350zCommtech's Account Talk

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350zCommTech said:
When fundamentals suck, send the PPT to the rescue! Japanese tax money at work.
Click to expand...
Well, from the article, They're only looking to support 7,500. Does that mean they'll spend a few million Yen tonight, or every time it drops?

I could see a serious shorting at 7,500 and milking the Nikkei a few days until their govt stops the insanity.

But, I don't really see this supporting any strength in the Yen tonight. Unless, this catches on globally.:suspicious:
 
Frixxxx said:
Well, from the article, They're only looking to support 7,500. Does that mean they'll spend a few million Yen tonight, or every time it drops?

I could see a serious shorting at 7,500 and milking the Nikkei a few days until their govt stops the insanity.

But, I don't really see this supporting any strength in the Yen tonight. Unless, this catches on globally.:suspicious:
Click to expand...

Exactly.

They're not very smart are they? They need to learn a few things from our PPT.

As you've mentioned earlier about the USD/YEN, they got it up to 97 and it hasn't done anything for the Nikkei. Their exports just fell a record 46%.

YEN intervention not working so now they're going to support stocks outright....What's next?
 
350zCommTech said:
Exactly.

They're not very smart are they? They need to learn a few things from our PPT.

As you've mentioned earlier about the USD/YEN, they got it up to 97 and it hasn't done anything for the Nikkei. Their exports just fell a record 46%.

YEN intervention not working so now they're going to support stocks outright....What's next?
Click to expand...
Well, they kinda made their cash on the intervention at 89.....if their positions were long, then they actually have the cash to support stock purchases. But can you run a government on FOREX trading??????

But if their positions were short....guess the printing press is smokin right now!!!!
 
I'm sure you have already noticed this, but over the last 8 trading days, TNX/TYX have been choppy like it can't decide on a direction.

"A tidal wave of some $2 trillion in issuance is expected to flood the nearly $6 trillion Treasury debt market this year, leading analysts to question whether demand for U.S. debt will hold up among the foreign accounts that own about half the market."
http://www.investors.com/editorial/IBDArticles.asp?artsec=31&issue=20090224

 
350zCommTech said:
Obamasiah is going fix the world tonight. GDP will be positive in the second half of the year. The depression has been canceled.
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Maybe he can talk but it looks like substance is still lacking:suspicious:

It's kinda like ordering a pizza and the delivery guy shows up with an empty box.
 
The bank rescue program is now called CAP.

February 25, 2009
tg-40

U.S. Treasury Releases Terms of Capital Assistance Program
To view the White Paper, Term Sheet and FAQ, visit www.FinancialStability.gov.

​
Alongside the forward-looking economic assessments now being conducted by the Federal banking agencies, the U.S. Department of the Treasury today announced the terms and conditions for the Capital Assistance Program (CAP). The CAP is a core element of the Administration's Financial Stability Plan.

The purpose of the CAP is to restore confidence throughout the financial system that the nation's largest banking institutions have a sufficient capital cushion against larger than expected future losses, should they occur due to a more severe economic environment, and to support lending to creditworthy borrowers.

Under CAP, federal banking supervisors will conduct forward-looking assessments to evaluate the capital needs of the major U.S. banking institutions under a more challenging economic environment. Should that assessment indicate that an additional capital buffer is warranted, banks will have an opportunity to turn first to private sources of capital. In light of the current challenging market environment, the Treasury is making government capital available immediately through the CAP to eligible banking institutions to provide this buffer. Details of the forward looking capital assessments can be found at www.FinancialStability.gov.

Eligible U.S. banking institutions with assets in excess of $100 billion on a consolidated basis are required to participate in the coordinated supervisory assessments, and may access the CAP immediately as a means to establish any necessary additional buffer. Eligible U.S. banking institutions with consolidated assets below $100 billion may also obtain capital from the CAP.

To clarify the broader context and objectives for the Capital Assistance Program, and its role in the Financial Stability Plan, the U.S. Treasury also released a white paper on the program, as well as a set of frequently asked questions. Both can be found at www.FinancialStability.gov.
As detailed in the CAP's Terms and Conditions:
Terms

  • Capital provided under the CAP will be in the form of a preferred security that is convertible into common equity at a 10 percent discount to the price prevailing prior to February 9th.
  • CAP securities will carry a 9 percent dividend yield and would be convertible at the issuer's option (subject to the approval of their regulator).
  • After 7 years, the security would automatically convert into common equity if not redeemed or converted before that date.
  • The instrument is designed to give banks the incentive to replace USG-provided capital with private capital or to redeem the USG capital when conditions permit.
  • With supervisory approval, banks will be able to request capital under the CAP in addition to their existing CPP preferred stock.
  • With supervisory approval, banks will also be allowed to apply to exchange the existing CPP preferred stock for the new CAP instrument.
Conditions

  • Recipients of capital under the CAP will be subject to the executive compensation requirements in line with the Emergency Economic Stabilization Act of 2008, as recently amended. The Treasury will shortly be releasing rules to implement these amendments.
  • As part of the application process, banks must submit a plan for how they intend to use this capital to preserve and strengthen their lending capacity – specifically, to increase lending above levels relative to what would have been possible without government support. The Treasury Department will make these plans public when the bank receives the capital under the CAP.
  • Taxpayers will be able to monitor the performance of banks receiving capital under the CAP. Banks receiving capital will be required to submit to Treasury monthly reports on their lending broken out by category. These will be posted on www.FinancialStability.gov.
  • Recipients will also be subject to restrictions on paying quarterly common stock dividends, repurchasing shares, and pursuing cash acquisitions.
By reassuring investors, creditors, and counterparties of banking institutions--as well as the institutions themselves--that banks have capital in a sufficient amount and quality to withstand even a considerably weaker-than-expected economic environment, the CAP instrument should improve confidence and increase the willingness of banking institutions to lend.

