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I wonder if this is just temporary Lehman fallout, or something bigger.
Guess the market is having a bit of AIG indigestion.
down she goes
At one point this morning the one month T bill( oct 16) traded at negative one basis point
1st ?
how could it have gone negative?
Treasury will have a special bills sale to help the Fed. Hmmm, Fed running out of firepower.
Like, oh man!
Check out this from Eric Jantzen's iTulip for a similar take. Both of these indicate a high degree of sitting on your hands by our fiduciary protectors. Historically this is a precursor to the end of commerce for a while.
spinach !!
Bigger!
In an interview on ABC's "Good Morning America" program Wednesday, former longtime AIG CEO Maurice "Hank" Greenberg was asked whether critics are being fair who say the situation at AIG and the financial markets generally happened because of greed, bad business practices and corruption.
"No, I think it's an unfair appraisal," said Greenberg, who was replaced as CEO three years ago as part of an accounting probe. "You know, there are many things that contributed to this unfortunate episode. after I left the company, all the risk management procedures that we had in place were obviously dismantled. I can't explain that. There's a new board of directors. One should be asking that board of directors what they did and why."
Greenberg said he has lost "my entire net worth. Literally, my entire net worth.'
"Worked 40 years building the greatest insurance company in history, one that everyone in the world envied who was in this industry. I'll get by, but my heart goes out for the thousands and thousands of employees and their families who shareholders and not only in the united states but worldwide. That is a tragedy," he said.
Losing his entire net worth is the best news I've read in a long long time.
All of the action and fear this morning stems from the "break of the buck" by money fund Reserve Fund. They had exposure to Lehman Brothers.
This has caused a re examination by many investors of their money fund holding which they just discovered aint FDIC bank accounts!!
There is something north of $3.5 trillion in money funnds. If even a small piece of that gets moved the dislocations would be huge
Damn i thought i had this thing under control but now its spinning in the oppposite direction.
well comrades, here we go again!
SEC Stiffens Short-Selling Rules Amid Market Turmoil (Update1) - Bloomberg.com
let's stop those imperialistic.....
Calm down, cnbc is saying "it's not that bad"...Everything if fine, move along, nothing to see here.
Greenberg was a client of the firm I was a partner of. He has a LOT more money than just his AIG holdings. He's trying to make everyone feel sorry for him. No dice, but good try Hank.
There is something north of $3.5 trillion in money funds.
Is it possible this takes the big boyz by surprise? I would guess they are in and out of those funds constantly; now they have to be careful?
So as TED goes up, so does the cost of the AIG financing.
As the AIG financing goes up, the probability of outright insolvency increases.
As AIG becomes insolvent, TED goes up.
Nice feedback loop you guys got here.
Kristina writes:
Calm down, cnbc is saying "it's not that bad"...Everything if fine, move along, nothing to see here.
You're getting cynical.. like most of the posters here.
"The SEC adopted two regulations today forcing traders and brokers to close out short sales, amid concern investors are driving down share prices by flooding markets with sell orders. A third rule makes it a securities fraud when short sellers deceive brokers about delivering borrowed shares to buyers."
What is next, the rule requiring the markets to go only up?
Treasury will auction $40 bln in 35-day bills, apparently straight to the Fed, to offset the reserve impact of Fed lending. More bills, though, will probably also ease conditions in the secondary market for bills. The Fed will have more to lend.
Ya know, that trick worked once for Chris Cox. He got a pop, and now everybody has built their conduits to get access for short stock.
FMR. Sec. Snow said this won't be like Japan.
Yes, because Japan actually has savings and relied on no one.
Heck when LEH blew up i think the Japanese banks took the most first hits.
My broker just told me I had to put clothes on to party in this market!
How can you be naked if you have shorts on?
The Treasury helping the Fed because they "Used up their balance sheet". It sounds like a banana republic.
Bye bye bucky.
New word for remaining FY 2008 and the next 10 years....
Inevitable
"So as TED goes up, so does the cost of the AIG financing."
Perhaps i need a frontal lobotomy now but surely demand for debt of the united states government is in such hot demand to protect wealth that people are more or less paying to hold that debt. The ted spread is going up because T-bills are in such hot demand rather than there being a problem about the dollar? People seem to be loving the dollar now?
