September 22, 2008

HousingPANIC Quote of the Day


"As we get to the other side of this, the dollar will get crushed"

- John Taylor, chairman of New York-based International Foreign Exchange Concepts, the world's biggest currency hedge-fund firm

26 comments:

Anonymous said...

http://finance.yahoo.com/q/pr?s=UDN

Anonymous said...

borrowing more money for government equals printing more dollars equals more dilution equals even less value equals higher prices equals good dead dollar

Anonymous said...

Sell into bear market rallies

http://bigpicture.typepad.com/comments/2008/09/industrials-big.html#more

Anonymous said...

Readers would be well advised to look into the role of Senator Phil Gramm (R,Texas and part of the McCain campaign), in this. He was one of the sponsors of the bill to repeal the Glass Steigel Act that had stood for 70 years to prevent the kind of meltdown that happened in 1929. He later was involved with the Enron fiasco. Bill Clinton signed the bill that Gramm sponsored into law. This did away with a lot of regulation. This change and the repeal of the uptick rule had a lot to do with the current crisis IMO.

Anonymous said...

The inflation tax that this
new Bail Out will cause is horrible
and it will break the backs of the
majority of people . Add to that the trillion plus interest from the BAIL OUTS and your screwed my fellow Americans . The evil people running the show only think short term .

Anonymous said...

America and its people will never be trusted again with anything important.

AMERICA has NO credibility anywhere in the world.

Americans have no morals, values or sense of obligation.

America, the Third World Nation.

Anonymous said...

New Dance Craze:

The Keating Five sing, its all good in Alaska...

McCain loses by a landslide Nov 5th

satan said...

And then the investment banks fell down to earth... Some people will spin this as a rescue of GS and MS but the reality is that the investment bank concept as we knew if for over a century is over. The top management of these companies will be OK, but the junior employees are f**ed.

Investment banks fell prey to hubris. They believed that they and their business model was invincible, reality and US creditors thought otherwise.

__________________________________


Release Date: September 21, 2008

For release at 9:30 p.m. EDT
The Federal Reserve Board on Sunday approved, pending a statutory five-day antitrust waiting period, the applications of Goldman Sachs and Morgan Stanley to become bank holding companies.

To provide increased liquidity support to these firms as they transition to managing their funding within a bank holding company structure, the Federal Reserve Board authorized the Federal Reserve Bank of New York to extend credit to the U.S. broker-dealer subsidiaries of Goldman Sachs and Morgan Stanley against all types of collateral that may be pledged at the Federal Reserve's primary credit facility for depository institutions or at the existing Primary Dealer Credit Facility (PDCF); the Federal Reserve has also made these collateral arrangements available to the broker-dealer subsidiary of Merrill Lynch. In addition, the Board also authorized the Federal Reserve Bank of New York to extend credit to the London-based broker-dealer subsidiaries of Goldman Sachs, Morgan Stanley, and Merrill Lynch against collateral that would be eligible to be pledged at the PDCF.

://www.federalreserve.gov/newsevents/press/bcreg/20080921a.htm

Anonymous said...

"...Readers would be well advised to look into the role of Senator Phil Gramm (R,Texas and part of the McCain campaign), in this..."

Yep.

Anonymous said...

The uptick rule was also a very old rule (1938)that prevented the short selling "bear raids" that have recently been happening on companies and their stocks. For some reason it was repealed last year and as I understand it, one of the supporters of the repeal was the CEO of Lehman Brothers. Not sure who that was at the time.

Anonymous said...

A modern-day bank run occurred for many financial investors.

If a body dehydrates, it falls over and if it gets worse it can die.

Likewise the financial system is starved of liquidity right now so the central banks will have to keep providing it.

This liquidity is measured by the TED SPREAD and as investors withdrawing money from brokerage, money-market and bank accounts the credit markets virtually seized up during the first three days of last week

Most of these money went into the three-month U.S. Treasury Bill which is considered to be a beacon of safety.

This in turn sent the yields to nearly 0% – its lowest level in more than 60 years.

Anonymous said...

I just can't wait until I'm a trillionaire!

I've got a few billion in old wiemer marks but it hasn't seemed to help me much.

YAY YAY ZIMBABWE!

Anonymous said...

The Dollar won't come crashing down because the rest of the world will gladly finance our economy by buying up our treasuries and IOU's. We still are number one in the entire world and have a pretty good transparent financial system.

