From Financial Times, July 14, 2008:
"The UK Financial Services Authority recently forced the disclosure of short positions in companies conducting rights issues. It concluded hedge funds were trying to manipulate shares."
From The Wall Street Journal, online edition, July 15, 2008:
"The Securities and Exchange Commission has sent subpoenas to more than 50 hedge-fund advisers as part of its investigation into whether individuals spread false rumors to manipulate shares of two Wall Street firms, a person familiar with the matter said."
My "opinion" is that when all this comes out, the extent of bear raiding and market manipulations is going to stun investing public and bring many regulations onto the hedge fund community. Short selling rules will be reinstated and hedge fund disclosure rules will be very strict. These restrictions will be coordinated with the UK and EU so that these huge pools of money will be regulated worldwide.
PS: A smashing seems in the offing today. Europe is way down. I guess the problem is not just American banks.
PPS: I added some money to the Alpha Fund today and might make a major readjustment to concentrate my positions to the stocks I really think will perform from here onward.
Word of the Day
"Neuralgic" - adjective [$10] from neuralgia - noun
Neuralgia (noun) means an intense, intermittant pain along the course of a nerve, especially in the head or face.
Neuralgic means 1. of or pertaining to or concerning with neuralgia; 2. of the nature of, characterized or caused by, or affected with neuralgia.
Sentence: The beefers and bears spread rumors and raid the markets in the worst neuralgic points , viz., the investment and commercial banks, to create panic selling to reward their short sales postions.
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94 comments:
meredith whitney on bloomberg-tv this morning
is that more 1920s type manipulation? or is it the 1970s? or 1907 ? whatever.....she just another beefer tryin to create panic
She is a mouthpiece of, and is in the pocket of her beefer clients.
Jesse Livermore used to do that sort of thing all the time.
I printed out her forecasts for JPM and BAC ... let's see how she does when they report earnings.
this is her moment in the Sun and she is milking it for all it's worth.
But will she go to the well once too often ? Time will tell if she's right in reality vs. perception.
Why would anyone think analysts are pristine ? Surely recent events like Grubman, etc. show that complete fantasy.
WB acting like WM which acted like IMB on the way to zero.
lots of very famous beefers..."value" beefers....are absolutely dead and buried in these financial stocks.... to the point of no return....
true frosty ... acting horribly.
I await earnings next week.
Sold all stocks in Alpha Fund except the crappy ones: BAC, JPM, C, WB and JPM; and CCJ.
Intent to redploy to my losers at some point.
Going to take a big swing soon ... might await earnigs this week and next for them.
Will not buy more WB until the conf call.
Might buy the other three.
This is high risk capital. If I don't swing, I might as well put it all in the Krypto Fund and take it easy.
also added some $ to Alpha Fund - $ I had taken out in May.
i have a totally serious question.
have just a hair 100k in WB savings.
very tempted to get half at lunch
BRING BACK THE UPTICK RULE
shorting shud be illegal.
geesh.
y cudnt this have happened a few months earlier?
oh ya, im from philly
bman, do u like base jumping?
why risk anything over 100K in a bank ?
There rates usually stink anyway.
I never have over 100K in a bank account except for a couple days when doing a big transfer or collect a big payment.
what is base jumping ?
Also I always keep large sums in Treasury-only money market funds.
That is, not bank deposits when over 100K.
Why take the risk --the spreads suck mostly.
Bunky, your hero Ben tossing the towel on growth and controling inflation...has he lost his mind sir.
got 97 at WB
93 in a credit union.
450 in munis and 50 in cash in that account.
bman u just went down swinging.
look at the charts of WB, JPM and C.
that is base jumping
:-)
although i dont know if u have a parachute.
even i am not that crazy.
ill skydive, and bunging of a bridge, but base jumping, no way!
look this is really simple ... the Fed can't control the price of oil. period. So why try ? If China bids it up, it goes up.
