridiculous 1.8 trillion dollar bailout?

Banks would fail. FDIC would go broke. Several trillion in "Main Street" deposits would go poof.

They are going to go "poof" anyway as the dollar collapses and bond yields scream higher and equities fall. These dipsticks finally screwed around an hit the wrong button.

Bob writes:
Banks would fail. FDIC would go broke. Several trillion in "Main Street" deposits would go poof.

For real? Seriously?

Gov. cannot go broke, unless they run out of ink for the presses.

They are trying to kick the can down the road for another 24 hours while knocking out the consumer.

For real? Seriously?

Yes, seriously. FDIC has $50B on hand - that's nothing compared to the trillions in insured and uninsured savings being held.

no bailout - banks fail en masse - "Main Street" deposits go poof.

SOMEONE has to pay for the subsidized above-market rates all the depositors have been collecting for all these years....

Bank run should be right about Wednesday, by my reckoning.

Wonder what slick trick Hank and Ben will use tomorrow to stop the markets from crashing. Are these guys for real?

This is long but worth the read.

SHARE it!

from Rigourous Intuition:
I'm going to repost something for all those that believe the Government might "make a profit".

It comes from the Federal Reserve Losing Control thread, and was posted on February 15. There is a reason nobody wants this garbage.

When this thread began the mainstream was deep in denial. Now it is mainstream. But my God! how confusing it all is. There is STILL an important part missing from the explanation.

Let me go back to basics....
The banks purchased mortgages and pooled them. They issued securities based on those pools (RMBS). The same was done with commercial property, with car loans, with credit cards, with student loans.

Other banks then purchased a proportion of these RMBS and other types, and mixed up the geographic sources and types, creating another pool.

Based on THIS mixed-up pool the banks issued a new type of security called a collateralised debt obligation (CDO). Now the logic was that by spreading thus the portfolio one reduced the overall risk.

Typically therefore 100% BBB- RMBS could be transformed into CDOs comprising 75% AAA, 20% BBB- and 5% unclassified. THAT was the "alchemy" of structured finance.

Now I could be crucified for putting it like this, but AAA debt is worth roughly twice what BBB- debt is worth. By means of "financial alchemy" 100 units of BBB- had been transformed into 150 units of AAA (ie 75 worth double) plus 20 units of BBB- and zero of unclassified (5 worthless units).

That's a total of 170 units. THAT's where Wall Street made their "profits".
170 minus 100 is 70 "profit".

ON TRILLIONS OF DOLLARS OF DEALS.

Do you see now why the banks were paying up to 110 percent of face value for packages of mortgages? Do you see now why it is impossible to open the mail without finding three new credit card offerings?

Not all was taken as capital. Much was taken in the form of fees and commissions and other types of skimming. Much was taken in the form of inputs into other CDOs (so called "CDO squared"). Some was taken as "enhancement" to so called "synthetic CDOs".

The point is, that 70 units has long gone. And now the financial alchemy has collapsed. Spreading the risk DOES NOT WORK. When there is a systemic downturn, a recession, then everybody has a hard time.

If homeowners are having a hard time because of a bad economy, then SO IS EVERYBODY ELSE. Or, as they say in finance, correlations move towards one. Diversification is ineffective.

Nobody wants to buy these things because nobody else will buy them. Nobody wants to get stuck (as opposed to being a conduit-for-fee) with them because forty percent has been stripped out already (seventy out of 170 is forty percent). All that slicing and dicing adds no value.

Now at the moment everybody is focussed at the mortgage end of the chain, which is AT BEST only half of the problem. The real problem is that potential mortgage losses are forcing the CDOs to be unwound. All that "added value" on securitisation is going into reverse.

When the CDO is unwound 170 units of value revert back to 100 units of value. Which is a capital loss of 41 percent. THEN, out of that 100 units of value there will be the mortgage losses. Let's say on average they lose 20 percent, so that 80 units of value is recovered.

The OVERALL loss is (170 - 80) on 170. 90 on 170 is 53 percent loss overall. But notice only a minority, 12%, arises because of the mortgage end. The great majority, 41%, arises at the securitisation end.

IT'S THE CDO UNWINDINGS THAT WILL KILL WALL STREET.

And EVERYTHING coming out of Washington has one purpose, and one purpose alone. That is to prevent or slow down the unwinding.

Government can't go broke from hyper-inflation or a Depression. The consumer can.
The government can always try & revive the crashed economy with more munitions and nuclear weapons factories.

this oil market is great!

part 2--------------------------------------------------------------------------------
Now let me bring that last post up to date. Here's the thing. The CDOs are a fraud. To distance themselves from the fraud, the banks changed their normal way of doing business. Instead of creating a subsidiary, a company, to receive the various mortgage backed securities, do the tranching, and issue the various classes of CDO, the Banks created what is euphemistically called a Special Qualifying Vehicle (SQV).