"Facility is temporary"
How many times are we going to see this phrase over the next few weeks?
"Infusing Liquidity" another term for ten dollar a gallon milk..sweet.
So, at LIBOR +8%, the government is getting credit card interest rates on the AIG Loan? Really what are the chances that they can pay that king of vig?
"People seem to be loving the dollar now?"
This too shall pass
Comrade Midwest Product writes:
"Facility is temporary"
How many times are we going to see this phrase over the next few weeks?
Temporary = Foreseeable Future.
Please make Kramer shut up...Self righteous twit...
Kristina writes:
"Infusing Liquidity" another term for ten dollar a gallon milk..sweet.
Infusing Liquidity = Watering Down The Dollar
Can anyone guess when was the last time such exponential increases in debt and non-existent cash flows happened?
Hint: Hangman Style
T_e _r__t _e_re__ion
Kramer's going rabid on the SHO list...Like it's done any good to date...
Err... anyone look at gold lately?
Again, XLF back to 19.29. I love numeric poetry.
worried,
Eurodollars aren't dollars. There is a counterparty other than the US government. In normal times, the assumption is of nearly zero counter-party risk in the eurodollar market, but these aren't normal times. Both sides of the Ted are moving.
The next logical question is who is going to start a war with whom and how soon will it happen.
I would say weapons manufacturers like Boeing, et al will be very popular in the near future.
spx is 20 points above 50% fib retracement = 1172 { just keeping track }
boat52, yeah I didn't expect to see Hank in the Salvation Army line anytime soon. But it's good know he is unhappy and perhaps a bit LESS rich than before. Next Forbes 400 and we'll find out.
The 30 day CP spread popped hugely yesterday, was a bizarre backwardated plot for the 15th (though the 30 day was OK, it was the 1 and 7 day that spiked), then yesterday the AA/A2P2 spread was 128 bps - tomorrow we will see what today's action was like unless someone out there has access to real time...
what is the deal with gold here,
have they let this one go?
...nice to see r2k taking proportionally greater heat for a change {albeit only slightly warmer there}.
worried --
People seem to be loving the dollar now?
Yup. Some people already have their conclusions before they even look at the data. In their minds, all data supports their conclusion...
how fxp +20 already..
GLD is such a nice color....
This would seem of little impact to me. Anyone more knowledgeable weigh in?
From Setse:r
The TIC for July pains a very clear picture: Treasuries were the only US asset foreign investors were willing to buy. Foreigners bought $34.3b of long-term Treasuries, while selling $57.7b of Agencies,r $4.2b of corporate bonds and $5.2b of equities. On net, foreigners sold about $25b of long-term US assets.
YEEEEEEEEEHAAAAAAAAAAAW!
Correction. Treasury will sell $40 bln in bills and deposite the proceeds with the Fed. This is a drain from the banking system, to offset the injection of funds to the system implied in the AIG dealie. There will be $40 bln in new bills in the market, as of tomorrow.
So, when do you suppose we will see a 9 handle on the DOW. It looks like the bailout rally monkey is afraid to come out its cage.
asl,
think "hedge fund"
who thinks gold will pull back?
is this thing off to the races, or is there one more pull back below 780 left in it?
I think gold is more of a post-hurricane oil bump than a return to money bump.
But who knows.
Liquidity is another term for 'water landing' preparations. Why do Amerikans think it is softer to crash into large body of liquidity than crash on land?
Amerikans so nekulturny.
Hank is an old man. When you get to that point in life you look back on your legacy. IMHO, it was a figure of speech; his legacy net worth is decimated.
I'm still trying to figure out how BAC purchasing MER helps buck things up. The sale is stock purchase and MER still has crap mortgage securities on their balance. Obviously, the short-term insolvency issue was resolved (and, yes, that is huge), but the thought of that sale closing anywhere close to $29/share seems a far off dream.
Hank is an old man. When you get to that point in life you look back on your legacy. IMHO, it was a figure of speech; his legacy net worth is decimated.
Well put.
Gold will pull back till the dollar stops rallying, obviously today is a bad day for the dollar.
