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Genesis Posts: 71431 Incept: 2007-06-26 
KD^2 
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http://market-ticker.org/archives/1012-S....
---------- "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
2009-05-06 07:44:08
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Asimov Posts: 26714 Incept: 2007-08-26 
east tennessee Online
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Uh oh. Surely the big fund managers are going to pick that up? If so...
---------- It's justifiably immoral to try to deal in a moral fashion with an immoral entity. If you trade based on what other people say, you will lose money. Especially what I say. I won't be held responsible. Festina lente.
2009-05-06 08:51:28
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Genesis Posts: 71431 Incept: 2007-06-26
KD^2
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There are a few fund managers who have figured it out. They're slowly sidling to the door as a consequence of smelling the smoke. Most haven't figured it out. Yet. ---------- "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:
2009-05-06 08:52:36 by genesis
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Asimov Posts: 26714 Incept: 2007-08-26
east tennessee Online
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And here I thought that big government dick stuck into gm and bac's results would be the big mover.
---------- It's justifiably immoral to try to deal in a moral fashion with an immoral entity. If you trade based on what other people say, you will lose money. Especially what I say. I won't be held responsible. Festina lente.
2009-05-06 08:53:06
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Seedyrum Posts: 267 Incept: 2009-04-09
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considering "all" ( well to this point all I am sure there is more information we do not know that is hidden or even well hidden)information we know to this point why does the American public believe or even that Geithner has any credibility?? (also the Administration) I was shocked when I READ that BAC or even C had to raise only ten million> considering the number of CDS out there and the number of real estate loans gone bad> I figure the low number was to keep the public thinking in the positive> However if these banks have to keep raising money to keep reserves up wont the public finally get a clue? and what then of the confidence in Fed or Geithner then the Administration? This drip drip drip is no good> get own with the slaughter of these insolvent banks so we can all heal replenish and reconstruct> Lies will get one only so far before the truth prevails> time wasted>money lost>lives destroyed by lies when the truth was less painful and less time consuming> to do what should have been done from the START> Last modified:
2009-05-06 08:56:27 by seedyrum
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Blankfiend Posts: 1736 Incept: 2009-02-07
MA
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Karl, remember your quote that the Fed is now accepting as collateral used condoms, plasma, and dog squeeze? Do you truly think that a little thing like a credit down-grade is going to keep Ben-dover from bending the rules a little more? ---------- My Elliott Wave Blog: http://blankfiendsew.blogspot.com/ Democrats and Republicans are like M&M's - different colors on the outside and full of brown stuff on the inside.
2009-05-06 08:58:13
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Genesis Posts: 71431 Incept: 2007-06-26
KD^2
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Jthayer, yes. If he amends the facility NOW he's going to have a problem with the Treasury Market. Remember, the entire confidence game is based on "The Fed doesn't lose money on credit extended." The day he does something that is clearly a panic reaction to an actual threatened credit loss is the day you short the entire bond curve. ---------- "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
2009-05-06 08:59:42
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Snowman Posts: 1040 Incept: 2009-03-09 
avoiding yellow snow
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I don't think the banks themselves know how much off balance sheet they need to provision against. The bookings don't go through the normal accounting/risk reporting process inside the banks. The SCAP questionaire had questions about this but it was left up to the banks to figure it out....without any real 3rd party oversight. Any investor going near bank stocks (except a couple like BONY) is brave indeed.
2009-05-06 09:11:57
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Blankfiend Posts: 1736 Incept: 2009-02-07
MA
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Thanks Karl. The one area of the credit market he has NOT gotten involved in yet is the Corporate Bond market. As a result, it has not come in the way other markets have. Yields on Aaa and Baa paper are extreme. (see chart) From your statement Karl, I assume you don't think Ben CAN involve himself in those markets? ---------- My Elliott Wave Blog: http://blankfiendsew.blogspot.com/ Democrats and Republicans are like M&M's - different colors on the outside and full of brown stuff on the inside.
2009-05-06 09:12:43
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Genesis Posts: 71431 Incept: 2007-06-26
KD^2
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If Ben does anything that is perceived by the market as explicitly taking credit risk the danger to The Fed's credibility and thus their balance sheet is extreme. This can turn into a self-fulfilling prophecy in a huge ****ing hurry. He'd have to be nuts to do it, but as he has demonstrated thus far, he is indeed nuts. The thing is that unlike the obfuscations of Maiden Lane and such this is "in your face" and nobody will be ignoring it. ---------- "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
2009-05-06 09:15:17
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Blankfiend Posts: 1736 Incept: 2009-02-07
MA
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Thanks Karl. By the way, what time did you get up this AM and how much coffee have you had? You are on a TEAR! 
---------- My Elliott Wave Blog: http://blankfiendsew.blogspot.com/ Democrats and Republicans are like M&M's - different colors on the outside and full of brown stuff on the inside.
2009-05-06 09:19:19
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Genesis Posts: 71431 Incept: 2007-06-26
KD^2
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Most of those were written last night. I do that rather frequently..... 
