With all the hyperventilating and angst about the TARP, perhaps one should look at some facts before becoming awash in opinion.
What was the objective of the plan ? To save the banking system. What are the facts now ?
Source: WSJ paper edition for Wednesday November 12, 2008.
1. One month LIBOR is 1.48%.
2. Nonfinancial commercial paper for 180 days yields 2.35%.
3. Bankers acceptances (used in foreign trade finance) for 90 days yield 2.53%.
Obviously the initial phase of Paulson's effort has worked.
The principal problems now exist further down the lender food chain, viz. certain consumer loans and and corporate bonds.
Market
More hedge fund liquidations. I have no idea when that will end as the Panic of the Rich continues.
Can someone tell me why it is "news" that some economies are in a recession ? Have we not been hearing this angst for almost nine months ?
By the way, industrial output in China was up 8% in October.
Korea offers $16 billion in trade finance. This is good.
Actions
Mrs. B did a small bit of buying yesterday and is contemplating more. I am waiting to add to my long term favorites. If AAPL goes much lower, I'll have to re-buy it later this month when the wash sale window opens.
Word of the Day
"Swan" - verb, intransitive [$10 or $100 depending on your dictionary] British colloquial, usually followed by 'about', 'off', etc.)
Swan means (in this usage) to move or go aimlessly or casually with a superior air.
Sentence: As pure libertarians swan about mouthing their theories about "markets" never being wrong, facts pile up daily that markets are wrong quite often. Anyone who read those classics such as "Extraordinary Popular Delusions and the Madness of Crowds" by Charles Mackay and "Wisdom of Crowds" by James Surowiecki should know that.
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44 comments:
i agree Bman...........it seeems the TARP is working
but phil gramm was right.......we have become nation of whiners and complainers and cry-babies
we need some ronald 'morning in america' reagen type optimism
the spear chucker and his wife think america is a rotten and mean country
change indeed
AAPL looks alot lower to me
but then again.......i'm merely a ping-pong player
Come on patrick..that was an 85 mph fastball down the middle..pick that cricket stick up and have a lash......
"I'm not being casual by saying this market swan dive takes the aimless out of the swan"
yes re optimism .. some leadership is needed.
I probably have to put "libertarian" in the title to attract Patrick to comment
;-)
I like what the UK govt said to banks: lend to small business or else
:-))
I believe your buddy JP Morgan did the same thing during the Panic of 1907 bunkerman....didn't he gather all the big bankers together and get in the face, commanding them to lend?
wasn't jp morgan a 'beefer' according to bman's definition ??
Bunkerman have you ever seen newsflow/sentiment so terrible? Of course it can get worse...maybe even much worse...but it seems as though half the world is on suicide watch....
yes, mfl.
no, Bud - he was an investment banker - raised $ in Europe to fund growth of American business.
I have never seen such negativity last so long.
All people want to find is more bad news, but there is lots of good news and clues out there.
For example, that cash flow data from Blackrock re the Fed BSC holdings.
And the China stimuls.
And the lower LIBOR, etc is all now forgotten. When it was bad, it got blasted out on the TV.
I was too young in 1973-75 to know if it was as bad then ... could have been with gas lines, impeachment, etc.
Thomas Friedmans new book
The world's markets are flattened???
your not down at the general store wheeling and dealing with mr haney...no checkers today...Hooterville is waiting sir.
do you own GE Bunkerman or did you decide Immelt was too much of a knave?
I sold GE in late Sept at a loss - got worried about all the RE stuff - did not like CP dependence when I heard about it.
Obviously Immelt did not control GE Capital - they were out of conrol and reckless.
Odd, but when I did business with the 15-20 years ago they wre very discipliined.
I did buy some for Mom recently - I figure the Div is safe.
I guess I should have thought more about this crappy GE washing machine we got a couple years ago. Mucho repairs, crappy service.
these insurers are sure getting creamed - I wonder if they wrote lots of CDS.
Pretty stupid if they did.
Soros: "hedge funds were an integral part of the financial market bubble which now has burst"
How nice to admit guilt after skewering millions of he common man the world over.
Grrrr
markets sayin in a sweet mexitata voice.....get longer...get longer....I wont hurt you...I promise
then she kicks you square in the cajones....
listen to these guys
Daddy....Everytime a you hear a bell ring...an angel earns its wings"
GE skim is safe...sounds like the ken lewis playbook making it's way around...what a joke, time to become a national bank.
I know that feeling, spin - this market has kicked me in the balls at least three times in recent months.
Is Citigroup going to take a dirt nap? Is that even possible?
Bunkerman we're going to need you to go to sheep herding class....that may be our only hope
"Throw the damn towel....throw the God damned towel"
name that movie...winner gets 10 shares of GM, on me
raging bull ???
can i have 5 shares of GE instead ??
incorrect...
Ill give you 2 GE shares for playing though....
rocky...cut me
The Champ??....wake up champ..wake up!!
or Shawshank...lmaoooooooooooooo
Rocky...please be more specific sir...
The Champ...outstanding movie...I shed a tear
rocking some voodoo child, R.I.P mitch mitchell...perfect for today Bunky.
http://www.youtube.com/watch?v=IHC9bxQkLCQ
Woodstock museum..pfftttt....cant even walk on the grass anymore...what freedom that was once there has been crushed by the iron fist of the state.....
thats the guy we hoped we had voted for......
hmm what happened ... I was taking a nap. Getting up at 3AM gets to me some afternoons.
real buyers came in Bman!!!!!.....well.....not really
more like a good old-fashioned game of ping-pong......we'll take it
I don't think C goes under ... why own it, though ? Pandit cut the div to almost nil to buy WB, then lost WB ... then got gov't cash, but can't re-raise div now. And is likely to buy something and overpay.
real buyers ... well, I was taking a nap, but Mrs. B is talking to her broker ... and Warren ? Don't know.
That's all left, you know.
I'm sending some $ to Mrs B tonight....is there a minimum investment?
after today.. W sould step onto Marine One... wave like Nixon,and fly off into the Texas sunset.......
agree spin .. let Dick run the nation for two months.
W can go hit the Bourbon.
looks like naps work as well as going herding
;-)
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