But maybe the uptrend is still intact for now.
Who knows what more deleveraging will happen.
Given t bill rates, my thought that the Fed would cut rates seems sadly out of touch. The market is taking rates so low that the Fed is neutered.
The TED spread hasn't been this high in living memory. Even back around the crash of '87, the spread maxed out at about 2.5%.
Needless to day, I've sold all my ABCP and gone back into T-Bills. This is serious stuff.
It's unusual to see the r2k with a higher % change than the other indexes, and the distance between the r2k and the others is widening.
asl,
I wonder if that price was geared towards triggers related to the Temasek interest (14%?). Issue was raised in passing in the last couple days, props to the poster who I cannot recall atm (need more coffee).
Is anyone on-line who works for a large money market fund? If so, is there a major redemption this morning that is not being picked up yet by the media? Not interested in the fund name, just a sense of what's happening in the trenches.
Popeye,
I think the hedgies have been playing there, yesterday the R2K was up 3%...today, the round trip.
In other news, overnight LIBOR almost doubled.
Here comes another avalanche of ARM foreclosures...
theyieldcurve,
thanks - sounds like a circuit breaker kind of day - gulp
OT: Modified IndyMac loans showing results-US FDIC's Bair
Modified IndyMac loans showing results-US FDIC's Bair
| Reuters
Hank is an old man. When you get to that point in life you look back on your legacy. IMHO, it was a figure of speech; his legacy net worth is decimated.
The 'no bailout' declaration lasting two days will certainly be ridiculed by some, but in legacy terms would you rather a crash on your watch that AIG BK would have entailed, economically healthy or not.
Show me da numbers Sheila. And more importantly, show me da money.
Morgan Stanley seeks merger?
Expired
Seeks "well capitalized bank" as partner. [That would explain the delay]
Is anyone else unable to access etrade?
Looks like we could get below 10000 on the Dow at some point in the next few days if things keep dropping.
Can't find the story yet:
Modification efforts cut borrowers' payments by average of $430 a month: FDIC's Bair - Reuters
Over 1,200 borrowers accepted offers, more being processed: Bair says in congressional testimony - Reuters
FDIC Chief Bair says efforts to modify troubled IndyMac mortgages prevented many foreclosures
I'm still trying to figure out how BAC purchasing MER helps buck things up. The sale is stock purchase and MER still has crap mortgage securities on their balance. Obviously, the short-term insolvency issue was resolved (and, yes, that is huge), but the thought of that sale closing anywhere close to $29/share seems a far off dream.
We're going from playing hide the poop-ball with highly structured bundles of worthless mortgage securities to hide the poop-ball with highly structured bundles of worthless financial institutions holding highly structured bundles of worthless mortgage securities.
Glod is up because the MM fund "broke the buck." J6P is getting tired of reading about wall st. tricks and now his cash is being trifled with. Maybe it pulls back from here--maybe not. Lotta shorties on margin getting squeezed here.
24-hour Spot Chart - Gold
Gold is looking like the TED Spread.
......
Gold is looking like the TED Spread.
......
nades | Homepage | 09.17.08 - 10:50 am | #
wow
With each passing hour, Merrill looks smarter.
Comrades,
Oh my Glod!
Nostrovia,
Fire proton toreadors Mr. Sulu
Economic Chernobyl.
GE hammered...
there goes Jack Welch's theories
GO GO GO GOLD!!!!
Come on you bitch....get up there. And drag your little sister along with you.
Daddy has a Rubbermaid tub full of jingly things and a great big smile.
Comrades,
The silver chart looks identical to the glod chart.
Nostrovia,
Captain, the dilithium crystals canna take the pressure!
Scotty - give me warp power or we're all dead men!
AIG going the way of LEH
So WaMU seems the next Ch11 target, who is next? WellsFargo seems to have a big exposure from CA ARMs...
With each passing hour, Merrill looks smarter.
deal priced merrill at 0.8595 BAC shares for every Merrill share
0.8595 * 28.01 (current BAC quote) = 24.07
Current MER price = 20.12
Therefore, lots of people don't believe the deal will happen. At least not as written at 0.8595.