Slow growth and low core inflation is an better outcome that negative growth and even lower core inflation.
hea a base jumpin...ass thumpin...prowler drivin son of a bitch folks
if they raised 100 bps today, the $ wud rally, oil wud splat, and all the beefers that are manipulating wud get smashed.
y is that a bad idea?
its not like cutting rates helped.
its picking the lesser of two evils, like in november.
since the fins are in dirt nap mode, they might as well fight inflation. becuase they fought the law and the law won, with respect to the fins.
a nice fake date story would lighten the mood...anyone have one.
Institutional research firm Bridgewater Associates has estimated that U.S. and European banks need $1.6 trillion to fill the hole blasted by losses in mortgages. But the analysts another top firm, TIS Group in Minneapolis, believe the real amount of new capital needed is $3 trillion to $5 trillion. How could it be that big? It's the leverage. At a 30-1 ratio of real assets to loans, you only need a 4% default rate on the loans for all your capital to disappear
thoughts bunkerman?
sorry bob
have another one tonite, unless she bails.
dating is weird
if Fed raises rates, banks spreads on loans get hit ... people lose jobs ... small business loans cost more money ... cost of floating rate loans goes up ... really stinks to do that now.
No, Fed must wait to raise.
cost of home lines of credit go up, on and on.
Not good for economy.
raisng rates in weakness is a very bad policy, as we know from Volcker before August 1982.
look guys ... a huge amount of mortgages are bought by PENSION FUNDS and INSURANCE COMPANIES !! - who else buys long duration paper ?
Those stories putting all that to banks is just stupid.
That large $ number I guess assumes every loan in the US will go under - how stupid is that ?
Mine loan sure won't as will NOT the vast majority of mortage loans made before 2004.
Just fearmongers trying for headlines..
Normal, conforming loans go default when people lose jobs or diverce. That is one reason Ben needs to keep rates low.
Mini Me Sex Tape: Why Make Billions...When You Can Make MILLIONS?
verne troyer read this blog.
btw a 4% default rate on loans is way toooo high for normal conforming loans.
And that writeer also confuses default rate with LOSS RATE.
a 4% default rate with a loss per loan of even a very high 50% means a 2% LOSS RATE.
and much of the 2% should be made in the annual profit spread in the pool of loans.
gotta load M60 belts - with links they take awhile.
back later.
cost of home lines of credit go up, on and on.
Not good for economy.
this is happening already, in a big way. i know guys with no mortgage and a line of credit for 500 to a mil, and havent touched the line.
they are getting letters that the line is being cut in half, rates r going higher. and they arent even using it.
my main point is with all this "manipulation" and "fear mongering" the only way to crush the shorts is to do something unexpected.
now if these manipulators are long oil, short the $, and short the fins. what happens if the fed raises 100 bips? again, credit is much tighter than fed funds suggests, so who cares? but if these evil beefers had to cover the $ shorts and sell their oil, doesnt that take the pressure of the fins?
times like this..I like to say a prayer and drink to world peace...
this market needs a lil inspiration
http://www.nassirimusic.com/?page_id=17
Inspiration, move me brightly
light the song with sense and color,
hold away despair
More than this I will not ask
faced with mysteries dark and vast
statements just seem vain at last
some rise, some fall, some climb
to get to Terrapin
Counting stars by candlelight
all are dim but one is bright:
the spiral light of Venus
rising first and shining best,
From the northwest corner
of a brand-new crescent moon
crickets and cicadas sing
a rare and different tune
Terrapin Station
in the shadow of the moon
Terrapin Station
and I know we'll be there soon
Terrapin - I can't figure out
Terrapin - if it's an end or the beginning
Terrapin - but the train's got its brakes on
and the whistle is screaming: TERRAPIN
spin, how did you know, thats my favorite drink?
loool mern
can ya feel it brothers...can ya feel nassiri runnin wild in the market?
never underestimate the power of the terps!
based jumped from K-2 back in the day...with my k-bar and a stack of certs from my failed orange county munis, creating a fine parachute...landed safe in a small villiage where I sampled all the local tang...good times.
