Commodities are being blown out. I am “enjoying” large losses in Freeport-McMoRan Copper & Gold Inc. [[FCX]] , Walter Industries, Inc. [[WLT]] and Peabody Energy Corporation [[BTU]] . That’ll learn me for fucking around with speculative commodities.
Hey, at least gold is going higher.
The good news is, most banks are holding up well, with exception to the one I own: Citigroup Inc. [[C]] .
Some of you may misconstrue that to be awful news for me, and it is. However, I try not to think about losses so early in the morning. I will hold off my usual inter-office violence for the end of the day, when all hope is lost.
You must admit, the staggering losses in the coal sector is rather unseemly. A well deserved deballing I suppose, coming from the claws of that bitch: Mother Market.
I could rattle off a bunch of strategies worth applying, but why bother? Let’s just all camp out around the tube and wait for Congress to save us.
In the meantime, I am booking a 3rd class flight to Romania, where I will spend the rest of my life tending to goats and fields of rapeseed.
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Looking forward to the day when the common expression for workplace violence will be “going trader”…
Ya we don’t need any lights here in Ohio so fuck that coal……
gold was going higher
TPOW karma +3
I knew something was up when JRCC decided to offer more shares right before everyone was expecting coal/commodities to rebound.
Fly-
Check out defense. LMT, NOC, etc.
When the country goes broke, plan a war. Worked in the 30s. Good thing we’re already in one. Still no jobs though.
Hey, I’m warming up the 50″ and inviting the neighbors over for the Smackdown in Oxford.
What’s the line on Obama in a knockdown in the 1st round?
The bear market was fun when it wasn’t so serious. Now, it gives me no pleasure taking money from retirement accounts.
I’m lightening both long & short. Just looking to add in the gold/silver complex. Any guns or butter plays, feel free to advise.
These double ultra ETF’s ain’t working. They are hardly double.
The system is breaking down.
Not good for anyone.
So are you holding onto the trash? Perhaps continue to average down from your local Internet cafe in Romania?
Let an anonymous jerk die in peace.
Fuck you very much.
http://www.youtube.com/watch?v=ihCwk2Z61TA
juice,
milk the “teet” of the retirement goat/sheep told to hold their positions….
Dunno why anyone is bullish commodities as a result of this package as it isn’t inflationary. They’re not printing money, they’re borrowing the money and then putting it back. This is inflation neutral.
Fed borrows the money through the bond market. Takes it in and then sends it out again. There’s no printing presses fellas.
j… exactly re: not being inflationary
J:
However, in turn, banks will free up capital to lend.
Zen… You don’t watch much boxing do you? It’s ‘knockOUT’. 🙂
J,
The Fed is increasing the money supply. They are injecting $700 billion into the banks to buy NPLs . The result is the banks have an extra $700 billion to throw around via loans, credit lines etc. I think that is inflationary no ?
That’s true fly, it will release cash to lend etc., but that would also possibly stop them from lowering rates again and or put them in neutral stead with rates. If that’s the case then the next move will be seen as up in rates which isn’t good for gold in of itself.
Interesting read, if you are a bit bored sitting in cash today, or thinking about moving to Romania:
http://tiny.cc/s4N1r
Cap:
There’s no increase in the money supply at all. Recalling my monetary economics:
Money supply is created through the increases in the Feds reserves to banks through open market operations.
Ie. Fed does a permanent add … buys bonds and hands out the cash.
However under the deal.
The Fed goes out and sells $700 billion of bonds and takes in the money which actually reduces the money supply. It then takes the money and buys $700 billion of CDOS, gives back the money to the system. Net result zero effect on money supply.
Cap,
The $ is not going into the public sector. I believe a lot of it is going to be loaned to banks so they can continue to meet existing cash-flow obligations.
This is not new money that will trickle down into the public sector (outside of preexisting obligations), leading to consumption. This is replacing evaporated money so that banks can continue to meet their obligations.
This just in: Mets Lose.
DSB,
The goal of this bailout is to free up the credit system so that banks will start lending again. If the $700 billion is going to be used to meet existing cash-flow obligations than this bill should not be passed. Let the banks fail. The bailout only makes sense if its going to unfreeze credit and allow credit to be freely available. At least thats my understanding.
J,
Who buys the $700 billion of bonds ?
Bleet! Bleet!
j,
Ie. Fed does a permanent add … buys bonds and hands out the cash.
buys $700 billion of CDOS = hands out the cash
CAP wins!
__
PS — my egregious name link today is a public service for all vise-grip nutted asshats.
Click on it to feel “soothed.”
__
Bring back Willie Randolph.
Go Rays.
CAP
“Who buys the $700 billion of bonds ?”
The market buys the bonds. I presume their weekly auction will swell.
Refocus:
Ignore that comment as it doesn’t pertain to what he fed is going to do. That was how to describe how the Fed adds to the money supply.
The part below is the operation the fed will follow regarding the bailout.
romania is great … you can find new friends there among the local sheperds .. watch this :
<embed src=”http://www.youtube.com/v/sJlQHoki3YQ&hl=en&f
watch this:
http://www.youtube.com/watch?v=sJlQHoki3YQ&feature=related
nice mountains, nice people,nice music .. c ya in romania
Fly,
You may make fun of Romania but I think under current circumstances, Romania is financially more stable than the good ole USSA. People on average are probably wealthier – unlike here where everyone is burdened by debt. Infact I would say go long Romania short the USSA. A good trade for the next 10-20 years or longer.
It’s a very gay video optimatis. Do you prefer men? Not being judgmental by the way just asking.
Shorted more SMN @ 48.38, long MON @ $103, long DXO @ $14.27. I see HUGE inverse H&S patterns in the commodities. Hope that right shoulder doesn’t break.
