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coolhand's Account Talk
- Thread starter coolhand
- Start date
coolhand
Well-known member
http://whitehouse.blogs.foxnews.com...-finger-behind-on-thursday-wall-street-chaos/
As this post predicted, the Securities and Exchange Commission and the Commodity Futures Trading Commission released the following statement of Thursday's Wall Street roller-coaster.
"We are continuing to review the unusual trading activity that took place briefly yesterday afternoon to pinpoint its cause and contributing factors.
Since yesterday, we have been in regular contact with other financial regulators and our respective exchanges. We also have been in touch with our foreign counterparts around the world.
Our market oversight units are reviewing trading and market data from the exchanges, self regulatory organizations and market participants to examine yesterday's unusual trading activity. We are scrutinizing the extent to which disparate trading conventions and rules across various markets may have contributed to the spike in volatility.
We are devoting significant resources and expertise to this effort.
As we determine the cause and contributing factors, we will make our findings and any recommendations public.
As this post predicted, the Securities and Exchange Commission and the Commodity Futures Trading Commission released the following statement of Thursday's Wall Street roller-coaster.
"We are continuing to review the unusual trading activity that took place briefly yesterday afternoon to pinpoint its cause and contributing factors.
Since yesterday, we have been in regular contact with other financial regulators and our respective exchanges. We also have been in touch with our foreign counterparts around the world.
Our market oversight units are reviewing trading and market data from the exchanges, self regulatory organizations and market participants to examine yesterday's unusual trading activity. We are scrutinizing the extent to which disparate trading conventions and rules across various markets may have contributed to the spike in volatility.
We are devoting significant resources and expertise to this effort.
As we determine the cause and contributing factors, we will make our findings and any recommendations public.
coolhand
Well-known member
http://www.ft.com/cms/s/0/8f6fbb7e-59ff-11df-acdc-00144feab49a.html
The day after $1,000bn was briefly wiped off the market value of US equities, traders were still trying to work out what caused share prices to plunge and then rebound so dramatically in a matter of minutes.
The conventional wisdom held that an incorrectly typed sell order – one that confused “billions” for “millions”, for example – was the likely culprit.
“The trigger for the sell-off was most likely some kind of errant order, a fat-finger typo, which set off a chain reaction of selling,” said Sang Lee, managing principal at Aite Group. “I would be shocked if that was not the case as the fall in stocks was so sudden and extreme.”
However, despite the persistence of this story, officials were struggling to idenfity a specific cause. “We still don’t know what was the initiating signal for the trading activity we saw on Thursday,” said Jeff Wecker, chief executive officer at Lime Brokerage. “The verdict is still out.”
What was clear was the ferocity of the fall. Just before 2.40pm on Thursday, the S&P 500 index, the US equity market’s benchmark, fell from 1,120. Inside six minutes, it bottomed at 1,065.79, a slide of nearly 5 per cent. By 3.00pm, the index was moving above 1,120, although still down 4 per cent on the day before, settling 3.2 per cent lower by the close.
The day after $1,000bn was briefly wiped off the market value of US equities, traders were still trying to work out what caused share prices to plunge and then rebound so dramatically in a matter of minutes.
The conventional wisdom held that an incorrectly typed sell order – one that confused “billions” for “millions”, for example – was the likely culprit.
“The trigger for the sell-off was most likely some kind of errant order, a fat-finger typo, which set off a chain reaction of selling,” said Sang Lee, managing principal at Aite Group. “I would be shocked if that was not the case as the fall in stocks was so sudden and extreme.”
However, despite the persistence of this story, officials were struggling to idenfity a specific cause. “We still don’t know what was the initiating signal for the trading activity we saw on Thursday,” said Jeff Wecker, chief executive officer at Lime Brokerage. “The verdict is still out.”
What was clear was the ferocity of the fall. Just before 2.40pm on Thursday, the S&P 500 index, the US equity market’s benchmark, fell from 1,120. Inside six minutes, it bottomed at 1,065.79, a slide of nearly 5 per cent. By 3.00pm, the index was moving above 1,120, although still down 4 per cent on the day before, settling 3.2 per cent lower by the close.
coolhand
Well-known member
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a3pxa7cYnFJM
Group of Seven officials share a “sense of urgency” about the need to contain the financial fallout from Greece’s fiscal woes, Canada’s Finance Minister Jim Flaherty said.
Speaking to reporters after an earlier G-7 teleconference, Flaherty said there was agreement among the finance ministers and central bank heads that a “clear” response is needed. He declined to provide details of the conversation.
“We are concerned. We’re consulting closely with our international partners,” Flaherty said in Toronto. “Everyone understands the need for a clear, timely and strong response.”
