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STI to cross 3000 boosted by long-term investors
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newmoon
Veteran |
29-Sep-2008 17:31
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BBC-will bailout work? www.bbc.co.uk:worldservice:programmes:business_daily. |
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AK_Francis
Supreme |
29-Sep-2008 17:15
Yells: "Happy go lucky, cheers." |
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beating fire everywhere??? any new spark, STI will get it. nothing is cheap now. AK opine that stay sideline is better option. |
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newmoon
Veteran |
29-Sep-2008 16:34
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TOO BIG TO BAIL. MARKET VALUE IS A METAPHYSICAL CONCEPT-don't try to guess the top or the bottom. http://dailyreckoning.com/ |
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newmoon
Veteran |
29-Sep-2008 15:58
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The ANSWER to the current financial problem is TO SAVE THE SAVERS AND NOT THE BORROWERS. People are better at working than speculating. This was the solution on september 1873 by President Ulysses Grant- make paper money as good as gold. www.dailyspeculations.com |
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elfinchilde
Elite |
29-Sep-2008 15:19
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dow futures are negative because the bailout being agreed upon is not the carte blanche plan Paulson wanted, but a tiered bailout, which is actually not as helpful to the market. separately, have you guys ever wondered what or who the bailout is for? here's something interesting to consider on a slow day. 1) All the banks that were collapsing were holding the so-called 'toxic mortgages' which cannot be sold. they're konwn as level 3 assets in the US: ie, it's up to the seller to price what they think they're worth. 2) Their current worth is 22c to the dollar. However, the Fed is asking to price them at market level or above. (ie, at or above $1). So the question is, who the hell would want to buy it? 3) Who did all the banks sell their toxic mortgages to? The Fed. The Fed has spent billions bailing out these banks, in effect by giving a "cash for trash" return. Like the bailout for AIG: what they did was to buy over the toxic, illiquid mortgages at prices above what people were willing to pay. Same for freddie, fannie, and the investment banks. 4) If it says anything: The Fed had 800bil on its balance sheet. It has spent more than 600bil bailing out various banks, capital injections etcetc. 230bil of that was spent in the last 2 months alone. ie, the Fed itself probably has less than 200bil reserves. Not enough to bail out another bank (that's why Lehman had to go), perhaps enough only for a few more capital injections. In other words, the institution going insolvent is the Fed itself. And this is why the bailout has to be passed, and fast. Nov 15th is the deadline for mark to market of Level 3 assets. Because banks can go insolvent, mortgage firms can go insolvent, but the national reserve cannot fall. Lest you guys think i'm spreading rumors: http://blogs.cfr.org/setser/2008/09/26/extraordinary-times/. also, the following article: ----------------- By Avery Goodman @ Seeking Alpha I happened to come across several articles written by New York Post business writer, John Crudelle and a number of others. They believe fervently in an organization known as the “PPT”, or “Plunge Protection Team”, which was allegedly created by Presidential order, in 1987, after the 22% one day market crash that year. Mr. Crudelle, along with some private economists, and Congressman Ron Paul, apparently, all believe in this conspiracy. These folks are not fools, so it is worth giving serious consideration to whether or not it really exists. The official name is the “President’s Commission on Working Capital Markets”, but PPT believers allege that it has devolved into a conspiracy between the biggest banks in the nation (primary dealers of the Fed), the Chairman of the SEC, Treasury Secretary and Federal Reserve Chairman to control markets. Allegedly, the PPT’s original mission was to infrequently intervene, only in emergency situations, when the falling markets might get out of control, by using cash injections, delivered by the Federal Reserve, through its various money delivery “windows”, such as the repo loan window, and, now, the secretive dealer discount window, term auction securities window, etc. According to PPT theorists, the organization is now dedicated to using the Fed balance sheet to produce trading profits for its private players, by manipulating markets up and down, and doing the “pump & dump” while using taxpayer funds to pay the costs of the program. I don’t know if PPT really exists, but, if it does, it certainly explains a lot. When you look at the history of money given out at the so-called “repo” window, and the amount of free cash that is floating at any one time, there does seem to be a distinct relationship to the rising and falling of the stock market. After reading some of the articles, I began thinking about the $700 billion bailout. I took the time to recalculate the Federal Reserve balance sheets, and suddenly realized that it has accepted almost exactly $700 billion worth of toxic mortgage paper, in return for ostensible loans that many of the big banks cannot possibly repay. It just so happens that that is the sum of money they want to extract from Congress. You can’t help but see that the so-called “loans”, given by the Fed to the banks, have changed the composition of its balance sheet dramatically. The Fed’s assets went from nearly 100% liquid Treasury bills, to mostly illiquid “cash for