S&P below 1,000
Just a quick update on the bet I made with a friend of mine I hinted to a few blogs ago. I was giving the S&P 12 months to touch 1,000 (at the time I made the bet, the S&P was trading around 1,300), and it just touched it yesterday, closing at 996. I’ll collect […]
Meltdown Monday
It was another black Monday for Wall Street after the Congress hasn’t passed the mother of all bailouts. I will skip the details, as the whole press world is doing already a very good job at covering what’s happening.
Just one quick point. The Dow closed at the very bottom, lacking the support of the short […]
The big rush for cash
A recent Citi estimation talks of 600bn$ of cash being hoarded up by hedge funds. Not a surprise. The fly to safe lands (cash) coupled with deleveraging was already happening, and it looks like it is assuming epic dimension right now. Not a suprise, considering the following gib question marks:
the 700bn$ bailout is facing challenges. […]
The 1.8 trillion dollars bailout
CNBC has made an interesting analysis on the US government bailout of the financial crisis.
It’s not just 700bn$, more like 1.8trn$. Quick laundry list:
700bn$ recently announced plan to buy assets from bank
150bn$ MBS purchase by Fannie and Freddie
85bn$ for AIG
90bn$ in repayment to JPM for Lehman
200bn$ for Freddie and Fannie
300bn$ for FHA
200bn$ of currently outstanding […]
So you wanna bailout the whole world?
Courtesy of Bloomberg a possible explanation of the 600points Dow swing that today blew up all the (sensible and justified) short positions in financials. Apparently, we are heading toward some pretty serious system-wide bailout.
“Schumer urged forming an agency to inject funds into financial companies in exchange for equity stakes and pledges to rewrite mortgages and […]
Lehman and Merrill
OK - this is old now. I wrote it early this morning, and the world changed egain, but hey! Why should I not post it?
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At the end, it did happen. A “major” financial institution has gone bust. So the FED has sort of “saved the face” with regard to Moral Hazard. Merrill would have probably […]
Lehman
Interesting weekend.
With Lehman collapsing, a lot of top dogs in Wall Street are trying to see if there is still some meat left, or if it’s just bones. The Government and the FED are trying to see if the bank can be saved without taxpayer money. Might be a bit late after having put them […]