Banks still in MAJOR trouble

Discussion in 'Trading' started by MrDODGE, Apr 10, 2008.

  1. I said it before and I'll say it again, we haven't seen the real carnage yet. Wait until the bond market goes belly up.
     
    #21     Apr 11, 2008
  2. Student loans are already going under.

    All of the signs are there.
     
    #22     Apr 11, 2008
  3. This is the 1st quarter of the ball game. You can only delay the inevitable--someone has to take the hit of ~10trillion in over-priced assets.
     
    #23     Apr 11, 2008
  4. There has already been 100's of billion of writedowns. The hit is being taken in a big way.

    The Federal Reverse Bank Chairman has made it very clear it on many recent occasions with words and deeds that they will do anything and everything to stave off any sort of systematic issue.

    The Fed has given the all clear...and created the biggest Moral Hazzard in the history of mankind. One would be well advised to run with it for awhile.

     
    #24     Apr 11, 2008
  5. oops ...Federal Reserve....of course.:D


     
    #25     Apr 11, 2008
  6. Bowgett

    Bowgett

    If there are problems with liquidity like you say then why brokers are not going to FED?

    http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aW6E8UIovljk

    April 10 (Bloomberg) -- Wall Street bond dealers bid for less than the $50 billion of Treasuries that the Federal Reserve offered at an auction today, a sign that strains in credit markets may be easing.

    The New York Fed's third weekly auction under the new Term Securities Lending Facility drew $34 billion in bids for the available securities, for a bid-to-cover ratio of 0.68, the central bank said on its Web site today. The two previous auctions of $75 billion and $25 billion had bid-to-cover ratios of more than 1.

    ``It means that dealers have no immediate liquidity need, a very positive development, for today at least,'' Tony Crescenzi, chief bond market strategist in New York at Miller Tabak & Co., wrote in a note.
     
    #27     Apr 11, 2008
  7. #28     Apr 11, 2008
  8. Dodge are you still convinced that the market is gonna crash because t-bill rates are low?
     
    #29     Apr 11, 2008
  9. 3 month t-bill rates are no longer 0.19%
     
    #30     Apr 11, 2008