trash” mortgage bonds. The illiquidity of the mortgage bonds would mean that the Fed could no longer raise sufficient funds to adequately support the PPT conspiracy, if, in fact, that is what it wants to do. I call the illiquid securities “cash for trash” because the Fed has given treasury bills or cash in exchange for these distressed mortgage backed securities. They are supposed to hold the bonds for a very short time, but, in fact, most of the cash for trash loans have been endlessly renewed, month after month. Assuming, however, that Congress passes the bailout bill, the U.S. Treasury will have authority to buy these same bonds permanently, removing a headache for the Fed, and freeing up its balance sheet to continue funding for the market manipulation that PPT theorists allege. Let’s indulge ourselves, for a moment, and assume that PPT does exist. If so, the $700 billion bailout is not only for insolvent banks. They already have gotten rid of these toxic assets by placing them with the Fed, and obtaining endlessly renewable Fed loans in return. It appears to be a bailout of the Federal Reserve, itself. The Fed, of course, according to PPT theory, acts as the PPT’s private slush fund. Money is taken out to pump up stock prices, and then taken back in so that prices will fall. The PPT players profit on the movements of the market, induced by this activity. If all of this is true, maybe, Bernanke and Paulson don't want to admit the embarrassing facts? How could they go to Congress and say, “I’m sorry, but we need more money at the Fed. Goldman Sachs (GS), Morgan Stanley (MS), Bank of America (BAC) and JP Morgan Chase (JPM) aren’t able to manipulate markets as effectively as they would like. So, please, could you help us?” According to PPT theory, the Fed has been used as a slush fund to support stock manipulation for over 21 years now. The U.S. Treasury was forced to try to partially recapitalize the nearly insolvent Federal Reserve by selling $100 billion in new Treasury Bills, last week. The giveaways, to primary dealers and others, have taxed the Fed to the breaking point. Whatever the truth or falsity of PPT theory may be, one thing is clear. Mismanagement of the nation's central bank, in the form of giving out loans that cannot be repaid, is so severe that the central bank itself is now virtually insolvent. Some of the banks who borrowed tens of billions of dollars are now bankrupt (Lehman Brothers), and will never repay. Fed will be stuck with that cash for trash. Most other banks are too shaky and close to bankruptcy to ever repay. Instead of foreclosing, as a bank would do to an individual, the Fed has responded by endlessly renewing the loans. The loans have become gifts, and the Fed has run out of money, because it has also become nearly insolvent. And, let’s not forget, if PPT theory is true, without heavy use of public funds, the PPT players cannot generate large private profits. The Federal Reserve has been paying very close to par value for these distressed assets, even though a lot of the assets are only worth $0.22 on the dollar, or even less, in the private market. It has only taken a very small “haircut” to accept them. That is, no doubt, why Ben Bernanke slipped up and admitted he wants the U.S. Treasury to pay much more than fair market value. Otherwise, either the banks or the Federal Reserve will be forced to write down big losses when the mortgage paper is transferred onto the balance sheet of the U.S. Treasury. So, is the $700 billion being disguised as a bailout for banks, when it is really for bailing out the Federal Reserve? Is it a way of avoiding the embarrassment of walking into Congress and admitting the truth of the need for Congress to authorize issuance of new Treasury bills to recapitalize the nation’s central bank? Will the stock market drop sharply if the Fed “slush fund” is not recapitalized? Will recapitalization of the Federal Reserve allow it to create a series of false rallies to allow people-in-the-know to dump equities into a temporarily rising stock market? I don’t know the answer to these questions. But, the arguments made by people who believe in the so-called “PPT” are interesting. If true, it would serve to explain a lot of the irrational market action we all observed over the past years. One thing I do know. Dow Jones’ Marketwatch reported that China has announced new regulations that order Chinese banks to temporarily not lend money to American financial institutions, because of the danger of default. If the story is correct, given that China has so many dollars, previously continued to accumulate more and more, and has always required private banks to hold large dollar reserves, this may mark the beginning of the end for the U.S. dollar. |
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ekekeg
Veteran |
29-Sep-2008 14:47
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Tonite is the night to remember. Is the streets receiving the pending Bailout with optimism or pessimism? Naturally it is always rather hard to make speculators "happy" whatever Congress/Fed will come up with because the hunger in the streets is always unquenchable. But the European markets will probably welcome the bailout, while the asian markets will be more obstinate to accept the degree of the bailout benefits to the US economy. Outsiders tend to be more nosey and critical than insiders, and some believed that outsiders can see further than insiders. US government sees the bailout as very necessary not just to calm the market nerves but also to ensure that the economy continues to be vibrant and jobs will still be available as opposed to too many people going to be jobless thus weighing heavily on the economy. If the Dow can make a comfortable rise then I think we can start to do some investment again.
