Imminent and severe market correction

Uncle Festivus · 6 March 2009

sinner said:
And JP Morgan will stand to benefit to the tune of 10s of trillions of dollars created from thin air and the misery of others which they helped create: as they are the CDS holders.

An even bigger coup than when JP Morgan himself stood in the NYSE in 1929 as the "last remaining buyer" buying up everything in sight for pennies.

And Goldman Sachs ie the Paulsen insiders club. This is the bit I don't understand - for all of these billion dollar black holes there are counterparties on some of these instruments who are receiving billions back, indirectly from the Fed, some at the same time as they are getting a hand out from the Fed. Why don't they also suspend payments to counter parties where it can be shown that they won't be worse off? Or simply that they are already stinking rich? Or is that part of the humongous con? All getting too hard now to follow

Aussiejeff · 6 March 2009

Uncle Festivus said:
And Goldman Sachs ie the Paulsen insiders club. This is the bit I don't understand - for all of these billion dollar black holes there are counterparties on some of these instruments who are receiving billions back, indirectly from the Fed, some at the same time as they are getting a hand out from the Fed. Why don't they also suspend payments to counter parties where it can be shown that they won't be worse off? Or simply that they are already stinking rich? Or is that part of the humongous con? All getting too hard now to follow

That's exactly what these MegaPonziMen are bwanking on. That the complications will blind everyone to what is REALLY happening - that they are getting richer, still, while "outsiders" get screwed ever harder.

They have successfully devised "financial instruments" and schemes to baffle the best financial "brains" on the planet.

No doubt they can barely wait for the "end game" to come, when their bits of CDS paper will likely be worth multi-Trillions, as some others have outed. They have won before the game even started... :angry:

sinner · 6 March 2009

Aussiejeff said:
That's exactly what these MegaPonziMen are bwanking on. That the complications will blind everyone to what is REALLY happening - that they are getting richer, still, while "outsiders" get screwed ever harder.

They have successfully devised "financial instruments" and schemes to baffle the best financial "brains" on the planet.

No doubt they can barely wait for the "end game" to come, when their bits of CDS paper will likely be worth multi-Trillions, as some others have outed. They have won before the game even started... :angry:

Anyone who thinks this post is irrational or conspiratorial can just look here

http://www.marketwatch.com/news/sto...8AC4-4FFD-AE8C-3D8EE2F09C75}&dist=morenews_ts

AIG gets $85bn TARP, $40bn of this goes directly to counterparties of CDOs betting on bankruptcy. Below is a snippet of commentary on the above linked article

Note that the Fed is picking winners and losers. There are other creditors of AIG who might have a better claim on its assets than who the Fed is picking. Remember that the Fed promised transparency. Instead, we have gotten noting but lies and secrecy from Bernanke, Paulson, and Geithner every step of the way.

Words cannot begin to express my disgust of the lies and secret shenanigans of the Fed and Treasury.

Mike "Mish" Shedlock

Bushman · 6 March 2009

sinner said:
And JP Morgan will stand to benefit to the tune of 10s of trillions of dollars created from thin air and the misery of others which they helped create: as they are the CDS holders.

An even bigger coup than when JP Morgan himself stood in the NYSE in 1929 as the "last remaining buyer" buying up everything in sight for pennies.

Amazing isn't it - yet they are worried about hedge funds shorting shares? This shadow banking farce will go down as the greatest redistribition of wealth since, well we have never had a shadow banking system like it!!

Other side of the trade - US taxpayer backstopping AIG and the like and Western workers who will be sacrificed en masse .

And don't get me started on the con job of 'globalisation! How can you have a global economy without the backing of a global banking, monetary and regulatory system?

What a disaster!

PS: anyone starting to notice the impact China is having on global sharemarkets? We had a rally on a rumour that Jeng was going to up the stimulus package yesterday. Still China are predicting GDP growth of 8%. Now it is the US trying to recouple with China? p

basilio · 6 March 2009

AIG failure would 'bring down Europe
March 6, 2009 - 11:16AM

The US government rescued giant insurer American International Group in part because its collapse would dramatically hurt European banks, a senior Democratic lawmaker said on Thursday, as US officials admit huge regulatory gaps on the insurer.

