So he knew as well...wow i gotta get out more....like it matters ..friggin church mice are richer than moi...one sec..let me check me lotto....
Sub-Prime Mortgage debacle - OIL $ DROPS
- Thread starter Karlin
- Start date
Of course it couldn't be the people responsible for the Fedral Reseve now could it .Hmmm what did the prez responsible for the Fed have to say about it in later years
"A great industrial nation is controlled by it's system of credit. Our system of credit is concentrated
in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world--no longer a government of free opinion, no longer a government by conviction and vote of the majority, but a government by the opinion and duress of small groups of dominant men." --President Woodrow Wilson
Yep just a correction in that small group of mens favor at the expense of the little guy .The sytem is corutp it was stared by corpution .Go read some history theres nothing Federal about the Federal Reserve :-(
"A great industrial nation is controlled by it's system of credit. Our system of credit is concentrated
in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world--no longer a government of free opinion, no longer a government by conviction and vote of the majority, but a government by the opinion and duress of small groups of dominant men." --President Woodrow Wilson
Yep just a correction in that small group of mens favor at the expense of the little guy .The sytem is corutp it was stared by corpution .Go read some history theres nothing Federal about the Federal Reserve :-(
The volatility witnessed lately is the best of all worlds for nimble traders. They must be peeing in their pants just to get to their work stations. The best advice for most is just to hold. If you haven't sold already there's no sense giving into panic. As with Toro, I think there are still dark market days ahead but they will be interspersed with electric rallies.
There is great opportunity at times such as this. Luck most often appears as a consequence of being ready when there is an opportunity. For those who are able, keep your eyes peeled and do some bargain hunting.
Worst part is that its global. They usually take turns correcting while the numbers run from one market to the next. Right now an entire sector is going poof.
Times like these we should be able to call for a do over. Its not like factories are on fire or anything.
Times like these we should be able to call for a do over. Its not like factories are on fire or anything.
Aw geez. The Fed spreads 'em open and Toro gets caught short on the loonie.
Monetarism against the wall (again) and Ben picks the paper-rich pony. He from the sticks or something? Good luck on the carpet, Toro. Its not your fault you thought they'd do the right thing.
Monetarism against the wall (again) and Ben picks the paper-rich pony. He from the sticks or something? Good luck on the carpet, Toro. Its not your fault you thought they'd do the right thing.
He said he was shorting the loonie. That means he sold it at less than spot expecting to make the call after it fell below what he sold it at and make a profit.
He might have had a chance to bail even but it not his fault if the snap hung him out to dry. Probably should have checked who Bernanke was playing golf with this weekend.
The Dow is off 200 from its high on the open.
Don't think the knee-jerk reaction is necessarily the correct one!;-)
My bond desk was wondering why they didn't lower it 1%.
The discount rate is a rarely used tool for banks to borrow from the Fed. It is different from the fed funds rate, which is what most interest rates are keyed off, and is far more important than the discount rate.
The reason why they cut it was because the inter-bank and money markets had seized up. The Fed is saying that they will back-stop transactions, which will increase confidence in the markets where it had totally evaporated. And the central banks had pumped $400 billion in liquidity into the markets, yet that didn't solve it.
I expect a rally, but I intend to sell it. And frankly, this is a really weak rally so far.
http://runningofthebulls.typepad.com/toros_running_of_the_bull/2007/08/is-that-all-you.html
According to this:
On the other hand, yen's value is getting stronger even though Nikkei index is declining, just a coincidence?
oh my 8O
they'd certainly know better than I. here I thought he was just pulling a Greenspan.
Soros on the horizon?
Absolutely not, and that's a great point.
A very, very large position put on in the financial world is what is known as "the carry trade." Investors borrow in Japan, where bond yields are 1%, and invest in other countries bonds yielding 5%, and earn 4%. But they leverage up 4-5x to earn 16%-20%. Often they hedge, at a cost of 1-2%, but that's expensive, so many investors don't. So when the yen appreciates against the dollar, that 4% spread is squeezed. To meet margin calls, investors unwind the position and/or sell other assets, including stocks.
This is enormously important.
It's expensive at a cost of 1-2% because yen appreciates against the dollar you meant ay?
I suppose then we can expect the yen gold price falls?
I'm convinced that this current sub prime mortagege debacle was an "Engineered" event. I now see the big banks all laying low but many had 0% down programs and those are the majority of the foreclosures in my city. I do strongly feel that there have been some predatory lending practices in effect for the past five or six years and now the predators are stayiing out of the lime light. It is hard for me to fathom how the big money in the US Mortgage market came from off shore. Who are the investors who buy up these mortageges and where do they come from?
I certainly don't think it was "engineered" in a nefarious way since it threatens the very institutions who sold the products.
This type of stuff happens in every single boom/bubble. Everybody is making money way to easily, so standards decline as people think it will last forever. Inevitably, it does not. And when it pops, we learn all about the shenanigans and abuses. Happened with Enron et. al. just a few years ago. Its happening again in the mortgage market.
But there were certainly egregious abuses. A lot of this sh!t was sold by unscrupulous SOBs to people who had no business being in these loans. Of course, most of the loans were made voluntarily by people looking to get in, but that doesn't change the fact that grandma on a fixed income was put into a mortgage that will jump from a $600 payment to an $1800 payment. Bad stuff.
The real problem is that this has only just begun. The ARM resets peak next year, and we're only beginning to see the ramifications of the resets this year. That's one reason why I think we have more to go on the downside.
This type of stuff happens in every single boom/bubble. Everybody is making money way to easily, so standards decline as people think it will last forever. Inevitably, it does not. And when it pops, we learn all about the shenanigans and abuses. Happened with Enron et. al. just a few years ago. Its happening again in the mortgage market.
But there were certainly egregious abuses. A lot of this sh!t was sold by unscrupulous SOBs to people who had no business being in these loans. Of course, most of the loans were made voluntarily by people looking to get in, but that doesn't change the fact that grandma on a fixed income was put into a mortgage that will jump from a $600 payment to an $1800 payment. Bad stuff.
The real problem is that this has only just begun. The ARM resets peak next year, and we're only beginning to see the ramifications of the resets this year. That's one reason why I think we have more to go on the downside.