Cesarnc's market talk, gossips, rumours & fun

I watched most of Paulson / Bernanke hearing today...

It can be condensed as follows:

Paulson/Bernanke: We need to bailout. We need it quickly. It will cost UP to $700 billion, maybe less, it WILL stabilize the financial market as needed.

Congress: How can we be sure the next Treasury Secretay won't come here 2 years from now asking for another U$ 700 billion?

Paulson/Bernanke: You can't.

They took 5 hours to say those lines.

LOL. My summation: 'We are screwed'

If you are serious, I can send you a pm

Who says that government workers are lazy and don't work for their pay?

hell yeah

I don't know...
I think we will get a clearer picture after te bailout is approved and when the Treasury starts buying a few of the so-called "toxic assets". They will spend some $100 - $200 billion, the markets will calm down and I think it will be pretty much it...

It will be much more a matter of how the markets are going to FEEL about it rather than actually spending the $700 billion.

Well, this is a nice scenario.

We just need another shoe dropping to trigger the alternative scenario, though.

True. I was being somewhat facetious. Having said all that, is that a bull flag on Dow/S&P forming . And if optimism is indeed gonna pervade, then Bulls need to start this rally very soon...

Do you get Dow/S&P in the Metatrader? How did you get it?

I had Alpari, but I formatted the PC and lost the server address...

Just got it here with another broker's demo.

Water House Capital has the most contracts of any MT4 broker - including Dow, S&P, DAx etc etc

is getting closer. Anybody else have that 'sinking feeling'.

Okay, that one goes to show you life can be beautiful even without $700 billion.

http://img.terra.com.br/i/2008/09/23/875611-3976-ga.jpg

YEAH! Now we're going to have a nice kick ass bull run...

Warren Buffett's Berkshire Hathaway to Invest $5 Billion in Goldman Sachs: WSJ (Story Developing)

WARREN RULLLLEESSSS

http://www.happynews.com/showImage.a...uffet-Book.jpg
- I'd like to see those cards...

P.S. $20 bucks as these $5 bil is coming from Paulson, Buffet the "motivational factor"... And the bailout plan is now $695 billion.

This is why guys like Buffet can't really lose. He creates the short term movements, so this entire $5bil venture (okay, at least half of it) could be funded overnight by levaraged investments placed beforehand through second parties..etc. Just like governments buying oil before starting a war.

Not to mention that goldman ITSELF will gain stock price because of this, so the dude really can't go wrong. Lots of respect I have for Warren. But sometimes I think he has it too easy now:

http://www.reuters.com/article/topNe...48N0BU20080924

US dollar set to be major casualty of Hank Paulson's bailout
“This may prove to be the dollar’s epochal moment – the moment historians look back at as its major turning point.”

By Edmund Conway (Daily Telegraph)
Last Updated: 10:47PM BST 22 Sep 2008

The dollar could be at a major turning point Photo: AP Whether or not tomorrow’s accounts of today’s turmoil prove David Owen of Dresdner Kleinwort right; whether or not this is the beginning of the end of the dollar’s pre-eminence in the world’s central banks and foreign exchanges, the economic landscape has undoubtedly changed forever.

The US taxpayer bail-out of America’s banking sector is an event whose significance will reverberate for many years. What it means for free markets, for the way Western economies are run, for the prosperity of the world economy, must remain to be seen.
But as investors scrambled to make sense of last week’s events, already one conclusion was all but irrefutable – the US dollar will have to take another major fall.

The dollar rally that began in July and pushed the pound’s value against the greenback significantly lower has come to an abrupt end as markets face up to the fact that the currency will have to absorb the effects of a sudden shocking increase in America’s budget deficit.

When Treasury Secretary Hank Paulson announced that the world’s biggest economy was about to embark on the world’s biggest bail-out for its financial sector, the first concern economists had was about the long-term prospects for the nation’s finances and its currency.
Might the dollar now be vulnerable to a run? In the longer term, might this signal the beginning of the end for the dollar’s status as the world’s reserve currency?

The US Treasury was already planning to borrow $438bn (£237bn) next year to shore up its budget deficit. That could now rise to $1 trillion or more after the cost of the $700bn mortgage rescue fund is taken into account. Budget deficits of that kind are usually enough to scare many foreign investors away, and indeed the dollar slumped 1.1 cents to $1.8441 against the pound yesterday, and in late trading was down almost two cents against the euro at $1.46880.

Ironically, despite the pound’s comparative strength against the dollar – having risen from just above $1.75 in the past few weeks – it remains extremely weak against other world currencies, due to investors’ fears about the UK’s own home-grown problems.

“The magic trillion-dollar deficit is within sight,” says Simon Derrick, of Bank of New York Mellon, “The combination of the fiscal position and loose monetary policy is likely to be significantly dollar-negative. With an expanding supply of US paper they might want to hold something else as their safe haven, which might mean other currencies and might just as easily mean commodities such as gold.”

When a government opens the spending taps and borrows more, investors invariably take flight, fearing that assets denominated in those currencies will lose their value as inflation rises and the currency weakens.
However, with the Treasury still reluctant to spell out precisely how the rescue package, modelled on the late 1980s’ Resolution Trust Corporation, will work, analysts are still unclear about how far the dollar has to fall.
It is likewise still unknown precisely what effect the quasi-nationalisation of Fannie Mae and Freddie Mac will have for the nation’s finances, though the implications will again almost certainly be negative.

According to Mr Derrick, “the sums have changed so quickly on the fiscal side within the space of two weeks, and clearly the outlook for the US economy relative to where people were forecasting before Freddie and Fannie. Investors will also have a radically different outlook for the future.”

