BelaOthello

Will Obama Succeed in Maintaining His Approval Rating?

It's amazing how the government has fooled the public into blaming "wall street" and companies like AIG for this destruction when it was truly the government that caused the disaster. How do you think these companies were allowed to leverage 5 to 7 times cash flow? In 2007 I spoke with an investment banker in Citigroup and they began lending money to corporations at 7 times cash flow instead of 5 times cash flow because Ben Bernanke was doing such a great job and keeping money cheap by lowering the fed funds rate rather than increasing it to fight inflation like what we saw with gas prices and what is coming. Now to avoid getting caught up in the additional money that was given to AIG which went to save foreign banks they release the bonus information first (150 million in bonuses vs 100 plus billion to foreign banks and Goldman Sachs--the treasury sec former employer, Merrill, BofA etc..)

Why Did EUR/JPY Hit a Record High?

Well Ms. Lien, you almost had something. As you can see your prediction of the EURJPY hitting over 175 before the year end couldn't be farther from the reality of it hitting the lows from 2001 at 113.71. The issue is the Yen Carry Trade and someone needs to report this correctly. The solution to stablizing the markets short term is simply devaluing the YEN. Look what happened to the markets after the G7 made a strange remark directed at Japan around Oct. 28th without even a meeting being set. The Dow rallied 900 plus points afterwards.

Iceland: What It's Like to Live in a World Without Money

Dear occdude8:
Are you kidding? Do you actually believe the garbage that you left on this website like below? Try thinking are asking for some help with this excercise before writing senseless attacks on countries and their people.

Google, the Yen Carry trade and then maybe you can begin to understand how the government of Iceland who participated in over leveraged bets in a trillion dollar trade like the rest of the world was able to go bankrupt and it had nothing to do with what they produced or didn't produce.

In fact, it was the G7's remark to isolate Japan and devalue its Yen around Oct. 28 that sparked the 900pt rally in the Dow the following day.

This entire "crisis" has been about the trillions of unreported dollars involved in the Yen Carry trade and the global margin call which created the snowball effect of every single asset being sold at the same time. Why else would gold (a safe haven) have it's largest monthly drop in over 25 years last month, yet the price of actual bars and coins and physical gold went up? hmmm Maybe because central banks from several emerging countries and our very own were selling their gold futures contracts at fire sale prices. Just like the Russians and Middle East were selling oil to meet their margin calls.

In other words, think a little deeper before proving to the world that you have no idea what you are talking about and especially before you start slamming entire countries and the people who live in them. Not to mention when one of the countries is your very own that gave you the free speech to say such things. You should be embarrased.

occdude 8 Comments Nov 15 06:46 PM
Now Iceland is having a hard time. Have they actually done an assessment of what they produce for all the goods the world gives them? They have Cod and geothermal steam (we can use the former but not the latter) and thats it! Couple that with derivative financing and they produce SQUAT!! They like the rest of G7 (esp. US) are a bunch of unproductive, slovenly, amoral, relativistic, snobby, self-absorbed and silly people that need a DIVINE rear end paddling.

Oil Bubble Continues Its Burst

With all due respect to the people who have made comments on here, everyone seems to be missing the critical key issue just as the media and the government although statements keep stumbling across the results of the key issue. Last month was a global margin call which resulted in the selling of ALL ASSET CLASSES and especially those investments which made the most sense like oil, gold, and technology. Countries, large institutions around the world, and central banks were deleveraging the currency trade based on the Yen where trillions of dollars were converted from primarily EUROS TO YEN (which is why you guys should watch the EURO YEN) not the Euro dollar and then these Yen were then leveraged up in many cases 400 times to reinvest in the stock market, oil, and gold as an inflation hedge. Notice how when Bernanke made things 10 times worse back in August 2007 this trade was put on in mass by the world again which is how the Dow went from 11,000 to 14200 and how Gold went from 700 to 1000. But guess what? Party ended in October when the Yen rose and everyone THE WORLD headed for the exits and it made matters worse like a snow ball effect like never seen since the creation of the stock market. It is still a threat. We trade minute by minute based on the value of the Yen. All the banks around the world are doing the opposite of what they should be doing because they are confused and focusing on the "economic crisis" thinking that lowering rates is the answer but THEY ARE WRONG!!! Although we do have an economic crisis, the world is only making all of the currencies weaker and the YEN STRONGER. We need to raise rates and strengthen our dollar first. Obama needs to speak to the G7 and other world leaders and have Japan, BOJ, lower the Yen temporarily and the do an organized deleveraging of this trade after there is stability. Then there needs to be a ban on this type of leverage forever because of the new age of our markets where ETFs have been created and anyone in the world can trade markets at the push of a button in hundreds of milions of dollars electronically via the Internet. This was never available in the 1930s which is why grey beards are being caught off guard and everyone is clueless right now. Forward this comment to everyone you know and get this to our new President if he is truly going to listen to the People because this is the number one critical issue that needs to be addressed first so we stop throwing our tax paying money in the disguise of a stimulus package everytime the market drops due to the Yen rising. The market is not dropping because of the economy; that was the first 25%!! I can explain it better if I had more time but I hope this helps. I did try and get a message to Rahm Emanuel and President-elect Obama but have not heard back. Regards, Jaysen

Playing the Oil Market

When you say you are getting crushed what assumptions are you making about the current or long term price of oil? If the long term price of oil is going down wouldn't DBO be getting crushed?

Roger Wiegand: Oil to Reach New Highs by Year-End

BRAVO!!!!


On Oct 10 12:42 PM akapital wrote:

> i am not in the business of making predictions but for those expecting
> further drop in oil consider that the costs to extract oil continues
> to increase such that lower prices can affect supply. In short, just
> as high prices elicit demand destruction, low prices elicit supply
> destruction. Perhaps coming weeks we'll find a balance. It's probably
> closer to $90-100.

Reverse Carry Trade Borrowing Proves Deadly

Thank God!!!! Someone finally got it right out there in the land of the news!!!!! This is the issue! I can't believe Cramer tried to explain the market with a rope and futures and fundamentals taking turns winning out on alternating days. Good job for finally getting it right. Maybe add a chart that illustrates how the Euro Yen tracks the movement of our QQQQ almost identically but inversely and then explain why because of how the margin calls work on the Yen carry trade. Headlines should read...GLOBAL MARGIN CALL!!!!!!!!!!! WHO CAN HELP?

S&P Returns Since 1927 Are Important

worst is not over but we will prob hit 10,000 in a few weeks. the guy above is right. we are not like 1927. the never had the internet and global capital markets trading as fast and as complicated trading strategies as we do know such as this insanely leveraged Yen trade and they never had the extreme forced selling that we are stil experiencing. This is not real valuation selling yet.