Don't know when the Come-to-jesus moment on BAC/MER is, but it will be a doozy.
Is this where we start talking currency collapse? Because it certainly isn't inflatio
Are we having fun yet?
Comrades Anonymous,
"Fire proton toreadors Mr. Sulu"
It's photon. Star Wars had proton.
Sheesh!
Nostrovia
"GE hammered..."
Add Shitygroup, Morgan Stanly, Goldman Suks these guys are all targets now and if they are leveraged they're screwed phantom wealth is being vaporized.
This is a pretty wild ride
r2k sidelight story: the hedgie theory is gaining adherents insofar as the TWM is oddly outperforming the SKK.
shoot posted thread music to last post
YouTube - Nursery Rhymes - Humpty Dumpty
MS is not having a good morning
My real-time screen shows 13-week T-bill yielding 0.12%.
Even the emperor is being hit, GS down about 10%.
Really, really basic question: Is there any actual means by which short sellers drive down share prices? Other than talking their book?
It's photon. Star Wars had proton.
Sheesh!
That after calling the whitelady "Galdriel".
Tsk tsk
"Really, really basic question: Is there any actual means by which short sellers drive down share prices? Other than talking their book?"
Any time a stock is sold, short or otherwise, the share price tends to decrease.
anonanon writes:
Really, really basic question: Is there any actual means by which short sellers drive down share prices? Other than talking their book?
Naked Shorting.
Comrades,
I'm so glad the AIG bailout stabilized the markets.
Bwaahahahahahah!
Said it last night...
Nostrovia,
The AIG deal was to save the system, not the markets.
Fire proton toreadors Mr. Sulu
Microscopic bullfighters? I'd fire them too. The bulls couldn't even see their capes!
Comrade Troy,
The TED spread is not liking it either.
Nostrovia,
I'm so glad the AIG bailout stabilized the markets.
Classic buying on rumor, selling on news.
However, even naked shorting sometimes helps the market determine the true value of a company more quickly:-)
Treasury to sell bills
U.S. to Sell $100 Billion in Bills to Fund Fed Moves (Update2) - Bloomberg.com
Is this monetization of debt ?
Star Wars v Star Terk factoids.
Uh huh.
Where is the poster who commented that "this is where the cool kids hang out?"
You guys are going to get trash-canned at lunch.
Nemo,
Scary that! Thx
I hope everyone is naked and shorting today before the sec spanks you tomorrow...naughty, naughty, naked traders...
MS almost down 20%
awgee --
Any time a stock is sold, short or otherwise, the share price tends to decrease.
Any time a stock is bought, it is also sold...
Is this monetization of debt ?
only if the Fed buys them.
Any time a stock is bought, it is also sold...
Philosophy!
.....
It will be a long cold winter- comparable to the winter of 1620?
According to Yahoo!:
The Treasury is setting up a temporary financing program at the Fed's request. The program will auction Treasury bills to raise cash for the Fed's use. The initiative aims to help the Fed manage its balance sheet following its efforts to enhance its liquidity facilities over the previous few quarters.
The news gives a boost to gold prices (+3.0%), as investors seek to preserve their assets in the perceived value of the precious metal.
My mother has everything in Wachovia. Are they in trouble to?
Advances: 937 Unchanged: 100 Declines: 4608
Geez, BAC is going to lose all its competitors at this rate.
/long 5 call contracts
My mother has everything in Wachovia. Are they in trouble to?
Make sure she is below FDIC limits and it won't matter.
Certain types of short sales are now securities fraud, but saying the economy is strong on nationwide tv when you know that there are severe problems, isn't? How about saying the company is well capitalized, when it's almost bankrupt? That's ok, because the "right people" don't have to follow the law, only you and I.
(My tin foil hat is melting.)
My mother has everything in Wachovia. Are they in trouble to?
Hell yes. If there is over $99,999, GET THAT SHIT OUT NOW!
@Interesting Time
At Naked Capt, she says it's printing press.
Helicopter Ben Starts the Printing Press
the Treasury is applying some elbow grease too. From Bloomberg:
The U.S. Treasury said it will sell bills to allow the Federal Reserve to expand its balance sheet, a day after the government agreed to take over American International Group Inc.
