Show-me Account Talk

[Silverbird]

CNN says that the testimony on Tuesday will be more on the latest rescue plan and a bit on Fannie and Freddie.

 

[Show-me]

Rescue plan seeks $700B to buy bad mortgages- AP
The Bush administration is asking Congress to let the government buy $700 billion in toxic mortgages in the largest financial bailout since the Great Depression, according to a draft of the plan obtained Saturday by The Associated Press.

 

[Show-me]

Anyone notice that there have been more leaks around this event that there were in the levees along the Mississippi this spring.

 

[Spaf]

I can sort of undersand the bailout. But, this is (my opinion) creating a huge debt for the future. Do they have a plan for paying down this debt?

 

[ChemEng]

Using good money to chase after bad is always a winning strategy...

Rescue plan seeks $700B to buy bad mortgages- AP
The Bush administration is asking Congress to let the government buy $700 billion in toxic mortgages in the largest financial bailout since the Great Depression, according to a draft of the plan obtained Saturday by The Associated Press.

 

[Braveheart]

I would say that any earning or economic data will be trumped my any news from the four horsemen and the Congress.

Also, someone brought up a good point this morning and I'm sorry I can't remember who it is. Chart analysis will be out of skew now that they changed the rules of the game. The internal dynamics of the game have been changed with the no shorting rule in place.

This will be a interesting week. After two enormous up days we should see a pull back or at least some consolidation. The chart is horribly off balance with the 80 point range it had over the last two days. Once this starts to sink in the player will take the profits. I'm surprised it did not happen at the end of the trading day, but then again the market needs to hold up until Congress hammers out the bail out bill.

Yup that was me Braveheart 9/19/08 and this plan is a test of the Emergency Wallstreet System. The US Markets in voluntary cooperation with the Federal authorities have developed this system to keep you from being informed in the event of an actual Stock Market Emergency. If this had been an actual emergency it would be too late you lose everything. Thanks for playing and tell them what they've won Johnny !!! Congrats you just won a Trillion Dollar Tax and there is nothing you can do about it. This concludes this test of the Emergency Wallstreet System.:nuts:

 

[Show-me]

I can sort of undersand the bailout. But, this is (my opinion) creating a huge debt for the future. Do they have a plan for paying down this debt?

Nope, just a roll of the dice that people do not just walk away from the houses.

 

[XL-entLady]

Nope, just a roll of the dice that people do not just walk away from the houses.

Oh, that's going to work! :blink: These are people who are already walking away, are down the path and disappearing over the hill! That was part of what created the original problem!

Lady

 

[Show-me]

Yep, you will see a lot of government auction of home in the future. Save your money houses will get cheap.

 

[RPM]

I don't think the chart analysis will be out of skew. Charts are really nothing but correlations from past behaviors of traders, and these don't change. Everytime Vix hits above 30, there was some drastic change in the market due to somebody's intervention, and the market expects that to happen, that's why when the news came out, it's like breaking the dams.

Traders will find someway around the rules to make money, they always do. That's the name of the game!

Chart analysis will be out of skew now that they changed the rules of the game. The internal dynamics of the game have been changed with the no shorting rule in place.

 

[Birchtree]

Thinking about next week and what is to come I'm reminded that the market will do everything, and I do mean everything, to keep the majority (lilly padders and chicletts) from participating, bull markets do not like company, only at the top. Also the VIX rose during the market advance of 1996 to 1998. It's really a matter of how much liquidity there is in the system and has very little directly to do with complacency or panic. Now is not the time to get all beared up - but rather throw caution to the wind and assume the risk and the potential that will evolve.

 

[Corepuncher]

Thinking about next week and what is to come I'm reminded that the market will do everything, and I do mean everything, to keep the majority (lilly padders and chicletts) from participating, bull markets do not like company, only at the top. Also the VIX rose during the market advance of 1996 to 1998. It's really a matter of how much liquidity there is in the system and has very little directly to do with complacency or panic. Now is not the time to get all beared up - but rather throw caution to the wind and assume the risk and the potential that will evolve.

Honestly Birch, you would be saying the same thing if it was 1929. Every once in a while, there are black swan events. Of course they are so rare, that betting on them is usually a losing bet. However, there is enough doubt right now as to our future, that it should keep us from enjoying a sustainable rally, IMO.

 

[Show-me]

 

[Show-me]

 

[Show-me]

Now Paulson wants to let foreign banks to sell us back the bad paper. You gotta be kidding me. We are doomed!

Here is my thoughts right now, I'm in the C fund and will stay there only because I got lucky and the Four Horsemen bailed out the markets. The reason I will stay is they have stopped shorting of the financials so now the market can only go up if I can not short the weakest most worthless sector. They have rigged the game.

You can only buy and sell long positions and "selling" of the long positions would be the only thing that could hurt the market right now.

They have cause a artificial environment for stocks to rally and when they take the limits off look out.

This bail out will be brutal to the economy and the country, make no mistake about it.

God, guns, gold, groceries, and gas.

Time for everyone to flood their politicians with e-mails about how horrible this is to bail our all of these corporations with no investigations, arrest, terminations, salary caps, huge fines to executives, board members, and the corporations. All those profits need to find their way back to the bad paper. No more mega banks or banks the are too big to fail. That is BS!

 

[XL-entLady]

They have cause a artificial environment for stocks to rally and when they take the limits off look out.

Now those are words to put in your tickler file! And I do heartily agree. What date are we talking - October 2 was it? And don't forget the lag time beforehand that it takes to move our TSP dollars....

Lady

 

[Corepuncher]

Watch the dollar. When (not if) it reverses its uptrend of late, look out.

If i was in stocks, I'd be shaking. Also if you are in F, you might want to reconsider. Not only is this bad for the dollar, but inflation will cause bonds to sell off. Flight to safety may be Gold and Oil now. :nuts:

 

[Show-me]

CP,
I'm in deep, held too long, and am looking for a exit. I do feel that the street is trying to suck in investors to sell off. That may have already happened Thur. and Fri. with no sell off Fri. afternoon. The really surprised me. Or, they may be trying to extend it for a while to make the big money.

Now that they have the weekend to digest this I can't wait for Monday morning to see the action. I have one account that will settle on Monday and am itching to put it to work.

I should short a two day rally like this, it is the smart move. The perfect set up would be a big open, grab some short and wait for the fill. KOL is one that I am looking at cuz it rallied just because everyone else did and it trades premarket.

Premarket traders are the best IMO because you can take advantage of the irrational action premarket and profit when the market opens.

I am uncertain about UYG and SKF. Too much screwing around with the book and the media could report anything at any time and reverse everything.

Granted UYG and SKF is where the fast money is and the most risk.

I getting long winded beings I been off work.

 

[Show-me]

Watch the dollar. When (not if) it reverses its uptrend of late, look out.

If i was in stocks, I'd be shaking. Also if you are in F, you might want to reconsider. Not only is this bad for the dollar, but inflation will cause bonds to sell off. Flight to safety may be Gold and Oil now. :nuts:

I agree, with the enormous additional debt coming, but nothing is set in stone yet. The Democrats are already adding stuff to the bill and should negotiate stipulations of buying the bad debt.

Time for a Sept. suprise.

 

[Corepuncher]

http://www.cnbc.com/id/17689937/site/14081545/