Cesarnc's market talk, gossips, rumours & fun

LONG the Weekend.

Gees... last 4hr not looking at the markets to see now yen pairs melted big time LOL...

UBS now reporting cash crunch... Those bad news seem to come in waves, don't they?

"Hey Charlie, I can't stand this cash crunch no more. When are we dropping the bomb here?"

"Hold on, Joey is still calculating the damage here. We had to call the IT guy because our system couldn't handle 11 digits in the writedown sheet"

"Yes.. shit"

"No, I meant sheet"

"Yeah, I know the feeling...."

Nice weekend you all

Cesar, et al... I've been lurking on Forex Factory for months now and have learned a great deal. I've been reading this thread from the beginning and have only occasionally posted. I've been live now for five weeks, and thanks to all your insights, it was a mighty profitable week for me (+827 pips). I look forward to being a more active poster in the near future. Have a great weekend!

Oh sh*t! you're not actually taking what we say in here seriously are you!
I'd better watch my mouth...



This is one of the best threads on the site. No doubt.

Fed Invokes Little-Used Authority to Aid Bear Stearns (Update4)

By Scott Lanman

March 14 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke invoked a law last used four decades ago to keep Bear Stearns Cos. from collapsing after the securities firm sought emergency funding from the central bank.

The loan to Bear Stearns required a vote today by the Fed's Board of Governors because the company isn't a bank, Fed staff officials said. The central bank is taking on the credit risk from Bear Stearns collateral, lending the funds through JPMorgan Chase & Co. because it's operationally simpler to accomplish than a direct loan, the staff said on condition of anonymity.

Bernanke took advantage of little-used parts of Fed law, added in the 1930s and last utilized in the 1960s, that allow it to lend to corporations and private partnerships with a special board vote. The Fed chief probably sought to stave off a deeper blow to the financial system from a Bear Stearns collapse, former Fed researcher Keith Hembre said.

``The Fed really doesn't have any obligation to help a non- bank aside from its role or responsibility to keep the financial markets functioning,'' said Hembre, who helps oversee $107 billion as chief economist at FAF Advisors Inc. in Minneapolis. ``They made a judgment, probably an accurate one, that they're not going to function very well if you've got a full-blown crisis with a major Wall Street firm.''

Unanimous Vote
The Fed said in a statement that it will ``continue to provide liquidity as necessary to promote the orderly functioning of the financial system,'' repeating reassurances the central bank has made often since credit strains arrived in August. The statement said the Fed Board unanimously approved the arrangement with JPMorgan and Bear Stearns.

The Fed Board, which met today at 9:15 a.m. Washington time, typically delegates such discount-window lending authority to its regional reserve banks when it comes to loans to banks.

``There's a clear realization among people both in the official sector and the financial markets that some of the institutions we have built over the last 100 years are not well adapted to the modern 21st century financial system,'' said former New York Fed research director Stephen Cecchetti. ``A lot of what we've been seeing have been creative innovations to deal with problems that the institutions were not built to handle.''

The senior staffers declined to describe how large the loan to Bear Stearns is, and whether a private-sector bailout was attempted first before the Fed extended credit through JPMorgan. The staff officials said the Fed used its authorization under the law several times in the 1960s though didn't immediately have further details.

Paulson's Support
Such votes require approval from five Fed governors. The seven-member Fed board currently has two vacancies, and one governor, Randall Kroszner, is serving past the Jan. 31 expiration of his term.

Treasury Secretary Henry Paulson, in a separate statement, said ``there are challenges in our financial markets, and we continue to address them.'' Treasury is ``working closely'' with the Fed and the Securities and Exchange Commission.

``I appreciate the leadership of the Federal Reserve in enhancing the stability and orderliness of our markets,'' Paulson said. ``Our financial system is flexible and resilient and I am confident that the efforts of regulators and market participants will minimize disruption to the system.''

Robert Rubin, the former Treasury secretary who is now chairman of Citigroup Inc.'s executive committee, said at a conference today that the ``risks have reached a point that the right thing is to act and act in a very serious way.''
47% Plunge

Bear Stearns shares plummeted a record 47 percent on news of the bailout. The announcement, coupled with a report showing U.S. consumer prices were unchanged in February, led traders to place 56 percent odds that Fed policy makers will lower their benchmark interest rate by a full percentage point at their March 18 meeting, to 2 percent.