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singaporegal
Supreme |
29-Sep-2008 12:51
Yells: "Female TA nut" |
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Dow futures now negative even though they have unveiled the plan. | ||||
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soloman
Master |
28-Sep-2008 19:01
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US lawmakers said they made a breakthrough in talks on a $700 billion plan to revive the credit markets and expect to announce an agreement on legislation later today. |
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investsgx
Member |
28-Sep-2008 16:42
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There are positive development on the bailout plan this Sunday, we may have a rally on Monday morning. However, just watch out for the likely bear rally instead of a reversal. Some lead for commodity play next week from Edge Commodity Stock Slide http://investsgx.blogspot.com/2008/09/edge-hot-stock-commodity.html |
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AK_Francis
Supreme |
28-Sep-2008 15:04
Yells: "Happy go lucky, cheers." |
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just a wayang show. ultimately, the bailout will be passed to ease the economic tension. | ||||
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Farmer
Master |
28-Sep-2008 13:47
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Bail out decision already factor in, i will be more worry if it doesn't materialised. Let's keep a close eyes on any events that unfold..... | ||||
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vivasg
Member |
28-Sep-2008 13:40
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with the latest news of getting there for bail out. I think most blue chip will start to chiong as now most of blue chips was really good bargain. I forsee next 1~ weeks definitely is up up up unless some bad news on bail out come out again which i don't expect to see within next 1~2 weeks. Hopefully is a smooth sail to up ^^ |
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paperless
Senior |
28-Sep-2008 12:21
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Bailout final decision to be announced on monday before market open. -wsj.com | ||||
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soloman
Master |
28-Sep-2008 11:19
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MOnday expect STI to go strong up like DOW Bailout will be passed - even if not Monday, Tuesday Everyone knows it | ||||
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teeth53
Supreme |
28-Sep-2008 09:48
Yells: "don't learn through life, learn to grow with life " |
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Today Sept 28,2008. Sunday....Negotiation in progress...
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teeth53
Supreme |
28-Sep-2008 09:19
Yells: "don't learn through life, learn to grow with life " |
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This has caused Dow to down about 100 points B4 it shot up after half an hour before closing time.....by 118.20 or 1.1% to 11,140.26
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teeth53
Supreme |
28-Sep-2008 09:16
Yells: "don't learn through life, learn to grow with life " |
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Bailout deal expected this weekend...congress working through weekend, Democrats, Republicans agree to negotiate on it S$1 trillion plan.... Today Sunday Times dated: Sept 28, 2008 Page 17(world news) Just for info sharing. |
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teeth53
Supreme |
27-Sep-2008 09:13
Yells: "don't learn through life, learn to grow with life " |
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The Edge has certain has it own merit. While DOW finished +ve 1.1% higher |
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investsgx
Member |
27-Sep-2008 09:03
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Dun follow blind the % number for yield stock! http://investsgx.blogspot.com/2008/09/dividend-yields-not-whole-story.html |
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teeth53
Supreme |
26-Sep-2008 22:42
Yells: "don't learn through life, learn to grow with life " |
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Another word...Negotiation in progress...agreement is subjects to changes w/o noitces..sad liao.
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