happysoul77777

Fed No Longer Sole CP Buyer: A Spark of Hope - But Not Too Much

It makes sense, because the AGG has recovered almost to the pre-Lehman level.

A Long and Painful Consumer Slowdown - Barron's Interview

Deleveraging was caused by the rise in interest rate and FASB 157.
Now, interest rates are lower. Securitization process is being fixed. FASB 157 is pro-cyclical. Be prepared for the surprise surge in buying by consumers.

Chart of the Week: U.S. Dollar Reverses Downward

The dollar rallied and the stock market crashed big! Now, the dollar is declining, the stock market must be in a rally mode!#?%???

Silence of the Cash Registers: Fifth Consecutive Month of Falling U.S. Retail Sales

It's obviously bad. We all know that. How soon will the customers start buying again?

The Future of Residential Mortgages (Maybe)

FASB 157 and loss of confidence will seal the fate of the private mortgage industry for a long time.

ECRI: Economy Remains at Cycle Low

The Lehman bankruptcy caused an implosion of global credit. The data make sense. But the data may be a few weeks late, as bank loans have exploded in recent weeks.

The Market Rally Has Legs

The market may be looking at the improving housing market and the new loan originations that are happening in the banking system.

JPMorgan Chase: Poisoned by Bear's 5,000 Counterparties

JP Morgan needs to disclose the cash flows on the level 3 assets plus all the statistics regarding delinquencies, foreclosures, net charge-offs, interest rates, insurance, maturities, geographic concentrations, single issuer concetrantion, and average lives, etc. These data will help to allay fears and uncertainties. Not all level three assets are toxic.

Where Was the Inflation?

It's more like a deflation short-term. Everything is deflating right now!
After they fix the securitization process, inflation will surge back quickly.

The Federal Reserve and the Velocity of Money

The FAS 157 accounting rule scares investors and issuers. The securitization process is effectively dead for non-agency securities of mortgages, auto, credit card, and student loans. The multiplier is low for that reason. Banks actually are making loans. Please look at the bank data on the federalreserve.gov website to verify what I just said.

Numbers to Cry For

Hedge funds need to be regulated like mutual funds to protect investors and the integrity of the financial markets.

Four Opinions on OTC Derivatives

Derivatives need to be regulated and traded on an exchange. Otherwise, market makers can manipulate prices and crash the markets. When was it the last time you see the broad bond index was down 15% in a weakening economy?

Worse yet, the FASB accountants force the financial institutions to mark their portfolios using these (fair?) depressed prices. Derivative players know that. They use the leverage inherent in the derivatives to crash the market further.

Federal Reserve, What Do You Have to Hide?

Give them a break! They screwed up by letting Lehman go bankrupt. Now, the whole world is paying the price. The Fed is trying everything they can to fix this meltdown. You don't want a 1929-style depression, do you?

Cramer's Mad Money - It's All Rigged (12/11/08)

The market is structurally unsound, because the SEC gave too much power to the sellers. The sellers can sell short stocks naked for two days before they have to deliver. In addition, the repeal of the uptick rule has given the sellers the power to execute bear raids at will.

The FASB accountants also abe the sellers by forcing financial institutions to abandon cash flows and mark to market their portfolios at depressed prices. As a result, there has been an implosion of capital world-wide.

The SEC and the FASB have done a good job destroying capitalism this year better than any communist or Al Quaeda!

Why Buy T-Bills Now?

Because investors know that the market is broken...rigged...mani... abetted by the SEC!