Fed in bold move to thaw credit markets says it will buy massive amounts of short-term debt

[jficquette]

[quote=fat_lazy_union_worker]Why is oil at 92 bucks?

Simple… If we have a global recession, people consume less on unnecessary crap, and hence all that dinosaur oil doesn’t need to be poured into energy to power all those factories that produce all that crap we buy from china.

Also, OPEC members probably figured out that if they jack up oil prices to a point, Americans will get pissed off enough that they seriously start to consider alternative energies, and there are just enough talented people in the U.S. of A to actually pull that off if it really came to that.

[/quote]

The biggest factor is the moves they made to quell speculation. They raised the margin requirements and they limited how many contracts a “non industry participate” could have.

That oil was just another bubble. There is no reason why oil should be more then 45 bucks a barrel.

John

[jficquette]

[quote=fat_lazy_union_worker]Why is oil at 92 bucks?

Simple… If we have a global recession, people consume less on unnecessary crap, and hence all that dinosaur oil doesn’t need to be poured into energy to power all those factories that produce all that crap we buy from china.

Also, OPEC members probably figured out that if they jack up oil prices to a point, Americans will get pissed off enough that they seriously start to consider alternative energies, and there are just enough talented people in the U.S. of A to actually pull that off if it really came to that.

[/quote]

The biggest factor is the moves they made to quell speculation. They raised the margin requirements and they limited how many contracts a “non industry participate” could have.

That oil was just another bubble. There is no reason why oil should be more then 45 bucks a barrel.

John

[jficquette]

[quote=fat_lazy_union_worker]Why is oil at 92 bucks?

Simple… If we have a global recession, people consume less on unnecessary crap, and hence all that dinosaur oil doesn’t need to be poured into energy to power all those factories that produce all that crap we buy from china.

Also, OPEC members probably figured out that if they jack up oil prices to a point, Americans will get pissed off enough that they seriously start to consider alternative energies, and there are just enough talented people in the U.S. of A to actually pull that off if it really came to that.

[/quote]

The biggest factor is the moves they made to quell speculation. They raised the margin requirements and they limited how many contracts a “non industry participate” could have.

That oil was just another bubble. There is no reason why oil should be more then 45 bucks a barrel.

John

[stockstradr]

All you jokers ribbed me for shorting the oil index back when oil was $85/bbl. Give me a break!

(well that was kind of a stupid move of mine)

Well, I sold that position with oil at $105/bbl for a measly 5% profit (oil stock index had been sucked down by the overall market decline)

yet, I should have HUNG IN THERE and ignored your ribbing. Now I would be into some real money on that short position. I sold DUG about $40/share. It is now $48/share.

Thanks for your worthless damn advice, yah bums!
🙂

[stockstradr]

All you jokers ribbed me for shorting the oil index back when oil was $85/bbl. Give me a break!

(well that was kind of a stupid move of mine)

Well, I sold that position with oil at $105/bbl for a measly 5% profit (oil stock index had been sucked down by the overall market decline)

yet, I should have HUNG IN THERE and ignored your ribbing. Now I would be into some real money on that short position. I sold DUG about $40/share. It is now $48/share.

Thanks for your worthless damn advice, yah bums!
🙂

[stockstradr]

All you jokers ribbed me for shorting the oil index back when oil was $85/bbl. Give me a break!

(well that was kind of a stupid move of mine)

Well, I sold that position with oil at $105/bbl for a measly 5% profit (oil stock index had been sucked down by the overall market decline)

yet, I should have HUNG IN THERE and ignored your ribbing. Now I would be into some real money on that short position. I sold DUG about $40/share. It is now $48/share.

Thanks for your worthless damn advice, yah bums!
🙂

[stockstradr]

All you jokers ribbed me for shorting the oil index back when oil was $85/bbl. Give me a break!

(well that was kind of a stupid move of mine)

Well, I sold that position with oil at $105/bbl for a measly 5% profit (oil stock index had been sucked down by the overall market decline)

yet, I should have HUNG IN THERE and ignored your ribbing. Now I would be into some real money on that short position. I sold DUG about $40/share. It is now $48/share.

Thanks for your worthless damn advice, yah bums!
🙂

[stockstradr]

All you jokers ribbed me for shorting the oil index back when oil was $85/bbl. Give me a break!

(well that was kind of a stupid move of mine)

Well, I sold that position with oil at $105/bbl for a measly 5% profit (oil stock index had been sucked down by the overall market decline)

yet, I should have HUNG IN THERE and ignored your ribbing. Now I would be into some real money on that short position. I sold DUG about $40/share. It is now $48/share.