The US government has bailed out AIG three times since September 16 and committed about $US180 billion ($280 billion) to keep the insurer alive and doing business.

"One of the reasons we had to rescue AIG was the fact that it was going to bring down Europe," Pennsylvania Rep. Paul Kanjorski told reporters after his subcommittee held a hearing on systemic risk.

Kanjorski said he was told that a large number of AIG's counterparties were European.

"That's why we could not allow AIG to fail as we allowed Lehman (Brothers) to fail, because that would have precipitated the failure of the European banking system," he said.

The continuing bailout of AIG is a fiasco. But when you see comments like the above my blood practically freezes.

The full story outlines just how much of a disaster the Credit default swaps (CDS) can/will be to the financial markets. In effect all of our collective savings.

As I am seeing it when the Madoff and Stanford schemes broke open we saw $50-80 billion of assets vapourise. The effects of this are still working their way through individuals, charities, banks ect.

In the current circumstances the potential failure of AIG on top of everything would be the last straw . (Actually more like a neutron star...)

The current world economic system needs functioning banks if it is to survive. This has to be a priority.(IMO)

http://business.theage.com.au/busin...re-would-bring-down-europe-20090306-8qgn.html

sinner · 6 March 2009

Ah yes, the Great Recoupling.

The US need China to finance debt. We need them to buy our dug up dirt.

I honestly doubt China will kickstart domestic consumption soon enough.

prawn_86 · 6 March 2009

I've always said i want to work for JP Morgan. They are the only untouchable bank, as they ARE the Fed. The fed uses them to buy up stuff such as Bear Stearns etc etc.

How many JP employees have lost their jobs? SFA.

Old JP was a cunning one back in the day and the ties still run strong. Good on them, a true dynasty...

GumbyLearner · 6 March 2009

sinner said:
Ah yes, the Great Recoupling.

The US need China to finance debt. We need them to buy our dug up dirt.

I honestly doubt China will kickstart domestic consumption soon enough.

How many monthly current account deficits has Australia racked up in the last 20 odd years?

I'm pretty sure it would be at least 85-90% of them, if not more.

Does anyone know the actual stats? Is it best to use ABARE or ABS?

I saw Swan interviewed on the ABC yesterday stating that the stimulus had worked through the economy. It also mentioned that Australia achieved a trade surplus recently. Even though the report briefly if not belatedly mentioned that the sale of imported goods had dropped by 7% in one month right at the very end of the story.

This means that Australia can only be in surplus, only when our consumers are not buying imports. Even when I/O and commodities spot prices went through the roof during the mining boom. We still weren't bringing the budget into surplus.

Is it just me or has consumption from China collapsed?

GumbyLearner · 6 March 2009

GumbyLearner said:
How many monthly current account deficits has Australia racked up in the last 20 odd years?

I'm pretty sure it would be at least 85-90% of them, if not more.

Does anyone know the actual stats? Is it best to use ABARE or ABS?

I saw Swan interviewed on the ABC yesterday stating that the stimulus had worked through the economy. It also mentioned that Australia achieved a trade surplus recently. Even though the report briefly if not belatedly mentioned that the sale of imported goods had dropped by 7% in one month right at the very end of the story.

This means that Australia can only be in surplus, only when our consumers are not buying imports. Even when I/O and commodities spot prices went through the roof during the mining boom. We still weren't bringing the budget into surplus.

Is it just me or has consumption from China collapsed?

Just to correct my last post.

It also mentioned that Australia achieved a reduced trade deficit recently. Even though the report briefly if not belatedly mentioned that the sale of imported goods had dropped by 7% in one month right at the very end of the story.

It also appears near-impossible to go back into surplus any time soon. Whether it's Fraser, Hawke, Keating, Howard, Rudd or Turnbull/Costello ?

http://wopared.aph.gov.au/Library/pubs/msb/features/bop.htm

Since 1959-60 Australia has had only one surplus on its current account and that was in 1972-73. A common concern has been the rise in the current account deficit from between 2 and 3 per cent of GDP in the 1960s and 1970s to between 4 and 6 per cent of GDP in the 1980s and 1990s.