European leaders today sought to restore confidence in the euro as Greece’s escalating debt crisis threatened to engulf Portugal and Spain, testing the stability of the 11-year-old currency and rattling financial markets worldwide.
Group of Seven officials share a “sense of urgency” about the need to contain the financial fallout from Greece’s fiscal woes, Canada’s Finance Minister Jim Flaherty said.
Speaking to reporters after an earlier G-7 teleconference, Flaherty said there was agreement among the finance ministers and central bank heads that a “clear” response is needed. He declined to provide details of the conversation.
“We are concerned. We’re consulting closely with our international partners,” Flaherty said in Toronto. “Everyone understands the need for a clear, timely and strong response.”
European leaders today sought to restore confidence in the euro as Greece’s escalating debt crisis threatened to engulf Portugal and Spain, testing the stability of the 11-year-old currency and rattling financial markets worldwide.
coolhand
Well-known member
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=an66X1CjybPU
Federal regulators reviewing yesterday’s stock plunge will try to determine if the fivefold increase in the number of American equity exchanges has left them unable to manage the biggest surges in volume.
The selloff erased $700 billion from U.S. markets in eight minutes after actions by the New York Stock Exchange to slow trading increased volatility on other platforms, said Joe Ratterman, chief executive officer of the five-year-old alternative exchange Bats Global Markets Inc. NYSE Euronext Chief Operating Officer Larry Leibowitz said the Big Board prevented a bigger decline.
“There are times when differences in behavior are not good for the market or the investors,” said Ratterman, who recommends trading be halted across networks when investors are panicking. “This Thursday may have been one of those times.”
Federal regulators reviewing yesterday’s stock plunge will try to determine if the fivefold increase in the number of American equity exchanges has left them unable to manage the biggest surges in volume.
The selloff erased $700 billion from U.S. markets in eight minutes after actions by the New York Stock Exchange to slow trading increased volatility on other platforms, said Joe Ratterman, chief executive officer of the five-year-old alternative exchange Bats Global Markets Inc. NYSE Euronext Chief Operating Officer Larry Leibowitz said the Big Board prevented a bigger decline.
“There are times when differences in behavior are not good for the market or the investors,” said Ratterman, who recommends trading be halted across networks when investors are panicking. “This Thursday may have been one of those times.”
coolhand
Well-known member
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=afPiOhKxYSq8
The cost of insuring against losses on European bank bonds soared to a record, surpassing levels triggered by the collapse of Lehman Brothers Holdings Inc., as the sovereign debt crisis deepened.
The Markit iTraxx Financial Index of credit-default swaps on 25 banks and insurers soared as much as 40 basis points to 223, according to JPMorgan Chase & Co. The index closed at 212 basis points March 9, 2009. Swaps on Greece, Portugal, Spain and Italy rose to or near all-time high levels.
Credit risk rose for a sixth day on concern the Greek debt crisis is spiraling out of control and triggering concern banks may face losses on their sovereign bond holdings. The Group of Seven plans to hold a conference call today to discuss the turmoil, after a global stock rout that briefly erased more than $1 trillion in U.S. market value.
“Financials are caught in a really bad place right now,” said Aziz Sunderji, a London-based credit strategist at Barclays Capital. “Investors are selling bonds, not just hedging with CDS. It shows investors are repositioning portfolios and there’s a more long-term repricing of peripheral risk.”
The cost of insuring against losses on European bank bonds soared to a record, surpassing levels triggered by the collapse of Lehman Brothers Holdings Inc., as the sovereign debt crisis deepened.
The Markit iTraxx Financial Index of credit-default swaps on 25 banks and insurers soared as much as 40 basis points to 223, according to JPMorgan Chase & Co. The index closed at 212 basis points March 9, 2009. Swaps on Greece, Portugal, Spain and Italy rose to or near all-time high levels.
Credit risk rose for a sixth day on concern the Greek debt crisis is spiraling out of control and triggering concern banks may face losses on their sovereign bond holdings. The Group of Seven plans to hold a conference call today to discuss the turmoil, after a global stock rout that briefly erased more than $1 trillion in U.S. market value.
“Financials are caught in a really bad place right now,” said Aziz Sunderji, a London-based credit strategist at Barclays Capital. “Investors are selling bonds, not just hedging with CDS. It shows investors are repositioning portfolios and there’s a more long-term repricing of peripheral risk.”
coolhand
Well-known member
coolhand
Well-known member
coolhand
Well-known member
I had thought we might see a bounce on Monday, but the Trader's Talk daily poll is showing an overwhelming bullish position going into Monday. That's not what you want to see to get this market turned around.
On the other hand, our own survey has gotten overly bearish.
Look for volatility. I think any rally Monday will be sold.
