CNBC: U.S. Mortgage Crisis Up To $300 Billion!!
- Thread starter Gyaos
- Start date
J
JessiMae
Sticks and stones may break my boners, but an official DOW correction never hurts me:bbking said:
CURBS IN (11/26/2007):
DOW 12,743.44 -237.44 -1.83%
NAS 2540.99 -55.61 -2.14%
S&P 1407.22 -33.48 -2.32%
Gyaos Baltar.
I made money on nikkei puts (actually, I think it was a more complicated investment instrument than a straightforward put ... but it was certainly negatively correlated to the Japan index) back in the late 80s or early 90s.
But I am making much more money now than I ever did back then. How? By shorting U.S. homebuilders and investment banks. Today was another excellent day.
But I am making much more money now than I ever did back then. How? By shorting U.S. homebuilders and investment banks. Today was another excellent day.
That is very informative.WoodPeckr said:
Unfortunately, too many idiots think that the Fed will save them by lowering rates again and printing more money.
More bad medicine is the last thing the US economy needs but the powers that be seem to have a problem facing reality.
it is alot like a tax and spend mentality. You can not tax your way out of an inflated Government..........WNY is a prime example.Malibook said:That is very informative.
Unfortunately, too many idiots think that the Fed will save them by lowering rates again and printing more money.
More bad medicine is the last thing the US economy needs but the powers that be seem to have a problem facing reality.
The Arab terrorists that Bush Jr. "hates" are in charge of CitiBank.
Does this mean a manager at Citi can have a harem with the female employees?
http://www.cnbc.com/id/21992004
A $7.5 billion Abu Dhabi deal to buy Citigroup shares may have created a model for acquisitions by Gulf and other emerging-market investors scouring the ruins of the U.S. mortgage crisis for bargains.
The Abu Dhabi Investment Authority sought no role in managing Citi (Citigroup Inc 30.03 0.23 +0.77%) allowing the world's wealthiest sovereign fund to invest as a saviour of the largest U.S. bank without the risk of being perceived in the United States as an Arab predator.
Does this mean a manager at Citi can have a harem with the female employees?
http://www.cnbc.com/id/21992004
A $7.5 billion Abu Dhabi deal to buy Citigroup shares may have created a model for acquisitions by Gulf and other emerging-market investors scouring the ruins of the U.S. mortgage crisis for bargains.
The Abu Dhabi Investment Authority sought no role in managing Citi (Citigroup Inc 30.03 0.23 +0.77%) allowing the world's wealthiest sovereign fund to invest as a saviour of the largest U.S. bank without the risk of being perceived in the United States as an Arab predator.
The Nikkei was up only .58% today. But the rest......
HANG SENG INDEX 27,210.21 -416.41 -1.51%
SHANGHAI 5,102.94 -102.51 -1.97%
TAIWAN TAIEX 8,375.76 -152.57 -1.79%
THAILAND 822.99 -9.79 -1.18%
BSE SENSEX 19,127.73 -119.81 -0.62%
HANG SENG INDEX 27,210.21 -416.41 -1.51%
SHANGHAI 5,102.94 -102.51 -1.97%
TAIWAN TAIEX 8,375.76 -152.57 -1.79%
THAILAND 822.99 -9.79 -1.18%
BSE SENSEX 19,127.73 -119.81 -0.62%
One of the analysts on Bnn called Citigroup's sale to ADIA an "act of desperation".
Bill Fleckenstein said the same thing in more detail:
"In the middle of the night, it was announced that ADIA, the investment arm of Abu Dhabi, was going to buy a Citigroup convertible preferred with an 11% yield. On that news, our S&P futures rocketed about 1% in a handful of minutes. My reaction: This is an act of desperation on the part of Citigroup -- that in order to get some capital, it would go halfway across the world and pay a nondeductible interest rate higher than what a junk bond would yield. It's almost as though Citi was borrowing money to be able to pay the dividend. (Thus, after buying back billions of dollars of stock much higher, Citi is selling stock in the form of this expensive piece of paper.) There's not one thing bullish in this news, unless you felt that Citigroup had been shut out from the capital markets and now it wasn't.
What brought to mind was the night of August 22, when Countrywide Financial announced that it was able to sell preferred stock to Bank of America at $18 -- news that caused Countrywide, which had been trading at about $2 the day before, to pop to $24. (Of course, CFC is now less than $9.) In any case, last night's news didn't do much for Citigroup in the early going today, as the stock was up only about 1%."