Glen48 · 6 March 2009

B O told every one it is a good time to buy so the Dow shot trouble is B O didn't say what to buy.
Our Grand Kids will look back at this crash and think how could we be so stoopid and then in 70 yrs time do the same themselves.

MR. · 7 March 2009

MR. said:
Debt shouldn't exist. Companies should only raise funds from investors cash, houses paid for by the family groups. If you don't save you don't get. Wouldn't the whole system be stable........!

Uncle Festivus said:
Stable, but oh so boring and returning 4%, and banks wouldn't get deal fees eg Macquarie, people would actually live within their means without both partners having to work for their energy guzzling inefficcient McMansions. We wouldn't have to rely on skilled immigration to artificially raise the cost of everything. The false wealth created from housing the last decade or so is going to evaporate in a blink of an eye.

Boring .... maybe.
But would we also miss the human toll. Family's falling apart, parents fighting, children in broken marriages as a result from too much debt and/or risk.

And then there are the casualties, whom found no better way out. The reason for some was not of their direct doing, just caught up in it all and/or had advise which went terribly wrong.

explod · 7 March 2009

On the big picture there does not seem to be much support for the dow to 2000

With UK printing money from nought how far behind will be the US. Paper money is certqinly trash now.

Ed; chart did not upload. For a look open bigcharts as USJIA set candles at quarterly and "all data" goes back to 1970

doom and gloom.... explod e

Glen48 · 9 March 2009

[CHINA] National Energy Admin head Zhang Guobao said China should use part of its nearly $2 tln fx reserves to buy more gold, oil, uranium and other strategic commodities in order to diversity its reserves. Zhang said that SAFE could buy more gold and other strategic commodities while other agencies such as China's National Oil Reserves Centre should be allowed to issue foreign exchange bonds for overseas purchases. Comments are likely to be just proposals at this stage rather than official policy.

Thought this money was to bail out USA????

aleckara · 9 March 2009

GumbyLearner said:
Since 1959-60 Australia has had only one surplus on its current account and that was in 1972-73. A common concern has been the rise in the current account deficit from between 2 and 3 per cent of GDP in the 1960s and 1970s to between 4 and 6 per cent of GDP in the 1980s and 1990s.

Australia having a trade surplus is nothing to boast about. Because of our past irresponsibility we need to look at the current account as a whole due to the interest rate burden we have accumulated in all the other previous deficits. Our interest burden is growing - and no matter how low interest rates go Australians just load up on more debt to compensate. I assume our dollar will go lower in the long run - however of course everyone else is devlauing their currencies as well. If we have a trade surplus but a current account deficit all our hard work in saving and not spending is just making the foreign investment yield slightly safer, and they get the proceeds before we do as creditors.

Aussiejeff · 11 March 2009

Imminent and severe market correction - [size=+2]UP![/size]

Courtesy of a "leaked" internal memo for Citigroup - a 100% trustworthy bwank.

March 10 (Bloomberg) -- Citigroup Inc. Chief Executive Officer Vikram Pandit said his bank is having the best quarter since 2007, when it last posted a profit. The shares rose as much as 38 percent and helped spur gains for finance company stocks.

“I am most encouraged with the strength of our business so far in 2009,” Pandit wrote in an internal memorandum obtained today by Bloomberg. “We are profitable through the first two months of 2009 and are having our best quarter-to-date performance since the third quarter of 2007.”

http://www.bloomberg.com/apps/news?pid=20601087&sid=aBYDSwW_8qak&refer=home

Most stock markets through the roof last night.

ASX up 200 pts on massive speculative rally today?

Go, you speculators - GO-O-O-O!

Hmm. Think I'll just sit back awhile and guard the cashbox, ok?

PS: Mr Pandit must feel like a god - his trustworthy word holds so much power - the world turns on it! I guess he is having champagne for brekky..

GumbyLearner · 11 March 2009

Aussiejeff said:
Imminent and severe market correction - [size=+2]UP![/size]

Courtesy of a "leaked" internal memo for Citigroup - a 100% trustworthy bwank.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aBYDSwW_8qak&refer=home

Most stock markets through the roof last night.

ASX up 200 pts on massive speculative rally today?