On the other hand, our own survey has gotten overly bearish.
Look for volatility. I think any rally Monday will be sold.
coolhand
Well-known member
There's just no end in sight to this stuff...
http://www.nypost.com/p/news/business/feds_probing_jpmorgan_trades_in_gZzMvWBqOJpB55M7Rh9vwM
Federal agents have launched parallel criminal and civil probes of JPMorgan Chase and its trading activity in the precious metals market, The Post has learned.
The probes are centering on whether or not JPMorgan, a top derivatives holder in precious metals, acted improperly to depress the price of silver, sources said.
http://www.nypost.com/p/news/business/feds_probing_jpmorgan_trades_in_gZzMvWBqOJpB55M7Rh9vwM
Federal agents have launched parallel criminal and civil probes of JPMorgan Chase and its trading activity in the precious metals market, The Post has learned.
The probes are centering on whether or not JPMorgan, a top derivatives holder in precious metals, acted improperly to depress the price of silver, sources said.
coolhand
Well-known member
http://www.ft.com/cms/s/0/bb184e6a-5b9b-11df-85a3-00144feab49a.html
At the end of last week, the US looked hard at Greece and was scared. So tiny an economy should not be bringing all of Europe low and even threatening to explode the euro, but it is. What started as a US financial crisis plunged Europe into recession; was Europe about to return the compliment? What, Americans began to wonder, did Europe’s problems tell them about their own?
The cause of the present turmoil, Greek public debt, has aroused fears of a wider sovereign-debt crisis and heightened concern about US government borrowing. More immediately, investors are asking, what if the European Union keeps making a hash of the problem? Will there be a second European banking crisis, and would it infect the US financial system? Even if the answer is no, the US recovery is still fragile. The economy would not be immune to another slump in EU demand.
These fears can be exaggerated, but none is unfounded. In any event, fears do not have to be well-reasoned to make a bad situation worse and justify themselves.
At the end of last week, the US looked hard at Greece and was scared. So tiny an economy should not be bringing all of Europe low and even threatening to explode the euro, but it is. What started as a US financial crisis plunged Europe into recession; was Europe about to return the compliment? What, Americans began to wonder, did Europe’s problems tell them about their own?
The cause of the present turmoil, Greek public debt, has aroused fears of a wider sovereign-debt crisis and heightened concern about US government borrowing. More immediately, investors are asking, what if the European Union keeps making a hash of the problem? Will there be a second European banking crisis, and would it infect the US financial system? Even if the answer is no, the US recovery is still fragile. The economy would not be immune to another slump in EU demand.
These fears can be exaggerated, but none is unfounded. In any event, fears do not have to be well-reasoned to make a bad situation worse and justify themselves.
coolhand
Well-known member
And the insanity continues...
http://www.bloomberg.com/apps/news?pid=20601087&sid=adES6qP.P7AI&pos=4
The U.S. Federal Reserve will restart its emergency currency-swap tool by providing as many dollars as needed to European central banks to keep the continent’s sovereign-debt crisis from spreading.
http://www.bloomberg.com/apps/news?pid=20601087&sid=adES6qP.P7AI&pos=4
The U.S. Federal Reserve will restart its emergency currency-swap tool by providing as many dollars as needed to European central banks to keep the continent’s sovereign-debt crisis from spreading.
coolhand
Well-known member
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aP2k8sq2WiRU
Europe’s government debt crisis is starting to infect the bank funding system, driving borrowing costs higher from Asia to the U.S. and threatening to slow the global economic recovery.
The interest rate financial companies charge each other for three-month loans in dollars rose to the highest since August, while traders are paying record amounts to hedge against losses in European bank bonds. Yields on corporate debt rose last week by the most relative to government securities since Lehman Brothers Holdings Inc.’s bankruptcy in September 2008, according to Bank of America Merrill Lynch indexes.
Europe’s government debt crisis is starting to infect the bank funding system, driving borrowing costs higher from Asia to the U.S. and threatening to slow the global economic recovery.
The interest rate financial companies charge each other for three-month loans in dollars rose to the highest since August, while traders are paying record amounts to hedge against losses in European bank bonds. Yields on corporate debt rose last week by the most relative to government securities since Lehman Brothers Holdings Inc.’s bankruptcy in September 2008, according to Bank of America Merrill Lynch indexes.
coolhand
Well-known member
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=and.BFidKbYE
The chief executive officers of the biggest U.S. stock markets were called to a meeting at the U.S. Securities and Exchange to discuss last week’s selloff in equities, according to four people familiar with the situation.