Yesterday, the odds of such a move were 0 percent.
A reduction of that size would be unprecedented since the overnight lending rate became the Fed's main policy tool around 1990, trumping the Jan. 22 emergency cut of 0.75 percentage point.

It's the first time since the financial turmoil intensified in August that Bernanke, 54, has publicly announced Fed assistance to a specific company instead of measures open to broader sets of banks or other financial institutions.

Most recently, the Fed on March 11 announced plans to lend $200 billion in Treasuries to primary dealers in exchange for debt that includes mortgage-backed securities. Last week, the Fed increased funds available through its so-called Term Auction Facility, set up in December to lend funds to banks in exchange for a wide variety of collateral, including mortgage debt.

`All the Problems'
``What they're doing now is going to help, but I don't know that it will solve all the problems out there,'' said Thomas Garcia, managing director of Thornburg Investment Management in Santa Fe, New Mexico, which oversees $50 billion.

Bear Stearns's liquidity problem ``definitely gives some doubt as to whether other firms are releasing all available information, and whether this credit crunch is really over,'' Garcia said.

Bear Stearns isn't alone among financial institutions stung by the credit squeeze to be bailed out. The U.K. government was forced to nationalize Northern Rock Plc last month after the first run on a British bank in more than a century and take on 100 billion pounds ($203 billion) in liabilities. Two German banks have also received emergency aid.

While U.S. authorities have been faster than their U.K. counterparts in announcing the rescue package for Bear Stearns, former Bank of England policy maker Willem Buiter says that doesn't make their course of action was the correct one.

``This creates the same moral hazard issues that we saw with Northern Rock,'' said Buiter, now a professor at the London School of Economics. ``This bank is being given access to public money, and we don't know what the terms are.''

To contact the reporter on this story: Scott Lanman in Washington at [color=#0000ff][email protected][/color]. Last Updated: March 14, 2008 17:34 EDT

Alright Mr. Bernanke....sh-t is hitting the fan now.......PJ...WTF!!!!!


Enjoy the weekend.......


HOLLA

Bring it baby!!

...Can you smell that?...

What's PJ?

Pound/Japan

Thanks SuperJ!

http://www.bloomberg.com/apps/news?p...CFI&refer=home
"Devastating Blow"... duh, really...

"Ten worst job interview blunders"

http://www.cnbc.com/id/23634285

Very funny...

And I always thought it was Peanut-Butter & Jelly

Fear, Panic, Mayhem, Chaos, Armageddon (well, maybe not that far yet but we're getting there).......Yes, I can smell it all and it is a lovely smell.

Yeah I always wondered what the fuck that was. I just stick to the GJ all spends the same I guess

Good to hear and congrats! Please remember to use proper money management and never ever get greedy. The day that you do thinking I'm going to make a killing, the market will turn against you and wipe you out.

Take care!

i agree with ash,..make somekind of subaccount, and trade agresivly, as shit, right?....

Fed officials meet to set interest rates on March 18. Futures traders put the chances of a 1 percentage point cut at 50 percent. A reduction of that magnitude would be the first in the two decades since the federal funds rate has been used to steer the economy.
``The name of the game is preventing disaster,'' said NYU's Gertler. ``By letting one house burn down, you might have the whole neighborhood burn down. You want to avoid that.'' , ...no actually i wona see that....:, only that will bring prices down, in the whole world....

and they still talk BS,...It's a near-certainty we are in a recession and there is a real prospect that it could be a serious one without strong policy action.''

The government should let everyone fend for themselves. Let those who are going to crash, fall hard. Survival of fittest. Dog Eat Dog world.

The government should just step aside and let the markets work it out themselves. Even if it means that investment banks and hedge funds go under. That is the only way to clean house. By bailing them out, there is no real incentive for the markets to change. They will be back to business as usual.

The Fed cuts by 1% and we will see oil around $125 and if the fundamentals don't change, $150 in the near future.

From The Economist print edition

The average American is being told that once we stop demanding as much Oil the rest of the world will crash, or slow down and soon 50 dollar per barrel Oil will return. Yep, that's going to happen as soon as Detroit becomes a center for Automotive innovation again.

The average American / or for that matter, average Joe around the world doesn't know any better. The politicians and big business keep on lying through their teeth.