Financial Select Sector SPDR (XLF)

All Comments on XLF

  • commenter
    imab
    Oct 12 12:50 AM
    Where We Go from Here: Best and Worst Cases [view article]
    I am not sure why Cam feel that German reunfication is relevant to the current crisis and best case senerio. Certainly that event did not effect the wealth (funds and stock portfolio) of Canadians, Chinese and Asians.
    If that's the best Cam can come up with, I guess we are left with the worst case senerio.

    John     Reply
  • commenter
    LCACM
    Oct 12 12:43 AM
    October 9, 2008: Remember the Date - This is Huge [view article]
    During the last 2 decades most of the Capital Spending growth has happened in foreign countries and not in US. As a result the US worker does not have the productivity edge they enjoyed 20 years ago. The result of this is that their job prospects and consequently credit ratings have become much lower, and we see the consequences. There are only 2 ways to sort this out a) Longer term solution would be to impose tariffs proportional to the wage differential between US and it's trading partners. Goods from Europe will see much lower tariffs compared to those from Communist China where slave wages are paid. b) The other is to devalue the US currency via Bailout induced liquidity injections, so that the US real wages tend towards those of Communist China. Free Market ideological rigidity precludes Solution (a) so Solution (b) is being tried. This will lead to yet another liquidity bubble similar to the Internet Bubble and the Housing bubble, only larger in magnitude and more severe in its consequences. Reply
  • commenter
    thedozer
    Oct 11 08:43 PM
    Where We Go from Here: Best and Worst Cases [view article]
    USC... I went to Auburn... it's "there"
    good point though!     Reply
  • commenter
    USC-Col
    2006-Honors
    Finance/Econ
    Grad MD
    Oct 11 08:19 PM
    Where We Go from Here: Best and Worst Cases [view article]
    I believe that's what scary about the situation with Lehman's and with the majority of companies that purchase the swaps. On fae value, those default swaps provide insurance in case of the swap. It should be used as insurances purposes only and not security or treated like bonds, and I believe they have. Lehman is not in existence at this time...how they hell are they supposed to pay. This caused massive headaches for all lawyers handling this situation because the company is not around anymore. Their may be not enough money to pay off those swaps adn didn't somebody caution that is what can occur with the default swaps. With life insurance, everyone is not going to die at the same time. With default swas, the company defaults and everyone is owed the money at the same time. Their is more than risk when purchasing these swaps. Reply
  • commenter
    billp37
    Oct 11 07:40 PM
    My Website
    Where We Go from Here: Best and Worst Cases [view article]
    Question we have is

    "Are the CDSs going to payoff for Lehman defaults?"

    Lehman Credit-Default Swap Payout Could Climb as High as $365 Billion

    The danger is that the claims on the Lehman default are so large — they are estimated at $400 billion to $600 billion — that settling them could leave some companies with large, perhaps even crippling, losses and heighten the turmoil in the financial markets.

    Of course that also means the banks, funds and insurance companies that sold it are out $365 billion, which is the difference between the price of Lehman's bonds as set in the auction and the remaining 91.375 cents in face value.

    The problems of today will not be solved by the same thinking that produced the problems in the first place.
    Albert Einstein

    If the CDS insurance system doesn't work, then we may be headed toward BAD TIMES?

    Other reason we may be headed toward bad times too:

    www.google.com/search?...

    If we don't get matters peacefully settled, of course.





    Reply
  • commenter
    User 254628
    Oct 11 07:22 PM
    Where We Go from Here: Best and Worst Cases [view article]
    Debt built this economy and debt took it down. Nearly all GDP since 2000 was driven by cashout refinance. Housing may stabilize with inflation now. Reply
  • commenter
    raylopez99
    Oct 11 07:11 PM
    Where We Go from Here: Best and Worst Cases [view article]
    Good article on the parallels with the 19th century, which saw its fair share of the present crisis. Reply
  • commenter
    Msrpaul
    Oct 11 06:45 PM
    Where We Go from Here: Best and Worst Cases [view article]
    In an economy where in all things we "humanely" call for no one to lose, everyone loses. We are broke. When the lenders stop lending to us, the music is over. OVER Reply
  • commenter
    Reinko
    Oct 11 05:46 PM
    Where We Go from Here: Best and Worst Cases [view article]
    I do not consider this article as being 'very good' or 'well thought through' but it is a very good starting point in thinking.

