Financial Armageddon

M

MarkP

Well-known member
Apr 23, 2004
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Colorado
So the big banks are 'profitable' because the Fed took all the trash at 100c on the dollar. We have documented statements that before the Obama administration got involved AIG wanted to offer 60c on the dollar. So where is the Fed trash going?

You have been forewarned.

Fed aims to sell $1 trillion in securities


Barrons: Stay away from bonds.​

the comments probably have this right:

The master plan is to bury this **** into every pension fund in America while their criminal associates, err... primary dealers, laugh all the way to the bank with outrageous fees.​
 
az_max

az_max

1
Apr 22, 2005
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"Regret to me means something that you feel like you did wrong," said Daniel Sparks, the former head of Goldman's mortgages department. "I don't have that."
Click to expand...

http://www.azcentral.com/arizonarep...4/28/20100428goldman-sachs-investigation.html
"You're market-makers, but you're also playing in that market," said Sen. Mark Pryor, D-Ark. "Instead of Wall Street, it looks like Las Vegas."

"You're the bookies," said Sen. Claire McCaskill, D-Mo.

No, said Sen. John Ensign, R-Nev., it's worse.

"In Wall Street, people manipulate the odds while you're playing the game," Ensign said. "It's much more dishonest."
Click to expand...
 
M

MarkP

Well-known member
Apr 23, 2004
6,672
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Colorado
Ah, I thought the PIIGS was just a pimple on the back of the EU, just a few Billion problem ......


How Much is Needed to Bail Out Greece? $159 Billion? $794 Billion? Estimates Vary Wildly as Greece Turns Viral; S&P Downgrades Spain
Mish's

....European policy makers may need to stump up as much as 600 billion euros ($794 billion) in aid or buy government bonds if they are to stamp out the region?s spreading fiscal crisis, said economists at Goldman Sachs Group Inc., JPMorgan Chase & Co. and Royal Bank of Scotland Group Plc.....​


Considering the undiscovered fraud and accounting disasters this feels like a Trillion $ problem. I doubt Germany will bail this out.
 
M

MarkP

Well-known member
Apr 23, 2004
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Colorado
Is it me or is the disconnect between the stock market and reality getting interesting .....

DOW - +122 !

Then ....

Morgan Stanley: Strategic Defaults Reach 12%

Redmond, WA Condo Association Votes to Mass Default

Belmont Stakes Needs Government Loan to Stay in Business; Bluegrass Country on the Skids; Horse Farms for Sale

Euro Slide Hurts US Multinational Corporation Profits; Roubini Eyes Sovereign Debt Defaults, Inflation

Unemployment: Many Workers exhausting all benefits


and of course, the mandatory Greece news ...

Forget Greece (And The Rest of Club Med)

April 29 (Bloomberg) -- Prime Minister George Papandreou is starting his sales pitch to the Greek people as unions denounce as ?unjust? budget cuts linked to a potential $159 billion European Union bailout.

?We find ourselves before the most savage, unprovoked and unjust attack,? said Spyros Papaspyros, head of the ADEDY civil servants union, after meeting Papandreou in Athens today. ?The answer will be given in the street.?​


Is American Idol on tonight? Lalalalalalalala ......
 
M

MarkP

Well-known member
Apr 23, 2004
6,672
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Colorado
Wow, this will never fly ... :rofl:

From the comments section of
Greece Agrees to Austerity Plan

...On top of the wage freeze, public sector workers will lose their ?13th and 14th month? salaries, paid at Christmas and Easter, and see further cuts in allowances.

Andreas Loverdos, social affairs minister, told the Financial Times pensioners would also lose seasonal bonuses as part of an overhaul of the underfunded state pension system. The average retirement age will be raised from 53 at present to 67, he said.

?The timetable for the pension measures is still being debated, but there isn?t much room for manoeuvre ? this is about saving the country from collapse,? Mr Loverdos said.

Greece?s swollen public sector, which employs about 13 per cent of the workforce, will be gradually reduced through a recruitment freeze, the abolition of short-term contract and closures of hundreds of out-dated state entities.

