Monday, 10/7, Market WrapUp (Taking it in the Shorts)

Financial Sense Online ^ | 10/7/2002 | James J. Puplava

[rohry]

Market WrapUp is delivered...

[churchillbuff]

And of course all Bush can and will talk about is Saddam.
I want to hear something about economic stimulus - - why voters should give a mandate for tax cuts - - - but with W it's Saddam, Saddam, Saddam, Saddam. Kind of like his daddy, who also couldn't be bothered with the economy.

[Anti-Bubba182]

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[Huck]

but with W it's Saddam, Saddam, Saddam, Saddam. Kind of like his daddy, who also couldn't be bothered with the economy.

Ouch. Makes you wonder how Ronald Reagan was able to revitalize the worst economy since the Great Depression AND win the Cold War. Is this President making the same mistakes his father made? Time will tell, but at this point, it isn't a big stretch to imagine a Democrat running on the ecomony and taking the White House.

[rohry]

"So, everything is up. Does this mean the tide has turned and it's time to start buying?"

No, no you've got it backwards...You read the article first, then you post your thoughts...

Everything was down today...

[EVO X]

Time will tell, but at this point, it isn't a big stretch to imagine a Democrat running on the ecomony and taking the White House.

There are still a bunch of terrorist SOB's that want to take OUT the White House and don't give a crap about our economy.

[rohry]

"Kind of like his daddy, who also couldn't be bothered with the economy."

Wow, you think Bush is responsible for the gigantic bubbles that are deflating?

What economic stimulis would bail out JP Morgan, IBM, GE, AT&T, Fannie Mae, Freddie Mac, Lucent, etc? What econimic stimulis package would bail out people who have bid up the price of housing 30% (or more) in the last few years in vast areas of the country?

I'm for massive reductions in Federal spending and regulations but how do you do that when the National Socialist Party is in control of the Senate? Tax cuts without reductions in spending are not a good idea last I heard...

[jwh_Denver]

Interesting info on the PM equities shorts. Now I know why the PM stocks have been fading lately. Might be real tempting to some big money blowing these shorts off the pot and making a big hit.

Who in h would put their arse over a rumbling volcano knowing it's not a question of "if" but "when" it's going to erupt?

[razorback-bert]

"NEW YORK, Oct. 7 — Spreads on U.S. dollar swaps pushed wider on Monday, with 10-year spreads breaking to highs not seen since March as renewed worries about major global banks and a broad-based flight to safe assets dented all credit spreads.

Activity in the market was slow and focused on equity markets hitting new multi-year lows and talk of capital strength problems at two major banks -- Germany's Commerzbank (DE:CBKG) and Credit Suisse (VX:CSGZn).

Matters were not helped much after an executive at HSBC, Europe's biggest bank by market value, said it was worried about the potential for systemic risk jamming the global financial sector."


"...Because the swaps market trades primarily between major financial institutions, worries about eroding credit quality at banks or insurance companies tends to cause a higher premium on transactions -- pushing spreads higher against risk-free Treasuries.

Thus swap spreads have suffered in the past month as investors fret about how insurance companies and banks are exposed to the relentless slide in global stocks and as ballooning bankruptcies still pounding balance sheets. Agency and corporate bond spreads also took a blow on Monday...

...Back in July swap spreads widened sharply after J.P. Morgan Chase (NYSE:JPM) and Citigroup (NYSE:C) -- two of the largest players in the derivatives market -- came under increased scrutiny for its trading practices with bankrupt energy trader Enron Corp. Rumors also swirled about J.P. Morgan Chase's losses from bankruptcies and Latin America.

Federal Reserve Chairman Alan Greenspan insisted on Monday that despite business failures and heavy investor losses, the U.S. financial system remains in good shape, pointing to strong bank profits and rates of return on capital. Still, the S&P financial index fell more than 3 percent."

The word "insist" is a red flag. Tread very carefully. Take steps to protect yourself.

[John W]

We obviously need a review of the intent of establishing a "President of the United States".It wasn't "Its the economy,stupid".But,given how many folks window of existence has included nothing but the clinton nannybubble,it may be hopeless.

[Huck]

There are still a bunch of terrorist SOB's that want to take OUT the White House and don't give a crap about our economy.

And in the 80s, there was still a vast Soviet Empire which posed a direct threat to the United States, but it didn't prevent President Reagan from articulating and advancing a comprehensive economic agenda. He was somehow--we can only wonder how--able to communicate this economic strategy to the American people, even through the recession of '82, even while winning the Cold War.

I understand the importance of the war on terrorism (really the war on islamo-fascist nutbags.) I support it. But the President has appeared to suggest that the economy should take a back seat to the war if necessary. I am simply asking the question why the President can't do both at the same time. Does one have to come at the expense of the other? Is there no way to effectively communicate and advance a sound economic policy and a sound war policy at the same time?

If he doesn't find a way to do it, we may have a liberal Democrat for a President in 2004, then how will the war on terror be? How safe will we be if a Democrat selects the next Secratary of Defense? In other words, domestic security, economic growth, and political success are all linked. That's my point. Hopefully the President will prevail on all fronts. I certainly hope so. It's 3 years now of a bear market.

[razorback-bert]

TINFOIL ALERT

Last week another secret elitist meeting was held at Waddendon Manor in Buckinghamshire, England. Billionaire Warren Buffett accompanied by Arnold Schwarznegger, were the guests of honor at this ancestral home of the Rothschild banking family. They discussed economic and political issues, but as yet, like the Bilderberger meetings, no reporting has been done on what went on inside. These attendees were protégé James Wolfensohn, Rockefeller, Jarma Ollela, CEO of Nokia and DeBeers chairman, Nicky Oppenheimer. All the attendees arrive in limos with blackened windows so no one could see who the attendees were.

[rb22982]

Nope, it has a down arrow beside it indicating down, and if you go to etrade.com you can see it was all down

[rohry]

"No. I don't have it backwards. The author of the scoreboard does. The scoreboard on the right shows all positive numbers."

Red means down, green means up...

Tomorrow we will teach 4th grade charting...

[lds23]

A few weeks ago, I posted that although the Dow could go down to the mid-7-thousands, I thought it would remain in the narrow range it was in at that time.

I want to admit I was wrong.

I was on vacation last week, so this is the first chance I've had to come clean.

I moved some money into the market in March-May, took it back out in July. Then moved a wee little back into stocks in September, and am glad I moved slowly.

I thought of putting a little more back in today, but may take a closer look tomorrow.

But I continue to move slowly.

[STONEWALLS]

as always, thanks Rhory!

"Last week another secret elitist meeting was held at Waddendon Manor in Buckinghamshire, England. Billionaire Warren Buffett accompanied by Arnold Schwarznegger, were the guests of honor at this ancestral home of the Rothschild banking family. They discussed economic and political issues..."

..hmm..I've heard that "Aahnald" is one of the wealthiest men in Hollywood and has political ambitions that may extend beyond California....maybe he went over to England to make some new best "friends"[potential donors]

Good luck to everybody!

Stonewalls

[rohry]

"I want to admit I was wrong."

I'm not Catholic, but I will accept your confession...

Three Hail Marys and give $1000 to the Talent campaign in MO (the most important race in the US right now)...