    Yet every crisis has it's own characteristics and it is important to take the local characteristics into account if you study only one crisis.

    But the comparison with 1870 is very good, I never heard of that crisis because from the 19th century I only know a bit of math history and a bit of military history.

    The next article that was quoted via via from in the above article is good reading, link:

    chronicle.com/temp/rep...

    The similarities are striking, but now we have fiat money and debt exponential growth that is always above GDP growth and stuff like that was also observed in the 19th century but never ever was a government tied so hard to it.     Reply
  • commenter
    closed book
    Oct 11 05:05 PM
    My Website
    Where We Go from Here: Best and Worst Cases [view article]
    Mr. Hui's reference to the German reunification was interesting: but unfortunately, the America of 2008 is not the USA of 1990. In every way, this country has become less like West and more like pre 1990 East Germany - a nation of diminishing freedoms and more a nation of feel-good slogans and ever growing fear to speak out. We are funding our aging, everyone wins, no child left behind, shopping mall civilization by placing an impossible burden on our children. How will our nation's debt be absorbed? Bankruptcy? Hyperinflation?

    This Wall Street crisis will pass without too much disruption but one day our country's PSDs (Ponzi Scheme Derivitives) will come due - then, when the music stops there will be more than a few people without a chair to sit in.     Reply
  • commenter
    John Egan
    Oct 11 03:55 PM
    Friday Options Update: MS, XLF, WFC, GS, ZION, XRAY, FDRY, HA, GM [view article]
    Unions didn't kill the auto business in the US.... The auto business kept its head in the sand (as it has done for the last 20 years) and decided to pay advertisers to build sell the 500 HP vehicles (that you pointed out) rather than building the vehicles that we need. Unions are there to protect the rights of their membership. You can't trust the government or employers to do so. Having been an employee of unionized and non-unionized businesses, I do know the benefits of both.

    Airlines have the benefit of being supported by our tax dollar in ways that rails do not. Airlines have been brought down by rising energy costs, their inability to hedge the price of gas properly and deregulation, which caused a market scramble to offer the cheapest seats possible, leading to a price war.

    Oh yeah... If you accidentally click the 'CAPS LOCK', you will continue to type in CAPS mode.. Click it again and it turns off.. OK.. I shouldn't have said that...

    jegan ;-)     Reply
  • commenter
    Philly Jim
    Oct 11 02:43 PM
    Where We Go from Here: Best and Worst Cases [view article]
    One word describes what is happening. C O N S O L I D A T I O N - what was J.P. Morgan famous for? Times have changed and unfortunately, this was needed for the West to survive. Reply
  • commenter
    Investor411
    Oct 11 02:25 PM
    Stop the Week, We Want to Get Off [view article]
    moose, I do not see that quote on Tuesday, quite the opposite I see a prediction that the Dow could go as low as 7,000 and a call to take ultra-shorts and USO puts that gained 37% in 3 days. Why the effort to discredit this guy by you and CME? At least try to work with facts and not attribute false statements to the author, who was brilliant all week.

    Reply
  • commenter
    Rob50
    Oct 11 01:25 PM
    Where We Go from Here: Best and Worst Cases [view article]
    Dozer, Well stated and a goood read. Thanks! Reply
  • commenter
    thedozer
    Oct 11 01:07 PM
    Where We Go from Here: Best and Worst Cases [view article]
    Rob50,

    I agree Bush certainly pushed for and bragged about 'record homeownership'! And I also rip the GOP for not standing up and screaming about this over the past 10 years!

    While I do have political leanings, NEITHER of these parties represent my ideals!

    as for rights, healthcare not being a right more that Social Security and DL, I agree... NONE of them are rights...

    "healthcare a extension of that ideal..." Ideals and rights are not the same! you said it correctly. They are idealistic... and I want people to have retirement $ and healthcare... but its not your duty to pay for mine!

    If we have the right to bear arms, then why not give us rifles?

    Life, Liberty and pursuit of happiness... notice NONE of them require money!

    Because the government doesn't make/sell/produce anything. It has no money. You and I make the money! And the government should use our TAX dollars to PROTECT those rights...

    not to create programs that burden one set of people while benefiting others.


    entitlements are going to be the ruin of our country, we should work and earn things we want... And I hope you and everyone realizes their dreams here...

    just go get it     Reply
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