Silverbird's Account Talk

[Silverbird]

Pimco's Gross: Fed Should Buy Mortgages
By CNBC.com | 07 Mar 2008 | 02:42 PM ET

The Federal Reserve needs to take a more active role in stemming the housing crisis, possibly by exchanging Treasury notes for mortgage notes, Pimco Bonds Chief Information Officer Bill Gross said on CNBC.

http://www.cnbc.com/id/23523128

:laugh: Yeah, right! The answer should be a paraphrase of a Wizard of Id Cartoon:

Fed [King of Id's Jester], "Put it on my tab, my good man."
Pimco [Bartender], "But your tab's worthless!"
Fed [King of Id's Jester], "So are your mortgage notes." [original line: "So's your liquor."]

 

[Steadygain]

Pimco's Gross: Fed Should Buy Mortgages
By CNBC.com | 07 Mar 2008 | 02:42 PM ET

The Federal Reserve needs to take a more active role in stemming the housing crisis, possibly by exchanging Treasury notes for mortgage notes, Pimco Bonds Chief Information Officer Bill Gross said on CNBC.

Sorry about ending the week with such a strong NEGATIVE NOTE. But the truth be known - This was ONE HUGE GIMMICK - meant to sucker in a bunch of people who couldn't afford what they wanted. So they come up with this ABSOLUTE BULL S*** and it backfired.

Do you see the real culprits accepting responsibility for this specific mess?? Do you see the BANKS and FINANCIAL INSTITUTIONS acknowledging their part in this mess. This is just the tip of the ice burg - and it would have gone on and on if they could have gotten away with it. THIS IS WHERE WE (THE UNITED STATES) HAS TO START MAKING CHANGES AND DOING THINGS RIGHT.

Once again here is another idiot EXPECTING THE GOVERMENT TO BAIL THEM OUT. I'll bet this same guy was loving it when all the money was flowing in from people who couldn't afford it.

 

[Silverbird]

:nuts: Whap whap whap, the broom is hitting the CDOs and other cobwebs hidden in the system. Ok it's dusty and dark right now, lots of things running out of dark corridors, and it's obvious we've been walking on a thick layer of [blat]. But trust and market growth will only come after we can see the floor.

 

[Silverbird]

Aiieee, long way down through the dirt to the floor still digging . Further than I thought. New contributions: 90%G 10%F for 3/11.

 

[Tomncath]

Aiieee, long way down through the dirt to the floor still digging . Further than I thought. New contributions: 90%G 10%F for 3/11.

Need an auger :laugh:

 

[Silverbird]

C'mon, big investors stop tossing your money at equities. Resistance is futile. Buy some F Bonds, better yields than those Government bonds. And stop speculating in Oil!

 

[Silverbird]

FFF space GGG space. Waiting for CSI at bargain price. FFF space GGG space yawn.

 

[Silverbird]

Looking good? Maybe? Did the Fed pull out its wand and do a sucessful countercurse? I hope so.

 

[coach222]

Looks like a few shorts got "hammered shorter" (in cash, anyway)

Hopefully the FED doesn't end up with mortgage collateral they can't sell...

BTW, what happens when the money supply is increased without a corresponding increase in economic growth?

The next 28 days should be interesting.

 

[caymanbrac12]

Looks like a few shorts got "hammered shorter" (in cash, anyway)

Hopefully the FED doesn't end up with mortgage collateral they can't sell...

BTW, what happens when the money supply is increased without a corresponding increase in economic growth?

The next 28 days should be interesting.

ALOT of short covering. These guys are acting like they are in the middle of a circle and because the FED "loaned" treasuries for the CDO turds and all the other garbage on the banks books that it will make those books look pretty for while. Well eventually someone is left holding that turd because no matter how many time you shine it or put nice pretty bows on it, it's still a turd and the funny part is they are trying to either bury it or make it disappear but that bank will end right back up with that shiny turd when it is all said and done.

Do they really think that by repacking or swapping (loaning) treasury notes for CDO etc worth if they are lucky .30 on the dollar someone is still not going to be left holding the bag? :laugh::laugh: I guess after passing this garbarge around for 28 days + they will eventually figure they are going to need one big outhouse to dispose of all that shiny stuff. LOL

I might have been born at night but it wasn't last night.