``The Treasury Department announced today the initiation of a temporary Supplementary Financing Program at the request of the Federal Reserve,'' the department said in a statement today. ``The program will consist of a series of Treasury bills, apart from Treasury's current borrowing program.''
Needless to say, expanding the Fed's balance sheet is inflationary. The Federal Reserve chairman is employing the remedy he has long recommended, that a determined central banker can always reflate. If he is right, bye bye dollar, but in 1930, the central bank increased bank reserves but money supply contracted nevertheless because consumers and business hoarded cash due to distrust of failing banks. If the run on the shadow banking system continues, we may see similar results even though traditional bank will (hopefully) not see a cash exodus.
I found a link to this gem over at Yves's Naked Capitalism.
Sept. 17 (Bloomberg) -- The U.S. Treasury said it will sell bills to allow the Federal Reserve to expand its balance sheet, a day after the government agreed to take over American International Group Inc.
The Treasury Department announced today the initiation of a temporary Supplementary Financing Program at the request of the Federal Reserve,'' the department said in a statement today.The program will consist of a series of Treasury bills, apart from Treasury's current borrowing program.''
Expanding the Fed's balance sheet, my friends, is a technical term for printing money. Up until now they have tried to avoid getting to this point.
Seeks "well capitalized bank" as partner.
Must look like Heidi Klum, but with bigger jugs. No fatties or junkies please.
It may be inflationary, but there is a lot of money going to money heaven at the moment. So the question is what is the sign of the delta?
Kristina, please. . . .
OT:
updating my LEH trade...out at open....
not giving it ANY chance to fall further.....still made 5% though.
Line in the sand being tested on the DJ now...
Ciao
MS
JP - I agree. The net supply is definitely negative.
TED at 289 bps per Bloomberg - when do we put our head between our legs and you know the rest of the drill...
HBOS is the next...at least we get a break, sorry Scotland its your turn..
Mr. Market to the fed:
"More Oveltine (bailouts/rate cuts) please"
Comrade Minh/Others,
Way up this thread, it was explained that the Treasury is selling into market and depositing at Fed. This takes money out of the system.
Nostrovia,
TED at 289 bps per Bloomberg - when do we put our head between our legs and you know the rest of the drill...
Shortly - just follow my lead...
Comrade colonel covered :
on the Kitco chart I've seen some short squeezes, and this is no doubt one, but is that all there is to it?
better go check other commod and USD.
My question precisely. And how will gold play into all this?
To answer that perhaps we should keep an eye on what other central banks are doing in the face of a global economic slowdown / collapse.
Hey Ipodious now go get your shine box!
Gold needs to deleverage too
TED over 3 according to Bloomberg Europe.
"TED Spread
"The three-month London interbank offered rate, or Libor, rose 19 basis points to 3.06 percent, the British Bankers' Association said."
only 535 people here?
Krugman needs to do another post on the TED spread and wake people up
Wachovia Mom:
Add your name to the account and it raises the FDIC coverage to $200K. She can also keep a separate account for herself and get additional $100K. There are options for accounts in her name with beneficiaries. Retirement accounts are covered at $250K, if I remember correctly. The FDIC website has a calculator called Edie that shows you how to get the maximum coverage. It is a great deal more than $100K.
Short selling "rule" is a paper tiger. It already existed.
Enforcing it was the problem. Now the big banks need help against many of there failed strategies and that is just a way to make it look like it's all the fault of those "bad short sellers".
Tough shit banks...your business model broke year's ago...blaming it on the other guy for seeing it in advance it just too precious.
Ciao
MS
Serious question: Can I swallow Kruggerands as a method of transport? Or would their weight cause them to get stuck on my intestines somewhere? If so, how many could I transport this way? I weigh about 170lb.
tyia
Hello All,
Don't worry, our banking system is sound!
GLD now at $82.25, up $5.46
Too the moon!
Hey Ipodious now go get your shine box!
LMFAO!! Yeah, maybe he can start a lemonade stand with Sebastian, DC100 and O-Joe..
I will endeavor to answer all your questions here, one at a time now.
