Seeking Alpha
  • OneLongTrade
    JPM, yet another company revising profit forecasts down and the honey badger market just don't give a damn.
    8/9/12
    Reply (16)
    • OneLongTrade: Guess the play is long until the next earnings season (conveniently around the election), then short pretty much everyone that warned.
      8/9/12
    • anonymous#12: OLT, keep in mind that recently there has been a noticeable increase on liquidity thru the Fed back door.
      8/9/12
    • OneLongTrade: Yep, saw a few articles on the repo program. But does that liquidity really go anywhere? Wish I knew someone who dealt with that.
      8/9/12
    • losbronces: Yes, Fed is back in the repo biz: http://bit.ly/NK7j5z
      8/9/12
    • jdub2788: It's a Central Bank's world after all!
      8/9/12
    • jdub2788: $600M is a drop in the bucket for what's to come next.
      8/9/12
    • anonymous#12: Repo are temporary market operations, they add securities to their SOMA account. Which mean purchases......
      8/9/12
    • OneLongTrade: The purchases, as the article alludes to, are in Treasuries, Agencies and MBS. Why should that positively impact stocks?
      8/9/12
    • anonymous#12: OLT, in essence the repo provides cheaper lending to the dealers as the repo agreements are connected at a lower interest than the fed fund
      8/9/12
    • anonymous#12: The banks are borrowing below the fed fund rates.
      8/9/12
    • OneLongTrade: Sure, great for the banks who borrow. And we know they're not really lending. So you're telling me these banks are investing that money
      8/9/12
    • OneLongTrade: directly into the stock market? Find that a little hard to believe.
      8/9/12
    • anonymous#12: No the stock market. The Federal Reserve is financing the purchase of treasuries.
      8/9/12
    • OneLongTrade: Right, so the core argument is that by artificially bringing yields down on savings/bonds, no choice but the market? If that's the case, I'd
      8/9/12
    • OneLongTrade: rather stick to cash and forget the market completely.
      8/9/12
    • anonymous#12: Well, extra liquidity on the credit markets usually finds risk assets.
      8/9/12