Capitulation?

September 17, 2008

Capitulation?

Capitulation
ca·pit·u·la·tion

Pronunciation:
\kə-ˌpi-chə-ˈlā-shən\
Function:
noun
Date:
1535

1: the act of surrendering or yielding

50 comments:

Anonymous said...: Buy with both fists; September 17, 2008 8:03 PM
Anonymous said...: Oh hell yeah-

That's when we'll see the greatest RE price reductions!!

BRING IT ON !!; September 17, 2008 8:10 PM
Anonymous said...: Time to get the summer place in Colorado & the winter place in Florida-

both for under 100K !!; September 17, 2008 8:11 PM
Anonymous said...: Comment on these company slogans....

How Ironic...

AIG "The strength to be there."

Lehman Brothers "Where Visions Get Built"

Merill Lynch "Bullish on America"

Goldman Sachs: "Our Client's Interests Always Come First".

Morgan Stanley: One client at a time; September 17, 2008 8:33 PM
Anonymous said...: Central banks can run out of money

______________

US Treasury raises Fed funding

The US Treasury on Wednesday announced it was creating a supplemental funding programme to ensure that the Federal Reserve has the cash it needs and its ability to provide emergency liquidity support for the markets is not constrained by the size of its own balance sheet.

http://www.ft.com/cms/s/0/ 271257...0077b07658.html; September 17, 2008 8:39 PM
Anonymous said...: America is a turd world corrupt nation.

Thank you.

America will never be trusted again.; September 17, 2008 8:42 PM
Anonymous said...: Keith, your recent poll "what are you doing: buying, selling, holding?"

I think you should clarify. I am in all cash. So not selling, not buying, and not really holding if you are referring to holding securities.; September 17, 2008 8:49 PM
Anonymous said...: Fear is officially here. The American public has stopped watching the Presidental Soap Opera long enough to realize that something's up, although they aren't quite sure exactly what just yet. Let's just hope that the next stages don't take our country with it.

Tell all the Truth but tell it slant---
Success in Circuit lies
Too bright for our infirm Delight
The Truth's superb surprise
As Lightening to the Children eased
With explanation kind
The Truth must dazzle gradually
Or every man be blind---

Emily Dickinson; September 17, 2008 9:09 PM
Anonymous said...: TED Spread widened to its highest level since the 1987 stock market crash worst. Remember black Monday Oct 1987 when the Stock Market Crash 25% in one day.

http://www.usnews.com/blogs/
new-money/2008/9/17/
whats-the-ted-spread.html

What could be worst.

TED Spread is currently at 3.02 basis points.

http://www.bloomberg.com/
apps/quote?ticker=.TEDSP:IND; September 17, 2008 9:10 PM
Anonymous said...: What happened in the OJ trial today?; September 17, 2008 9:20 PM
Anonymous said...: Satan,

How can a CB run out of money, when
they create it out of air? Maybe this
is just another head fake like LEH to make folks think they will excersize restraint?

BTW, I didn't capitulate. I held my inflation trades all the way down, and now they are starting to look good again!; September 17, 2008 9:20 PM
Anonymous said...: Keith:

I thought you were going to stop commenting on the stock market after your bottom call when the DOW was at 12,800.; September 17, 2008 9:33 PM
blogger said...: go back to that post - said I hated the indecies, and look for quality companies with quality earnings. You're especially a fool if you like a manipulated index with 30 stocks.

I stand by that, even if cash is still king.

You might want to go look for some winners today. Good deals out there, with great P/E's

Everyone's buying, I'm selling. Everyone's selling, I'm buying. And daytrading will kill you.; September 17, 2008 9:41 PM
Anonymous said...: Folks don't catch the falling knife! We still have another leg down once corporate bond defaults get a head of steam.

Get more popcorn!; September 17, 2008 9:47 PM
Anonymous said...: An anonymous moron writes, "Buy with both fists."

Great. Buy WM, WB, F, GM, C and write back when your kids don't have anything to eat.

There is one good looking stock out there, IMHO, GM. If it gets down to like 19, I'll buy, but not with both fists. One of them is occupied already anyway making an anonymous moron orgasm by shoving it up his ignorant redneck ass.

You're welcome. Come again.; September 17, 2008 9:48 PM
blogger said...: If you could buy one stock today HP'ers, to hold for at least five years, what would it be?; September 17, 2008 9:54 PM
Chuck Ponzi said...: GE; September 17, 2008 10:00 PM
Anonymous said...: I am watching CHK (Chesapeake Energy). Natural gas is a clean burning alternative fuel and we have lots of it!; September 17, 2008 10:14 PM
lee said...: Goldman Sachs; September 17, 2008 10:34 PM
Anonymous said...: Let the lawsuits begin!!!!