Comrade CCC,
"Can I swallow Kruggerands as a method of transport?"
Real bad idea.
Nostrovia,
I am wondering if AIG woke up a few of the sheeple this morning.
MS down 25%
Comrade crispy,
"Yeah, maybe he can start a lemonade stand with Sebastian, DC100 and O-Joe.."
Does the Wright Brothers Model B Flying Turkey price lemonade as well?
Nostrovia,
JP --
I think this is fallout from the money market fund breaking the buck. Everyone with any significant cash in MM funds is now transferring it into funds that only hold Treasury debt.
Result is essentially unlimited demand for short-term Treasuries, which drives the TED spread through the roof.
Gold is up because the Treasury+Fed have started printing.
Just MHO.
Watch out - it's a liquidity trap!
yesterday's low on DJ (the 'people's number) is a scant few ticks away.....
Ciao
MS
the Treasury+Fed have started printing
how so?
emo-
the Fed has been printing via the repo's for far longer. Just not as apparent to the 'masses'.
It is now....I hope.
Ciao
MS
Troy --
See Yves's coverage.
Hi Nemo- That explains treasuries, but I'm looking at S&P, and S&P financials.
I would have guess that a knee jerk response would be financials to rise. Obviously, my intuition is not correct.
(It would indeed be ironic if the AIG bailout caused much of the market to freeze.)
Comrades,
How risky is Wells Fargo? My parents have all their money in CDs? Should I ask them to move to other banks for amounts >100K? Appreciate your views...
Natalie
Comrade Misean writes:
"Way up this thread, it was explained that the Treasury is selling into market and depositing at Fed. This takes money out of the system."
Watch this very carefully. What is killing the market is the deluge of Treasury paper. This week was supposed to be a "good" week since quarterly taxes are pouring in. Imagine next week!
There is some secret reason why the Fed has not monetized yet. My best guess is that this is by order of our Chinese overlords. Seeing the Treasury sell bonds to cash up the Fed is consistent with this theory.
Well at least the Fed has all that great stuff they've been accepting as collateral to fall back on.
I'm not sure whether the Treasury auction is inflationary or not. As stated there will be either fewer greenback floating around (if they sit in the Fed) or the same (if the Fed loans them out; more likely). But the Fed balance sheet is expanding and there are more T-bill about. Seems like M0 will be stable and M3 grow; which is the reverse of what IMO should happen; recently M3 has soared while M0 has been flat.
Wells Fargo will probably be fine, Natalie (relatively speaking). They aren't going to close their doors.
Nemo writes:
Gold is up because the Treasury+Fed have started printing.
Could be something to do with the naked short rule. Bet the mining stocks are up. Wonder who led who.
Just a thought.
Wright Brothers Model B Flying Turkey
WAAHHHOOO ! ! ! !
.....
Re: Nemo | Homepage | 09.17.08 - 11:23 am | #
Sounds about right to me.
....
Comrade Plantagenet,
That's my read. I'll check out Nemo's link and see what Yeves arg is.
BBL.
Nostrovia,
Uh,
Does this mean no one can afford to bank roll our tournaments now that they have all gone under? Just curious.....
I'm glad Nike stayed out of IB...
TW
CDS cost for all types of bonds (including US tres) is going up. Fundamental is now starting to catch-up. Higher borrowing cost means lower lending, lower profit more losses.
White House says "we have a very mixed picture" of economy
Now I am confused
GS now sinking like a stone. That's gotta hurt Hanky in the wallet a wee bit.
And about that Greenburgh quote, "losing his entire net worth" - what kind of maroon would lose all of his $ if one company went under? Anyone with that little sense in personal financial planning deserves to be fleeced and clearly didnt belong running any kind of financial company.
Or what, did he leverage his own holding just like everyone else these days and wipe out the value of all that plus everything else he owned.
Maroon, or big fat liar.
BB: "Bet the mining stocks are up."
Naked shorting was part of the recent savage attack on mining stocks. TPTB will probably look the other way here, despite any "rules."
That said, the Gold price drives the shares, not vice versa.
I guess Team 1250 has changed their name back to the Plunge Protection Committee. If they are really good, we will have a stick save at 3:30m PM to teach the shorts a real lesson.
