The banks are on welfare...thank you tax payer !! - There will be more loan write downs - MBIA will fall over - House price will fall further Tucci Says Without Government Aid Banks at `Severe Risk': Video February 4 (Bloomberg) -- Tom Tucci, head of U.S. government bond trading at RBC Capital Markets, talks with Bloomberg's Kathleen Hays from New York about the Federal Reserve's January survey of senior loan officers, the outlook for the central bank's monetary policy and the credit markets. (Source: Bloomberg) Watch
They changed the amount of money an individual can take out of the bank and put into Treasuries very recently to the neighborhood of WW2 levels, and that not adjusted for inflation, it's actually at a fraction of WW2 levels. I'm guessing they did that to slow the flight of money out of the banks as John Q catches on...
There is speculation that much of the the Commercial Paper that money market funds deal in has been rolled over without paying off the principle since last August. It's is usually 30, 60 and 90 day paper. There was more trouble 3 months later in November. Guess where 3 months after that is? When your MM NAV goes under $1 it's too late to panic. Google "CP rollover crisis".
Old news, CDO is just the tip, wait till the "options" mess becomes public. Still short and holding. Today was a indication of a push back to the lows IMHO. However, Banking crises has been pushed off for a few years. PLENTY OF DOWN ROOM TO GO AND PLENTY OF TIME TO MAKE MONEY ON THE COMING STORM!
I'm not quite as worried as you. I think the Fed will reflate the asset bubble and there won't be quite the storm. But I think the reflation will hit the dollar even more and gold will continue to shine. You are probably bullish on gold as well, EMRGlobal?
Plat & Pall are jumping multiples of $10 a day but CB have successfully capped G/S still holding and waiting
Full blown moral hazard banking system. If the above analysis is correct bank CEO's are continueing to draw multimillion salaries on a banking system that is not functioning if there is no Fed intervention. O'nNeal and Prince took multimillion pension benefits that corresponded with the period for which current losses from those years are wiping out the profits of those years. There really should be some kind of Grasso type clawback of these moral hazard earnings for the CEO and just below levels.
What options is that? If CDO is just the tip then the option problem must be truly grand in scope....
dunno...low volume tumble today.. we may need another move up to mid 1400's in the SP to really shake out the weak shorts... nice 60 minute channel tho
$350 trillion in derivatives as of mid 2007, so it's like 400 trill by now, but who's counting...everybody's hedged..... http://findarticles.com/p/articles/mi_qa3715/is_200711/ai_n21185445