This leg down in the financials looks different

Discussion in 'Trading' started by DrEvil, Mar 2, 2009.

  1. DrEvil


    All the other selloffs were either led by unwinding of the yen carry trade or at least accompanied by it. That doesn't appear to be the case this time.

    Anyone know what's going on here?
  2. tradersboredom

    tradersboredom Guest

    two of the nations biggest banks are risking becoming insolvent.

    too many bad loans.

  3. Have no fear!

    When the banks are done leading the market lower, technology will take over.

    Tech has been lagging, not "the strongest" as the talking heads keep saying.

    This bear's gonna deflate the best of the best and won't end till then.

    As always, take it fwiw and JM oh so HO.

    Until then, trade it, keep losses small!

  4. I've been watching this as well. I think several factors are at work here. First, the unwinding of the carry trade has been done for some time. Currency markets were the first to deleverage, and they're calmer now.

    Second, the BoJ is ready to intervene and the market knows it.

    Third, the Japanese economy is an absolute disaster, and there isn't much reason to go to Yen.

    Lastly, japanese repatriation has ceased (I think) and therefore they're looking to flow back out again.
  5. Financials going to zero. No one needs financial anymore with the exception of goldman sachs.
  6. werd :D

    it is a fake credit crisis.
  7. tradersboredom

    tradersboredom Guest

    as far I as i'm concern, all the investors of C or BAC have lost and have failed. they've sold their sales and transfer ownership to new owners...

    so bears saying let these companies, these company's previous owners have failed and sold to new owners who are more competent and deep pockets(gov't US)

  8. Unfortunately it seems we are heading that way. The government taking over the banks. Taking over car companies. May soon take over airlines, Walmart, Home Depot, Coca-cola and McDonald's. In a way everything will be run by the government now. The government will take good care of you. The US president becomes the biggest corporate CEO ever.
  9. tradersboredom

    tradersboredom Guest

    that is the problem when you companies like C and BAC which are the backbone of the economy. No other company or entity has the cash to buy the company. Usually in recessions these banks finance purchase of takeovers or taking companies private but these banks have cash problems themselves.

    only financials are different from walmart,home depot, coca cola.

    the FED or central banks has always regulated and essentially the main supplier of cash two US banks.

    without the FED, these banks don't have a business.