MS down 33%
Plantagenet - T-bill prices are soaring. That means the market thinks there are not enough T-bills, not too many.
AUY is only up 6.77% right now. The miners are still lagging GLD
How funny would it be if "Comrade Tiger Woods" was really TW.
I wonder if there any famous people lurking here for answers, lord knows we cant trust anyone who has a microphone in front of them.
.....
The Federal Reserve Board on Tuesday, with the full support of the Treasury Department, authorized the Federal Reserve Bank of New York to lend up to $85 billion to the American International Group (AIG).
The Fed is bailing out AIG, not the Treasury.
In unrelated news, the Treasury is setting up a temporary financing program. The program will auction Treasury bills to raise cash for the Fed's use.
No worries Tiger,
The Shoneys Memorial,
The Salvation Army Open
Top prize, 100 dollar gift certificate to Bally's Gym
TF
bureeeeeeeeeeeeeeeerahhhh! Bureeeeeeeeeeeeahhh!!
Meltdown cappin! We're losin containment!
MS down 38% now.
GS now sinking like a stone. That's gotta hurt Hanky in the wallet a wee bit.
Unfortunately no. Hanky was allowed to sell all his shares and pay no income tax on the capital gains...
None!
F'in loser...
(I'm back in the Hanky Panky sucks after this AIG stunt!)
......
This is decidedly less painful to watch when one is on the sidelines.
Somebody trot out Wesbury for crikes sake!
Plantagenet:
Thanks for the clarification.
Anak writes:
Comrade colonel covered :
on the Kitco chart I've seen some short squeezes, and this is no doubt one, but is that all there is to it?
Comrade Anak...see the money market breaking the buck comment, too. As other comrades have noted, our glorious Fed is printing for all to see now. As well, the 824ish technical level has been taken out and many of my trading comrades view that level as a trend reversal.
MS better get paired up SOON!
Who is the most eligible bachelor left?
Ohh yeh, I forgot about that convenient fact.
Comrade JS,
"The Fed is bailing out AIG, not the Treasury.
In unrelated news, the Treasury is setting up a temporary financing program. The program will auction Treasury bills to raise cash for the Fed's use."
Thus:
Fed bails AIG...Treasury bails Fed.
Hmmmmmmm....
Gotta go change the batteries again.
Nostrovia,
Geoff wrote: This is decidedly less painful to watch when one is on the sidelines.
Here here!
I've been cash for 6 months. I'm loving life.
I'm even more loving reconnecting with all the people who told me i was a pessimistic nut over the last 2 years...
Good times!
......
"Plantagenet - T-bill prices are soaring. That means the market thinks there are not enough T-bills, not too many."
A large rate change is only a small percentage change in purchase price, especially for the < 1 year stuff. The total number of bills being large, it is sucking money out that might have been used to bid up stocks.
Paging Paul Volker....Paul Volker to a white courtesy phone please....
"Who is the most eligible bachelor left"
Wells Fargo is about all that's left.
Can't see it happening though. That whole left coast, right coast thingy..
Ciao
MS
MEMO TO PPT: "Sorry boys, we spent your budget on AIG."
wealth redistribution....
Account for the same dollar five times in five different companies, and none actually possess an actual dollar, then they crumble, of course reality is the first dollar never actually existed, and all the "wealth " thats disappearing was a figment anyway...
So technically everyone is marking to real market...
LOL Popeye. That would explain things!
Gold finally crested.
827 now,
I don't buy the 824 reversal, unless we see some sort of support at that level on the way down. If it just blows right through, then forget about it.
MS Down 36%
A large rate change is only a small percentage change in purchase price, especially for the < 1 year stuff. The total number of bills being large, it is sucking money out that might have been used to bid up stocks.
Nonetheless, the market does think there are not enough T-bills. And when the rate briefly goes negative with a positive PPI, I'd say the market thinks there are way too few. Yes, more T-bills might pull money out of stocks, and in a sense that's what the market is asking for.
i think you are melting up rather than melting down.
But how gold goes up and treasuries down is hurting my brain.
HOLY CRAP!
P.P.
