eagle7, I assure you jest wasn't intended. Causes for stability of an unstable economic condition are sometimes the result of planned disruption. Respectfully, John Curlis
the discount window......no one wants to use it as they would be perceived as being insolvent and this is thier last place to come for capital
the TAF window..........is bleeding, the swapping of cr&p securities for treasuries (at close to par) seems to be continuing at an alarming pace - analysts say.....liquidity positions propped up as investment banks place these securities on thier balance sheet (even though the swap will be reverted after time has elapsed) as being owned,
this week many investment banks report earnings.........it aint gonna be pretty
another leak of info to tame the markets........imo, gold to go higher
+++++++++++++ Race to prop up US mortgage giants By Francesco Guerrera in New York and James Politi and Krishna Guha in Washington
Published: July 13 2008 19:14 | Last updated: July 13 2008 20:48
US policymakers held crisis talks on Sunday over possible moves to bolster Fannie Mae and Freddie Mac, amid mounting fears that failure to shore up the troubled mortgage groups could send markets plummeting on Monday morning.
Officials said Treasury secretary Hank Paulson, Federal Reserve chairman Ben Bernanke and Tim Geithner, president of the New York Fed, were leading the talks.
A statement on Fannie and Freddie, which are sponsored by the government but owned by shareholders, could come before the opening of Asian markets, they added.
A person close to the situation said a “shared agreement on a path forward” for the two companies had been reached. Another official warned that the situation remained fluid and that it was possible no major policy initiative would be announced.
The crisis of confidence engulfing Fannie and Freddie, which guarantee more than $5,300bn in US mortgages, is threatening to deepen the financial turmoil and further undermine investors’ fragile confidence in the stability of global capital markets.
The Securities and Exchange Commission underlined regulators’ heightened state of alert by taking the unusual step of choosing a Sunday to announce a crackdown on the spreading of false market rumours.
The move comes after weeks in which shares in several financial firms – including Lehman Brothers and a number of commercial banks – have been targeted by a flurry of rumours over their financial health.
Lehman and others denied those rumours but that did little to prevent a sharp sell-off in their stocks.
Shares in Fannie and Freddie have collapsed over the past few months amid growing concerns over their ability to withstand losses on their huge portfolios of mortgages.
In a major test of market sentiment towards the two companies, Freddie is due on Monday to sell $3bn in short-term debt.
Wall Street bankers said Treasury officials had been in touch with big investment and commercial banks to ensure they were still considering placing bids for the bond sale.
In spite of the relatively positive market reaction to statements of support for Fannie and Freddie on Friday – with the debt of the two agencies holding up and the equity bouncing back from dramatic falls in early trading – regulators want to avoid another week of wild share price movements and market turmoil.
Investors and bankers expect the Bush administration to prop up Fannie and Freddie but it has so far been unclear what specific actions are likely to be taken.
On Friday, Mr Paulson quashed talk of a nationalisation of the two companies, saying the government supported them in their current form.
The Treasury is known to be against a government purchase of Fannie and Freddie, mainly because it would be seen as federal bail-out of shareholders.
During the collapse of Bear Stearns in March, US policymakers were firm in insisting that shareholders should share the pain of any rescue plan for the investment bank.
Bear was eventually bought by JPMorgan for a fraction of its previous value.
<< <i>eagle7, just the opposite could occur if your prediction comes to pass. Respectfully, John Curlis >>
The threat of Israel attacking Iran is widely known. Widely known information is in the price--economics 101. They've trotted out rumors of imminent attack three or four times already on the trading floors. The old story about crying wolf comes to mind, as does the other cliche of selling on the news.
I remember quite a few forumites writing about gold going to the moon the weekend of the Bear Stearns bailout. Instead of a good time to buy, it was the top of the current move and the best time to sell this year.
<< <i>The threat of Israel attacking Iran is widely known. Widely known information is in the price--economics 101. They've trotted out rumors of imminent attack three or four times already on the trading floors. The old story about crying wolf comes to mind, as does the other cliche of selling on the news.