Duncan Niederauer of NYSE Euronext, Robert Greifeld of Nasdaq OMX Group Inc., Joe Ratterman of Bats Global Markets Inc. and William O’Brien of Direct Edge Holdings LLC will meet with agency officials tomorrow at 10 a.m. in Washington, said the people, who asked not to be identified because the meeting hasn’t been publicly announced.
The chief executive officers of the biggest U.S. stock markets were called to a meeting at the U.S. Securities and Exchange to discuss last week’s selloff in equities, according to four people familiar with the situation.
Duncan Niederauer of NYSE Euronext, Robert Greifeld of Nasdaq OMX Group Inc., Joe Ratterman of Bats Global Markets Inc. and William O’Brien of Direct Edge Holdings LLC will meet with agency officials tomorrow at 10 a.m. in Washington, said the people, who asked not to be identified because the meeting hasn’t been publicly announced.
coolhand
Well-known member
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aJc8svVLQCVk
Freddie Mac’s disclosure that it lost $6.7 billion of taxpayer dollars in the first quarter of 2010, and that bigger losses may follow, suggests the Congressional Budget Office may have been kind in estimating that Freddie and Fannie Mae could gobble up $389 billion in U.S. aid by 2019.
The carnage of America’s government-sponsored housing agencies continues. It’s a remake of “A Nightmare on Elm Street,” only Freddy Krueger now goes by Freddie. The hapless victims are played by taxpayers.
The worst financial crisis in generations was set off by a massive government effort, led by the two mortgage giants, to make loans to homebuyers no matter whether they could make the payments. Lenders were willing to lend money to just about all comers, no matter how low their income. Why? Because the lenders knew Fannie and Freddie would purchase the loans from them for a high price before bundling them into securities to sell to investors.
Freddie Mac’s disclosure that it lost $6.7 billion of taxpayer dollars in the first quarter of 2010, and that bigger losses may follow, suggests the Congressional Budget Office may have been kind in estimating that Freddie and Fannie Mae could gobble up $389 billion in U.S. aid by 2019.
The carnage of America’s government-sponsored housing agencies continues. It’s a remake of “A Nightmare on Elm Street,” only Freddy Krueger now goes by Freddie. The hapless victims are played by taxpayers.
The worst financial crisis in generations was set off by a massive government effort, led by the two mortgage giants, to make loans to homebuyers no matter whether they could make the payments. Lenders were willing to lend money to just about all comers, no matter how low their income. Why? Because the lenders knew Fannie and Freddie would purchase the loans from them for a high price before bundling them into securities to sell to investors.
coolhand
Well-known member
Of course...:blink:
http://www.cnbc.com/id/37023580
It's getting harder to put meat on the table in Venezuela and the government of President Hugo Chavez is blaming the butchers.
At least 40 butchers were detained last week on charges of speculation for allegedly driving up their prices. Some say they were held at a military base and were later strip searched when turned over to police.
http://www.cnbc.com/id/37023580
It's getting harder to put meat on the table in Venezuela and the government of President Hugo Chavez is blaming the butchers.
At least 40 butchers were detained last week on charges of speculation for allegedly driving up their prices. Some say they were held at a military base and were later strip searched when turned over to police.
coolhand
Well-known member
http://www.nytimes.com/2010/05/09/business/09gret.html?src=busln&pagewanted=all
IF you blinked, you might have missed the ugly first-quarter report last week from Freddie Mac, the mortgage finance giant that, along with its sister Fannie Mae, soldiers on as one of the financial world’s biggest wards of the state.
Freddie — already propped up with $52 billion in taxpayer funds used to rescue the company from its own mistakes — recorded a loss of $6.7 billion and said it would require an additional $10.6 billion from taxpayers to shore up its financial position.
The news caused nary a ripple in the placid Washington scene. Perhaps that’s because many lawmakers, especially those who once assured us that Fannie and Freddie would never cost taxpayers a dime, hope that their constituents don’t notice the burgeoning money pit these mortgage monsters represent. Some $130 billion in federal money had already been larded on both companies before Freddie’s latest request.
IF you blinked, you might have missed the ugly first-quarter report last week from Freddie Mac, the mortgage finance giant that, along with its sister Fannie Mae, soldiers on as one of the financial world’s biggest wards of the state.
Freddie — already propped up with $52 billion in taxpayer funds used to rescue the company from its own mistakes — recorded a loss of $6.7 billion and said it would require an additional $10.6 billion from taxpayers to shore up its financial position.
The news caused nary a ripple in the placid Washington scene. Perhaps that’s because many lawmakers, especially those who once assured us that Fannie and Freddie would never cost taxpayers a dime, hope that their constituents don’t notice the burgeoning money pit these mortgage monsters represent. Some $130 billion in federal money had already been larded on both companies before Freddie’s latest request.
