Well we use stops to protect our capital, the other option is small size and no stops. If you gonna use leverage, stops are inevitable. FoN
If interest rates rise wouldn't this help the banks? They can still borrow from the FED for next to nothing right? Then loan it out at a higher rate? TT
That is only one part of banking package. If IR rise then Fed rates rise too and many other factors also.
TOOK LONG ENOUGH, this should have happened years ago, going to be a really interesting Monday morning, who knows maybe BUBBLE ben bernanke will step in Sunday to reassure everything is fine and that QE3 will be the next best thing to support these markets. Just to let everyone know BUBBLE ben bernanke doesn't have a fucking clue how to fix this broken economy, he cant fix it because this economy cannot be fixed. I have been saying this since the announcement of TARP years back!!!!!!!
Since S&P agency downgraded US, but the other 2 affirmed US AAA rating, does that mean US is still AAA because there are 2 other agencies still affirms its AAA ?
We should allow market factors play out over time. Rather than trying to manipulate ourselves out of this mess. The problem I had with the 2Trillion in cuts. Is that it didn't solve deficit problems, and the cut in spending was going to lead to a contraction of GDP growth. With 4 Trillion in cuts we would have at least solved the debt issues, even if it meant a short-term contraction in GDP growth, and an increase in the unemployment rate. Also 4 Trillion in cuts would have given us room, for a reduction in the tax rate. All we have done is walk around in circles. We have not solved any of our problems, and worse yet. We're going to contract our GDP, without a AAA credit rating, and without solving our fiscal problems. The chances of corporate, and income tax rates dropping have gone out the window. So Mrs. markets sells off, and that's all she wrote.
'Just to let everyone know BUBBLE ben bernanke doesn't have a fucking clue how to fix this broken economy' Just cut down on the EVILNESS that has become a prominent part of American mindset since 1980s. Win over the EVILNESS in thought, logic and actions and it will just be a decade before normalcy to books returns.
Not really because S&P has the best track record, for analyzing amongst the three agencies. Why else do you think the US stock market trades based on the S&P500 index? It's because it's the most well rounded index. S&P is the gold standard amongst the credit rating agencies.