AIG Directors Sued by Pension Fund Over Mismanagement (Update1)

By Sophia Pearson

Sept. 17 (Bloomberg) -- Directors at American International Group Inc., which is receiving an $85 billion bailout from the U.S. government, were sued by a pension fund seeking to recover losses it blamed on company mismanagement.

AIG's senior management and directors failed to implement proper controls and monitor the risk of losses in the subprime market, lawyers for the City of New Orleans Employees' Retirement System said in a complaint filed today in Delaware Chancery Court in Wilmington on AIG's behalf.

``In spite of AIG's abysmal corporate governance record and myriad red flags concerning the subprime crisis, the individual defendants knew or recklessly disregarded risks the company faced,'' lawyers for the pension fund said in the complaint.

The Federal Reserve announced last night plans to provide the 89-year-old insurer with a two-year loan, take 79.9 percent of its stock and replace its management. New York-based AIG has racked up more than $18 billion in losses in the past year amid the worst housing crisis since the Great Depression.

AIG officials, including Chief Executive Officer Robert Willumstad and lead independent director Stephen Bollenbach, ``utterly failed'' to monitor operations, according to the complaint. Directors allowed AIG to market and extend subprime loans and insure subprime-related assets without considering borrowers' ability to pay and with unreasonably high risk of default, the pension fund said...

Federal Violations

Directors also allowed the company to misrepresent its business prospects and financial results, exposing AIG to liability for federal law violations, according to the complaint. AIG shares have plunged 96 percent this year on the New York Stock Exchange.; September 17, 2008 10:36 PM
Anonymous said...: Still too early for me. If I miss a 5% upside, so be it. I'm not taking the chance of a 20% downside just yet.; September 17, 2008 10:40 PM
Anonymous said...: capitulation - with a bullett!!!; September 17, 2008 10:48 PM
Refuse to buy overpriced said...: "If you could buy one stock today HP'ers, to hold for at least five years, what would it be?"

ING - Banks are necessary, and cautious banks will continue to thrive and survive. Buy them at a discount right now.

Read the below email to see why I love my bank:

"Dear X,
Customer Number: XXXXXXXXXX

As we enter the final few months of 2008, I want to thank you for your continued confidence in ING DIRECT. Over 700,000 new Savers have joined us so far this year strengthening the bank and their own financial footing through our savings, home mortgage and ShareBuilder investment accounts. Despite a challenging economic climate, our Customer base is 7 million strong and growing.

The consequences of the mortgage meltdown on financial institutions and individuals continue to erode many Americans' dreams. We will continue to stress the right way to achieve home ownership – buying only as much house as you can afford and paying off your mortgage as fast as possible. In return for good credit and prioritizing home investment, ING DIRECT mortgage Customers are rewarded with exceptional rates and a transparent, direct administration process. Rather than selling your mortgage to another bank or investor the minute you get it, we keep your mortgage and service it here. Doing so gives us flexibility to find innovative solutions to help Customers keep their homes during unexpected financial downturns.

While we don’t have an Orange crystal ball, we do expect the economy to remain fragile through 2009. The best course of action for our Customers is to be disciplined: avoid splurging; identify and cut out unnecessary expenses and save for what's essential; and hedge against those tough times. We can all benefit by developing good spending habits: confront - and cut up - credit cards; use your home as a savings vehicle - not as an ATM; and establish and contribute regularly to an IRA or 401(k).

In this difficult financial environment, we work tirelessly to safeguard your deposits, mortgages and investments. Importantly, your deposits are FDIC-insured according to its limits and your investments are SIPC-protected. Our security processes are the best in the business and are in place to protect your savings from those with bad intentions. While we are constantly vigilant, we need your help. Keep passwords to yourself. Never give personal information through an email. And always install both the latest antivirus and anti-malware software on your home computer.

Thank you for your continued trust in
ING DIRECT. We will not waver in our promise to provide you with great value, service, security and convenience.

Arkadi Kuhlmann"

True, they only offer ARMs, but they insisted on large down payments all along - consequently, they have had few foreclosures.; September 17, 2008 10:52 PM
Anonymous said...: no one is selling housings but a few pop up daily with one of their zeros missing that are equal to the others for sale and demaND ONE LOOK OR BUY.........AQND HAVE A LADDER STEP TO FREEDOM/DOWN.........; September 17, 2008 11:04 PM
Anonymous said...: Keith, the real capitulation won't set in until the Chinese et. al. make their move.

Using their sock puppet Bill Gross, they told Paulson that the jig was nearly up.