I remember quite a few forumites writing about gold going to the moon the weekend of the Bear Stearns bailout. Instead of a good time to buy, it was the top of the current move and the best time to sell this year. >>
Just as the old saying goes -- buy on the rumor, sell on the news.
I dont think many will be selling Gold if Iran gets hit by Israel....especially if there is any real retaliation and the Strait or Homuz is disrupted or the Saudi loading facilities gets hit........
You would be lucky to find $5 a gallon gas with oil at $200-$250 a barrel
Bad news?......I'll be happy if it holds where it's at rather than have the PPT get slap happy.
I remember quite a few forumites writing about gold going to the moon the weekend of the Bear Stearns bailout. Instead of a good time to buy, it was the top of the current move and the best time to sell this year.
Funny, didn't hear much about when the best time to buy gold was following that correction. In fact it seems most are still waiting for the "low" to get back in.
The shenanigans by JPM and the FED only delayed gold's ascent to $1200+. And really, that's all they can hope to accomplish. GS and JPM are long gold and will handsomely profit from it. But no reason not to profit from the self-induced swings that they initiate. While gold should have gone to $1100 in short order, the beat down overseas that evening was classic cartel. And no doubt a lot of Bear Stearns and JPM paper gold got sold off immediately in the fracas to slam gold that much harder. It let us all know how far the FED is willing to go to hang on to their paper profits. That was a great poker move. They will need many more such gambits that take the market by surprise to succeed. I don't think they have the ammo. And the issue of surprise is really not an issue any longer.....we now know they'll do anything, legal, illegal....anything. The first break to $1200 gold is around the corner.
For what it's worth, the new Iranian Oil Bourse opens next week, accepting Euros for oil, not dollars. We all know what happened to Iraq when they announced plans to accept euros instead of dollars. The Oil Bomb
Got Gold?
"A car is a tool that takes you from one place to another. Everything beyond that is a payment for other people's perception of you."
Dollar is up on short covering but coming off its highs. Oil is down $1.30 Gold is up $1.15 New Zealand is down 1.3% as massive recession looms. Australia is down 1/2% on commodity weakness.
Comments
only a few more hours for the asian markets to open for gold
the TAF window..........is bleeding, the swapping of cr&p securities for treasuries (at close to par) seems to be continuing at an alarming pace - analysts say.....liquidity positions propped up as investment banks place these securities on thier balance sheet (even though the swap will be reverted after time has elapsed) as being owned,
this week many investment banks report earnings.........it aint gonna be pretty
gold it is........................
+++++++++++++
Race to prop up US mortgage giants
By Francesco Guerrera in New York and James Politi and Krishna Guha in Washington
Published: July 13 2008 19:14 | Last updated: July 13 2008 20:48
US policymakers held crisis talks on Sunday over possible moves to bolster Fannie Mae and Freddie Mac, amid mounting fears that failure to shore up the troubled mortgage groups could send markets plummeting on Monday morning.
Officials said Treasury secretary Hank Paulson, Federal Reserve chairman Ben Bernanke and Tim Geithner, president of the New York Fed, were leading the talks.
A statement on Fannie and Freddie, which are sponsored by the government but owned by shareholders, could come before the opening of Asian markets, they added.
A person close to the situation said a “shared agreement on a path forward” for the two companies had been reached. Another official warned that the situation remained fluid and that it was possible no major policy initiative would be announced.
The crisis of confidence engulfing Fannie and Freddie, which guarantee more than $5,300bn in US mortgages, is threatening to deepen the financial turmoil and further undermine investors’ fragile confidence in the stability of global capital markets.
The Securities and Exchange Commission underlined regulators’ heightened state of alert by taking the unusual step of choosing a Sunday to announce a crackdown on the spreading of false market rumours.
The move comes after weeks in which shares in several financial firms – including Lehman Brothers and a number of commercial banks – have been targeted by a flurry of rumours over their financial health.
Lehman and others denied those rumours but that did little to prevent a sharp sell-off in their stocks.
