Buyer beware

Cancel 2016.2

Cancel 2016.2

The Almighty
http://www.bloomberg.com/apps/news?pid=email_en&refer=home&sid=ac4g6JSjeG8A

Above is another thing people should be aware of.... many of you may not own these securities directly, but if you own any closed end funds, you may want to double check to see if the fund holds them. (as these are typically used by closed end funds that use leverage)

etfconnect.com is a good site that will allow you to check any closed end funds you may own.

As always, if you work with a financial advisor... consult with her/him regarding this issue.
 
Damocles said:
It's getting ugly.
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I agree.... unfortunately fugly is sitting right around the corner waiting to enter the scene.

Most people are unaware of the extent of the CDO mess, let alone the problems Auction rate preferreds are going to cause. Public awareness is mediocre at best.... add in the fact that the lawyers have yet to really enter the fray... and fugly is warming up....
 
Superfreak said:
I agree.... unfortunately fugly is sitting right around the corner waiting to enter the scene.

Most people are unaware of the extent of the CDO mess, let alone the problems Auction rate preferreds are going to cause. Public awareness is mediocre at best.... add in the fact that the lawyers have yet to really enter the fray... and fugly is warming up....
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mofugly is fugly's lawyer.
 
mega mofugly

Yesterday's 641 auctions of publicly offered bonds resulted in 395 failures, or 62 percent, according to data compiled by Bloomberg from four auction agents, Deutsche Bank AG, Bank of New York Mellon Corp., Wilmington Trust Corp. and Wells Fargo & Co. Such agents are responsible for receiving orders from broker-dealers and determining the winning rate. They also perform some administrative services for the borrower.

Just 44 failures were recorded between 1984, when the market was created, and the end of last year, Moody's Investors Service said in a Feb. 19 report.


how depressing
 
Desh said:
mega mofugly

Yesterday's 641 auctions of publicly offered bonds resulted in 395 failures, or 62 percent, according to data compiled by Bloomberg from four auction agents, Deutsche Bank AG, Bank of New York Mellon Corp., Wilmington Trust Corp. and Wells Fargo & Co. Such agents are responsible for receiving orders from broker-dealers and determining the winning rate. They also perform some administrative services for the borrower.

Just 44 failures were recorded between 1984, when the market was created, and the end of last year, Moody's Investors Service said in a Feb. 19 report.


how depressing
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It is going to get worse.
 
How likely is Bush to do ANYTHING to stem this?

The next guy or gal may be on the scene too late to really stem it.
 
uscitizen said:
I am not so sure what is coming can be stemmed by the FEDS.
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That also isn't what I said. Another Great Depression can be held off if Deflation is not part of the mess, Fed action can stave off Deflation so that supplies are there for the loans...
 
Damocles said:
That also isn't what I said. Another Great Depression can be held off if Deflation is not part of the mess, Fed action can stave off Deflation so that supplies are there for the loans...
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Did I say you did Damo ? What arrogance to assume it is all about you ;)
 
Bernake is the same guy who said this subprime thing was no problem.

Im not sure he will handle it in time or the right way.
 
Desh said:
Bernake is the same guy who said this subprime thing was no problem.

Im not sure he will handle it in time or the right way.
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Don't listen to what the Fed is saying. Look at what they are doing. It will give you a better idea of what is going on.

The first step he will try to implement is to save the financial sector. Dropping short term rates by two points while long term rates held up will help the bottom line of the banks.

The Fed is trying not to spook people as they do not want a panic to exacerbate the problem. Which is why they stopped supplying M3 money. Which is why they keep talking about "core inflation" rather than overall inflation. (core inflation excludes food and energy... two sectors that obviously have seen high inflation over the past few years)

Again, the financial sector is in shambles right now, but the saving grace (why I think we will avoid depression like environment) is the rest of the corporate world is actually pretty strong right now.

The second step will be to make sure deflation does not occur. (as Damo mentioned). The Fed will likely to continue a free flow of money into the sytstem to ensure deflation does not occur. They have been doing this for over a year now. We are in an inflate or die situation. They will inflate and when the financial sector gets a solid footing, then you will likely see the Fed raise rates to combat inflation.

Bottom line.... 2008 will be a rough year overall for the markets. Some areas should hold up quite well... especially gold, energy and grains.... if you have an advisor, talk to them about the level of exposure that may be best for you.
 
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