Craig

 

[Steadygain]

Looks like a few shorts got "hammered shorter" (in cash, anyway)

Hopefully the FED doesn't end up with mortgage collateral they can't sell...

BTW, what happens when the money supply is increased without a corresponding increase in economic growth?

The next 28 days should be interesting.

First I wondered where all the money came from to boost the Markets so high initially - all the more wondered that later on in the afternoon. As CB put it -" maybe I'm way to cynical" - or in my case just getting to old - and definately tired of the swings that have made this old Market drag on - but you're right the next 28 days will likely be filled with surprizes for both Birth (and the bullish) and Me (and the bearish)

 

[BooDog]

First I wondered where all the money came from to boost the Markets so high initially - all the more wondered that later on in the afternoon. As CB put it -" maybe I'm way to cynical" - or in my case just getting to old - and definately tired of the swings that have made this old Market drag on - but you're right the next 28 days will likely be filled with surprizes for both Birth (and the bullish) and Me (and the bearish)

Just my opinion. When the feds are throwing money at the banks they are just trying to make even more money on the most secure money that is already on loan. Double whammy. This in turn just increases false security imo. Pumping the markets trying to say it will be okay kinda makes me cringe. I agree, this will be an interesting ride. I see many saying the F fund is the place to be but if the banks lose and these bond insurers start falling out of the trees, instead of a normal collapse the feds may just be helping them crash even harder. Just a theory.

 

[Silverbird]

This may be a two-day wonder, I am suspicious of sudden incredibly steep upsides or downsides. Watching C, S, and I, if they do the slide up the Matterhorn today I am going to submit my IFT at 95% G 5% F to sell at a + and clear out all the CSI I have in new contributions. F is doing odd things recently since there *are* questions currently about bonds being safe, so I'm planning to cut down on F by 5%. New contributions I will do the same as above if the steep upside occurs today.

The Fed is doing what it can. Not wise in the long term, but it's about the only tool left in the box. Just hope they haven't loosened the bolt so far that we have a major leak. A lot of pressure in that pipeline of mortgage debt.

 

[Silverbird]

Bah, this market is crazy. IFT 80% G, 20%F, leave new contributions 90/10. I know I said 95 earlier but I just hate sitting so much on low gains G. I wish I could do more IFTs. Right when the market is so volitile it's hard to make $ TSP gives you only two tries (and a couple ducks if you aren't too far into G).

 

[Silverbird]

Paulson: More mortgage lender rules needed

Treasury Secretary says rule change needed to avoid new credit crisis....Fielding questions after his speech, Paulson repeated comments that a strong U.S. dollar is “in our nation’s interest,” a position long stated by past treasury secretaries. The dollar dropped Thursday to a new low against the euro in Europe and a 12-year low against the Japanese yen....
http://www.msnbc.msn.com/id/23609247/

:suspicious: Barn is empty and they've taken the doors, and you've said that dollar thing since you came in. Rrrriiiigggghhhht.

 

[Silverbird]

Resistance is Futile! Futile, I say! :nuts: Sigh. :suspicious:

 

[Silverbird]

Resistance is Futile! Futile, I say! :nuts: Sigh. :suspicious:

Big Fed spanking! The beatings will commence until morale improves. Bear Sterns has been assimilated, lol.

 

[Silverbird]

Sigh, the 1275 SP 500 Buying Program is back in sync. Note the volitivity this morning. They really like to defy gravity, don't they?:notrust:

 

[Silverbird]

Bonds? Stocks? I really don't want to completely retreat to G but I'm getting that year 2000-2002 feeling. Grumble grumble, G is making less now than it was then, however.

 

[Silverbird]

And the pouts and tantrums begin.
Only 0.75%! We demand our rights! Wahhh!
Wall Street deserves rights all right. Rights, lefts, uppercuts. Cutting hasn't done much lately except make the dollar fall like a rock. Big cuts now will lead to negative rates later.
Hopefully it's a short term screaming match.
I seems to be continuing its rally so it's just Wall Street Drama, Darrllinng.