Shares in Fannie and Freddie have collapsed over the past few months amid growing concerns over their ability to withstand losses on their huge portfolios of mortgages.
In a major test of market sentiment towards the two companies, Freddie is due on Monday to sell $3bn in short-term debt.
Wall Street bankers said Treasury officials had been in touch with big investment and commercial banks to ensure they were still considering placing bids for the bond sale.
In spite of the relatively positive market reaction to statements of support for Fannie and Freddie on Friday – with the debt of the two agencies holding up and the equity bouncing back from dramatic falls in early trading – regulators want to avoid another week of wild share price movements and market turmoil.
Investors and bankers expect the Bush administration to prop up Fannie and Freddie but it has so far been unclear what specific actions are likely to be taken.
On Friday, Mr Paulson quashed talk of a nationalisation of the two companies, saying the government supported them in their current form.
The Treasury is known to be against a government purchase of Fannie and Freddie, mainly because it would be seen as federal bail-out of shareholders.
During the collapse of Bear Stearns in March, US policymakers were firm in insisting that shareholders should share the pain of any rescue plan for the investment bank.
Bear was eventually bought by JPMorgan for a fraction of its previous value.
The US Treasury declined to comment.
<< <i>eagle7, just the opposite could occur if your prediction comes to pass. Respectfully, John Curlis >>
The threat of Israel attacking Iran is widely known. Widely known information is in the price--economics 101. They've trotted out rumors of imminent attack three or four times already on the trading floors. The old story about crying wolf comes to mind, as does the other cliche of selling on the news.
I remember quite a few forumites writing about gold going to the moon the weekend of the Bear Stearns bailout. Instead of a good time to buy, it was the top of the current move and the best time to sell this year.
<< <i>The threat of Israel attacking Iran is widely known. Widely known information is in the price--economics 101. They've trotted out rumors of imminent attack three or four times already on the trading floors. The old story about crying wolf comes to mind, as does the other cliche of selling on the news.
I remember quite a few forumites writing about gold going to the moon the weekend of the Bear Stearns bailout. Instead of a good time to buy, it was the top of the current move and the best time to sell this year. >>
Just as the old saying goes -- buy on the rumor, sell on the news.
You would be lucky to find $5 a gallon gas with oil at $200-$250 a barrel
Gold would skyrocket
not so fast,
Congressional approval is needed.......
I remember quite a few forumites writing about gold going to the moon the weekend of the Bear Stearns bailout. Instead of a good time to buy, it was the top of the current move and the best time to sell this year.
Funny, didn't hear much about when the best time to buy gold was following that correction. In fact it seems most are still waiting for the "low" to get back in.
The shenanigans by JPM and the FED only delayed gold's ascent to $1200+. And really, that's all they can hope to accomplish. GS and JPM are long gold and will handsomely profit from it. But no reason not to profit from the self-induced swings that they initiate. While gold should have gone to $1100 in short order, the beat down overseas that evening was classic cartel. And no doubt a lot of Bear Stearns and JPM paper gold got sold off immediately in the fracas to slam gold that much harder. It let us all know how far the FED is willing to go to hang on to their paper profits. That was a great poker move. They will need many more such gambits that take the market by surprise to succeed. I don't think they have the ammo. And the issue of surprise is really not an issue any longer.....we now know they'll do anything, legal, illegal....anything. The first break to $1200 gold is around the corner.
roadrunner
The Oil Bomb
Got Gold?
"A car is a tool that takes you from one place to another. Everything beyond that is a payment for other people's perception of you."
Dow futures +96
SP500 futures +13
Nasdaq futures +23
Dollar is up on short covering but coming off its highs.
Oil is down $1.30
Gold is up $1.15
New Zealand is down 1.3% as massive recession looms.
Australia is down 1/2% on commodity weakness.
Knowledge is the enemy of fear
Were you planning to do something before starting the thread? Did the plans change? Or did the thread basically reinforce what you already believed?
/edit typos