MS,
Rate cut well before Friday this week.
Sec will shoot shorts by making new rule must borrow before shorting.
Forced unwinds are going to be even more insane by Friday.
Buckle up and put in GTC's on heavily shorted stocks you own at high levels.
You just may get some winning lottery tickets.
I think a lot of the black box volitility traders are going to shut off this week, leaving the specialists to balance as best they can, just like the olden days.
If somebody had told me even a week ago all of this was going to play out as it has over the past 48 hours I would have thought them insane. Anything can happen next and not surprise me.
Paulson giving historical worse presentation of his federal career without a doubt. The first sentence was telling. Pray hard. Now taking questions. Pray harder. Lola, come watch this!
Hey, I hope nobody expects anyone to "sit down with a calculator" and figure this stuff out. Haven't you heard? That's not how we make multi-billion dollar financial decisions in this country.
Since NYS Insurance Sup't is there and it follows Patterson announcement of 20bil transfer, I wouldn't be suprised if the bridge loan had to do with this transfer to put up some real money more quickly
Hey, I hope nobody expects anyone to "sit down with a calculator" and figure this stuff out. Haven't you heard? That's not how we make multi-billion dollar financial decisions in this country.
My wife and I can't figure out for the life of us why the elementary schools insist on teaching "front-end estimation" to 5th graders. Just ballpark based upon the first digits in the number.
Saw another "expert" saying about 1000 banks would go under before this is over. Since so few are being closed, I suspect something is interfering with it all. Is it lack of FDIC funds, or just Sheila whistling in the dark and singing Dixie?
Reuters: The remaining Investment Banks will each send one representative to the President's newest economic task force, the Financial Action Committee on Ethics Reform and Accounting Practices Executive Roster.
Each FACERAPER will receive a consulting fee of $20M, as well as a large piece of land in Paraguay.
Mr. Paulson, Head FACERAPER, indicated that he expects to include more industries in his new FACERAPER.
The move is not a government bailout,'' Paterson said today at a New York City press conference. The arrangement allows AIG to make a bridge loan to itself, and the New York- based insurer remainsextraordinarily solvent,'' he said.
bloomberg
Crescendo
From Wikipedia, the free encyclopedia
Crescendo, in musical notation, refers to a passage of music during which the volume gradually increases.
It also may mean:
In music
A Liverpool based electronic pop band
Crescendo International, a network of Christian classical music professionals and students
Diminuendo and Crescendo in Blue, one of Duke Ellington's longer-form compositions
Insanity's Crescendo, a song by Dark Tranquillity
The Crescendos, an early rock and roll group
A lyric in "Smooth Criminal" by Michael Jackso
Morgan Stanley seems to be refuting the notion that the stand alone IB is finished. It seems to have lots of work to do for the Treasury in analyzing various crippled financial institutions to see who is worthy of government bailouts.
99 Lead Balloons writes:
Reuters: The remaining Investment Banks will each send one representative to the President's newest economic task force, the Financial Action Committee on Ethics Reform and Accounting Practices Executive Roster.
Each FACERAPER will receive a consulting fee of $20M, as well as a large piece of land in Paraguay.
Mr. Paulson, Head FACERAPER, indicated that he expects to include more industries in his new FACERAPER.
99 Lead Balloons | 09.15.08 - 1:59 pm | #
Sept. 15 (Bloomberg) -- American International Group Inc., the largest U.S. insurer by assets, has been given special permission to access $20 billion of capital in its subsidiaries to free up liquidity, New York Governor David Paterson said.
The move is not a government bailout,'' Paterson said today at a New York City press conference. The arrangement allows AIG to make a bridge loan to itself, and the New York- based insurer remainsextraordinarily solvent,'' he said.
AIG may need to raise $20 billion in capital and sell $20 billion of assets to ease a cash crunch brought on by the collapse of U.S. mortgage markets, people familiar with insurer's plans said. Prospects dimmed today when Lehman Brothers Holdings Inc. went bankrupt after failing to find new funds or a buyer. Bank of America Corp. Chief Executive Kenneth Lewis said today AIG's failure would be a ``much bigger problem'' than Lehman's demise.
AIG has a liquidity problem'' and will be able to use assets held by units as collateral for cash to run theday to day operations'' of the insurer, Paterson said. ``We have seen some of the companies that serve as the bedrock of our financial system unraveling before our eyes,'' Paterson said.
AIG plunged as much as 71 percent in New York trading. The stock was down 50 percent to $6.05 a share as of 12:30 p.m. in New York Stock Exchange composite trading after Paterson's statement.
Eric Dinallo, the New York State insurance superintendent, has become the lead regulator charged with finding a solution to AIG's financial crunch, according to two people familiar with the situation. The people declined to be identified because talks between Dinallo and AIG are confidential.
It beggars belief that AIG management is allowed to meet with the NY Fed when private capital was available. The money in their insurance division is supposed to be there to pay claims, not be pawned by management to save their jobs. Policy holders are going to be left with nothing.
"I am not looking backwards." vs "I'm dealing the cards I'm dealt, some of these things go back many years, like Fannie and Freddie."
"I am not looking at the politics of this." vs "The fundamentals of our economy are strong (winking left eye at Bush and right eye at McCain, media only sees him blinking."
ades,
That's the huge hidden part of the iceberg that nobody is looking at yet. You cannot destroy all this stuff without ripping hell out of everything around it.
OK...AIG to FED and NY:Look guys/gals we are broke. No one will lend us money to stay afloat...Can we just borrow it from our reserve fund and pay it back with our future earnings?........PROBLEM: There will be no future earnings. They are diluting the co's value by pissing what little money is left with this short term "Bridge Loan". I CANNOT FATHOM WHY PEOPLE DO NOT GO POSTAL ON WALL STREET!
This is actually a thoughtful post. Please give me some slack.
Paulson sees an end to the housing decline. He is lying. No one knows. Anyone who claims to know is lying. The second corollary to that claim is that there is anything anyone could do to prevent the ultimate unwinding of housing. That my friends is hubris writ worldwide. Third is the mistake of thinking the housing implosion is a cause when in fact it is an effect. Credit is the problem, housing is/was a symptom.
Until solvency is addressed there is no amount of liquidity that will make a difference.
We have very low standards. This guy was blind as a bat or and outright liar and is consistently only reacting to the latest emergency. What is there to like?
Well, he did let Lehman fail. And the FNM/FRE terms were pretty brutal to the shareholders, even the preferred. And if he really is refusing to help AIG, that is worth something.
That said, yeah, he is coming off of a pretty low base.
jim writes:
Saw another "expert" saying about 1000 banks would go under before this is over. Since so few are being closed, I suspect something is interfering with it all. Is it lack of FDIC funds, or just Sheila whistling in the dark and singing Dixie?
There is something called a presidential election...
Nades,
I was not fond of the fact that my folks faced a world of hurt if I didn't help. But now, I'm thankful for the day I was asked, and grateful for the day I decided to do it.
I'm not in your place - we grew up elsewheres from each other - but, ... I'm just saying... there are values - and that is how they got their name.
Nemo: Well, he did let Lehman fail. And the FNM/FRE terms were pretty brutal to the shareholders, even the preferred.
Our standards in the past have been to wipe out shareholders when a company is nationalized or otherwise provide a loans (Chrysler). None of this middle of the road stuff. Why do you suddenly get good marks if you set the standard even lower than it was?
The mention of pension fund losses creates a curious situation.
While the government may not want to use public money to bail out troubled financial firms to the extent that the failure to do so causes large losses in pension funds the PBGC is put on the hook to make them at least partially whole. Thus denying money up front via the front door could conceivably create even larger public costs through the back door.
