Rolling US Economy Into The Shitbin Thread

TAKE THE HIT

Boohoo.

-- Ned Raggett, Wednesday, July 9, 2008 4:11 PM (Yesterday) Bookmark Link

i'm glad that you read this thread, ned, because this story about cheap jones beach concert tix may amuse you.

:-)

and if not that story, then my shitty linking abilitiesmight ;_;

The only reason to be concerned with one-day stock gains/losses is if you're about to buy something or about to sell something.

Fannie Mae and Freddie Mac to be bailed out by taxpayers?

me

http://www.youtube.com/watch?v=XHNpSDSbjTg

"Oh my God."

are you putting out a buy?

"I- I- I- I- I- I-"

the OFHEO dude who said they were "adequately capitalized" had better fucking pray he's right or I'm about to have to change this thread title to something more emphatic

Holy mackeral, Freddie and Fannie both down 40% to open trading today.

Chart at the top of the page at this moment = yikes

my Dad just called me pissed off about this >:0

Did he demand that you flood the market with cheap cotton futures?

so it's ok today to say ... WE GONNA DIE?!?

seriously ... this statement of principles on how to solve this current financial mess is why i heart calculated risk as much as i do.

holy shit I knew they were in trouble but didn't know it was that bad

wau

xp:http://general.south-derbys.gov.uk/revenue/focusonfraudawareness/pics/10.gif

"We noted that the world economy is in good condition and growth is more evenly distributed across regions. ... We anticipate a smooth adjustment of global imbalances which should take place in the context of sustained and robust economic growth."

- G8 Summit communiqué, June 8, 2007, Heiligendamm

from the same document:

"While noting the positive contribution (sic) of hedge funds to financial-market stability, we also want to minimise systemic risks by increasing transparency and market discipline on the part of all parties involved."

http://www.mokummarketing.com/blog/wp-content/uploads/2008/03/head-in-sand-2.JPG

"We noted that the world economy is in good condition and growth is more evenly distributed across regions. ... We anticipate a smooth adjustment of global imbalances which should take place in the context of sustained and robust economic growth."

- G8 Summit communiqué, June 8, 2007, Heiligendamm

-- Tracer Hand, Friday, 11 July 2008 17:37 (8 minutes ago) Bookmark Link

from the same document:

"While noting the positive contribution (sic) of hedge funds to financial-market stability, we also want to minimise systemic risks by increasing transparency and market discipline on the part of all parties involved."

-- Tracer Hand, Friday, 11 July 2008 17:38 (7 minutes ago) Bookmark Link
http://gispro.files.wordpress.com/2007/06/bullshit.jpg

yeah, that "CHRIST! Did a cow shit in here?" quote from kentucky fried movie is a pretty good summary of the economy today.

I love how the graph is mincing around just above 11000, like it's ready to jump in but is afraid the water might be a little too cold

http://www.davemanuel.com/images/dead_cat_bounce.jpg

Phil Gramm 'expert' lolz

this seems like a good time to post modok with a moustache
http://s89230137.onlinehome.us/BBC/blogfiles/MODOK_moustache.gif

I thought that when the tech bubble burst the Big Dow would find its support at around 8000. Little knew I then, apparently. Still, it wouldn't shock me if it gets there now, over this housing bubble.

One thing that puzzles me about the current crisis - it seems sort of common sense to me that any little thing can push an already teetering mortgage over the brink - a rise in gas and food prices, a layoff, etc., and it seems like those little things are on the rise. Do *analysts* consider that simple fact when they evaluate the mortgage and mortgage securities businesses? Like are their projections based on the assumption that things will follow their current trend instead of getting worse? And if so, is that why we keep getting *more bad news* surprises?

yeah, i'm really an amateur about economics, but i'm kind of surprised that the fannie mae/freddie mac bombshell happened now and not sometime months ago. why is this?

Short-sellers piling in, maybe?

Does the 95% "institution owned" statistic for both of these companies have something to do with their semi-government-backed structure?

