Quote:
Originally posted by vl_86
ouch, bad entry time to short stock
federal reserve just pumped in 200 billion to help the financial markets
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translation: bernanke decides that the federal reserve will trade banks, brokers, mortgage lenders their crappy(lol still rated AAA) mortgaged backed debt paper for govt back treasuries for 28 days..oh ya and at the same time there is a housing crash..reallllll good trade off... if your one of those stupid companies that took on way to much risk on their balance sheets cause no one else wants this garbage since there is no market for it. todays move was just a short covering inspired by the fed. will probably do it again next week at the FOMC meeting. trend is still down in the grand scheme of things.foreclosures and deliquencies payments still going on, and people dip in to their savings and mutual funds(which consist of stocks) during rough times thats just the way it is.
it's great that bernanke ignores energy and food prices when calculating inflation( we all know how fast oil has risen, and a bag of flour was $5 last year and $10 this year) and keeps on increasing the money supply but it's ok for the average american if they only buy american goods and no imports. at this rate 10 yrs from now america will have a choice of buying a $130,000 bmw 3 series or a $90,000 camry or $8000 chinese equivalent. thats right gm and ford will go out of business unless the govt bails them out, they also bundled and sold a fuck load of unsecured debt for car loans backed on "stated income". lol time to get in on the repo business, say what? $200 for 30 min repo job.
sidenote: the options activity in bear sterns today was really crazy. over 50,000 march 30 puts traded. bear last traded at $64. 1 of 2 reasons for this activity. people expect it to drop over 50% in a week and somebody wants to get out or there is an unbelieveably upside move coming in the financial sector and investors have hedged themselves for a slight chance of a crash in which case they can load up on the underlying asset big time.