Thanks for your worthless damn advice, yah bums!
🙂

[Eugene]

[quote=fat_lazy_union_worker]Australia cut interest rates….
http://biz.yahoo.com/ap/081007/world_markets.html

And so…the global interest rate game begins…Stay tuned….It’s gonna be a race to the bottom.

[/quote]

interestingly, the australian dollar is UP …

[Eugene]

[quote=fat_lazy_union_worker]Australia cut interest rates….
http://biz.yahoo.com/ap/081007/world_markets.html

And so…the global interest rate game begins…Stay tuned….It’s gonna be a race to the bottom.

[/quote]

interestingly, the australian dollar is UP …

[Eugene]

[quote=fat_lazy_union_worker]Australia cut interest rates….
http://biz.yahoo.com/ap/081007/world_markets.html

And so…the global interest rate game begins…Stay tuned….It’s gonna be a race to the bottom.

[/quote]

interestingly, the australian dollar is UP …

[Eugene]

[quote=fat_lazy_union_worker]Australia cut interest rates….
http://biz.yahoo.com/ap/081007/world_markets.html

And so…the global interest rate game begins…Stay tuned….It’s gonna be a race to the bottom.

[/quote]

interestingly, the australian dollar is UP …

[Eugene]

[quote=fat_lazy_union_worker]Australia cut interest rates….
http://biz.yahoo.com/ap/081007/world_markets.html

And so…the global interest rate game begins…Stay tuned….It’s gonna be a race to the bottom.

[/quote]

interestingly, the australian dollar is UP …

[Coronita]

Bzzzzzzzzzzzzzz…Look, it’s a bird, it’s a plane…No wait, it’s Helicopter Ben and Paulson…..

Thank you Ben and Paulson….Today’s rally is for suckers. (Yeah, I know I am one…) 🙂

I have to give Ben and Paulson an A- on creative financing attempts. (F+ on effectiveness though).

Pretty soon, Ben and Paulson are going to start issuing credit cards if you file a 1040 to help all
those consumers that are “having trouble securing credit”.

http://biz.yahoo.com/ap/081007/financial_meltdown.html

Fed in bold move to thaw credit markets says it will buy massive amounts of short-term debt

WASHINGTON (AP) — The Federal Reserve announced Tuesday a radical plan to buy massive amounts of short-term debts in a dramatic effort to break through a credit clog that is imperiling the economy.

The Federal Reserve will buy “commercial paper,” a short-term financing mechanism that many companies rely on to finance their day-to-day operations, such as purchasing supplies or making payrolls.

ADVERTISEMENT
The $99.4 billion daily market for this crucial financing, which relies on investors rather than banks, has virtually dried up. That has made it increasingly difficult and expensive for companies to raise money to fund their operations. Commercial paper is a way of borrowing money for short periods, typically ranging from overnight to less than a week.

The unstable situation has left many companies vulnerable. The notion under the plan is for the government to provide a “backstop” that would give companies a new place to get cash, the Fed said. The action makes the Fed a source of credit for nonfinancial businesses in addition to commercial banks and investment firms.

The Fed said it is creating a new entity to buy three-month unsecured and asset-backed commercial paper directly from eligible companies.

[Coronita]

Bzzzzzzzzzzzzzz…Look, it’s a bird, it’s a plane…No wait, it’s Helicopter Ben and Paulson…..

Thank you Ben and Paulson….Today’s rally is for suckers. (Yeah, I know I am one…) 🙂

I have to give Ben and Paulson an A- on creative financing attempts. (F+ on effectiveness though).

Pretty soon, Ben and Paulson are going to start issuing credit cards if you file a 1040 to help all
those consumers that are “having trouble securing credit”.

http://biz.yahoo.com/ap/081007/financial_meltdown.html

Fed in bold move to thaw credit markets says it will buy massive amounts of short-term debt

WASHINGTON (AP) — The Federal Reserve announced Tuesday a radical plan to buy massive amounts of short-term debts in a dramatic effort to break through a credit clog that is imperiling the economy.

The Federal Reserve will buy “commercial paper,” a short-term financing mechanism that many companies rely on to finance their day-to-day operations, such as purchasing supplies or making payrolls.

ADVERTISEMENT
The $99.4 billion daily market for this crucial financing, which relies on investors rather than banks, has virtually dried up. That has made it increasingly difficult and expensive for companies to raise money to fund their operations. Commercial paper is a way of borrowing money for short periods, typically ranging from overnight to less than a week.

The unstable situation has left many companies vulnerable. The notion under the plan is for the government to provide a “backstop” that would give companies a new place to get cash, the Fed said. The action makes the Fed a source of credit for nonfinancial businesses in addition to commercial banks and investment firms.

The Fed said it is creating a new entity to buy three-month unsecured and asset-backed commercial paper directly from eligible companies.

[Author]

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