The biggest question, however, is whether the reserve managers in central banks in China and elsewhere will treat this as a justification for selling off some of their massive mountain of dollar-denominated investments. If this were to happen, it could cause a catastrophic drop in the US currency, potentially compromising its status as the world’s reserve currency.

However, with the euro area facing its own economic and financial crises, it looks unlikely to be able to step into the breach. This helps explain the leap yesterday in gold and oil prices as investors seek to buy tangible commodities in place of currencies that may easily be devalued in the coming years.
What was perhaps even more worrying for investors was an item in the small print of Hank Paulson’s rescue plan. It said that, separate to the $700bn markets rescue package, the US Treasury would plunder the Exchange Stabilisation Fund – the US currency reserves, established in the 1930s – in order to pay for an insurance scheme for the money markets.

“The Treasury has committed the nation’s FX reserves to supporting the money market industry,” said Chris Turner, head of foreign exchange strategy at ING. “That suggests to us that the dollar has fallen down the list of the administration’s priorities – a worrying development for foreign investors in the US.”

The fund’s cash is being funnelled into a new scheme designed to protect money market mutual funds, which mirrors the Federal Deposit Insurance scheme for consumers’ bank savings. “What worries us is that the US Treasury has committed the nation’s FX reserves at a time when the dollar is exceptionally vulnerable,” said Mr Turner.

COMMENTS ON BLOG:


And gold will go up as the dollar goes down. Silver will go up even more. And gold junior stocks even more again. Just get on with buying positions now rather than waiting for the dollar to collapse to two euros, see: http://arabianmoney.net/2008/09/22/g...nce-this-week/


You know what I hear....??? Blah, Blah, Blah. Everyone is giving their 2 cents, and that's wonderful, but the masses are still asleep in their dollar induced coma. Fed me, feed me. Is that a typo? u figure it out. Bottom line, can't worry about those who don't wish to see, doesn't matter if you predicted this 10 years ago, do what you think is right, @#$% the rest of 'em.


The Glass-Steagall Act was instituted to separate Brokers and Bankers so 1929-36 would never happen again--guess what? Greenspan and Robert Rubin lobbied to repeal the act in 1999-----Empowering big Wall Street to cause the mess we are in now---so the wealthy elite to probably take over our Financial System.
Robert Ruben [Council on Foreign Relations]and Bill /Hillary Clinton[Council on Foreign Relations]---Virtually all the people involved on the revocation of Glass-Steagall are all Council on Foreign Relations:Greenspan [Council on Foreign Relations] , Bernanke [Council on Foreign Relations], Paulson [Council on Foreign Relations].
Citigroup and JPM-Chase--Council on foreign Relations Banks who happen to own 51% of the FED--A PRIVATE CORPORATION OWNED BY BIG us AND FOREIGN BANKS.
So who is defending the Constitution of the United States? Bush family? [Council on Foreign Relations] Joe Biden-[Council on Foreign Relations]

The very people who want to have unsupervised power and back a PRIVATE CORPORATION expropriating taxpayer moneys are all organized with the big business names in the Council on Foreign Relations....

--about 2 years ago Stephen Roach reported in his article that he had just given a briefing at the Council of foreign Relations HQ in Georgetown where they were conducting computerized "Financial War Games"

--It was JPM/Chase-Rockefellers [Council on Foreign Relations]who forced the beginning of this mess with Bear Stearns..

..Just a large stretch of Coincidence, eh?

I think the United States is being taken over by a group of 6000 people using the method preferred by the Baron Rothschild....Take over the money supply and the politics don't matter----Obama is no hope as he is surrounded--Robert Ruben[Council on ForeignRelations] and Joe Biden[Council on ForeignRelations]

SEND TO EVERYONE YOU KNOW

Email your Representatives and tell them to reinstate the Glass-Steagall Act and that we want the free country back that our Forefathers intended.

WHY SHOULD 100 MILLION PEOPLE HAVE THEIR LIVES AND RETIREMENT RUINED SO THE FEW THOUSANDS OF WEALTHY ELITE CAN GET MORE POWER THEY DO NOT DESERVE, AND MORE MONEY THEY DO NOT NEED...

It's a win-win situation...

Timeline:

- Before the hearing, Buffet says to CNBC about the bailout plan: "That's what I would do if I was there".

- Comes the hearing, the congressists make 2 big questions:
1) how can we be sure the markets will get calm
2) why the responsibles for the mess won't be punished.

- 4 hours later come the answers
1) Buffet to invest 5+2.5 billion in Goldman
2) 26 financial institutions under investigation for mortgage fraud by the FBI.

Coincidences? With $700 billion at stake, it's hard to believe in coincidences...

So u r claiming... $700 bil bail-out plan is a-go??

Sonic

Euroooooooooooooooooooo short

Sure is!!!

Of course the congress is not going to sell it cheap, also they don`t want to appear in the picture giving Paulson a blank check.

So they build a circus for the media like yesterday's. Each and everyone of them are recorded saying "taxpayers" 15 times per sentence.

Bottomline, congress has no alternative proposal. There is no alternative proposal. It's sink or swim in a $700 billion pool...

The circus goes on with the most respected investors in the world - in the world - investing $7.5 billion (1% of the bailout plan alone) 3 or 5 days before the congress decision. I'd say Buffet has 5 days to wait if he wanted to...

If Paulson / Bernanke brought Buffet into the arena, it was one smart move. Bright intelligent move...

If they didn't, then they are 2 big fat lucky asses for having Buffet acting in the middle of the shooting spree.

Hey! We've seen Buffet moving Dow Jones +200 in a day with a press release only.

Dow futures +100 is the gauge.

..