Is that article you linked correct? Merrill is one of the companies putting up $7b? So now BAC has to put $14b in the pot? They're going to be the first to dip into that fund, right?
The Christian God exits, as does the God of the Jews, and the Muslims. Metaphysically, I give favor to the eastern religions which managed to separate mysticism and personal experience. However, as a devote agnostic.... I am hard pressed to understand how this discussion bears on the actual market.
Fed Adds Most Reserves Since 9/11 as Banks Hoard Cash (Update1) - Bloomberg.com
Fed Funds Climbs the Most Over Target Rate in Decade (Update2)
``If the fed funds rate closes high today, I would be really worried as it would mean that there really is no money out there to be lent,'' said Stan Jonas, who trades interest- rate derivatives at Axiom Management Partners LLC in New York."
Nades - my last comment does not negate my suggestion that the term "values" holds. What I offered was my true life experience. You apply it in the manner you see fit. Everyone stands in their own circumstance. Choices are hard. I wish you well.
Anonymous writes:
i love how we'll give these guys a 20b loan in a few hours, but the poor autos can't get 25b without doing a pole dance for Pelosi.
There are at least two important differences between the Autos and WS:
1) The Autos manufacture something, whereas WS shuffles money around. We're in the Finance Economy period of our Empire and don't care too much for manufacturing.
2) The Autos don't contribute nearly as much to political campaigns as WS does.
Thus, WS gets the help, and Detroit gets the kick in the butt.
The real problems don't come from God whom ever that higher power may be just like they don't in the markets it's the men in the middle that seem to lead to most of the problems.
"paulson again saying housing problem will be over in months...
Not a chance unless they start dropping money from helicopters."
Even a helicopter drop won't save housing at this point. If/when the Fed starts printing, the printed dollars will go straight towards the balance sheet of banks to water down some of the losses. This may cause some inflation, but very little if any of the cash would wind up in the pockets of JSP. Just more bank zombification.
Probably cheaper to loan them $25 billion than to see them go under or shrink into Rover/Jaguar sized companies.
When people lose their jobs they and the towns they live in just don't go away. They become wards of the welfare
state and, as noted, autos are useful goods we are going to need to buy from someone, we can either risk a loan to GM and Ford to keep them competitive or write off our domestic
industry with all that implies.
The Europeans and Japanese may scream bloody murder about unfair trade practices but you can bet they would do the same if Toyota or Daimler were
threatened.
I think I'm getting a message from Mr Market: Bank of Lynch (or Merrill America) is being marked as next.
Well, the prices do not make sense. BAC is paying 0.8595 shares of itself for each share of Merrill. BAC is trading at $27.75 and MER at $19.20.
So either MER should be closer to $23.85
...or BAC should be closer to $22.34
...or some combination of the two
...or the deal is not actually going to happen as announced.
How convenient? Of all days, Bloomberg tells us that today was the day "evidence was found" that Iran "is not complying with" the UN terms for its nuclear program. How to ensure that McCain gets elected, a new scapegoat is found for all this GOP created mess and that the sheeple can focus their attentions on miseries and trouble far way? Attack Iran. I hope the God they have the wisdom to not do that.
"Im with you AllenM - I dont trust this market and Im outta here after today. Dont want to see what tricks they are up to tomorrow."
This is what is going to lead to the death spiral in the US markets. Constant intervention is only going to Lead to one thing and that is capital is going to flee.
Amazing the UN finds Iran violating its treaty obligations and it is the fault of America. Truly one has to be either a Democrat or a European to come to that conclusion.
The good news is that the US is supplying Israel with our latest bunker busting munitions so maybe the Israelis will have to do the world's dirty work one more time.
BofA to also acquire YLB bank in a very small merger. America Lynch Countrywide Y-bank have an overweight position in brewers. Lefty oversubscribed new issue.
I'm not wasting my time reading articles anymore. Either the market starts to reflect reality... or you folks can try to hedge it... As for me, we get honest soon - very soon - or I'm outta here and will be pleased to allow any remaining fools in a game with marked cards and a dealer who controls the game.
I'm willing to be patient, but it's already under the test.
ERCOT is the Electrical Reliability Council of Texas, which operates the grid in Texas.
Yesterday, the high voltage line down count was 114, and the MW generation capacity out was ~3,000 so that is good progess in a day or less. The outage for people in Houston is something like ~75%, down from ~85%.
PRESS RELEASE
September 15, 2008 Print Version
Hurricane Ike: ERCOT Grid Condition, Update 2
Forced outages due to Hurricane Ike as of 8 am Sept. 15:
Customer outages
CenterPoint 1.6 million
ONCOR 58,000
Texas New Mexico Power 70,000
LCRA 2,409
Lehman CEO Fuld's hubris contributed to meltdown
"Not long ago, when Lehman Brothers CEO Richard Fuld talked about "everyone's worst nightmare" he was referring to a massive fraud at French bank Societe Generale. Just a few months later Fuld, a 30-year-veteran of Lehman who had ably steered it through near-death experiences like the Asian debt crisis of 1998, is living his own worst nightmare as the venerable investment bank stands on the verge of collapse."
It's all a matter of taste, but I keep coming back because of the mix of hard news, jokes, sarcasm and general gallows humor that I find here. (also moral outrage, that I share).
Some of us are observers, some are participants, some are players, or so I gather. Anonymity is part of the fun. : (
Our society is crashing, and until today the media was in total denial. Sometimes, if you don't laugh, you cry, too, too much.
Rule 10b-5: Employment of Manipulative and Deceptive Practices", and the complete text reads:
It shall be unlawful for any person, directly or indirectly, by the use of any means or instrumentality of interstate commerce, or of the mails or of any facility of any national securities exchange,
(a) To employ any device, scheme, or artifice to defraud,
(b) To make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading, or
(c) To engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person,
in connection with the purchase or sale of any security.
Tomorrow morning there will be SEC action and FED action.
This will trap the shorts, and ride them raw.
Paulson has stated all is well, which is basically a code for stop allowing all of this massive shorting and unwind your positions asap or I, and the Fed, will bury you with money to buy this market hard.
It's all about the money to be made stopping an all out crash.
If they let it crash, well, then the dollar is going to be toast even faster as they crank up the presses to fill in the holes in the system.
I'm not so sure in flight to safety...is the dollar really that much weaker than the euro or pound?
I agree, the dollar is going down, but so is everyone else...so if you're making a bet on which horse survives this, you might place your bets on dollars, and vote for the pony.
The question is really whether or not this minor sell-off triggers the real flight to saftey, ie mattresses?
Or do we make up ground, only to steadily lose it month after month. Each minor peak viewed as the bottom before a new floor is discovered. I vote for the latter.
Volume... ok, lemme check
Petend me not... volume - without prejudice - says excessive - so, any argument that the funds are not participating is simply stated.....bs
blackhat-"you might place your bets on dollars, and vote for the pony."
as much as i like ponies, being long glod and short the dollar for 4 plus years, in this wild ride against highly leveraged derivatives, still seems the best bet.
I thought they outlawed naked short selling a while ago. (I believe thats what you were referring to when you said people had to find the share before shorting it. i.e. borrow it)
Have you checked the fed funds rate today? The biggest net add in seven years and still they can't come close to the target already in place--dropping it would be irrelevant.
A good point. I think I have a bit of maturing to do before I get to that place!
It's only math until you come to the questions that matter. It's not my place to make your choices, and I did not have your life experience. I can only offer what worked for me. Think, and trade well.
Current regs allow you to sell short once you've identified shares to borrow; you don't have to physically have the shares in your possession before you execute the short.