The REALITY is that a SQV is a CHARITABLE TRUST established under the English common law. A charitable Trust is set up "for the purposes of supporting Down's Syndrome (North) Charity" (DS(N)C). DS(N)C is told nothing about all of this.

The "sponsor" of the "charitable trust" is the Bank. The Bank administers the "charitable trust".
It uses this "charitable dispensation" to take in various types of financial assets, to pay out money for them, to issue and sell various types of CDO. Per the above post, it takes in 100 units of "assets", sprinkles "magic dust", and issues 170 units of CDOs.

The 70 units of differential somehow disappears back to the "charity administrator". Who is the trustee.
This is fraud. It's falling apart. That means... "We'll SUE!!!"

Now when they get their day in court, they will find that all they can sue, in law, is the charitable trust! They cannot sue the Bank because, in law, the bank is not responsible, and has "no commercial relationship with the transactions undertaken by the trust"!

This is the archetypical "straw man".
There is no way to get beyond the charitable trust and the Banks are home free! This bomb was meant to go off on the next man's watch, but things deteriorated much faster than they had planned...

So...from Angry Bear:
Quote:
Toxic Sludge Inc
There are three reasons that the give Paulson $700,000,000,000 to play with plan might save world finance



1) the value of a pool of all the mortgage based assets is easier to determine than the value of particular assets -- making a huge pool of all the toxic sludge will cause it to melt, that is be liquid (check the metaphor is not mixed).



2) If all claims on a mortgage belong to one legal entity, that legal entity can renegotiate the terms of the mortgage and avoid foreclosing. This is often good for creditors as a group, but when they are many, each one benefits if the others renegotiate and he she or it demands full payment. Thus reassembling sliced and diced mortgages will reduce the number of foreclosures with associated legal costs, delays and distress sales of foreclosed properties.



3) by paying more for mortgage based assets than they are worth, Paulson will re-capitalize banks and insurance companies.

Can you see what they are doing?

They are DESPERATE to avoid what is known as "tranche warfare", as various trancheholders, with conflicting interests, fight over what is left of the carcass of the "SQV". The only way to avoid a massive scandal is for a single entity to buy up all of the tranches, pay them off, back out all of the underlying mortgages, and eat the difference.

The original 41 percent plus whatever decline in the mortgages. But they've got to hide the charitable trust angle. And they've got to hide the 41 percent of "commissions" engineered by the charitable trustee - the sponsoring Bank.

So they make "The Secretary" all powerful, subject to nil transparency, so he can carry out what needs to be done to hide the fundamentals of this fraud from the American people.

Isn't it bloody obvious???
PS if you want to learn more about a specific, real world example have a look at vigilant's excellent "Anatomy of a Fraud"http://www.rigorousintuition.ca/board/viewtopic.php?p=148947#148947
[/b]

I can't leave this bit out...
Quote:
Even more peculiar, perhaps, is the fact that nobody at Northern Rock bothered to tell the children's charity that it was a beneficiary, and the charity never received a penny from Granite.http://www.guardian.co.uk/business/2007/nov/28/northernrock.subprimecrisis

and this:
Quote:
While most of the trusts do not name the charities which are the supposed beneficiaries of their trusts, one set up five years ago by the Halifax names the National Society for the Prevention of Cruelty to Children (NSPCC) as a beneficiary, and has since raised funds on the back of almost £50bn of home loans. The Halifax admitted that this trust had not paid a penny to the NSPCC, however, and the charity said it knew nothing about the arrangement.
Revealed: how UK banks exploit charity tax laws |
Business |
The Guardian

Curiously, Halifax is now part of HBOS. Those of you that follow finance will know that HBOS has enjoyed an interesting few weeks!

Now we can continue the oil company land grab while saying we need to drill to lower gas prices now.

I would like to thank Herr Pig,
are you here?
A few days ago you adviced me here to invest into oil futures, people made fun of me but i decided what the hell - and did invest. Not $20,000 as I said then, but just $5.000.
Still it turned out to be a very good investment, thank you!
Could help me with more avdvice? Will I need to sell it tomorrow, or wait?

This is how it ends. Not with a bang, but with a whoosh, as all the money disappears

Greenspan's Left Nut writes:
What would happen if they decided NOT to go ahead with this ridiculous 1.8 trillion dollar bailout?

Banks would fail. FDIC would go broke. Several trillion in "Main Street" deposits would go poof.
Greenspan's Left Nut

And all the above will happen to the U.S. Govt. & The Dollar if they do it.

"The greenback dropped 2.4 percent against the euro on bets the cost to finance the rescue will overwhelm demand from foreign investors, who already own more than half of all Treasuries outstanding. The Standard & Poor's 500 Index decreased 2.3 percent, retreating after the biggest two-day rally since 1987. Yields on 10-year Treasuries rose 0.6 percentage point to 3.87 percent, and oil jumped 17 percent."

