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Genesis Posts: 71433 Incept: 2007-06-26 
KD^2 
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http://market-ticker.org/archives/1539-P....
---------- "The monetary base in ALL modern monetary systems is the sum of unencumbered assets against which one is both WILLING AND ABLE to borrow." - Me
2009-10-23 11:56:49
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Justifiedtoo Posts: 103 Incept: 2008-01-23 
Denver
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Looks like a duck, acts like a duck, walks like a duck....... Reasonable to assume it's a duck. Teller: "What can we help you with today sir?" Response: "I'd like to make a withdrawal. Small bills please." ---------- Auntie Em, Hate You, Hate Kansas, Taking the Dog, Dorothy
2009-10-23 12:05:52
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Asianbull Posts: 2184 Incept: 2007-09-03
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End of financial year. Banks have to get rid of junky assets or mark them to market. That leaves them with a hole in the balance sheet that needs to get plugged. Expect a whole host of secondaries.
---------- The root cause of all the world's problems is inflation. The only sound money in the world is commodities.
2009-10-23 12:08:23
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Zenthunder Posts: 4684 Incept: 2007-10-11
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next daily buy signal I see on usdcad I may take for a long term hold then - usdcad will benefit wildly if dollar rises and commods tank. Trend not quite up yet tho...
2009-10-23 12:08:49
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Jwm_in_sb Posts: 224 Incept: 2009-04-16
California Desert Online
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Teller: "What can we help you with today sir?" Response: "I'd like to make a withdrawal. Small bills please." That's precisely what I'm about to do with one of my accounts this weekend.
2009-10-23 12:09:34
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Tesla Posts: 8182 Incept: 2008-04-03 
Delaware
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Quote:I am hearing repeated anecdotes from multiple areas that foreclosed property held by banks with multiple full-price offers that include a financing requirement are being sold instead to people with actual cash at radical reductions from that price. Wouldn't this cause balance sheet issues vis-a-vis mark-to-market ? ---------- "Neither the wisest Constitution nor the wisest laws will secure the liberty and happiness of a people whose manners are universally corrupt." Samuel Adams I'd rather die on my feet than live on my knees. - Emiliano Zapata
2009-10-23 12:10:07
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Genesis Posts: 71433 Incept: 2007-06-26
KD^2
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Yeah Tesla - that they're doing it instead of taking the higher offer is a pretty solid sign that they're REAL SURE the credit-funded transaction won't close. When there are MULTIPLE higher offers all dependent on credit this says that whatever they fear it is NOT confined to the one potential buyer - their fear is SYSTEMIC. ---------- "The monetary base in ALL modern monetary systems is the sum of unencumbered assets against which one is both WILLING AND ABLE to borrow." - Me
2009-10-23 12:12:49
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Ck_dexter Posts: 1412 Incept: 2007-07-19
SE PA
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Might be time to see my old friend SMN. But why now? has the Fed intimated some messages of "no mas" to the key players? ---------- "When plunder becomes a way of life for a group of men living together in society, they create for themselves, in the course of time, a legal system that authorizes it and a moral code that glorifies it." - Frédéric Bastiat
2009-10-23 12:14:04
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Asianbull Posts: 2184 Incept: 2007-09-03
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Look like Bernanke is getting ready for another bank run: http://www.bloomberg.com/apps/news?pid=2.... ---------- The root cause of all the world's problems is inflation. The only sound money in the world is commodities.
2009-10-23 12:19:40
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Seektruth Posts: 380 Incept: 2007-09-01
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Well, it looks like I'll put off my real estate purchase a little longer to see what shakes out on this.
---------- Those who hammer their guns into plows will plow for those who do not.
2009-10-23 12:26:45
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Shoobedoowa Posts: 1321 Incept: 2007-06-27
Western Canada
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And an update from Roubini....... Title of Interview: Quote:Nouriel Roubini: Big Crash Coming http://www.indexuniverse.com/sections/fe.... Last modified:
2009-10-23 12:34:45 by shoobedoowa
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Widgeon Posts: 6529 Incept: 2007-08-30
OK Online
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KD, I'm a bit confused by this; You Say First; "Note that the indications above are far stronger than what we saw going into last fall before the wheels came off." and then later this; " ... as this analysis is based on nothing more than observation of behavior by market participants that all point toward their foreknowledge of an event that might happen in the reasonably-near future and is not, at present, backed up with actual significant credit-spread widening or other objective criteria." I assume you're just being cautious ... but I thought thaT Last Fall was pretty clearly obvious ... whereas I can't get any (personal) clarity right now. Yet, you seem to be very confident (thus the first statement). If you feel very much more confident about this than you did last fall ... that's saying something.
2009-10-23 12:27:12
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Slyace Posts: 1061 Incept: 2007-10-02
Dallas
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On the credit-funded transactions not closing, is it (1) people who are trying to get financing, or (2) people who already have financing? I.e., are the sellers implicitly saying they do not think the buyers will be able to get financing, or are the sellers implicitly saying they do not think the buyers who purportedly have financing will actually have financing at closing? If it is the latter, that does sound pretty bad.