If you believe certain incompetent and psychotic CEOs (and just because they're psychotic and incompetent doesn't mean they aren't to be believed), this rule has been abused.
The new rule might make it harder to get a borrow on heavily shorted stocks. I never had any trouble getting a borrow when it was applied to the broker/dealers, but none of those stocks had huge short positions.
OK George, time to turn the heat up on the war front. Media, prepare to change the story to the war. John, Barack...let's drop the economy and go heavy on foreign policy. All other subjects are a go.
As to the dollar, I think this is the time of your life if you are an FCB sitting on a pile of US$ that you would have had no opportunity to sell some time ago.
Look at London Banker's blog to see why this is the case:
Lehman has been deeply troubled and subject to speculation since the early spring. That was just about the time that we started to see a marked sell off in foreign markets where Lehman has long been a major player. Recently, along with intensification of that sell off, we have seen a strengthening of the US dollar and US asset markets.
If one were cynical, and one believed that Lehman was going to be allowed to fail pour encouragement les autres one might wonder if Lehman was quietly bidden or even explicitly ordered to sell off its foreign holdings and repatriate the proceeds to asset classes within the US ring fence. This would ensure that US creditors of Lehman received a satisfactory recovery at the expense of foreign creditors. It would also contribute to a nice pre-election illusion of a flight to quality as US dollar and assets strengthened on the direction of flow.
I'd think that we are seeing more "ring fencing" now by other players and this will help the dollar short-term. However, when that process ends, look out!
"The company (AIG) had been in talks with billionaire investor Warren Buffett's Berkshire Hathaway, but those talks have ended, a person familiar with the matter told Reuters.
Neither AIG nor Berkshire returned calls seeking comment."
Sometimes, I just come up with good posts - and this is seems to be one of them:
Crescendo, in musical notation, refers to a passage of music during which the volume gradually increases.
It also may mean:
In music
A Liverpool based electronic pop band
Crescendo International, a network of Christian classical music professionals and students
Diminuendo and Crescendo in Blue, one of Duke Ellington's longer-form compositions
Insanity's Crescendo, a song by Dark Tranquillity
The Crescendos, an early rock and roll group
A lyric in "Smooth Criminal" by Michael Jackson
First for once?
Another too big to fail entity.
asf
I say we still end the day either even or on the upside on the Dow.
Negotiating a bridge to...?
A bridge to.....?
That's what I thought.
Unbelievable.
Where's my pitchfork?
NY Fed hired Morgan Stanley
MS: -10%
Repost from last thread:
second repo. done today...
THis one "may" say the rate cut isn't a done deal.
http://www.newyorkfed.org/market...mo/dmm/ temp.cfm
$109.5b submitted.....$50b accepted.
These are the largest submissions in one day I have ever seen.
Accepting half of the second one when just 10% of the first one was accepted says to me that a rate cut might not be done......
Ciao
MS
Morgan Stanley goes to the Window and passes it to AIG?
A bridge to after the election?
How does another loan help. If you're Insolvent, more borrowing will not help.
Cheers,
Nemo writes:
Unbelievable.
Where's my pitchfork?
When you believe in things that you don't understand..........
Ok, you understand more than I do. Trade well.
CNBC reported the NY Fed hired Morgan Stanley to negotiate bridge loan for AIG.
Ah, I am so relieved somebody is going to be able to charge a fat fee during this crisis.
Manhattan real estate is saved!
i love how we'll give these guys a 20b loan in a few hours, but the poor autos can't get 25b without doing a pole dance for Pelosi.
Where's my pitchfork?
Tractor Supply Co.
tell them CR sent you and you'll get the indignant-taxpayer discount.
NYT - A.I.G. Allowed to Borrow Money From Subsidiaries
Big Insurer Seeks Cash As Portfolio Plummets - NY Times
[Thanks Bill for keeping on top of the breaking news.]
[rant|on]
WTF is the NY Fed doing even agreeing to a meeting?
[rant|off]
NY Fed hired Morgan Stanley
They're still in business?
.......
These are the largest submissions in one day I have ever seen.
The fed is now taking more types of trash for cash. No joke.
Looks like Ben gets a Ski Resort.
Sheila asking: where is that Alaska 'brige-to-no-where' money?
LOL @ the pole dance
MS,
Rate cut well before Friday this week.
Sec will shoot shorts by making new rule must borrow before shorting.
Forced unwinds are going to be even more insane by Friday.
Buckle up and put in GTC's on heavily shorted stocks you own at high levels.
You just may get some winning lottery tickets.
I think a lot of the black box volitility traders are going to shut off this week, leaving the specialists to balance as best they can, just like the olden days.
Welcome back to the wild west!
Someday this war's gonna end...
The trouble with most IB buildings is that their windows don't open for quick jumps.
Jesus, they are just winging it.
If somebody had told me even a week ago all of this was going to play out as it has over the past 48 hours I would have thought them insane. Anything can happen next and not surprise me.
Sorry, I've lost track now.
Bridge loan = bridge on a collateral call? So they can
Please correct as necessary.
Paulson= Largest POS EVER!!
Wrapping himself in a flag and spouting patriot BS...
Ciao
MS
AllenM wrote: Sec will shoot shorts by making new rule must borrow before shorting.
Can you expound? I dont understand....
TIA..
.......
Google just had 300,000 hits on "New York State Insurance Guarantee Fund"
Paulson giving historical worse presentation of his federal career without a doubt. The first sentence was telling. Pray hard. Now taking questions. Pray harder. Lola, come watch this!
I've got some used TP. Wonder what the fed will give me for it.
Cheers,
AllenM, what's a GTC?
"winging it" is the same as what others are saying:
"making it up as they go along"
Misean-
Mark it up to new and you'll get cash for tomorrow's next record "auction".
Ciao
MS
MS why no love for Paulson?
I havent really figured out why people are so upset with him.
I think the F&F bail out was necessary for the US. And I think he did right buy putting the tax payers first before the perferreds.
And he smoked LEH, something I was happy to see too... (that he didnt intervene)
........
Live stream of CNBC, Paulson on right now
cnbc CreditMattersBlog.com on Justin.tv
Un - effing - believable.
And I've got to fold laundry.
Wait, I'll bag it and take to the window.
Suh-weet.
Un - effing - believable.
And I've got to fold laundry.
Wait, I'll bag it and take to the window.
Suh-weet.
Hey, I hope nobody expects anyone to "sit down with a calculator" and figure this stuff out. Haven't you heard? That's not how we make multi-billion dollar financial decisions in this country.
they should say thanks but no thanks!
Since NYS Insurance Sup't is there and it follows Patterson announcement of 20bil transfer, I wouldn't be suprised if the bridge loan had to do with this transfer to put up some real money more quickly
MS,
"Mark it up to new and you'll get cash for tomorrow's next record "auction"."
Check. Man that was a pile in the 2nd repo.
Cheers,
Yawn, Paulie is having a giving incite to the kumbaya moment the TPTB had over the weekend with the fawning pressitutes. So nice to share that.
Hey, I hope nobody expects anyone to "sit down with a calculator" and figure this stuff out. Haven't you heard? That's not how we make multi-billion dollar financial decisions in this country.
My wife and I can't figure out for the life of us why the elementary schools insist on teaching "front-end estimation" to 5th graders. Just ballpark based upon the first digits in the number.
And now we know why.
homedad,
the belief in things you don't understand is potentially forgivable, if there is a good God;
betting on them has real world consequences.
... if I assumed too much, I ask pardon.
Paulson opens pie hole, market tanks.
Popeye:
Unfortunately, people tend to forget nowadays that God was also around in the Old Testament, and he was not to be dicked with.