Dollar, Stocks, Bonds Fall on Concern Bailout to Boost Deficit - Bloomberg.com

Please let the shadow banking system and whatever tentacles is has branched into the old school banking system DIE.

I would rather destroy the dollar issuing debt to buy food et al to feed the unemployed masses than print all of that money to line pockets of the same assholes who put us into this mess.

NO

MORE

MORAL

HAZARD

S&P is down 3.37% not 2.3% ..

Anonymous writes:
i think the $130 headline is bogus, expiry of near month.. a technical squeeze.. tomorrow the near month will be $106 to $110..
Anonymous | 09.22.08 - 3:09 pm | #

Right, everything is okay. There are no consequences to the trillion dollar bailout. It's a bad quote, short squeeze, something other than the unthinkable. Keep whisting past that graveyard.

Weird or expected that Oil inflation and Haliburton is back in the Big Picture. Starting to make sense. Pump and dump financials. Bet long on oil. Make more War. Put on riot gear for the inner cities. McCain wins if there is an election. If not Cheney/Bush/Paulson/Bernanke Inc. rule the kingdom. Back to the Middle Ages of serfdom.
Think foreclosures and CC debt defaults will increase?

The US is turning into Venezuela minus the oil. Capital flight.

I pretty stoned, so I don't know if this is a good idea, but if I lined the bed of my pickup in plastic and filled it with gasoline TODAY, wouldn't I save a bunch of money over the next month or so? Anyone know how many gallons of gas in an average truck bed?

Ouch?

Dollar index is below 76 already. Too much too fast.

Yeah and do you ever wonder who has the big gold holdings?

"September 19, 2008
hp-1147
Treasury Announces Guaranty Program for Money Market Funds

Washington- The U.S. Treasury Department today announced the establishment of a temporary guaranty program for the U.S. money market mutual fund industry. For the next year, the U.S. Treasury will insure the holdings of any publicly offered eligible money market mutual fund – both retail and institutional – that pays a fee to participate in the program.

President George W. Bush approved the use of existing authorities by Secretary Henry M. Paulson, Jr. to make available as necessary the assets of the Exchange Stabilization Fund for up to $50 billion to guarantee the payment in the circumstances described below."

What role does the ESF being taken off the table last week play in the $'s cliff dive today?

ew thread up

WaMu down 20% when no short selling is allowed.

HA!

UYG down 9%, SKF up... 0.39

HA!

Either you lose or you don't win!

Now how to we get to wage inflation from here?

Isn't inflating our way out of it the key to making this huge debt overhang fade away?

What if we scrap the plan of giving $700B to Sall Street and create a giant make work program instead? We can build schools, bridges, intra and intercity rail lines. Congress could allocate $400B for the rebuild and then brag about all the money they saved over the Paulson plan.

Seriously why not?

Why do I care if the banks fail and the fed has to eventually come in to reimburse the depositors. It's all coming from the same US Treasury eventually. Let the banks fail.

Austin Tex writes:

Much Appreciated

I pretty stoned, so I don't know if this is a good idea, but if I lined the bed of my pickup in plastic and filled it with gasoline TODAY, wouldn't I save a bunch of money over the next month or so? Anyone know how many gallons of gas in an average truck bed?

Per my quick back-of-napkin calculation, you would be able to fit about 375 gallons in the back. You'll probably want to put the topper on to prevent evaporation. Oh, and I wouldn't recommend smoking in the garage anymore.

I told my wife Saturday to stock up on our food in storage since we had depleted it somewhat. Glad she did it then. She got lots of canned goods, rice, pasta, just need to get more beer.

Chuck Norris could fix all of the current economic problems with one roundhouse kick. Even the threat of a roundhouse kick from Chuck Norris would be enough to turn a non-performing loan into a perfoming one.

"The Street Doesn't Look So Shiny Anymore"

F. Scott Fitzgerald - 2008

i can eatz 11,000?

i has eatzens !

Marketwatch writer said the reason oil was up was because the Paulson Plan would renew economic growth.

I guess the requirements to write at Marketwatch don't require intelligence.

We're a fake empire now.

YouTube - The National - Fake Empire

For now $110+ oil is unsustainable even given the recent demand destruction for "bucky." And let's be clear; $4 home heating oil kills New England. The northeastern centric national psyche won't allow that.

This thread is probably already dead, but I still want to ask: what is the "northeastern centric national psyche" going to do to stop the devaluation of dollar? Say no to $700B bailout?

I am starting to get tired of the "they won't allow that" meme without the "how" part.

Comrade Volker the Viking writes:
One more reason for Obama to get back to work.

Name one productive thing Obama has done in his life. Not redistributive, productive.

Sorry Ben, we tolerated too many Obama's.