Others
The Rising Risk of Systemic Financial Meltdown
Post Reply
1-20 of 55
Amendment to the previous post, it should be the "first posting in this thread" .... sorry for the typo ..... :)
Time flies ..... it's about exactly a year from my last posting in this thread .... I hope many of us have taken the necessary preparation and precaution, thus minimising the impact to the lowest .....
.
Today Asia markets will be shocked by the big drop of Wall Street over night.
Mitsubishi UFJ. Japan largest bank strikes deal for Morgan Stanley stake for US$12 Bil for a 10%-20% or a fifth of Morgan Stanley securities house, for US$31.25 per shares. Look like BoA bot over ML for US$39.90 per share is oso in safe hand as far as Temasek Holding is concern.
From now till Jan 09, remember to dispose off what you have if possible. There would be more blood then as US regulators are busy putting new regulation to curb its US62 trillion derivative market. one of the new regulation effective Jan 09 would require part of the previously unregulated credit-default-swap market. The faulty use of the swaps has been heavily blamed for the current Wall Street credit crisis. The implication of this would be a chunk of the derivatives would be considered as insurance, requiring issuers to put up reserves and be licensed as insurers. Also at the same time, derivatives are to be reported on company's book and this will show hand individual's positioning. What would be the outcome? I think more banks or insurers would collapse if they are into CDS and further downgrade in their credit rating would significantly reduce their liquidity (remember what happens to AIG).
Sell into strength where possible, my best advise.
DJ Singapore Exchange To Impose Penalty On Naked Short Sales (2008/09/23 08:44AM)
SINGAPORE (Dow Jones)--The Singapore Exchange Tuesday said it will publish details of naked short sales on a daily basis and impose fines on market participants who fail to cover positions.
The move follows similar steps by regulators in the U.S. and Australia to limit speculative short-selling after a sharp decline in shares of financial firms.
Singapore''s measure may trigger demand for shares that have recently been targeted by short-sellers.
The Singapore Exchange already limits naked short selling by automatically buying to cover naked positions on a daily basis. However, market participants were still able to temporarily take short positions and make profit if the exchange bought back shares after stock prices fell.
From Tuesday, the exchange will publish details of uncovered positions at 0300 GMT.
Also, investors whose short sales are automatically covered will be forced to pay a fine equal to 5% of the position for trades placed on Sept. 25 or later.
-By John Jannarone, Dow Jones Newswires; 65 6415 4153; john.jannarone@dowjones.com
(END) Dow Jones Newswires
September 22, 2008 20:44 ET (00:44 GMT)
FED ponder on how to save...this credit crunches from melting away. (
Setting stage 3 into turmmoil). For a start FED has let go Bearstearn, Lehman, ML, MSCI Morgan Stanley and a few other smaller investment banks???, confirmed not AIG, Fannie & Mac.....so far.
teeth53 ( Date: 23-Sep-2008 08:28) Posted:
One year. Since Aug 07. Be forewarn......Recession is merely been delay and prolong. The truth is still not out yet.
Memories is short...playing into our sub-conscious mind. scary Red, red roses @-}-}---
1st credit issue , then credit squeeze , next credit crunches , what next ? , credit melt....... Cash is king....Hmm
|
A note to recall..... is not over yet...
| |
and pushing further US to test. Sell into strength...Sub-prime woes is spreading into US housing woes payment scheme, cutting deeper into US economy and nudging it recession as FED ponder on how to save...this credit crunches from melting away. (Setting stage 3 into turmmoil). For a start FED cuts discount rate on loan to banks. What next...? is confirmed FED help two (2) big banks. |
|
|
|
No, it is sell into strength and wait for the next wave..........catch it and go! Cheers!
looks like today people not so bullish liao
All this messe are cause by greed..during good time, big bank buy those morgagte to maske big buck...small abnk all follow..
Just like the current, fashion, you see girl now sporting those long eyes lashes..i see you put on very nice, i also put on..what happen if somethying gone wrong.
Now, banks are sitting on hugh losses, and they can no longer function..and solid bank heatitate to give out loan cause by fear of the current crises..
Furthermore, i dont think Fed can bail out the banking sector..it is too big..
Look like we are in for a long time, ..but i still think the messes will eventually end..but it is going to be a long time..
Actually we can think in a simpler way too .... if the debt due is much higher than the income received, and you know it's repay time, guess what may happen ? Create more debts to service the previous debts ? Does it sounds familar altogether ?
.
The risk is still very real. The USD700b may not be good enough. Considering USD10.6 trillion of mortgages outstanding as of 30 Jun 08, the plan may not be of much help. What's more, the greedy banks who issues mortgage-backed securities had split one pieces into numerous puzzles and had since repackaged. How to put those puzzles back into one and then analysis the way to resolve the problem is not as simple as it appears. The US election is 2 months away and no parties would want to take blame for the subsequent meltdown if there exists one. What is more worrying is the US 455 trillion global derivatives which I believe we are still not able to access the damage. So if next year US govt makes all banks to declare and report their credit default swap, would the picture be more uglier than now?
These investment bankers simply forgotten the Law Of Physics when applying Leverage to gain Financial Advantages - you can't have high leverage without adjusting the fulcrum to balance the weight. It would definitely break! Cheers!
Investment banks need to relook their business model.... they pay themselves highly with money they don't really have.
True, true......Just treat it as part of the game - sometimes you lose and sometimes you win. If you lose, don't despair (just have to fight harder for the next battle) and if you win, give yourself a pat and keep fighting. Frankly, it is not the winning and losing that counts; it is how big is your bet when you win that really counts and likewise losing..:) Cheers and have a peaceful weak end!
As long as one lose money but still happy, he can do whatever he likes to be happy .... ;)
.
Try Yoga......"Ooomp.............mali..oooomp........." :) Cheers!
ha ha as AK said earlier, if b4 mid close u were greedy, u huat alrdy liao. tks buffett warran loh.
AK got high blood pressure, dare not perform that sort of stunt. he he.
Definitely so! By then you'd hear him say : ' Read my lips, no more lipstick. Now my pig has got wings, it could fly!' :)
I think what Warren Buffett said was very interesting : ' Be fearsome when The Market is greedy, and be greedy when The Market is fearsome.' It certainly is happening, isn't it? Cheers!