The Capital Assistance Program is a core element of the Financial Stability Plan announced on February 10, 2009. Additional components of the plan include: a Consumer Business Lending Initiative to unfreeze secondary credit markets, a Public Private Investment Fund to raise private capital to purchase legacy assets, and a Homeowner Affordability and Stability Plan to restructure or refinance mortgages to help as many as 7-9 million families stay in their homes.http://www.treasury.gov/press/releases/tg40.htm
Click to expand...
 
Minnow said:
Shouldn't it be called: Capital Relief Assistance Program?
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OK ... after my little joke, I read through the article and took a look at some of the details on the site.

I still cannot see how this is going to fix a darned thing. With the .gov opening up the wallet, where is the incentive for private investment to return to the "secondary" credit markets? I don't see it... Oh, they say that there's an incentive but why would all the private money come back when Uncle Sugar is in such a generous mood?
 
You don't say Ben?:
Bernanke Says There May Be Benefit to Resurrecting Uptick Rule
Email | Print | A A A


By Jesse Westbrook
Feb. 25 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said there may be a benefit in resurrecting a rule that restricts short-selling stocks when share prices are falling amid the current bear market.
“In the kind of environment we have seen more recently” the so-called uptick rule “might have had some benefit,” Bernanke said in testimony before the House Financial Services Committee today. The rule, scrapped by the U.S. Securities and Exchange Commission in 2007, barred investors from betting against a stock until it sells at a higher price than the preceding trade.
Bernanke’s comments may give credence to lawmakers such as U.S. Representative Gary Ackerman, a New York Democrat, who blamed the rule’s elimination for triggering attacks on financial stocks. The Standard & Poor’s index has tumbled 50 percent since the SEC dropped the uptick rule 16 months ago. New SEC Chairman Mary Schapiro said in January she may resurrect the provision.
The SEC approved the rule in 1938 to prevent bear raids on companies. The agency eliminated the regulation after studying its effect on share prices and determining it was no longer relevant in markets dominated by fast-paced electronic trading.
To contact the reporter on this story: Jesse Westbrook in Washington at jwestbrook1@bloomberg.net.
Last Updated: February 25, 2009 14:16 EST
 
Minnow said:
OK ... after my little joke, I read through the article and took a look at some of the details on the site.

I still cannot see how this is going to fix a darned thing. With the .gov opening up the wallet, where is the incentive for private investment to return to the "secondary" credit markets? I don't see it... Oh, they say that there's an incentive but why would all the private money come back when Uncle Sugar is in such a generous mood?
Click to expand...

I agree.

The markets want transparency. Obama promised transparency.

This ain't it.

Obama is a fraud. To be fair though, he is no different than any other politician. They are all Wall St. whores. I'm just pissed off because we need somebody to start doing the right thing now or we are #$%$%%$!.
 
350zCommTech said:
I agree.

The markets want transparency. Obama promised transparency.

This ain't it.

Obama is a fraud. To be fair though, he is no different than any other politician. They are all Wall St. whores. I'm just pissed off because we need somebody to start doing the right thing now or we are #$%$%%$!.
Click to expand...

Oh, you mean subsidizing the counterparties to bad trading instruments isn't the right thing? Burying the fraud instead of enforcing the law isn't the right thing? It isn't our President's fault he focused on Constitutional Law rather than Contract Law at Harvard, that much is true but I'm not gonna get political on this. Laws and Regulations are already on the books... just gotta find somebody with balls enough to stand up (and perhaps against Obama's "will") and enforce them. That's the right thing for America.
 
350zCommTech said:
Exactly.

They're not very smart are they? They need to learn a few things from our PPT.

As you've mentioned earlier about the USD/YEN, they got it up to 97 and it hasn't done anything for the Nikkei. Their exports just fell a record 46%.

YEN intervention not working so now they're going to support stocks outright....What's next?
Click to expand...

I guess buying ETFs would be next.View attachment 5894

Japan govt may ask central bank to buy ETFs - media

Wed Feb 25, 2009 8:17pm EST

TOKYO, Feb 26 (Reuters) - The Japanese government is considering asking the central bank to buy stock exchange-traded funds (ETFs) to prop up Japanese share prices, the Yomiuri Shimbun daily reported on Thursday.
Without citing sources, the Yomiuri said the government was also considering giving a government guarantee on any losses the the Bank of Japan may incur from buying ETFs.
A top ruling party official said the government could ask for a buying scheme totaling 20 trillion yen ($205 billion), the Yomiuri reported.
Policy-makers have been alarmed by the slide in Japanese shares over the past few months as that could erode the capital base of domestic banks, which hold lots of these shares.
Government officials including Finance Minister Kaoru Yosano said the government is considering steps to support stocks. While the details of these plans are sketchy, setting up a stock-buying agency as Japan did in the mid-1960s is seen as one option.
This would follow the government's previously announced plan to buy up to 20 trillion yen of shares held by banks.
But these measures, both requiring legal changes and therefore parliamentary approval, could take time to implement because of a split parliament, where opposition parties control the upper house and are trying to force an early election.
Analysts say the government is worried about the end of March, when Japanese banks close their books each year, and the Yomiuri said Tokyo's plans may reflect the same concerns.
Japan's Nikkei share average .N225 is down about 15 percent so far this year after falling a record 42 percent last year.
The Bank of Japan this week started a scheme under which it will buy up to 1 trillion yen of shares held by banks.
But the central bank has said it was aimed at reducing banks' exposure to share market volatility, and not at boosting share prices. (Reporting by Hideyuki Sano; Editing by Hugh Lawson)
http://www.reuters.com/article/marketsNews/idINT12382220090226?rpc=44
Click to expand...
 
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