Amen.
I hear they're using a leaky pen and writing on damp cocktail napkins.
Cheers,
Paulson replies to "Why Bear and not Lehman?" with a song and dance.
"Hey, I hope nobody expects anyone to "sit down with a calculator" and figure this stuff out."
Hey, these guys are at the genius level. They figure it out in their heads. Impressive, huh? Plus, it explains everything.
Sounds like AIG gets bailed.
Did you have a good weekend?
Thanks a ton, Hank.
A-hole.
No, I did not.
lmfao!!!
This is what it has come too...just one meeting after the next...these guys are about three crisis behind the curve
Saw another "expert" saying about 1000 banks would go under before this is over. Since so few are being closed, I suspect something is interfering with it all. Is it lack of FDIC funds, or just Sheila whistling in the dark and singing Dixie?
The FED has become some sort of "Uncle Fatty's payday loans".
P.S. Uncle Fatty knows what he is doing though.
"Paulson opens pie hole, market tanks."
Between him and Bush, where can people find confidence? Might as well hand out copies of My Pet Goat for everybody to read.
No leadership. None.
to jim: You mean, Wilbur Ross?
Maybe, I forget who is was.
Frankly Popeye, not sure what you're referring to, so not a problem.
Christian? Yeah.
Edgy? One of the edgier ones that you'll want to meet.
Investing? Only with TWM/RWM in the casino money.
Reuters: The remaining Investment Banks will each send one representative to the President's newest economic task force, the Financial Action Committee on Ethics Reform and Accounting Practices Executive Roster.
Each FACERAPER will receive a consulting fee of $20M, as well as a large piece of land in Paraguay.
Mr. Paulson, Head FACERAPER, indicated that he expects to include more industries in his new FACERAPER.
Hank wants more power for the FED, SEC and Treasury.
With hindsight that is not a good idea.
Man, Paulson should have taken 3 questions max and then said "Thanks everyone."
Digging deeper with each question.
Paulson just said no bridge loan for AIG
Has our central bank ever made a loan to a purely private non-banking institution?
Ever?
and awaay we go
Lehman Sisters --
Paulson just said no bridge loan for AIG
Really?
Hey, I am starting to like this guy...
The move is not a government bailout,'' Paterson said today at a New York City press conference. The arrangement allows AIG to make a bridge loan to itself, and the New York- based insurer remainsextraordinarily solvent,'' he said.
bloomberg
A number of months. Like 75 or so?
Did Paulsen really say no bridge for AIG?
Hope the basement's finished, Granny's moving in.
Think we gonna see any margin calls this afternoon?
Nemo writes:
Has our central bank ever made a loan to a purely private non-banking institution?
Ever?
Detroit?
......
paulson again saying housing problem will be over in months...
yeah right!
Crescendo
From Wikipedia, the free encyclopedia
Crescendo, in musical notation, refers to a passage of music during which the volume gradually increases.
It also may mean:
In music
A Liverpool based electronic pop band
Crescendo International, a network of Christian classical music professionals and students
Diminuendo and Crescendo in Blue, one of Duke Ellington's longer-form compositions
Insanity's Crescendo, a song by Dark Tranquillity
The Crescendos, an early rock and roll group
A lyric in "Smooth Criminal" by Michael Jackso
Okay GTC- good til cancelled order.
For the SEC rule change, what I think is that they will no longer allow the vague "locate shares before shorting" currently allowed under the rules.
In other words, short term shorting of stocks will be much more difficult, and there will be a huge rally when the unwinds are forced.
Add in hedge fund leverage is evaporating, and you have a combustabile mixture.
After this big rally, well, that is another story for another day.
Someday this war's gonna end...
Hey, I am starting to like this guy...
Nemo
Well I'm glad someone agrees....
......
Morgan Stanley seems to be refuting the notion that the stand alone IB is finished. It seems to have lots of work to do for the Treasury in analyzing various crippled financial institutions to see who is worthy of government bailouts.
99 Lead Balloons writes:
Reuters: The remaining Investment Banks will each send one representative to the President's newest economic task force, the Financial Action Committee on Ethics Reform and Accounting Practices Executive Roster.
Each FACERAPER will receive a consulting fee of $20M, as well as a large piece of land in Paraguay.
Mr. Paulson, Head FACERAPER, indicated that he expects to include more industries in his new FACERAPER.
99 Lead Balloons | 09.15.08 - 1:59 pm | #
You missed the memo--not Paraguay, Dubai.
CD, paulson's housing problem will be over for him in 2 months.
Have we hit any of the trading stops yet?
This ain't the unwind...
Pardon me whilst I cut off this good arm...to buy medicine for my other busted arm.
Net effect?
WTF does that mean?
BREAKING
Sec Tres. Paulson calls for an end to the housing market drop in 2 to 3 or a few but not too many months
my GS chart just went off the screen. Me thinks this speech is having unintended consequences.
Paulson: housing correction in months, maybe not two or three months but months. Hmmm 120 Months???
New York Governor Says AIG Can Access $20 Billion
By Hugh Son and Andrew Frye
Sept. 15 (Bloomberg) -- American International Group Inc., the largest U.S. insurer by assets, has been given special permission to access $20 billion of capital in its subsidiaries to free up liquidity, New York Governor David Paterson said.
The move is not a government bailout,'' Paterson said today at a New York City press conference. The arrangement allows AIG to make a bridge loan to itself, and the New York- based insurer remainsextraordinarily solvent,'' he said.
AIG may need to raise $20 billion in capital and sell $20 billion of assets to ease a cash crunch brought on by the collapse of U.S. mortgage markets, people familiar with insurer's plans said. Prospects dimmed today when Lehman Brothers Holdings Inc. went bankrupt after failing to find new funds or a buyer. Bank of America Corp. Chief Executive Kenneth Lewis said today AIG's failure would be a ``much bigger problem'' than Lehman's demise.
AIG has a liquidity problem'' and will be able to use assets held by units as collateral for cash to run theday to day operations'' of the insurer, Paterson said. ``We have seen some of the companies that serve as the bedrock of our financial system unraveling before our eyes,'' Paterson said.
AIG plunged as much as 71 percent in New York trading. The stock was down 50 percent to $6.05 a share as of 12:30 p.m. in New York Stock Exchange composite trading after Paterson's statement.
Eric Dinallo, the New York State insurance superintendent, has become the lead regulator charged with finding a solution to AIG's financial crunch, according to two people familiar with the situation. The people declined to be identified because talks between Dinallo and AIG are confidential.
Last Updated: September 15, 2008 12:42 EDT
Personally, I'm voting for the last one:
A lyric in "Smooth Criminal" by Michael Jackso
For the SEC rule change, what I think is that they will no longer allow the vague "locate shares before shorting" currently allowed under the rules.
AllenM, got it, thanks!
....
Does anyone think that the powershares short Etfs are risky since they use derivatives???
Alo: LOL!!! Paulson's housing problem over in two months.
Whose Bridge loan did Paulson nix?
Can he stop the Fed?
Can he stop NY State?
Maybe Chavez will front it
"What's going on in NY is a private sector effort..."
Hmmmmmmmmmmmmmm.
BREAKING
Market to rally on fresh bunch of rumours from the horse' mouth
paulson again saying housing problem will be over in months...
No a chance unless they start dropping money from helicopters.
It beggars belief that AIG management is allowed to meet with the NY Fed when private capital was available. The money in their insurance division is supposed to be there to pay claims, not be pawned by management to save their jobs. Policy holders are going to be left with nothing.
DaddieMac writes:
Does anyone think that the powershares short Etfs are risky since they use derivatives???