A perfect photo for today (though I don't think it was taken today, sadly):

http://latimesblogs.latimes.com/laland/images/2008/07/11/k3uny1nc.jpg

Actually that deserves a 'Caption this photo' thread...

Caption this photo (Fannie Mae/Freddie Mae/economic collapse edition)

Does the 95% "institution owned" statistic for both of these companies have something to do with their semi-government-backed structure?

Well I imagine that contributed to the view that these were relatively safe investments that encouraged institutional investors to hold them. That could also be contributing to the free-fall, if all these institutions decide to get out at once.

Well I don't know enough about how that stat is calculated and how up-to-date it is. I mean if a stock is 95% institution owned, a precipitous drop like this can ONLY come from institutions selling it off. Unless the number somehow reflects the fact that everyone else has been selling and only institutions are holding.

I don't think that number's very up-to-date - probably updated monthly or less, I'd guess. I'm not sure how it's calculated though I guess these institutions periodically issue reports on what they've bought and sold, so that might be the source. I think these institutions typically trade in such large blocks that they usually try to place a block with another institution if they have to sell so that they don't move the market too much, but if they really are desperate to sell and they can't find someone willing to take a large block, then I guess they might have to sell in smaller lots. I'm not sure though.

so much for IndyMac.

The company was desperate for more capital but couldn't find investors willing to put fresh funds into what looked like a crippled institution.

A growing number of banks are facing a similar, if less dire, challenge, as investors who pumped billions of dollars into capital-hungry banks are now starting to balk at throwing good money after bad.

An exodus of depositors added to IndyMac's woes. Deposits are the lifeblood of banks, providing them with a stable, low-cost source of cash to fund their daily operations and lending activities. After Mr. Schumer raised questions about the bank, depositors withdrew $1.3 billion in 11 days.

It's unclear how much the failure will cost the FDIC.

Part of me wants a total world economic collapse just so I can hear how surreal Kai Rysdall sounds reading completely horrific news in his cheerful style.

barry's line today made me irlol

Fannie (FNM) and Freddie (FRE) fell more than 25% each, as the bailout plan makes it clear that shareholders are not going to be rewarded for showing such bad judgment as to own this crap.

So like, what are the options Obama is offering? (In case he does actually win the presidency). I heard he's supposedly to be less progressive than Clinton on these US recession woes?

WE GONNA DIE

I never thought Tom would turn into Jar Jar Binks.

The front page of the Washington Post is LOL today: two articles on the sinking economy and part 3 of a like 15 part series on CHANDRA LEVY

You know, taking you back to the last recession.

ok i'm a dunce about all this but bear with me, this is me half-repeating stuff i've read in a several different places

the housing crisis is huge but underlying inflation is part of the cause of it: ppl are more likely to skip out on a mortgage payment than on food or gas. so oil prices are the lurking problem underneath the entire slowdown. oil is more expensive lately but not as much as it seems in the US - oil is priced in dollars and all the foreign producers still want to make they money even tho the dollar is weak.

the dollar is weak because of the terrible fiscal position of the US government (monetary policy is no help here, either that or a relatively loose monetary policy actually hurts too?). our fiscal picture looks so bad because of massive wartime borrowing and spending (the war(s) and concomitant hawkishness re: iran are part of the instability premium on oil as well). the US congress and populace may have itself fooled that running the war off the books in emergency spending bills makes it free, but the economists at every bank and firm on the globe are not stupid -- they are right to not value the greenback very much. so, if we want to fix the economy, we have to end the war?

am i totally amateurishly zmag wrong about this or what

we have to do a lot more than stop spending on shock & awe surge funtime & dinar casino games to fix this shit

I briefly considered taking the day off today to go down in front of the hill and make myself a posterboard sign saying NO BAILOUT but it's really hot

no bailout rly?

i would like to get all the garbage out of the system and finally see where the bottom is, since that's what everyone seems to want to know. but i also don't want to be selling matches on the corner of marshall and snelling either