The real capitulation will be when the bullied from around the world unite to punish Americans for "electing" Neocons.; September 17, 2008 11:15 PM
Anonymous said...: WaMu related picture

http://s420.photobucket.com/albums/pp289/rationaljeff/?action=view&current=photo.jpg; September 17, 2008 11:24 PM
Anonymous said...: not even close yet, Keith.

Talk to me when the dow is at 6,000 and nobody in their right mind wants to own stocks or houses.

That will be your capitulation.

Jymkata; September 17, 2008 11:26 PM
Anonymous said...: Buy RSX, FXI and EWZ and retire young; September 17, 2008 11:54 PM
Anonymous said...: What happened to dow 15000 call by goldman? What about their 150 barrel of oil by year end.; September 18, 2008 12:40 AM
Anonymous said...: Washington Mutal has put itself up for sale.
Chris Mathews said "Where is Bush? He is pulling a Katrina!!"; September 18, 2008 1:11 AM
Anonymous said...: Keith, your question about what stock to own is a GREAT one and deserves it own thread. I don't know if one stock is sufficient enough, but here's what I bought within the past 12 months (all bought near their 52 week bottom) and I've been doing quite well..
QSII- makes medical software for doctors and dentists...PHO- basket of water utilities and water company stocks...UNG- natural gas ETF..Gold and silver (physical stuff of course)...and looking at buying some ING bank preferred shares (found a great website for income investing called Quantumonline.com); September 18, 2008 1:26 AM
Anonymous said...: A few ideas:
1) Constitutional amendment for a vote of no confidence.
2) SEC law that everything has to be on the books.
3) No short selling at all. ie no gambling with my money.

And a few questions if anyone can answer (just an aside):
1) How much money do insurance comapanies have? And how much do they actually pay out?
2) How come the government can come up with trillions of dollars for bailouts but they cannot fund Social Security?
3)Why is the tracing of this bad mortgage money so difficult? Somebody pays somebody - can't we follow that money trail?; September 18, 2008 2:23 AM
Anonymous said...: Washington Mutual, the nation’s largest thrift, has put itself up for sale, the New York Times reported on Wednesday, citing unidentified people briefed on the matter.; September 18, 2008 2:31 AM
Anonymous said...: YES!!
Asia is selling off their chunks.
Wonder who, if anyone is buying?
towjam; September 18, 2008 2:40 AM
Anonymous said...: We aren't even past denial.; September 18, 2008 2:41 AM
Anonymous said...: Is it going get worst before it gets any better.

http://www.moneyandmarkets.com/
issues.aspx?Breaking-news-on-3-
more-megabanks-Gold-up-67-Panic-
spreading-2273

1.) Wachovia and Morgan Stanley could be merging.

2.) Washington Mutual is up for sale.

3.) Lloyds of London is taking over a troubled lender in the UK.; September 18, 2008 2:46 AM
Anonymous said...: Keith, It is with great sadness that I declare the end of the USA as we know it. September 17, 2008 will be known as the day the USA decided to hyper inflate its way out of a debt crisis. Paulson actually is printing up BILLIONS upon BILLIONS in treasuries to give to the Fed to bail out AIG and LEH.

Welcome to Zimbabwe or 1930 Germany. Time to stock up on ammo and canned food..

Seriously Keith, why the f do you think gold jumped $70 today?

To all those that doubt what is about to happen..... you've been warned.; September 18, 2008 2:49 AM
Anonymous said...: Why is it that people just do not believe in the US dollar these days.

Shouldn't the reserve currency of the World be what people be banking on during flight to quality.

So why are so many people buying GOLD all of a sudden.

http://www.streetinsider.com/
Insiders+Blog/
Gold+Surges+On+Flight+To+Quality/
3997703.html

In the credit markets, the TED spread widened the most since the October 1987 stock crash today following the collapse of Lehman Brothers, the bailout of AIG, and now problems after a large money market fund 'broke the buck.'; September 18, 2008 2:50 AM
Anonymous said...: Keith,

Please post this. It's from the TickerForum.com

That blog site has often cited your blog site in a complementary manner. It's important that everyone see this.

http://market-ticker.denninger.net/archives/584-The-Potential-End-Of-Americas-Government.html; September 18, 2008 2:57 AM
Anonymous said...: "You know, people are funny...and by funny I mean stupid."; September 18, 2008 3:15 AM
Anonymous said...: I am tired of feeling like a fool, having to bend over and take it up the @ss while buying that yellow sh!t. I could honestly use that money for other things, like gas and food. I hope Bernanke gets assasinated and rots in Hell.; September 18, 2008 3:26 AM
Anonymous said...: If you could buy one stock today HP'ers, to hold for at least five years, what would it be?