2009-10-23 12:33:11
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Asianbull Posts: 2184 Incept: 2007-09-03
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BTW, I expect Bernanke to ultimately bail out all the financials by printing money. He will be thrown under the bus.
---------- The root cause of all the world's problems is inflation. The only sound money in the world is commodities.
2009-10-23 12:34:57
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Marginnayan Posts: 10460 Incept: 2007-06-27
Dallas Forth Worth Metro, Texas
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Warning noticed.
---------- "The whole purpose of this ****ing US Fed is to make Banksters richer and Midle Class Americans poorer with each passing day. No More. Abolish the US Fed right here, right now. - Me
2009-10-23 12:38:14
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Stoverny Posts: 250 Incept: 2009-02-25
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"I am hearing repeated anecdotes from multiple areas that foreclosed property held by banks with multiple full-price offers that include a financing requirement are being sold instead to people with actual cash at radical reductions from that price. This implies that these financing contingencies are regarded as not only potentially no good but factually no good, as if the banks know for a fact that the credit pipeline will (not might), within weeks or months (in the time required to close), disappear. There is no other rational explanation for this behavior." I am wondering exactly how different in price the "radical reductions" are? Seems to make sense that the bank would rather take less in up-front cash, than deal with the hassle/time of hoping at least one of the other bidders proves credit-worthy. Especially given how many deals are falling through these days due to buyers not being approved... in a falling market delays can be worse than just biting the bullet up-front. Last modified:
2009-10-23 12:50:01 by stoverny
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Genesis Posts: 71433 Incept: 2007-06-26
KD^2
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Uh, a lot Stoverny.
---------- "The monetary base in ALL modern monetary systems is the sum of unencumbered assets against which one is both WILLING AND ABLE to borrow." - Me
2009-10-23 12:49:46
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Kidhorn Posts: 88 Incept: 2009-08-11 Rockville, MD
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Seems too vague for me to change my investment allocations. We all know the banks are insolvent. Have been for some time. Why is now any different than say 3 months ago?
2009-10-23 12:50:17
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Sondog Posts: 58 Incept: 2009-05-18
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@Kidhorn The difference is the banks are 3 months worse off as far as cash drain. Read the JPM point again. Also why does anything need to be different? If they were insolvent 3 months ago and still are, then it still is a bad investment. No one can know when the cards crash to the table. But the bigger the house of cards gets, the more likely it is.
2009-10-23 12:56:11
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Genesis Posts: 71433 Incept: 2007-06-26
KD^2
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I believe what is happening is that servicers are advancing payments they're not getting. This would explain the cash drain. Nothing in the official reports does. ---------- "The monetary base in ALL modern monetary systems is the sum of unencumbered assets against which one is both WILLING AND ABLE to borrow." - Me Last modified:
2009-10-23 12:57:50 by genesis
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Jwm_in_sb Posts: 224 Incept: 2009-04-16
California Desert Online
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Wid, My interpretation of what KD means is that the circumstantial evidence is stronger, but is still lacking a smoking gun that he had last fall before Bernanke obscured everything by reducing the published information. KD, let me know if I'm off base....
2009-10-23 12:58:37
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Johnny_crab Posts: 888 Incept: 2008-10-09
Boonieland south Texas, Ron Paul's District
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Thanks for the ticker! WFC sent me one of those "you're a good customer, so FU." letters this week. The ticker explains part of what my 17 year old daughter was told recently when I suggested that the Bank of Sealy would be a good place for her to save now instead of giving it to the large, pretty building people. ---------- If you want to know truth, start by turning off your television. "Many, many people are coming into an understanding that the left/right, us vs them construct foisted upon them for centuries is, in fact, a meme constructed to control our thinking."--Truthseeker Last modified:
2009-10-23 12:59:57 by johnny_crab
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Genesis Posts: 71433 Incept: 2007-06-26
KD^2
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Anecdotal: Chase is apparently sending these letters out too! Waiting for a faxed copy to confirm. Oh oh... ---------- "The monetary base in ALL modern monetary systems is the sum of unencumbered assets against which one is both WILLING AND ABLE to borrow." - Me
2009-10-23 13:01:26
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Mo Posts: 5502 Incept: 2007-06-26
Florida Online
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The credit card thing is probably the banks' method of getting more bailout money from the feds - get people to scream bloody murder and complain to their critter who then votes to give more money to the banks. None of that will help the indebted, but it will be sold that way. ---------- "The World has been cancelled. It doesn't even look like the world. There is one island that is maintained and is said to be owned by the Sheikh and the rest looks like a pile of muck."
2009-10-23 13:01:29
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Kidhorn Posts: 88 Incept: 2009-08-11 Rockville, MD
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I think the market is going to falter. Banks made most of their recent profits off trading. The market went up mainly because of financials that had good profits because the market went up. They can't keep feeding off each other. It's unsustainable. I just can't help but think Bernanke will try to paper over everything.
2009-10-23 13:03:27
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