I'm currently skeptical of most of these leveraged / derivative ETFs in the current environment.
We're (Americans) slowly realizing that nothing is really guaranteed. Something we've come to believe over the last 20 years.
.......
DaddieMac writes:
Does anyone think that the powershares short Etfs are risky since they use derivatives???
BY DEFINITION - THE ANSWER IS YES
Did anyone else notice that Paul Krugman stole Nemo's line about "When life hands you Lehman..."
It's in his latest column. Hmm...
Nouriel Roubini this morning:
Crisis on Wall Street: Roubini Predicts Another 20 Percent Stock Drop, Sale of Goldman, Morga: Tech Ticker, Yahoo! Finance
Attention savers...
HAHAHAHAHAHAHA
HAHAHAHAHAHAHAHAH!
ya mean social security funds are not to be used as the gov. private ATM ??.
Sonic Seuss writes:
Did anyone else notice that Paul Krugman stole Nemo's line about "When life hands you Lehman..."
Krugman is bankrupt of Ideas.. has to come to CR to steal one off our own.
Throw a 1 day TIO acution for $18 billion into the mix - advertised cover ratio 1.86 - actual cover ratio 2.58
Paulson: "We're making progress."
Please define progress.
Contradictions:
"I am not looking backwards." vs "I'm dealing the cards I'm dealt, some of these things go back many years, like Fannie and Freddie."
"I am not looking at the politics of this." vs "The fundamentals of our economy are strong (winking left eye at Bush and right eye at McCain, media only sees him blinking."
Sec Tres. Paulson calls for an end to the housing market drop in 2 to 3 or a few but not too many months
Bottom Dweller | 09.15.08 - 2:03 pm
He could end it today, with his control over Fannie & Freddie. Stop all forclosures, give away zero percent mortgages.
Pensions and retirement funds have got to be getting crushed.
Both my parents are state of Conn retirees.
I'd prefer they don't move in with me in 10 years. That may not be an option...
........
"CNBC reported the NY Fed hired Morgan Stanley to negotiate bridge loan for AIG."
Sounds like the Bridge Loan to Nowhere.
pier loan?
ades,
That's the huge hidden part of the iceberg that nobody is looking at yet. You cannot destroy all this stuff without ripping hell out of everything around it.
OK...AIG to FED and NY:Look guys/gals we are broke. No one will lend us money to stay afloat...Can we just borrow it from our reserve fund and pay it back with our future earnings?........PROBLEM: There will be no future earnings. They are diluting the co's value by pissing what little money is left with this short term "Bridge Loan". I CANNOT FATHOM WHY PEOPLE DO NOT GO POSTAL ON WALL STREET!
It sounds like a going away present.
thats called,,we cannot give the money to you,,,but if you talk with MS,,,well thats a different story..
Nemo Rules --
Like the name.
Today's foreign headlines:
Report: Kim Jong Il Began Losing Consciousness In April
Local News
Bush still hasn't regained his.
This is actually a thoughtful post. Please give me some slack.
Paulson sees an end to the housing decline. He is lying. No one knows. Anyone who claims to know is lying. The second corollary to that claim is that there is anything anyone could do to prevent the ultimate unwinding of housing. That my friends is hubris writ worldwide. Third is the mistake of thinking the housing implosion is a cause when in fact it is an effect. Credit is the problem, housing is/was a symptom.
Until solvency is addressed there is no amount of liquidity that will make a difference.
Nemo: Hey, I am starting to like this guy...
We have very low standards. This guy was blind as a bat or and outright liar and is consistently only reacting to the latest emergency. What is there to like?
No setting of public expectations and lots of BS.
Man, even the regional banks are getting hit now:
USB -1%
STI, BBT, PNC -3%
They were all up at various points earlier.
anyone else hearing silly rumors about GS buying WB, for its deposit base ?
asl writes:
A bridge to after the election?
asl | 09.15.08 - 1:45 pm | #
Bingo.
More like Rainbow Bridge, the place where puppies and kittens go to die.
RE --
We have very low standards.
Well, he did let Lehman fail. And the FNM/FRE terms were pretty brutal to the shareholders, even the preferred. And if he really is refusing to help AIG, that is worth something.
That said, yeah, he is coming off of a pretty low base.
AllenM Re:GTC
OK, Thnx
WB?
jim writes:
Saw another "expert" saying about 1000 banks would go under before this is over. Since so few are being closed, I suspect something is interfering with it all. Is it lack of FDIC funds, or just Sheila whistling in the dark and singing Dixie?
There is something called a presidential election...
Top breaking news CNN headline -
'OJ Simpson lawyer tells the athlete's side of the story'
OJ SIMPSON IS IN THE HOUSE
OJ! OJ! OJ!
We need more OJ coverage - maybe Bush should give an OJ statement to ensure that he remains relevant to the American people.
i just want the dow to stick 11000, then i'll be happy for a while..
Nemo writes:
Nemo Rules --
Like the name.
Don't let it get to your head
But that was a good phrase, pity it didn't work out for Lehman though. Otherwise you'd really be famous.
Nades,
I was not fond of the fact that my folks faced a world of hurt if I didn't help. But now, I'm thankful for the day I was asked, and grateful for the day I decided to do it.
I'm not in your place - we grew up elsewheres from each other - but, ... I'm just saying... there are values - and that is how they got their name.
Just my take on things.
ow it looks a bit surreal ...
"Bridge to elections loan"
I LOVE it!
Rob Dawg said: "Credit is the problem, housing is/was a symptom."
True that. The fabled American Consumer is only somewhat liquid and mostly insolvent. And as credit goes away, the liquidity does as well.
Not good for consumption going forward.
And the FNM/FRE terms were pretty brutal to the shareholders, even the preferred.
But he was not brutal to the bond holders. And he should have been.
Can I haz bailout, pleaz?
Lol!
We are all subprime and insolvent!
Someday this war's gonna end...
I am not sure shorting WB is a wise move here. (I closed my own short on them today, too early.)
Remember that the banks are circling the wagons. Although WB is not part of that initiative, they could join at any time.
Very dangerous market to trade, IMO.
Nemo: Well, he did let Lehman fail. And the FNM/FRE terms were pretty brutal to the shareholders, even the preferred.
Our standards in the past have been to wipe out shareholders when a company is nationalized or otherwise provide a loans (Chrysler). None of this middle of the road stuff. Why do you suddenly get good marks if you set the standard even lower than it was?
The mention of pension fund losses creates a curious situation.
While the government may not want to use public money to bail out troubled financial firms to the extent that the failure to do so causes large losses in pension funds the PBGC is put on the hook to make them at least partially whole. Thus denying money up front via the front door could conceivably create even larger public costs through the back door.
@Unfortunately, people tend to forget nowadays that God was also around in the Old Testament, and he was not to be dicked with.
Unfortunately people tend to forget god does not exist.
Man-mouth
I'm going to assume you meant that in an economic sense - otherwise you are toast.
Unfortunately people tend to forget god does not exist.
But , but... Many people need a crutch so they cling desperately to simple children's stories and tell themselves everyday that it is true.
Remember that the banks are circling the wagons.
Is that article you linked correct? Merrill is one of the companies putting up $7b? So now BAC has to put $14b in the pot? They're going to be the first to dip into that fund, right?
The Christian God does not exist, but a god does. I have been touched by his noodly appendage.
You have been anointed, my son.
The Christian God does not exist, but a god does. I have been touched by his noodly appendage.
Currently Smoking Cannabis
This is a theology I'm reluctant to explore.... "noodly"?
That didn't happen after chewing up 5 grams of psilocybin by any chance, did it?