Phuck Coal. Burn Gold.
Buy America … JPM BAC GS
if theres a rally, they’ll lead
Joey Buttfuck is screwing himself urging Congress not to do something.
$63B of commercial paper evaporated after LEH filed. That has to be funded somehow. Most of it is funded by companies drawing down on their commerical paper backup facilities. The problem is CP backup facilities have weak capital adequacy requirements because they have 364 day tenors and are rarely drawn. When EVERYBODY draws down their CP facilities at the same time, the banks can find they are out of compliance with regulatory capital adequacy requirements. That causes the banks to stop issuing new credit to regain compliance. Commerce stops, which causes a death spriral of defaults skyrocketing, companies can’t make payrolls so they lay off employees, people get layed off, etc. With a 25% contraction in GDP and 30% unemployment, the first Great Depression wasn’t much fun. If Congress allows the sequel, I doubt Joey Buttfuck will find it much fun either.
This run on the CP market comes at the same time banks don’t trust each others balance sheets. That’s why this is so extremely serious. Buffett’s description of a financial Pearl Harbor wasn’t hyperbole. I don’t give a fuck if it’s Paulson’s plan or something else, but Congress has to act to restore confidence or we’re all fucked. Urge your elected leaders to stop playing this retarded game of politics and get something passed. ANYTHING.
Who buys the $700 Billion in bonds?
Answer: The Treasury plans to swap bonds for bad mortgage assets. The banks receiving the bonds put them onto their balance sheets. The US dollar becomes worthless , our economy goes into the crapper, no one wants our bonds, interest rates go through the roof, the value of our bonds plummet, banks are faced with even more massive write-downs from all the bad bonds they got for their bad mortgage securities.
The Romanian GoatFuckers, led by the Fly, come to our rescue and bail out the USSA, at pennies on the dollar. We all become Romanian GoatFuckers under the rule of King Fly.
I don’t care what anybody says: You are the wittiest guy on the planet! Can’t believe you’re a loser on two continents. It’s the world that’s fucked!
Now suck me down and open another.
I’ll e-mail all of ’em immediately! Think the market will tank towards the close today if no news on the plan?
listen, the Fly is right.
I picked my 3 yr old early from school and we headed to Mcdonalds for lunch.
Let me tell you, there are a bunch of mo-tards in that place….between the soccer moms on their playdates, the grease monkeys on lunch, and the old people, I can unequivocally say, NOT ONE OF THESE FUCKERS gives a flying fuck about the “bailout” .
there are a lot of hot women in Romania and most of them will fuck you for a fiddy.
if only I had spent my money on that instead of trying to trade this market the last couple of weeks!
WTF —
You want to see a MILF paradise?
Go to a “newer” Chick-Fil-A in a nice neighborhood around noon.
The little fuckers (five and under) love those nuggets like mother’s milk.
I’ve never seen anything like it anywhere.
__
Peter North called me and said he wouldn’t fuck this market with your dick.
wtf
Let me tell you, there are a bunch of mo-tards in that place….between the soccer moms on their playdates, the grease monkeys on lunch, and the old people, I can unequivocally say, NOT ONE OF THESE FUCKERS gives a flying fuck about the “bailout” .
That is true. They just don’t want to PAY tax $$$ to “Wall Street”. This is what they read (if they can) and hear from talking heads. It is reduced to this simple equation: money going to richer people than me = not good.
Does coal (JRCC) bounce today or should I hold my short?
Anyone?
pharm
The Treasury will raise the money through the Fed, they are not going to print the money outright.
Satantic:
That’s some scary shit you’re painting. That’s like Dante’s 8th circle of hell and frightened the shit outta me.
let me get this, firms are now drawing down their CP programs. However the money has to go somewhere once it is drawn down. They have to deposit the money in the banking system. So where exactly is the squeeze?
All these personal opinions on the inflation-deflation business aren’t worth a shit and on top of that are contradictory! Why can’t someone from IBC get an expert to tell us what is what? Don’t you all know somebody that knows his shit? WTF?
Buylo
STFU some of us know what we’re talking about. We read books at school and university rather than just Hustler. Sit down and pay attention sometimes or that repair shop job beckons.
Oh yes, I have it on good faith from an old Jewish proverb: Buy on Rosh Hashanna Sept. 29-30 and sell on Yom Kippur! Works 8 out of 10 times! (or something like that)
j’s warm can of Foster’s lager Says
It’s larger you illiterate. Not Lager.
Nice work — if you can get fired from it.
That’s just what one Alan H. Fishman might have thought when he woke up Friday morning.
Fishman was the new chief executive officer for Washingon Mutual — WaMu — the nation’s largest savings and loan, which was taken over Thursday night by federal bank regulators and quickly dumped in a fire sale to JPMorgan Chase for the Wal-Mart-like price of $1.9 billion.
But don’t cry for Fishman, who reportedly was sky-high — literally — last night, on a flight from New York to Seattle, when WaMu collapsed. Even though he’s only been on the job for less than three weeks, he’s bailing out with parachute worth close to $20 million, according to an executive compensation analysis conducted for the New York Times by James F. Reda Associates.
That’s right, $20 million for 17 days on the job … and his company failed.
@ j Says:
It’s a very gay video optimatis. Do you prefer men? Not being judgmental by the way just asking.
its not a gay movie .. its a sodomy video
Stare at my label with one eye shut this time, fetal alcohol syndrome Austard.
Your reading skills match your economic acumen.
But all is forgiven; just continue sucking me down!
WTF – who’s the fucktard here? why the fuck are you feeding your 3 yr old shite from mcdonald’s?!!? Do him/her a favor and go home and make a sandwich or i’ll bring you up on child abuse charge ya fookin’ maroon.
p.s. keep you hands to yourself