350zCommtech's Account Talk

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mojo said:
Looking great for a big bounce. Good luck.
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Hum... oh I see...

BUY LOW :D

and SELL HIGH :D:D

I know it's a BEAR MARKET we're in but in all sincerity I'm not in any hurry to get out..

This could easily mark one of those times in history where HIND SIGHT - 3 weeks from now - will say

Gosh darn it - I should have bought here (where you went in) and rode it all the way up!!

GL man - I think we made the right move ;)
 
Steadygain said:
Hum... oh I see...

BUY LOW :D

and SELL HIGH :D:D

I know it's a BEAR MARKET we're in but in all sincerity I'm not in any hurry to get out..

This could easily mark one of those times in history where HIND SIGHT - 3 weeks from now - will say

Gosh darn it - I should have bought here (where you went in) and rode it all the way up!!

GL man - I think we made the right move ;)
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Yes, it's looking good.

But as Oscar would say, "Don't fall in love with the upside".

I'm seeing some serious stress in GE. Folks that are holding GE might want to go do some homework.

I said yesterday that this was a 1-2 day ride for me.

Good luck to all.
 
[FONT=Times New Roman, Times, serif]Former Countrywide executives cash in on federal housing bailout

[/FONT]
Jeremy Gantz
[FONT=Verdana, Arial, Helvetica, sans-serif][FONT=Times New Roman, Times, serif]Published: Tuesday March 3, 2009

[/FONT][/FONT]After overseeing a company at the very center of the still-imploding U.S. mortgage market, a dozen former executives are now poised to make millions from the housing crisis.[

Stanford L. Kurland, the former president of Countrywide Financial the bank that has become most synonymous with the bad mortgage lending practices that eventually caused the housing market to burst, setting into motion the current financial crisis and colleagues from the defunct firm now run PennyMac.

The company, headquartered in the same Los Angeles suburb where Countrywide was managed before it was sold to Bank of America last summer, specializes in buying up bad home mortgages that the U.S. government took over from other failed banks, the New York Times reported Tuesday.

PennnyMac has been buying up some of those mortgages for just a fraction of their value, and they keep a portion of whatever money they collect from the mortgage holder.

PennyMac's business has been "off-the-charts good, said John Lawrence, the companys head of loan servicing, the Times reported.

Although the company is reportedly helping many financially troubled homeowners by slashing interest rates for some strapped homeowners, many are angry that businessmen who oversaw a company that ultimately failed in part due to its subprime lending practices can turn around and profit off the housing crisis.

Countrywide was investigated early last year by the FBI, SEC and the Justice Department for accounting fraud, insider trading and possibly misleading security filings.

It is sort of like the arsonist who sets fire to the house and then buys up the charred remains and resells it, said Margot Saunders, a lawyer with the National Consumer Law Center. The organization has for years sought to limit the sort of abusive lending practices that were employed by Countrywide and other financial companies.

Last June, the state of California, among those states most affected by the housing crisis, sued Countrywide for engaging in deceptive advertising and unfair competition by pushing homeowners into risky loans for the sole purpose of reselling the mortgages on the secondary market.

"Countrywide exploited the American dream of homeownership and then sold its mortgages for huge profits on the secondary market," California Attorney General Jerry Brown said last year.

Countrywide also allegedly gave special loan terms to prominent U.S. lawmakers and former cabinet members.

Kurland has acknowledged "pushing Countrywide into the type of higher-risk loans that have since, in large numbers, gone into default," the Times reported, but he claims he always insisted loans go only to those able to repay them.

It is horrible what transpired in the industry, Kurland said.

The full name of PennyMac not to be confused with FreddieMac is the Private National Mortgage Acceptance Company. It "stands to profit enormously even if it offers to slash interest rates" to attract those holding delinquent loans to resume payments, the Times reported.

The company's biggest deal has been with the Federal Deposit Insurance Corporation. It paid the government agency just $43.2 million for $560 million worth of residential loans, which were formerly on the books of the failed First National Bank of Nevada.

Kurland is seeking to capitalize on a situation that was a product of his own creation, said Blair A. Nicholas, a lawyer representing retired Arkansas teachers who are also suing Mr. Kurland and other former Countrywide executives. It is tragic and ironic. But then again, greed is a growth industry.http://rawstory.com/news/2008/Former_Countrywide_executives_cash_in_on_0303.html
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ECB and BOE rate decision is tonight/early Thursday morning.

