Pure CNBC bullshit. They announced the bailout, then started back pedaling. Too late the rally had already been ignited. There was no other good news today, this was a pure rumor pump. If it doesn’t happen look out below, because that rally and more will come off quickly. Even if it does happen, all its doing is shuffling the deck chairs. The “bailout” was merely a planned injection of cash from the very same banks that would have to deal with the lowered ratings on the debt they hold if Ambak loses its rating. Its all a giant ponzi scheme.
Chris I hate to gainsay you, but seriously are you smoking crack these days? A huge rally? Our banking system is pretty close to INSOLVENT if Ambak goes tits up. Every major wall street bank has billions in crap CDO’s on its books and more in SPE’s, ensured by you-know-who.
Most people on the street I talk to have a very dim view of whats happening in the economy, J6P may not know how much he’s been fucked, but he can feel something is not right.
The FED is draining liquidity from its primary brokers to loan to smaller institutions via the TAF. That explains why they threw 5 banks a section 23A exemption back in August allowing the banks to lend their brokerage arms more than 10% of assets.
Unemployment is on the rise the dollar is weak and inflation in consumer prices seems rampant, where is the bullishness in all this?
Davelj, you are right, its a shitty asset crisis, unfolding right before our eyes. The FED is trying to make sure its not the bagholder and so is everyone else. Problem is all those wink wink nod nod counterparty agreements are going to unravel, the couterparties don’t have the money. Who’s left holding the sausage, sure looks like the banks so far.