Go, you speculators - GO-O-O-O!

Hmm. Think I'll just sit back awhile and guard the cashbox, ok?

PS: Mr Pandit must feel like a god - his trustworthy word holds so much power - the world turns on it! I guess he is having champagne for brekky..

HAhaha

Almost as bad as their employee "assassinate" program announced a few weeks ago. That was "leaked" too of course!

nizar · 11 March 2009

http://www.marketwatch.com/news/sto...-BD9C-4AC0-94D2-88F17FDB5E11}&dist=TNMostRead

Whiskers · 12 March 2009

Beggers can't be choosers... or can they!

Some that had their hand out seem quite able to manage without.

I wonder, I suppose people will tend to support those that accept the bailout conditions and higher scrueteny. Will that mean some of those who turn down the bailout will find it tough gaining business?

Some Banks, Citing Strings, Want to Return Federal Aid
Published: March 10, 2009
WASHINGTON ”” The list of demands keeps getting longer.

Financial institutions that are getting government bailout funds have been told to put off evictions and modify mortgages for distressed homeowners. They must let shareholders vote on executive pay packages. They must slash dividends, cancel employee training and morale-building exercises, and withdraw job offers to foreign citizens.

As public outrage swells over the rapidly growing cost of bailing out financial institutions, the Obama administration and lawmakers are attaching more and more strings to rescue funds.

The conditions are necessary to prevent Wall Street executives from paying lavish bonuses and buying corporate jets, some experts say, but others say the conditions go beyond protecting taxpayers and border on social engineering.

Some bankers say the conditions have become so onerous that they want to return the bailout money. The list includes small banks like the TCF Financial Corporation of Wayzata, Minn., and Iberia Bank of Lafayette, La., as well as giants like Goldman Sachs and Wells Fargo.

They say they plan to return the money as quickly as possible or as soon as regulators set up a process to accept the refunds. On Tuesday, Signature Bank of New York announced that because of new executive pay restrictions in the economic stimulus package, it notified the Treasury that it intended to return the $120 million it had received from the government only three months ago.

Other institutions like Johnson Bank of Racine, Wis., initially expressed interest in seeking bailout funds but have now changed their minds. Bank executives told The Milwaukee Journal Sentinel that one reason they rejected the government money was to avoid any disruption in the bank’s role in the local community, including supporting the zoo or opera company if they chose to.

One of the biggest concerns of the banks is that the program lets Congress and the administration pile on new conditions at any time.

continues... http://www.nytimes.com/2009/03/11/business/economy/11bailout.html?_r=1&hp

tommymac · 12 March 2009

It's wrong that congress and the administration can add new conditions at any time.

But let's hope that the administration questions these banks (BofNY) that are returning the money due to exec. pay restrictions. I think we all know that they won't but there may be a chance after congress queried the big car manufacturers.

If the bank went bankrupt could the execs be sued by the shareholders for not looking after shareholder interests?

Aussiejeff · 12 March 2009

tommymac said:
It's wrong that congress and the administration can add new conditions at any time.

But let's hope that the administration questions these banks (BofNY) that are returning the money due to exec. pay restrictions. I think we all know that they won't but there may be a chance after congress queried the big car manufacturers.

If the bank went bankrupt could the execs be sued by the shareholders for not looking after shareholder interests?

Hahaha! Only one thing is for certain in these volatile times - that fatcat bwankers will do ANYTHING to preserve their lurks 'n perks. Even if it risks the very survival of a bank itself. Well, what the hey? Who said anything about "loyalty"? They can always deploy the Golden Parachute and drift blissfully awaaaaayyyyy to Ponzi Paradise....

How many Fatcat Bwankers do you know who have actually had their a**es sued off and assets stripped to the bone for their snatch 'n grabs? A mere handful at best. Gummints world wide are currently forking out taxpayer BIG bucks for the privilege of paying mere lip service to these guys. Sickening.

aj

Imminent and severe market correction

Uncle Festivus

Aussiejeff

sinner

Bushman

basilio

sinner

prawn_86

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GumbyLearner

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Glen48

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MR.

explod

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aleckara

Aussiejeff

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nizar

Whiskers

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tommymac

Aussiejeff

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