God is one of the posters on this blog. I don't know which one. Maybe others can figure it out.
Yep, this is like a disaster movie and we're all stuck in the elevator. Finally gets down to "Does God exist" discussions.
@Misean
that was just a stray spaghetti noodle you left in your tin colander.
Is this an inverse Godwin violation?
The Christian God exits, as does the God of the Jews, and the Muslims. Metaphysically, I give favor to the eastern religions which managed to separate mysticism and personal experience. However, as a devote agnostic.... I am hard pressed to understand how this discussion bears on the actual market.
@CSC: The Flying Spaghetti Monster opposes government intervention. He forsake us all after Bear Stearns. Repent!
No rate cut tomorrow and we get 50 SPX pts under the bus ?
Didn't finish all 5g. Probably a good thing too. FSM is available on this plane though.
AIG better come to spaghetti.
@I have been touched by his noodly appendage.
LOL. Can't say I've had the, uh, pleasure.
@new SEC short rules. Agree & sold all my shorts last Fri (though sure would've been sweet to sell em this morning). WB is a big ?
It's 2:30, rally time.
I've never used the Super Colander Tin Foil hat to strain anything. Except my sanity.
Cheers,
or maybe not.
God is about to be nationalized as well from what we've been reading.
I think people are less focused on a god than on a messiah, currently.
"Hi, are you my messiah? No? Oh, hi are you my messiah?"
Popeye:
It has no bearing on the actual market.
But I'm visualizing pasta as a sacrament. Noodly. LOL.
Fed Adds Most Reserves Since 9/11 as Banks Hoard Cash (Update1) - Bloomberg.com
Fed Funds Climbs the Most Over Target Rate in Decade (Update2)
``If the fed funds rate closes high today, I would be really worried as it would mean that there really is no money out there to be lent,'' said Stan Jonas, who trades interest- rate derivatives at Axiom Management Partners LLC in New York."
Nades - my last comment does not negate my suggestion that the term "values" holds. What I offered was my true life experience. You apply it in the manner you see fit. Everyone stands in their own circumstance. Choices are hard. I wish you well.
Anonymous writes:
i love how we'll give these guys a 20b loan in a few hours, but the poor autos can't get 25b without doing a pole dance for Pelosi.
There are at least two important differences between the Autos and WS:
1) The Autos manufacture something, whereas WS shuffles money around. We're in the Finance Economy period of our Empire and don't care too much for manufacturing.
2) The Autos don't contribute nearly as much to political campaigns as WS does.
Thus, WS gets the help, and Detroit gets the kick in the butt.
Krugman: "Noodly Appendage" Got that? And it's spelled c-a-n-n-a...
The real problems don't come from God whom ever that higher power may be just like they don't in the markets it's the men in the middle that seem to lead to most of the problems.
Would you blame Paulson and Bernanke for having a messiah complex. With so many plaintive acolytes
Uncle B's Science is Dismal writes:
God is about to be nationalized as well from what we've been reading.
I thought it was "deprivatized."
If pasta is the body, the blood can be obtained down at Lefty's.
sd: ouch
"paulson again saying housing problem will be over in months...
Not a chance unless they start dropping money from helicopters."
Even a helicopter drop won't save housing at this point. If/when the Fed starts printing, the printed dollars will go straight towards the balance sheet of banks to water down some of the losses. This may cause some inflation, but very little if any of the cash would wind up in the pockets of JSP. Just more bank zombification.
Can anyone else say about today "best trading day ever"? Im closing out and taking the afternoon off.
I think I'm getting a message from Mr Market: Bank of Lynch (or Merrill America) is being marked as next.
Well lets hope he doesn't drive the moneychangers from the temple with a good ass-whipping...or...CSC ain't gonna sit for a month.
Afternoon thread music:
Stevie Wonder- Signed, Sealed, Delivered, I'm Yours
YouTube - Stevie Wonder- Signed, Sealed, Delivered, I'm Yours
RE: loans to auto manufacturers.
Probably cheaper to loan them $25 billion than to see them go under or shrink into Rover/Jaguar sized companies.
When people lose their jobs they and the towns they live in just don't go away. They become wards of the welfare
state and, as noted, autos are useful goods we are going to need to buy from someone, we can either risk a loan to GM and Ford to keep them competitive or write off our domestic
industry with all that implies.
The Europeans and Japanese may scream bloody murder about unfair trade practices but you can bet they would do the same if Toyota or Daimler were
threatened.
I think I'm getting a message from Mr Market: Bank of Lynch (or Merrill America) is being marked as next.
Well, the prices do not make sense. BAC is paying 0.8595 shares of itself for each share of Merrill. BAC is trading at $27.75 and MER at $19.20.
So either MER should be closer to $23.85
...or BAC should be closer to $22.34
...or some combination of the two
...or the deal is not actually going to happen as announced.
It's called Lynch America Countrywide.
And it's here to help you.
Does this mean the re-redesigned currency will feature:
"In Hank We Trust"?
Ben Frank'll Tank Bernanke writes:
Well lets hope he doesn't drive the moneychangers from the temple
I AM SORRY, BUT THAT IS A PROFOUND STATEMENT. I'm not a religious person, but IMHO, that hits the nail on the head.
It's called Lynch America Countrywide.
And it's here to help you.
No question. That is the correct name of the merged entity. Hat's off.
CSC,
"It's called Lynch America Countrywide."
Good one...LOL.
Cheers,
How convenient? Of all days, Bloomberg tells us that today was the day "evidence was found" that Iran "is not complying with" the UN terms for its nuclear program. How to ensure that McCain gets elected, a new scapegoat is found for all this GOP created mess and that the sheeple can focus their attentions on miseries and trouble far way? Attack Iran. I hope the God they have the wisdom to not do that.
the new currency will feature pasta and will be valued in ponies.
America Lynch Countrywide mo betta bank boyz
Why don't all the big IB's and CB's join together into one big Frankenbank and call it JP Goldman Bank of America or something like that
Markets are wailing;
Can I haz bailoutz, pleeeeeze?
Yes, and soon.
Bought back my 3 solar calls, that has cushioned my drop considerably.
Now we shall get our bailout for the week.
1 Point by the Feds, and Cox bombs the shorts in a coordinated attack.
Someday this war's gonna end...
Now the meltdown begins..
Frankenbank! LOL
Can someone explain BAC+MER? The only thing that makes sense is that the Federales are doing the "Plata O Plomo" thing with BAC?
Im with you AllenM - I dont trust this market and Im outta here after today. Dont want to see what tricks they are up to tomorrow.
Lynch China Countrywide works
Interesting article:
Bank of America, Merrill Bailout Disguised as Buyout? :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website
cramer on CNBC now
"Im with you AllenM - I dont trust this market and Im outta here after today. Dont want to see what tricks they are up to tomorrow."
This is what is going to lead to the death spiral in the US markets. Constant intervention is only going to Lead to one thing and that is capital is going to flee.
Amazing the UN finds Iran violating its treaty obligations and it is the fault of America. Truly one has to be either a Democrat or a European to come to that conclusion.
The good news is that the US is supplying Israel with our latest bunker busting munitions so maybe the Israelis will have to do the world's dirty work one more time.
Anon, sure, but as somebody with some green in the market, ya gotta know when the intervention should hit.
It is still a long ways, and a long time until my tagline is made good.
Someday this war's gonna end...
Don't worry Drew Matus from Merril Lynch'd is calling for a 50bp cut. Hell, Drew make it a 100bp. Sound good to you
FFDIC | 09.15.08 - 2:37 pm | #
The spread says it all!
I think CR should start a perpetual thread for financial institutions and other related entities' acronyms.
We have good wordsmiths here.