For the last few years, Ventura has split his time between homes in Minnesota and in Baja California, Mexico. He said while he came close to running, his decision came down to "surfing vs. the Senate."
"And I found surfing to be much more honorable than the Senate," Ventura said.
and thats the rub. people like ventura who shud be in DC, wont go there, becuase its not worth it to the people who actually understand the problems we face.
perhaps ventura best quote was something like "religion is for weak minded people"
bot some BAC, JPM, C
will wait for earnings for adds.
more evidence Ben reads this blog:
"Bernanke says U.S. banking system is well capitalized, Fed watching carefully"
;-)
WNR TSO for me Bunky...charts look like they hold mortgage loans, but they don't.
DAMN THE TORPEDOES, FULL SPEED AHEAD".....does Admiral David G. Farragut read this blog....admiral Bunky leading the charge in the fins...well played sir, now bring our boys home.
bear market over??
i love ping-pong!!!!
atta boy Bman
keep buyin those banks.......bring that average down
i see a bank rally in your future
but remember that wise trading saying
"get me even, get me out !! "
WNR TSO long or short??
wtf is frosty sayin
sheeeeeesh
Banya only understands what his mentor tells him...loool
i really take offense to callin me 'kenny banya'
anyone who has read my posts for even 2 days knows i don't kiss ass....ask the Bman
besides.......it's not funny anyway.....it's actually kind of annoying
Bud leave a trail of cheese popcorn to the bathroom so you can figure out where to take a crap......LOOOOOL
who is kenny banya ?
only kenny I know is in South Park
;-)
If you really want Bud excited just say this................................................... FATTY ARBUCKLE
is spin takin writin lessons from frosty??
i have no idea what he meant with the cheesepopcorn.......was it funny??
hmmm maybe Ben & Hank told Cox to start reading this blog
"SEC's Cox says SEC will issue order on "naked short selling" on GSEs; order will limit FNM, FRE short sales - Bloomberg"
restore uptick rule next, please.
'kenny banya' is a character from Seinfeld
"i don't kiss ass"...what is Bud saying...I don't understand...did he get stranded at 3rd...fake date saturdays no turnaroundtuesday.
i love fatty arbuckle
any of you guys know who he is? no cheating
i think Bman may know who fatty is
let me guess....long GOOG for a "pre-eps" run....lmaoooooooooooooo
sorry Bud..I didnt think you would get so upset.
there you go again Bman
i'm rooting hard for your banks to rally.......but then you start with that crap about uptick rule and short selling
PS....'there you go again'.....where was it used in american politics?
WSJ reports the SEC announced an emergency action aimed at reducing short-selling in Fannie Mae (FNM) and Freddie Mac (FRE) stock, and will immediately begin considering new rules to extend new those trading limits to the rest of the market. SEC Chairman Christopher Cox said at a Senate Banking Committee hearing that the SEC would institute an emergency order requiring any traders to pre-borrow stock before shorting Fannie Mae and Freddie Mac, the embattled government-sponsored entities that own more than half the nation's mortgages. Mr. Cox said the SEC "will undertake a rulemaking to address the same issues" across the market. The move will likely limit short-selling for the two mortgage entities.
fatty arbuckle was an actor in the 1920s who got charged in some crime - a sensational trial - I forget the details
there you go again is a Reagan retort in debates.
oh man...who is this joker calling out Paulson? Hank will pancake your ass so fast you wont know what hit you pal....
here lies the no uptick rule
RIP
7/07- 7/08
we practice capitalism and stupidity during growth cycles.
we practice stupidity and socialism during the contractions.
free markets pfffttt
real buyers pfffttt
the USA has become home of the biggest whiners in the world...
brave men like Washington and Lincoln must be crying in their graves....
in a free market FNM and FRE wud already be 0, and creative destruction wud be gud.