It's not a stock:

1. Vanguard Capital Oportunity (VHCOX)

2. Vanguard PRIMECAP Fund (VPMCX); September 18, 2008 4:08 AM
Anonymous said...: Oh my God, I typed GM when I meant GE.

I will call a penalty on myself and not post for 3 days.; September 18, 2008 5:09 AM
Anonymous said...: Sell Everything!

SELL SELL SELL

And then... grow a sack and short Gold. Yellow metal thru the roof in a depression... LOL. The hedge funds that survive will be shorting the shit out of it after they finish off Morgan Stanley and Goldman Sachs.; September 18, 2008 5:18 AM
Anonymous said...: With TED Spread jumping a point a day will the FED be forced to use up its remaining two points fighting this Wall Street Crisis.

What will the FED do once layoffs pick up stream and a Main Street Crisis begin.

Remember that first interest rate cut when the FED was at 5.25% and Wall Street was saying the FED had its smoking gun to lower interest rate when the economy lost 3,000 jobs.

The FED probably wished it could of take those wasted interest rate cuts back now that the layoff process have spread from the Financial to the Auto. Then to the Auto to the Airline. And now from the Airline to the High Tech.

http://bits.blogs.nytimes.com/
2008/09/16/silicon-valley-
layoff-watch-is-ebay-next/
?ref=technology; September 18, 2008 6:04 AM
Anonymous said...: .

"Broke Back Mortgage"

(definitions)

1.) The largest heist and illegal transfer of wealth the world has ever seen via pure corruption to the core by a government and financial industry in a "free" nation.

2.) Taxpayer mating call while grabbing ankles from 2009 - ?

3.)Foreign nations, Congress, the Supreme Court, the Fed, the Treasury, rating agencies, brokerage firms, banks, mortgage brokers, appraisers, real estate "pros", and sheeple.

4.) Hook. Line. Sinker.

Do you ever wonder if the Enron trading house of cards was just a "test" case, to see what could be gotten away with?

Isn't it strange how in 6 weeks the price of oil dropped 35%, yet consumption/demand didn't take a dive anywhere NEAR that amount?

Hmmmmmm... Margin calls coming, and big institutions needing capital quick...get out of oil!
Suddenly oil's cheaper? Naaahhh, no speculation screwing the consumer here at all!!!

WAKE THE F#$% up folks!

Everybody on item #3 got gamed.

And the "system" has become too complex for anyone to understand, manage, or control. Well, at least too complex for most anyone hired to work for you and me -the taxpayer.

Think maslow's heirarchy of needs folks. Plan for the bottom couple of layers of that triangle. Soon.

.; September 18, 2008 6:16 AM
Anonymous said...: With Asian markets tumbling again on Thursdays will TED Spread widen further.

Hong Kong's Hang Seng Index led the region's losses, tanking 1,301.05 points, or 7.38% per cent, to its lowest level in over two years.

http://finance.yahoo.com/
intlindices?e=asia; September 18, 2008 6:17 AM
Anonymous said...: Nope, Fear. Panic is next--that'll be when we see an "emergency" rate cut, the GM bailout, the BoA bailout, the Ford bailout, the GE bailout, et al

...then the Chinese will pull the rug out, then Capitulation.

Time to pull out grandma's recipe for bark soup. I hope our benevolent dictator (Generalissimo Sarah?) will be kind!; September 18, 2008 7:10 AM
Anonymous said...: TED Spread balloon to almost 500 basis point with three month T-bill yields collapsing to almost zero.

http://www.reuters.com/article/
usDollarRpt/idUSLI37362520080918

TED Spread widen to 490 basis point and TED Spread is not even registering on Bloomberg charts.

Bloomberg charts must not have been programed to read negative treasury yields because it is still showing 313 basis points.

Negative treasury yields isn't that like the Federal Reserve saying they will give you money to buy the US treasury bills.

The reasoning to believe that anyone would buy treasury bill at negative yield is that Federal Reserve believe that the US Dollar will get stronger during a Major Recession (GREAT DEPRESSION).

Is the US economy heading for a GREAT DEPRESSION.

http://www.bloomberg.com/apps/
quote?ticker=.TEDSP:IND; September 19, 2008 1:39 AM
Anonymous said...: If I am not mistaken, the friday before black monday in Oct 1987 was an exp friday.

The fact that tomorrow is a multiple exp friday is rather ominous.

http://boards.prudentbear.com/
bbs_read.asp?mid=729522&tid=
729522&fid=1&start=1&sr=1&sb=
1&snsa=A#M729522; September 19, 2008 5:33 AM

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September 17, 2008

Capitulation?

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