The only thing that's going to fix the Big 3 automakers is Chapter 11. Any other "solution" is just throwing money away and postponing the inevitable.
Can't read everything. Must work.
2 anecdotal facts;
Have a smart client, but she's got $20,000 too much in WaMu. Told her to go take it out immediately.
Was talking to an AT&T guy in the hall.
He saw lines at the local WaMu. Haven't seen them myself.
BofA to also acquire YLB bank in a very small merger. America Lynch Countrywide Y-bank have an overweight position in brewers. Lefty oversubscribed new issue.
I'm not wasting my time reading articles anymore. Either the market starts to reflect reality... or you folks can try to hedge it... As for me, we get honest soon - very soon - or I'm outta here and will be pleased to allow any remaining fools in a game with marked cards and a dealer who controls the game.
I'm willing to be patient, but it's already under the test.
ERCOT is the Electrical Reliability Council of Texas, which operates the grid in Texas.
Yesterday, the high voltage line down count was 114, and the MW generation capacity out was ~3,000 so that is good progess in a day or less. The outage for people in Houston is something like ~75%, down from ~85%.
PRESS RELEASE
September 15, 2008 Print Version
Hurricane Ike: ERCOT Grid Condition, Update 2
Forced outages due to Hurricane Ike as of 8 am Sept. 15:
Customer outages
CenterPoint 1.6 million
ONCOR 58,000
Texas New Mexico Power 70,000
LCRA 2,409
TOTAL 1,730,409
Transmission forced outages
345 kV-lines 1
138 kV-lines 69
69 kV-lines 30
Total high-voltage lines 100
Generation outages
2,585 MW total
11 plants (30 generating units)
Includes 690 MW utility generation and 1,895 MW of private generation (process/refinery generation)
ERCOT - Hurricane Ike: ERCOT Grid Condition, Update 2
Lehman CEO Fuld's hubris contributed to meltdown
| Reuters
Lehman CEO Fuld's hubris contributed to meltdown
"Not long ago, when Lehman Brothers CEO Richard Fuld talked about "everyone's worst nightmare" he was referring to a massive fraud at French bank Societe Generale. Just a few months later Fuld, a 30-year-veteran of Lehman who had ably steered it through near-death experiences like the Asian debt crisis of 1998, is living his own worst nightmare as the venerable investment bank stands on the verge of collapse."
I win!
Expired
Everybody ready for a huge leap in dead stocks?
Someday this war's gonna end...
"Amazing the UN finds Iran violating its treaty obligations and it is the fault of America."
Ladies and gentleman, let's give a warm welcome to a very special CR guest, Mr. John Bolton!
/blocking out all of 2002
ades-
"MS why no love for Paulson?"
You don't really want me to answer that do you??
I'll give you the short answer...there is no single person who has benefited from playing both sides than he.
I'll stop there......
Ciao
MS
4th post of this thread: I say we still end the day either even or on the upside on the Dow.
An hour to go and the Dow is trading only 30 points above session low. That rally had better start pretty soon.
Looking at the 10year trend for DIJA we're going below 10,000 fast. Possibly into 7,500 to 8000 territory within the next 2 years.
How high will the dollar index go?
Any ideas smart people?
Popeye,
It's all a matter of taste, but I keep coming back because of the mix of hard news, jokes, sarcasm and general gallows humor that I find here. (also moral outrage, that I share).
Some of us are observers, some are participants, some are players, or so I gather. Anonymity is part of the fun. : (
Our society is crashing, and until today the media was in total denial. Sometimes, if you don't laugh, you cry, too, too much.
Peace.
Rule 10b-5: Employment of Manipulative and Deceptive Practices", and the complete text reads:
It shall be unlawful for any person, directly or indirectly, by the use of any means or instrumentality of interstate commerce, or of the mails or of any facility of any national securities exchange,
(a) To employ any device, scheme, or artifice to defraud,
(b) To make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading, or
(c) To engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person,
in connection with the purchase or sale of any security.
DJIA - Dow Jones Industrial Average Stock Charts - CNNMoney.com
Dow just set new low for the day: we're now under 11,050.
trading likely to be halted if this goes any longer.
If the real run for the exits takes place in the last 30 minutes doesn't it stay open?
How about if we take Alan Greenspan, slather him with rotten meat, and stake him to an ant-hill?
margin call time?
Are we heading for a ten handle or whaaaaaatt....
ouch...somebody is beatin the market with an ugly stick.
margin call time.
BH-
We are well above the circuit breaker level. Has to be something like 1200 pts....
That will never be allowed to happen.
The I'banks will never allow it.
Ciao
MS
LONG SQUEEZE!
BOOOOYAHHAHAHAHAHA!
Just noticed the Bovespa roasted down over 6.5%...this is lightweight!
NYSE, New York Stock Exchange > About Us > News & Events > Media Resources > Media Resources
Ciao
MS
Meredith Whitney on bubblevisio
below 400.
Pay attention.
This market will close seriously down today.
Tomorrow morning there will be SEC action and FED action.
This will trap the shorts, and ride them raw.
Paulson has stated all is well, which is basically a code for stop allowing all of this massive shorting and unwind your positions asap or I, and the Fed, will bury you with money to buy this market hard.
It's all about the money to be made stopping an all out crash.
If they let it crash, well, then the dollar is going to be toast even faster as they crank up the presses to fill in the holes in the system.
Someday this war's gonna end...
This ought to be an entertaining close.
Cheers,
S&P dangerously close to 1200.
re: trading session
My understanding is that the volume is low and not confirming any test above session lows, which are similar to July? or March?
Anyway, could be a real live downdraft at the end.
AllenM aka Joliet Jake ,
I'm not so sure in flight to safety...is the dollar really that much weaker than the euro or pound?
I agree, the dollar is going down, but so is everyone else...so if you're making a bet on which horse survives this, you might place your bets on dollars, and vote for the pony.
squeezed writes:
LONG SQUEEZE!
Fools rush in where honest people fear to tread, I hope...... yea, it's only a hope.... that you face justice.
Volker the Viking writes:
re: trading session
My understanding is that the volume is low and not confirming any test above session lows, which are similar to July? or March?
It's difficult to contact the broker on the phone or online--conspiracy or control?
blackhat, I would rather bet on Yen, thank you very much.
Oh yeah, my holdout cards are glod and sliver.
but hey, right now we watch and trade.
Entertaining!
Someday this war's gonna end...
trading likely to be halted if this goes any longer.
Nope. First CB is 1200-pts, and it has "NO HALT" after 2:30 PM.
Good is this for lube sales!
The question is really whether or not this minor sell-off triggers the real flight to saftey, ie mattresses?
Or do we make up ground, only to steadily lose it month after month. Each minor peak viewed as the bottom before a new floor is discovered. I vote for the latter.
lol. Merrill is going to sink BoA.
Who would have thought hank could have triggered that.
C down 15%.
Uggg, decision time here. Do I close my Citibank Sept 17.5 puts right now? Or are we headed for an escalator down?
Does the fed make sweeping announcements overnight? Short selling rules etc? Surprise rate cuts?
JP writes:
lol. Merrill is going to sink BoA.
I look at that deal as a consolidation so the FED doesn't have to bail out 3 institutions. Lynch America Countrywide.. and counting.
Meredith Whitney seems a smart woman in my opinion.
Volume... ok, lemme check
Petend me not... volume - without prejudice - says excessive - so, any argument that the funds are not participating is simply stated.....bs
blackhat-"you might place your bets on dollars, and vote for the pony."
as much as i like ponies, being long glod and short the dollar for 4 plus years, in this wild ride against highly leveraged derivatives, still seems the best bet.
