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Thread: weekend commentary - Say goodbye to DOW 11,000 this time ...

  1. #26
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    Default Re: weekend commentary - Say goodbye to DOW 11,000 this time ...

    Paulson's proposal, which the Treasury anticipates will be incorporated into an existing congressional bill and approved this week, signals a shift toward an explicit guarantee of Fannie Mae and Freddie Mac debt.
    ...
    it is very hard to explain how an "unlimited lending line"can possibly have "terms and conditions necessary to protect the taxpayer".
    http://globaleconomicanalysis.blogsp...ds-in-5th.html
    Once again, the conservative, sandwich-heavy portfolio pays off for the hungry investor
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    Default Re: weekend commentary - Say goodbye to DOW 11,000 this time ...

    There goes the Dow.

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    Default Re: weekend commentary - Say goodbye to DOW 11,000 this time ...

    Actually, there was a rally today (AU and US). Came in to work and it's like "US banks up? wtf?". Tommorrow will be interesting.
    Once again, the conservative, sandwich-heavy portfolio pays off for the hungry investor
    - Dr John Zoidberg

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    Default Re: weekend commentary - Say goodbye to DOW 11,000 this time ...

    ^^^ our tax money at work LOL !!!

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    Default Re: weekend commentary - Say goodbye to DOW 11,000 this time ...

    Hey Melonie, is that you?
    Betting big on $1,000 gold in September
    http://themessthatgreenspanmade.blog...september.html

    NEW YORK (AP) -- Oil prices tumbled Wednesday, extending a steep and unusually volatile slide into a second day, after the government reported a surprising spike in U.S. crude and gasoline supplies.
    http://edition.cnn.com/2008/BUSINESS...ef=mpstoryview

    Yeah, that'll fix it...
    While pondering SEC Restricts Shorting 19 Financial Stocks I could not help but notice the financial institutions conspicuously absent from the ruling.
    http://globaleconomicanalysis.blogsp...d-to-dogs.html

    Lehman up ... hmm ...
    Once again, the conservative, sandwich-heavy portfolio pays off for the hungry investor
    - Dr John Zoidberg

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    Default Re: weekend commentary - Say goodbye to DOW 11,000 this time ...

    if the COMEX issued the same 'naked short selling' restrictions on gold, it would be well over $1000 an ounce already ....

    Not wanting to swing too far towards the 'tin foil hats', but sudden short selling rule changes (affecting only a selected handful of stocks) being ordered by the gov't, an extremely 'convenient' government oil/gas inventory report etc. occurring together at this specific moment in regard to market sentiment etc. seems like one hell of a coincidence. However, I do have to agree with Mike Shedlock in your link that the existance of a concerted covert plan to reverse the markets gives the gov't too much credit !!!

    two words ... short covering !

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    Default Re: weekend commentary - Say goodbye to DOW 11,000 this time ...

    the short selling rule changes are intentionally at this point, aren't they?

    Bernanke told lawmakers it's "important" for Fannie Mae and Freddie Mac bonds and stocks to rise so they can keep raising capital and aid the mortgage market. Paulson said the two companies are "essential" because they represent the only "functioning" part of the home loan market. The firms own or guarantee about half of the $12 trillion in U.S. mortgages.
    Although maybe they should have thought about this before FNM and FRE tanked. Still, it's just a little bit of friction. People will still sell and bring the price down if they want to get out.
    Once again, the conservative, sandwich-heavy portfolio pays off for the hungry investor
    - Dr John Zoidberg

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    Default Re: weekend commentary - Say goodbye to DOW 11,000 this time ...

    ^^^ yes, but .... People will be selling at higher prices than they otherwise would have been able to thanks to the US taxpayers (who provided a de-facto subsidy by trading freshly printed fully valued dollar bills today in exchange for God knows how few cents on the dollar worth of value toxic Mortgage Backed Securities that the FED allowed FNM / FRE to post as collateral)

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    Default Re: weekend commentary - Say goodbye to DOW 11,000 this time ...

    Why didn't we have the same uproar when the dot-com bubble burst? Look at all the losers of mucho deniro.

    The whole subprime bubble was avoidable, why should we bail out companies and people? They made and took loans that should never have been made.

    My gripe is that FMae and FMac spend 20million per year on lobbying. And since FMae was a govt agency and FMac was govt sponsored, they pay no state or federal tax.

    If they fucked up that bad with soooo many things no other equivalent business have, going for them, they deserve to go under.

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    Default Re: weekend commentary - Say goodbye to DOW 11,000 this time ...

    Why didn't we have the same uproar when the dot-com bubble burst? Look at all the losers of mucho deniro.
    ... arguably, because the dot-com losses involved individual investors - many of them middle class workers, and because the investment banks weren't left 'holding the bag' in terms of illiquid bankrupt dot-com company assets ( because the dot-coms were primarily financed through stock share IPO's not collateralized bank loans).

    In contrast, the real estate bubble losses affect uber-rich owners of mortgage backed securities, as well as owners of bank / GSE stock shares who ARE stuck with illiquid bankrupt homeowner assets.

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    Default Re: weekend commentary - Say goodbye to DOW 11,000 this time ...

    This is an expected dead cat bounce.

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    Default Re: weekend commentary - Say goodbye to DOW 11,000 this time ...

    dot.com's were largely funded by Venture Capital, then IPO's for increased valuations and cash from withheld stock.

    Who bought? It wasn't merely individual investors

    Lots of 'rich' folk and institutions were left holding the bag in the dot.com bust..

    Basically institutions are left with a depreciated asset in both cases.

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