Mr Papandreou outlined the measures in meetings with employers? associations and trade union leaders on Thursday.

Emerging from the prime minister?s office, Yiannis Panagopoulos, head of the private sector umbrella union GSEE, warned of confrontation ahead.​
 
M

MarkP

Well-known member
Apr 23, 2004
6,672
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Colorado
Are we there yet?

California cities contemplating bankruptcy, San Diego suing their pension fund, California seeing sharp drop in April tax revenue, Euro crashing, impending currency crisis and ....... Greeks!

But hey, the stock market is rising! Oh ....... wait.


Edit add: Illinois cannot even buy ammunition from some vendors for their State Police because they haven't paid their suppliers, who are now in turn refusing orders.
 
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M

MarkP

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Apr 23, 2004
6,672
0
Colorado
So who is up first?

California or Illinois?

Can we package them with Greece and resell them to the Fed at 100c on the dollar? (by the way, that's you) That way they can the be 'profitable' and debt free!
 
M

MarkP

Well-known member
Apr 23, 2004
6,672
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Colorado
Ok everyone, here is why the stock market is disconnected from reality.

First, government distortion of economic data:

Q1 PCE Growth came from Transfer Payments and Reductions in Personal Saving
Calculated Risk

....This shows that the entire increase in consumption in Q1 was due to transfer payments and reductions in the saving rate (now down to 2.7% in March). I suppose the saving rate could go to zero - although I expect it to increase, maybe incorrectly! - but at some point increases in consumption are going to have to come from jobs and income growth, not government transfer payments and reductions in the saving rate.​

No, as in Zero, organic growth. Party On! DOW 11,000+! To the Moon!

But who is trading?


PLUNGE! 1987 Style - Sudden Drop in US Stocks Driven by Program Trading and a Ponzi Market Structure
Jesse's Caf? Am?ricain

US equities were gripped by panic selling as the Dow plunged almost 1,000 points driven by a cascade of 100 share high frequency program trading, estimated to have been about 80% of volume.......​

80% of the volume is algorithmic trading? Computers gaming computers on extreme low latency connections. The DOW is now traded on a synthetic basis, disconnected from the real economy. Essentially no investment trading.
 
MUSKYMAN

MUSKYMAN

Well-known member
Apr 19, 2004
8,277
0
OverBarrington IL
MarkP said:
So who is up first?

California or Illinois?

Can we package them with Greece and resell them to the Fed at 100c on the dollar? (by the way, that's you) That way they can the be 'profitable' and debt free!
Click to expand...

You know Mark the sharpest minds out there have come from our state and then went to washington...just ask them.

The best part of Illinois is that most the ellected officials always get 2 terms...the first in office the second in prison:patriot:
 
p m

p m

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On a barely-related subject (from NY Times article about today's sell-off):
“I think three days makes a pattern, and we as investors grew complacent that every time we had a bad day we had a good day,” Jake Dollarhide, chief executive of Longbow Asset Management, said. “This is a terrible, terrible day.”
Click to expand...
Nice last name for a financier...
 
M

MarkP

Well-known member
Apr 23, 2004
6,672
0
Colorado
This 'event' also exposed another issue ......


There is virtually no underlying bid, even for large drops. Just air.
 
M

MarkP

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Apr 23, 2004
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Colorado
az_max

az_max

1
Apr 22, 2005
7,463
2
MarkP said:
Well this is it. All the fiat currencies are "In" one final time as Fed emergency swap lines, previously closed, are now open. The US taxpayer is bailing out the EU as it is a race to the bottom. Sovereign providing 'liquidity'. Reality is that liquidity is more debt on top of crushing debt. We are seeing the controlled demolition of the fiat currencies of the developed world.

Use this bump opportunity wisely.

"Fear the Boom and Bust" a Hayek vs. Keynes Rap Anthem
Click to expand...


Love the rap video...
 
noee

noee

Well-known member
Apr 20, 2004
1,887
0
Free Union, VA
hehe.....r u guys watching the markets today....(PMs, VIX, FOREX...)

i'm supposed to be outside getting some work done, I can't break away. did I mention that dial-up sux?
 
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