Now why is the fed cutting rates?????

Agree. Tight credit big problem for economy. After the dot-com-bubble, German banks boosted "credit risk management procedures". Consequence : German small and medium companies suffered from credit crunch. End of the story : recession.

 

its not the banks' papers, its the papers of the very Wallmarts, Home Builders, IBMs, Crysler, what have you. I think the biggest problem in our economy, at least in terms of fixed income markets, is the rating agencies. They have no clue about fair value and were often bitches to the banks that paid them good dollars to rate their structures. A lot of re-structuring of those "agencies" is needed. Its well known that if you could not make it for an i-banking job but still wanted to work in finance then join a rating agency and this I think is well reflected in the quality of people they employ and how diligently they perform their jobs.

 

You sound like a wall steet sales man.

 

It is all illusion; company uses commercial paper to offset risks; banks uses commercial paper to lock in profits and charge hefty fees on these papers too; so insiders are winning in this game except the investors.

And about the rating agencies which many were internal organizations of banks years ago; there are compelling reasons to separating these business from banks. Two faces of the same coin.

 

I take this as a compliment. But I have nothing to sell. When you look back I did not even offer you my view other than saying that I believe we will have more credit related "issues" ahead of us. But every kid should know that.

 

not true, fitch, standard and poors, and others have never been parts of banks. That would be a laughing joke. But I can asure you that was NEVER the case. The world is (fortunately, for those who admit to it) more complex than that.

 

Shoot I don't no about all you paper stuff but take a look at this before I take profits.

 

Thanks good luck with you fixed income.

 

Lol, and what makes you think that anyone here was on the other side of your trade?

You just embarress yourself with your total lack of knowledge. But hey, you made couple points today must be happy now. Will you treat yourself for a steak dinner tonight? LOL

 

And here we go again. Now you get back on that phone and sell your paper, leave the trading to the pros.