Wednesday, March 04, 2009 1:43:03 PM · by Syncro
CBS4.com ^ | Mar 4, 2009 3:09 pm US/Eastern | Tim Kephart
Posted on 03/04/2009 1:08:04 PM PST by Syncro
Who can afford to hold overnight? The headline risk is off the charts.
Is that the same market that expected to shed half of it's value 6 months ago? It is? Where has this new found wisdom and predictive power come from, and where was it before? If "the market" really anticipates a recovery, why isn't it showing it by putting it's money down?
If it drops tomorrow, it is just a natural correction.
That'll leave a mark...
Nobody cares about these little ups and downs.[/sarcasm]
I think it was more than that, it was Obamaloons trying to move the market up. The trading has been shallow.
Keep your eye on the fundamentals, that’s what runs the market. And as you say they suck, and prospects are for them to suck even more in the future.
The stats on unemployment today was really bad ...
Karl’s got a rant today...
http://market-ticker.org/archives/849-Stop-OTC-CDS-Abuse-NOW.html
President Obama: You can stop this with the stroke of a pen. Issue an executive order today that says:
“Naked”, that is, CDS that are not insuring an actual bond, which are not traded on a public exchange with nightly margin supervision, are uncollectable as contrary to the public interest.
ALL CDS, covering a bond or not, are uncollectable six months hence unless they are traded on a public exchange with nightly margin supervision.
This will force all CDS onto a public exchange and stop OTC dealing in these instruments. It will stop dead the writing of these instruments without the capital behind them to pay. It will stop the speculative attacks right now, resolve most of the AIG issue immediately, and within six months put a stop to all abuse of the CDS marketplace.
If President Obama fails to do this imminently we may not have a functioning capital market for long enough for Congress to act and put these provisions into a statute.
Yes, I know the ISDA’s members and some others would likely sue the government immediately claiming a “taking”. Nonsense; this executive order would only delay collection until the contract is posted to a public exchange and both sides net against the central counterparty, not prevent collection, provided the writer is solvent.
If the writer is not solvent then the money isn’t there to pay in the first place and the arguing over “takings” is academic since the agreed actions in the contract cannot be performed.
A contract to do an impossible thing is not a contract.
Let ‘em sue - doing so will force discovery of the solvency of the writer of these contracts along with the identification of exactly who owes who what. THAT isn’t something that the “market participants” want out in the public, is it?
The insanity must stop now before the capital markets literally consume themselves, destroying not only the guilty firms but those that are otherwise solvent and able to operate through these rough economic times.
If you’re looking for a scenario where the shotguns could come out if the CDS insanity is not stopped that’s one of the ways it can happen.
>> despite what Obama says about the ‘profit to earnings ratio’
Did he use that exact phrase? Seriously? ROFL!
Yeah I bet if there is a company out there making signs that said
I posted this earlier today, but it still summarizes why I see no upsaide...
Investors cautiously returned to the stock market Wednesday, sifting for bargains after five straight days of heavy selling...
* White House kicks off housing plan to help 9 million- AP
* Source: Obama to order govt contracting overhaul to save $40B- AP
* Services sector shrank in Feb., 5th straight month- AP
* U.S. private sector cuts 697,000 jobs in February- Reuters
* Oil rises to $44 as investors eye inventories- AP
* Supreme Court rejects limits on drug lawsuits- AP
* One in five U.S. mortgage borrowers is underwater- Reuters
* US Bancorp cuts dividend 88 percent- AP
* GE’s Still Not Cheap- Tech Ticker
Yeah, not sure it was an exact quote, Rush was talking about it today when he was challenging him to debate one on one.
Obama did not know it was price(of the stock) compared to the earnings(of the company) — what Rush said. And we know, Rush has 99% accuracy.
dittos ... but suckers always think they know.
It looked like all the short sellers held over the weekend this last Friday. Turns out they were right. I think you can reduce your risk if you monitor the administration's speaking schedule. Every one of them drives the market down except for Bernanke.
Historically, the markets begin to turn around and go higher 6 to 8 months before the economy shows signs of recovering. There are some who predict the economy will begin to recover in the second half of 2009 and into 2010.
My point is, the Dow is not going to zero and you can only squeeze so much out of a bear market on the downside. When everyone around you is giving up...when all the talk is negative...when it seems like there is no bottom...it's the bottom.
That was the prediction before Obama has his chimp Pelosi write him a spending bill.
The implementation of all the trillions of spending OK'ed by the congress and Present Obama will stretch out the recovery for years, if ever.
Coulter and many economists were explaining the self-correction while the fight over these bills was going on.
Soros/Marx/Pelosi/Clinton/ClintonRahmE/Reid/Alinsky/Ayres won that one.
You mean those little gyrations?
I read last week that fully 74% of trades opened each day (long or short) are closed out by end of day. Been that way for the last 2 months.
She made those comments a couple of hours before the plunge.
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