Bill Fleckenstein said the same thing in more detail:
"In the middle of the night, it was announced that ADIA, the investment arm of Abu Dhabi, was going to buy a Citigroup convertible preferred with an 11% yield. On that news, our S&P futures rocketed about 1% in a handful of minutes. My reaction: This is an act of desperation on the part of Citigroup -- that in order to get some capital, it would go halfway across the world and pay a nondeductible interest rate higher than what a junk bond would yield. It's almost as though Citi was borrowing money to be able to pay the dividend. (Thus, after buying back billions of dollars of stock much higher, Citi is selling stock in the form of this expensive piece of paper.) There's not one thing bullish in this news, unless you felt that Citigroup had been shut out from the capital markets and now it wasn't.
What brought to mind was the night of August 22, when Countrywide Financial announced that it was able to sell preferred stock to Bank of America at $18 -- news that caused Countrywide, which had been trading at about $2 the day before, to pop to $24. (Of course, CFC is now less than $9.) In any case, last night's news didn't do much for Citigroup in the early going today, as the stock was up only about 1%."
Malibook said:That is very informative.
Unfortunately, too many idiots think that the Fed will save them by lowering rates again and printing more money.
More bad medicine is the last thing the US economy needs but the powers that be seem to have a problem facing reality.
...I have never understood the relationship of "printing more money", how does this effect the economy?
How does "extra money printed" make it's way into the economy?
In a way it is very simple. At least to me, it is. When there are too many chickens produced, the price of chickens go down. When there are too much Silver produced, the price of silver goes down. When there are too many dollars produced, the price of the dollar goes down, and after a delay, the long interest rate goes up.assoholic said:
When the government spends more money than they collect, they either issue IOUs (bonds) or they print (create) money.assoholic said:
Usually they do both.
It is just like how a public company that creates and sells more shares to raise capital can't do it without dilluting the existing shareholders.
Why doesn't the US government just print enough money to make all Americans multi-millionaires?
It isn't because of a shortage of ink and paper.
The dollars are not actually printed. The term "printing money" is used as a metaphor for creating credit, i.e. money supply.assoholic said:
Not only the central banks can increase the money supply (i.e. print money).
When a credit card company gives somebody a card with $5,000 limit on it,
up to $5,000 has been "printed". That is why there are rules for how much credit banks can give, relative to their own capital.
When the central banks want to increase the money supply, they usually
do it by decreasing the short term lending rate to the commercial banks.
As usual, check this information with an economist, for example someone.
Dollars are just claims on real things. If the claims on things go up faster than the real things are able to be made, then the value of those things in terms of those claims go up. That's why I began buying gold in 2004....the CRB index, which measures materials prices, started to rise. Greenspan's attempt to ease the US economy through the aftermath of the dotcom mess and the war, was instead creating an inflation in the value of real goods.
The CPI measurements put out by the government are clearly misleading....gold, which takes real inputs (real engineering talent, real geologists who really know what they're doing, real bank managers to O.K. the loans to construct real mining camps) to produce keeps on going up.
This credit problem might just be the answer to the impending inflation that's just around the corner. I'm not sure how you can have a roaring inflation when credit creation is going into reverse. Credit's being destroyed (bank writeoffs) at a rapid pace and I personally don't see the end of it for awhile. I think we're at the beginning of a huge deflation..a la Japan in the 90s.
Asset prices of all kinds are on the way down, imho.
The only thing is, China's creating and exporting inflation (6% over there, and rising) to the rest of the world, whereas they had been for the longest been responsible for repressing it with cheap goods. it's getting tricky to predict what's going to happen on the inflation front now. No longer is the Fed in complete control of where it's heading.....I think the stock market's volatility is in response to this uncertainty.
The CPI measurements put out by the government are clearly misleading....gold, which takes real inputs (real engineering talent, real geologists who really know what they're doing, real bank managers to O.K. the loans to construct real mining camps) to produce keeps on going up.
This credit problem might just be the answer to the impending inflation that's just around the corner. I'm not sure how you can have a roaring inflation when credit creation is going into reverse. Credit's being destroyed (bank writeoffs) at a rapid pace and I personally don't see the end of it for awhile. I think we're at the beginning of a huge deflation..a la Japan in the 90s.
Asset prices of all kinds are on the way down, imho.
The only thing is, China's creating and exporting inflation (6% over there, and rising) to the rest of the world, whereas they had been for the longest been responsible for repressing it with cheap goods. it's getting tricky to predict what's going to happen on the inflation front now. No longer is the Fed in complete control of where it's heading.....I think the stock market's volatility is in response to this uncertainty.
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