About to break 11K? Boooya
Hey oil is at 95$
How did that happen?
It never breaks to 10k it always hits 11020 and hovers.
Gav money in hand worth much more than even more money at risk to fed bailout!
Expired
SEC gonna smack the short sellers hard. So what do you think now?
Someday this war's gonna end...
Just my take on things.
Popeye
A good point. I think I have a bit of maturing to do before I get to that place!
Cheers!
.............
HOLY CR*P! Look at those T-Bonds!
Gavshire-
"Uggg, decision time here. Do I close my Citibank Sept 17.5 puts right now? Or are we headed for an escalator down?"
they're deep in the money anyways, why not sell them and roll some of the cash down into 12.5's (maybe for october) if you believe in the crash?
Thanks Allen, I need a voice of reason sometimes!!! The little devil on my shoulder is telling me to let it ride, but I know better
Need supply of red white and blue dye, anybody know?
rationaljeff writes:
Hey oil is at 95$
How did that happen?
Hurricane. If another one comes, it might go to 60. No refineries means no pressing need for crude. Nice market rationale.
Dow Jones minus 400, do I hear a minus 400? Minus 400 going once, going twice, SOLD!
AllenM (et. al.)
I thought they outlawed naked short selling a while ago. (I believe thats what you were referring to when you said people had to find the share before shorting it. i.e. borrow it)
......
Surprise rate cuts?
Gavshire Hathaway | 09.15.08 - 3:22 pm | #
Have you checked the fed funds rate today? The biggest net add in seven years and still they can't come close to the target already in place--dropping it would be irrelevant.
Pushing on a string....
Gamblers Anonymous Official Home Page
The dollar still has a ways to run, but it better be deflated or exports will suffer.. and then real pain will be felt. FED to cut soon methinks.
"FED to cut soon methinks."
Ya think???
how long to zirp?
before the elections methinks...
11,010 and still a half hour left, I think we're going to break it boys!
I for one hope not!
ades writes:
Just my take on things.
Popeye
A good point. I think I have a bit of maturing to do before I get to that place!
It's only math until you come to the questions that matter. It's not my place to make your choices, and I did not have your life experience. I can only offer what worked for me. Think, and trade well.
HOLY CR*P! Look at the Volume on the QQQQ! All time record pushing into lows!
XLF at 19.29
How poetic.
Well, I don't know what Hank and Ben are going to do, but I'm sure it won't be pleasant!!!
A bridge to after the election?
Palin/McCain, a bridge to nowhere.
Is it possible that all the talk of enforcing an uptick rule on shorts is causing everyone to cash in their short positions now?
"I for one hope not!"
They are going to run out of ammo before real deflation hits.
"...the belief in things you don't understand is potentially forgivable, if there is a good God;
betting on them has real world consequences."
God is even better than we can understand, but presuming on His mercy was one of the temptations rejected by Jesus.
Window, it aint no stinking window, it is a gaping hole in the side of the building. This is just frigging unbelievable.
Just in case anyone is interested in my longer commentary:
Expired
Index Value:\t10,998.61
Trade Time:\t3:24PM ET
10k wow never thought it would happe
squeezed, seems right. still i kinda hope to burn it all and start fresh...
I hate pushing out the problem a few months or years....
.....
10,996
Are they gonna defend 11k?
Current regs allow you to sell short once you've identified shares to borrow; you don't have to physically have the shares in your possession before you execute the short.
If you believe certain incompetent and psychotic CEOs (and just because they're psychotic and incompetent doesn't mean they aren't to be believed), this rule has been abused.
The new rule might make it harder to get a borrow on heavily shorted stocks. I never had any trouble getting a borrow when it was applied to the broker/dealers, but none of those stocks had huge short positions.
hell yes they are, already back to 11020 that seems to be the floor
Well, the prices do not make sense. BAC is paying 0.8595 shares of itself for each share of Merrill. BAC is trading at $27.75 and MER at $19.20.
This equation doesn't consider the possibility (probability?) of BAC backing out.
Is it possible that all the talk of enforcing an uptick rule on shorts is causing everyone to cash in their short positions now?
Doubtful, since we're hitting lows of the day on everything.
Lehman Brothers Holding Inc.'s (LEH) $32.6 billion commercial property fund is unlikely to be off-loaded in a fire sale, according to analysts.
More unwinding... Alot of energy is going towards making this smooth...
I dont think its going to help....
I wonder if Hank sometimes feels like Slim Pickens riding that nuke down to oblivion...
yehaaaaaawww....
.......
OK George, time to turn the heat up on the war front. Media, prepare to change the story to the war. John, Barack...let's drop the economy and go heavy on foreign policy. All other subjects are a go.
Roll film.....and......
If it doesn't go below 11k today it shall sometime this week.
BAC down 20%..
Canadien,
indeed
10,989.41
CSC, yea, let's talk war, as in how 4100 Americans have died so Iraq can sell its oil fields to China.
10,989. Just noting this because it is NOT hovering around 11,020
As to the dollar, I think this is the time of your life if you are an FCB sitting on a pile of US$ that you would have had no opportunity to sell some time ago.
Look at London Banker's blog to see why this is the case:
Lehman has been deeply troubled and subject to speculation since the early spring. That was just about the time that we started to see a marked sell off in foreign markets where Lehman has long been a major player. Recently, along with intensification of that sell off, we have seen a strengthening of the US dollar and US asset markets.
If one were cynical, and one believed that Lehman was going to be allowed to fail pour encouragement les autres one might wonder if Lehman was quietly bidden or even explicitly ordered to sell off its foreign holdings and repatriate the proceeds to asset classes within the US ring fence. This would ensure that US creditors of Lehman received a satisfactory recovery at the expense of foreign creditors. It would also contribute to a nice pre-election illusion of a flight to quality as US dollar and assets strengthened on the direction of flow.
I'd think that we are seeing more "ring fencing" now by other players and this will help the dollar short-term. However, when that process ends, look out!
But remember everyone, we're not officially in a recession yet.
I think we'll be under 11,000 AND past a 4 percent drop
"The company (AIG) had been in talks with billionaire investor Warren Buffett's Berkshire Hathaway, but those talks have ended, a person familiar with the matter told Reuters.
Neither AIG nor Berkshire returned calls seeking comment."
Page Not Found | Reuters.com
I know it isn't really set at 11020, but every time it dips into 10k territory it bounces right back to around that.
Iraq, yes good sales to American soldiers in Iraq.
11,036.95
Don't understand the fight-back on that number....
I cant help myself (sorry all)
let's talk war, as in how 4100 Americans have died so Iraq can sell its oil fields to China.
4,100 Americans have died in Iraq cause our president is an asshole, nothing else...
.......
Don't understand the fight-back on that number....
I doubt it has anything to do with it.
I think there are some programmatic buys for S&P 1200 that need to be worked through.
XLF short covering rocket-ship in action. Wish I could have watched all this in real time today.
Sometimes, I just come up with good posts - and this is seems to be one of them:
Crescendo, in musical notation, refers to a passage of music during which the volume gradually increases.
It also may mean:
In music
A Liverpool based electronic pop band
Crescendo International, a network of Christian classical music professionals and students
Diminuendo and Crescendo in Blue, one of Duke Ellington's longer-form compositions
Insanity's Crescendo, a song by Dark Tranquillity
The Crescendos, an early rock and roll group
A lyric in "Smooth Criminal" by Michael Jackson
Again, I'm betting on Michael Jackson.
This is the funniest short covering rally I've ever seen!
"They can make a bridge loan to themselves."
--NY Gov. Paterson
Boy, if that doesn't sum things up....