whatever we practice, FNM and FRE r still headed to 0, and the pain is gonna be longer and deeper becuase of the fed, congress and president mush.
please reinstate the uptick rule....now
at least we won't have to listen to the Bman whinin and cryin and pissin and moanin anymore
the USA has become home of the biggest whiners in the world...
brave men like Washington and Lincoln must be crying in their graves....
last time i checked, basically the entire south has been blaming dark meat for everything since before 1776.
i know they cut the deal at the end of the civil war, but i disagree with general grants clause that if the south let the slaves free, they dont have to learn how to read or do math.
floridaaaazzzzzholes
lol I was reading a book and it had some quips of H. L. Mencken re nicknames for the common man:
homo boobus
the boobeoise
rofl
sheesh you guys sound like feudalists ... calling the common man a whiner for not wanting to be enserfed by the ruling classes.
these beefers buy & pay for the SEC and then are getting caught in manipulations and try to play the "free market" clause.
what crap.
They sure love those tax breaks they get ... paying 15% vs. homo boobus paying 45%
the common man is dealing with double digit inflation while the BLS waters the #'s down so they dont have to pony up the extra bucks for social security.
after 2000, we all know voting is a scam.
so we complain, hoard r money, and take on no debt.
that was an honest election in 2000 - Gore and his lackeys on the FL Supreme Court tried to hijack it.
so the GOP supplying a list of over 10,000 supposed felons was a legit move?
there were thousands of black voters who were turned away at the booth becuase their last name was the same as a felon.
i know a postal worker who was not allowed to vote. oh can u get a job delivering mail, if u r a convicted felon?
and catherine harris did whatever jebby told her to do.
and the supreme court halted the recount and then said the recount was legal but the window was shut, but they were the ones who shut it??????? so i guess the people counting the votes shud have read the body language and kept on counting even though the court told them to stop.
in a vacum, bush wud have lost florida by about 25000 votes.
oil big drop ... after big rises ... nahhhh, no speculators controlling that market.
hmmm Cox left the commericial banks out of that new rule ... c'mon, get with it.
no matter what chicanery the elephants pull in november.
the war will be going bad, again. the economy and the markets will still be realing, and left is gonna destroy the right.
for better or worse (probably worse) this is gonna happen. just like i predicted in feb that obama is a lock?
sheesh Gore couldn't even carry home state.
D's steal elections every year. Need I mention New Jersey.
damn good thing the warden forgot to grab the crystal ball as she layed down skip marks on the way out the door.
nj is a state?
jersey represent!
nope bob she took that too.
the last of the raping and pillaging is occuring as i type this.
am i thinking i got the heisman for tonight.
i got a house, 2 dogs, 7 tvs, elitical, fridge, washer, dryer and furniture. plus my grateful dead artwork and framed posters.
i wonder if she tried to scoop my wii, popin shot or fuse ball table?
whatever, just get out and leave me alone.
7 tv's????
sounds like someone else in florida we know.....
you must still be fighting over the beads...use the miniheater defense.
im not wasting my life, im living my life!
do u have conceivable reason to get out of bed in the morning?
i like to read the daily news.
maybe i shud just change my name to COSTANZA.
she left all sex toys behind.
i chucked them this weekend. bought new stuff, still in boxes, waiting for next victim.
very considerate mern...new victim will thank you
i even bought freaking rubbers.
that mite be the most depressing thing about all of this.
i dont fear da aids, but a lot of other stuff.
i heard magic johnson is down to just 1 aid.
YES U HAVE AIDS, not HIV positive, but full blown AIDS!
BAC does the 200mil day bunky...skim 14%...getting near half book...did I miss a rumor?
"they" don't send me the rumors.
Meredith and her beefer masters probably have put out dozens.
beefer masters...LMAOOOOO...I like that....you should have it trade marked.
200mil share club today...WB WM BAC FRE FNM...odd action...Bud where is the ops expo trade...forget it...the powler is dusty.
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