ISEQ -> American Housing Bubble Bailout

Kerry North posted this link up in the other place. Chilling.

http://www.irishtimes.com/newspaper/finance/2008/0923/1222105127112.html


YoungDan

Given the stress they are all suffering, looks like some people should be given a full board break, at tax payers expense, for say 10 years.

Squire wrote:

Kerry North posted this link up in the other place. Chilling.

http://www.irishtimes.com/newspaper/finance/2008/0923/1222105127112.html

The long-awaited run on the dollar? Will it be decoupled from oil soon then?

The Fed are starting to look dubious, oil is the least of it.

If you go back to Thursday you will see that I told Constitutionus to start talking about First Reserve Fund and breaking the buck. Is this a real newspaper or is it something like The National Enquirer. Five days after some yob(me) posted it on one on the most read threads in Ireland they run a story on it. A bad story at that as it did not explain the ramifications it had on the Corporate Bond Market to the reader which is the bigger story . This is the reason why I said it was a more important story than the 800 billion bailout.

youngdan wrote:

I was out doing some work buy today was an exciting day. This article might be hard to follow but look at all the stuff people have learned in the last few months. Morgan runs the Fed and the head of Goldman is the Treasury Secretary. This is an astonding allegation http://www.financialsense.com/Market/wrapup.htm

That was quite a read youngdan, not the least of it being:

Quote :

As to “how” J.P. Morgan could be insolvent without a public declaration, I remind you of something mentioned in this space on several occasions; it was Dawn Kopecki that reported in BusinessWeek Online, back in 2006, in a piece titled, Intelligence Czar Can Waive SEC Rules,

“President George W. Bush has bestowed on his intelligence czar, John Negroponte, broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations. Notice of the development came in a brief entry in the Federal Register, dated May 5, 2006, that was opaque to the untrained eye.”

The rumour mill yesterday produced this:
http://www.irishtimes.com/newspaper/finance/2008/0923/1222105127122.html

Quote :

The fateful tide that led those banks to bankruptcy or firesale meant that reports on the change of suit at Goldman and Morgan Stanley invariably described them as the "last surviving" independent investment banks on Wall Street. That it has come to that in such short order seems extraordinary. " I think it's probably the most momentous time in American banking since 1933," Wall Street historian Dr Charles Geisst told The Irish Times.

Dr Geisst, a professor of finance at Manhattan College, said one possible explanation for the decision to change the status of the two banks so quickly was that they may have been facing an outright takeover by a non-US institution. "By requesting to become commercial banks, they are putting themselves under the Fed's regulation. If they [are] banks, it would be very difficult for a foreign bank to buy them," Dr Geisst said.

...If the Bush administration's plan to buy $700 billion of toxic mortgage assets from vulnerable banks represents the most significant effort yet to come to grips with the crisis, the reopening of the market yesterday morning passed without agreement between the US government and Democrats on the parameters of the package.

With Democrats rigidly holding the line on the need for greater congressional oversight of the plan and assistance for homeowners in trouble with mortgage lenders, US president George W Bush implored them yesterday to resist the urge "to insist on provisions that would undermine the effectiveness of the plan".
As efforts intensified to seal a deal in time for a vote this week in Congress, it was the president's second public avowal of the emergency initiative in three days.

The scenario was that supposedly the 2 finance banks were "horror" going to be taken over by foreign interests.

The idea of this getting a free ride through Congress is disappearing and the prospects of shoring up the dollar until after the election has gone. We are going to hear a lot about "the National Interest" in the next few days.

While we're trying to deal with the mortgages, hold down a job and pull together any kind of pension, these guys are working out how to stash away their billions for the rainy days ahead.

Chick on Bloomberg just now (Diane Garnick, Invesco) believes the Dow could hit 9000 soon. It might be a good time to buy personal safes and mattress stocks. There's a dwindling supply of money around though - some injection of something has to happen, even if it's hope. Could this see the end of the Fed?

Warren Buffett is on the move, take care!! People hold him in veneration, but worth checking out some of the antics of companies he has been associated with like Moodys and Gen RE.

Buffet has been giving some of his attention to Goldman Sachs stock .. vote of confidence/trust signal/greed is good move by Buffet? He's up 470 million dollars with his movements... markets are settling it seems but will that last for long?

Auditor #9 wrote:

Buffet has been giving some of his attention to Goldman Sachs stock .. vote of confidence/trust signal/greed is good move by Buffet? He's up 470 million dollars with his movements... markets are settling it seems but will that last for long?

From what I see on P.ie he has got himself the deal of the century there, a no lose situation. Cash is and anyone who has, or who is believed to have, ready money rules.

P.S. Just listening to Buffet - he has spent 24 billion of his cash and won't say how much he has left. He says you can't leave money sit: "Its like saving up sex for your old age".

Why would anyone advertise what they are doing, forgive me if I am a cynic. Companies associated with Warren Buffett have a large hand in creating the current problem. Moody's 'computer fault!

Buffet in the market, how reassuring. Think I will settle back and listen to a string quartet.

http://uk.youtube.com/watch?v=OGnAzkh9kn0&NR=1

Buffet is the modern day version of what Richard Whitney did on Sept 24 1929.

Rumours of a deal having been done so suppose it will be an up tomorrow. If people took time to think it through they may think otherwise. That is the great thing about markets, the unthinking herd.

Squire wrote:

Rumours of a deal having been done so suppose it will be an up tomorrow. If people took time to think it through they may think otherwise. That is the great thing about markets, the unthinking herd.

Yes this has been on Bloomberg for a few hours now. A lot of commentators there believe it'll be throwing good money after bad and that there are other ways. Does anybody know what's going to happen? The interbank lending rates are down too so maybe it will pump money into the system.

I had the image today when it was announced of a quintet of drunken squatters in a squat saying to each other "we're all broke what tf are we going to do" but they manage to get a loan from the Credit Union and phew! they are sorted for a while. But unless there is a fundamental change they are going down into a black slippery hole.

The above didn't happen to me btw. And our banks will be up tomorrow before they eventually nosedive big style around Christmas.