  • Bank of England Rate Decision - March 5
    The already-volatile British pound is bound to face additional volatility this week as a Bloomberg News poll reflects expectations that the Bank of England will cut rates by another 50 basis points at 7:00 ET on Thursday to a new record low of 0.50 percent. This is indeed within the realm of possibilities given the exceptionally dovish commentary we’ve been hearing from BOE officials lately. On Tuesday, BOE Monetary Policy Committee (MPC) member Andrew Sentance cited an increased risk of deflation if “the recession is prolonged and deep, and though “persistent” price declines “remain an outside risk,” there is “a strong case for providing additional stimulus to the economy to head it off more decisively.” On Wednesday, BOE MPC member David Blanchflower, said that the UK recession may worsen "significantly" and that the downturn has not yet hit a "bottom," which left UK monetary policy "overly restrictive" with the Bank Rate at a record low of 1 percent. He went on to say that the central bank should cut rates to at least 0.5 percent, go neutral and then pursue quantitative easing "quickly," something that the UK Treasury has yet to approve. It is worth noting that Blanchflower is easily the most dovish member of the MPC, but his remarks obviously still hold some weight in the markets. Overall, this leaves the odds in favor of another rate cut by the BOE on March 5, but the reaction of the British pound may depend on what sort of bias is reflected in the Monetary Policy Committee’s subsequent statement.

  • European Central Bank Rate Decision - March 5
    The decline in Euro-zone CPI estimates well below the European Central Bank’s 2.0 percent target, steady increases in unemployment, and increasingly pessimistic consumer and business confidence all suggest that the central bank will cut rates on March 5 by 50 basis points to 1.50 percent. Indeed, after the ECB cut rates to a record low of 2.00 percent on January 15, ECB President Jean-Claude Trichet said that the next "important" meeting would be in March when they release new projections for growth and inflation. Furthermore, he refused to call 2 percent the lower limit for interest rates, leaving the door open to further reductions in coming months. As a result, the 7:45 ET announcement will garner quite a bit of attention, but traders should also look to Trichet’s post-meeting press conference at 8:30 ET. Trichet is one of the most opinionated central bank chiefs around, and suggestions that the ECB will continue to cut rates have the potential to lead the euro far lower. On the other hand, if the ECB signals that they may leave rates unchanged during their next meeting, the currency could actually rally.http://www.dailyfx.com/story/bio1/Forex_Volatility_to_Remain_High_1235762283771.html
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Last edited:
GE says claims of near-term capital raise ’pure speculation’

(the following is a reformatted version of a statement issued by ge and received via electronic mail. The release was confirmed by the sender.)
march 04, 2009
to the investment community:
Recently claims have been made that ge will be required to raise new capital near term. This is pure speculation, is inaccurate and is not based on any input from our company.
Ge has acted aggressively during the current global economic crisis to strengthen our capital base and significantly increase sources of liquidity at ge capital.
Ge has a balanced portfolio of businesses and broadly diversified assets in terms of class, customer and geographic distribution. We are well positioned to weather this downturn.
Below are facts that address this recent speculation directly:
Ge has a stronger capital position with ample liquidity
- with the 1st quarter $9.5 billion capital contribution, ge will have contributed $15 billion of capital into gecs over the last 6 months. Gecs will have $63 billion of total equity, $34 billion of tangible equity and $36 billion of cash.
- as a result, gecs ratio of tangible common equity to tangible assets is 5.3%, which compares very favorably to other financial service institutions.
- reducing the ge dividend in 2h ‘09 will result in $4.4 billion in incremental cash in the second half of 2009 and about $9 billion annually.
- as committed in december, we have further reduced our commercial paper to $60 billion and have completed 71% of our ‘09 long term debt issuances.
- we have de-levered our balance sheet. Our debt/equity ratio will decrease from 8 to 1 to 6 to 1 (including hybrid debt).
- we have ~$70 billion of remaining capacity under the tlgp and ~$98 billion of access to the cpff if necessary.
Currently, we have no plans to raise additional equity. In the unexpected event that ge capital requires additional equity, we have a number of options to satisfy that need without seeking external capital.
We have stressed our financial service portfolios and do not see the need to raise additional capital. We plan to present results of these tests at our upcoming earnings webcast to further demonstrate the quality of our portfolio and ability to absorb potential losses in this difficult environment. Over the last several months we have significantly increased disclosure regarding our financial services businesses. We are committed to continue to enhance disclosure and transparency for our investors in the future.
We know these are challenging times, please be assured that we are taking the steps to ensure we keep ge safe and secure during this tough economic environment.
Please let joanna or i know if you have questions. Thank you.
Trevor
(bjh) ny
http://www.bloomberg.com/apps/news?pid=conewsstory&refer=conews&tkr=ge:us&sid=azj1bgx79ahs
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So 350,
Are you going to PM your buddies this "Super-Secret Contrarian Sentiment Indicator" (SSCSI) - or what? :D
kabalah.gif
 
Thought about 100-I yesterday for a brief moment, but didn't have the cohones. wish I would have. I always get screwed in the I fund.
 
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