---------- "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
2009-05-06 09:23:09
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Blankfiend Posts: 1736 Incept: 2009-02-07
MA
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Cool, I was having a flashback from the movie Yes Man of you dressed in a jogging suit and talking about RED BULL. ---------- My Elliott Wave Blog: http://blankfiendsew.blogspot.com/ Democrats and Republicans are like M&M's - different colors on the outside and full of brown stuff on the inside.
2009-05-06 09:33:40
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Binney Posts: 2326 Incept: 2008-08-27
Riverhead, NY Online
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I'm embarrassed to be asking, but what are the conduits?? the off balance sheet junk? how can they be downgraded separately from the entity? I send the Ticker to my J6P friends and family and if they ask me about it I can't say IDK.  thanks anyone...
---------- Holy crap!!!! I'm a left leaning authoritarian!
2009-05-06 09:47:45
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Curbyourrisk Posts: 1891 Incept: 2008-08-19 Long Island, New York
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KARL: Goldman Sachs is calling you out. They are raising the banking sector to OVERWEIGHT. Crossing the headline now. GS must be destroyed! ---------- Hopium: hope filled delirium preached by the White House and Swallowed whole by the American Sheeple. Why is Franklin Raines a free man? "We saved the world from disaster" - Ben Bernanke - Jackson Hole 08/21/2009 
2009-05-06 09:49:13
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Genesis Posts: 71431 Incept: 2007-06-26
KD^2
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They still have shares they need to sell to you. ---------- "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
2009-05-06 10:01:47
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Curbyourrisk Posts: 1891 Incept: 2008-08-19 Long Island, New York
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Yeah.....thats what I figured.... Sold to you J6P!
---------- Hopium: hope filled delirium preached by the White House and Swallowed whole by the American Sheeple. Why is Franklin Raines a free man? "We saved the world from disaster" - Ben Bernanke - Jackson Hole 08/21/2009
2009-05-06 10:14:11
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Jdseese Posts: 84 Incept: 2009-02-22 Cleveland OH Online
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"KARL: Goldman Sachs is calling you out. They are raising the banking sector to OVERWEIGHT. Crossing the headline now. GS must be destroyed!" Does that mean that DOOM is cancelled again? Er, postponed?
2009-05-06 10:33:45
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Psgirl Posts: 3673 Incept: 2009-02-18
Online
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Karl, your disclosures are much more entertaining than the other SA authors.
2009-05-06 10:41:19
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Wineaux Posts: 131 Incept: 2009-03-23
pure Liquid pleasure
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Snowman – You need then also call bull**** on the government’s stress tests. If the banks can’t figure out how much there **** is worth and they hire the best and the brightest out of Wharton, what makes you think for a millisecond that the government and can value it….certainly government “stress test” regulators aren’t the Wharton types, probably community college graduates. The whole game playing going on between banks and government is complete horse****. Stocks may be rallying because those playing in this market believe the Wharton types. If you ran a banking company who would want on your team, Wharton grads or community college grads? Disclosure: All money on the sidelines except for a small exposure to TBT. Big banks are TOAST. ---------- What wine goes with unemployment?
2009-05-06 10:42:36
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Genesis Posts: 71431 Incept: 2007-06-26
KD^2
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PS:
---------- "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
2009-05-06 10:44:43
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Sushihorn Posts: 6084 Incept: 2007-10-22
Arlington, TX
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Binney Conduits are also knows as SIVs or SPVs. They are off-balance sheet toxic waste dumps - theoretically not owned by the banks and therefore not consolidated onto the bank balance sheets. However, the reality is they are fully-controlled subsidiaries even if the notional ownership is obscured. The banks tipped their hands to this fact when they took responsibility for their conduits last year. Karl Just one quibble. Should the indicator of trouble be when the canary STOPS singing? ---------- http://jengafinance.blogspot.com/ Stop the looting. Start prosecuting. Do it soon. Or folks may start shooting.
2009-05-06 12:10:43
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Snowman Posts: 1040 Incept: 2009-03-09
avoiding yellow snow
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Wineaux, I rather take the local school kids, they are street smart. One of my top structurers finished high school via GED, college never was a thought (he can probably buy one now). But an MIT quant here and there doesn't hurt. But I have nothing against any graduate as long as they are honest. And honest is not the stress test. Much ado about nothing. Good observation, though, we can number crunch price movements in 1/1000 sec increments but don't know **** all about the place we work.
2009-05-06 12:13:55
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Binney Posts: 2326 Incept: 2008-08-27
Riverhead, NY Online
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Sushi wrote..They are off-balance sheet toxic waste dumps conduits are another word for the entities that hold the crap... ahhh... thank you! If you could see me, there'd be a light bulb above my head that just clicked on! ---------- Holy crap!!!! I'm a left leaning authoritarian!
2009-05-06 12:19:22
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Schwantz Posts: 5077 Incept: 2007-11-12
Monkey Do
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You noticed that Goldman UPGRADED basically the entire US banking sector, including debt, this morning? They obviously are running the secondaries... ---------- Dives sum, si non reddo eis quibus debeo Smash the Keynesian idiocracy! Last modified:
2009-05-06 12:39:18 by schwantz
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