WB down 26%.....to help keep up with all of this.
Ciao
MS
But how gold goes up and treasuries down is hurting my brain.
Flight from the dollar?
....
11:39 DJ News:
Shares of General Electric Co. (GE) continued to fall Wednesday as investor confidence in the conglomerate declined further amid worries about its financial unit that prompted a JPMorgan analyst to trim estimates for next year. Ê Steve Tusa said that while GE's access to funding for its big financial arm appears solid, he expects the unit's earnings to fall 5% to 10% next year. Ê GE's stock was recently down 7.9% to $23.09. That puts its decline over the past four trading sessions at 18% amid broad worries in the financial markets after Lehman Brothers Holdings Inc. (LEH) was forced to file for bankruptcy Monday and Merrill Lynch & Co. (MER) agreed Sunday to be acquired by Bank of America Corp. (BAC).
The costs to insure bonds from GE's financial arm also continue to surge for a company not typically seen as in any danger of default. It now costs $500,000 a year to protect a notional $10 million of General Electric Capital Corp. debt against default for five years, up $108,000 from Tuesday.
Absolutely no Repo's today.
Temporary Open Market Operations - Federal Reserve Bank of New York
Running out of money Benny Boy???
Stupid fools.
Ciao
MS
Will CNBC be the first with the Breaking News of layoffs at GE?
Can we watch their heads explode as they do the math on that one while Live on the air?
But how gold goes up and treasuries down is hurting my brain.
Flight from the dollar?
....
nades
A treasury is an interest paying dollar surely? Everybody wants paper. nobody wants electrons.
Economic recovery might happen faster than we first thought! -Bloomberg
Bottom is near! Woo Hoo! Bullriders get your chaps on!
Then again...
BreakOut
Boat52 writes:
The Treasury helping the Fed because they "Used up their balance sheet". It sounds like a banana republic.
Brought to you by the banana republicans.
At what point does the Fed go hat in hand to the IMF?
Seems like M0 will be stable and M3 grow
Fair Economist | 09.17.08 - 11:28 am |
I think this is the key, what you've wrote. Bernanke and Paulson are walking the fine line between perceived inflation and perceived deflation while doing M3 printing.
That's why they hind this information. Essentially the problem is solvency/liquidity of financial institution, thus M3 is their money. For us mortals, M0 remains stable.
Discontinuance of M3
On March 23, 2006, the Board of Governors of the Federal Reserve System will cease publication of the M3 monetary aggregate.
M0: The total of all coins 'minted' and paper 'printed' cash in circulation. (i.e. currency)
M1: M0 + the amount in demand accounts (also called "checking account" or "current account")
M2: M1 + other various savings account types, money market accounts, and certificate of deposit accounts (CDs) of under $100,000.
M3: M2 + all other CDs, deposits of eurodollars and repurchase agreements.
from Wikipedia
M3 contains the all-important repurchase agreement information - where in effect, the Federal Reserve prints money out of nowhere and buys billions worth of federal debt every month.
When our deficit is out of control and they suddenly stop providing information on how much debt the fed is monetizing, it's the polar opposite of 'transparency'.
Posted by: Idaho_Spud | Nov 14, 2005 12:33:38 PM
I am a famous person, and I want to say in cooperation with Fed and Treasury, we too are extending credit, and shaving a bit from our TED rate to our "tab" customers. See Bruno in the corner for details.
Please open your books and refer to page 420, Mr. Bernake, begin reading allowed....
aloud...jeez
CapeColin writes:
My mother has everything in Wachovia. Are they in trouble to?
Yes, if she has more than $100K in there, drive her directly to the bank and get her to withdraw the amount above that (prob down to $95K just so she doesnt get screwed out of any accrued interest).
WB is probably next in line behind WM, although I think NCC or DSL might cut in line first
Just one comment on the phrase in the original posting: "Much of the increase in the TED spread is because of the ->flight to safety
That posting got truncated somehow, and I don't have the time to re-write it. Pardon me.
Comrade Canadaman would like to MS bailout next so common gets wiped out
full disclosure: comrade canadaman owns puts on MS, Paulson Job Approval Rating, and Bernanke's Job Approval rating