Anonymous said...

No problem...Bring on The AMERO

RayNLA

Ash said...

For your knowledge Democratic presidential nominee Barack Obama said in a radio address that he ``fully supports'' Paulson and Fed Chairman Ben S. Bernanke's efforts to stabilize the financial system. The plan, however, should benefit both main street and Wall Street, he said.

Republican Presidential nominee John McCain ``looks forward'' to reviewing the proposal while focusing at least in part on ``minimizing the burden on the taxpayer,'' said Jill Hazelbaker, communications director for the McCain campaign.
it is certainly a coup. More than one blog commentator has noted that the US is moving rapidly from 'Free capitalist society' towards Stalinism. The police state security systems, eternal wars and government-controlled banks and industries is very Stalinist or Naziism.

Agent 99 said...

As the light fades
As the shadows grow frighteningly
long and looming
So, too
All sense of obligation fades away

Anonymous said...

Honestly, The Fed is just buying time before the inevitable will happen! The market Collapsed last week but we are being blinded by the truth of the matter. It was over last week. The markets will continue to tumble as top companies reveal that their Liquidity is all but dried up! Stock up on food and pray for the Best and expect the Worst. We is done Boss!!!!! Take my Hand Boss cuz I is done with this BS & Lies about the economy!!! Danks Boss. Danks =)

Anonymous said...

/ root....get it??????

Aaron said...

So, Keith, have you decided to jump back on the monetary inflation / gold bandwagon? We missed you, buddy!

keith said...

Continued asset price deflation (rush out of investment classes into cash) with massive currency debasement at the same time.

Put that in the spin cycle and see how it comes out in the wash

Your guess is as good as mine. The history books will have fun with this in a few years, that's for sure.

Here's some deflation reminders for you though. Talk to anyone who owns a house, or a car, and they'll tell you what deflation is:

In modern credit-based economies, a deflationary spiral may be caused by the (central bank) initiating higher interest rates (i.e., to 'control' inflation), thereby possibly popping an asset bubble or the collapse of a command economy which has been run at a higher level of production than it could actually support. In a credit-based economy, a fall in money supply leads to markedly less lending, with a further sharp fall in money supply, and a consequent sharp fall-off in demand for goods. Demand falls, and with the falling of demand, there is a fall in prices as a supply glut develops. This becomes a deflationary spiral when prices fall below the costs of financing production. Businesses, unable to make enough profit no matter how low they set prices, are then liquidated. Banks get assets which have fallen dramatically in value since the (mortgage) loan was made, and if they sell those assets, they further glut supply, which only exacerbates the situation. To slow or halt the deflationary spiral, banks will often withhold collecting on non-performing loans (as in Japan, most recently). This is often no more than a stop-gap measure, because they must then restrict credit, since they do not have money to lend, which further reduces demand, and so on.

http://en.wikipedia.org/wiki/Deflation_(economics)

Paul E. Math said...

Exactly.

I don't see how the USD can remain the world's reserve currency.

With the latest bailout we have removed a precious element of what made our system great: bad companies fail and are replaced by good ones.

Now the bad companies are entrenched into the system regardless of their performance and will have quasi-governmental powers. Our banks and financial companies will get worse and worse at what they do, absent the discipline of free-market forces.

Like this hedger said, the dollar will get crushed. Thank you, anon, for the link to the US Dollar Short Index. I'm not saying everyone should pile all their money into it, but 10% of your portfolio seems reasonable.

Anonymous said...

Our nation is the greatest nation in the world. The world trusts the U.S. Now we are going through a crisis. But we will come out stronger in the end. If you are an American, then be optimistic.

Anonymous said...

"Anonymous said...
Our nation is the greatest nation in the world. The world trusts the U.S. Now we are going through a crisis. But we will come out stronger in the end. If you are an American, then be optimistic."

Paid for by the John McCain Campaign?

GWB's America is a steaming sweating piece of dishonest shit as are more of the fat stupid lazy citezens.

Fuck your optimism.

GOP The Party that Wrecked America

redondo_beach_dude said...

Stunningly accurate, IMO.

http://en.wikipedia.org/wiki/Biflation

Anonymous said...

My forex account is up 80% in just over a week. Woo Hoo!

Anonymous said...

Fools it's all good, just look at oil today.