Fitch downgraded the Ca Utilities to Junk - Moodys played politics and didn't...
- because once Moodys downgrades them to "junk" they go into immediate default on their bank covenants...and the dommino's starting falling & Greenspan, Davis & the Markets are trying to offset & bail the Utility Debt holders out behind the scene's right now.... Hedge Funds know what's happening & the game has begun... place your bets.
Fitch - was out front & didn't play politics; good for them.
This BOA denial personifies "rigged" markets & how manipulated & "band-aided" this insanely derivative leveraged market has become and Institutional Investors who play the ultra-leverage & speculative game with derivatives get bailed out; but individual investors who bought all those Fraudulent IPO-scam stocks - get left holding the bag....and no one bails them out.
RISK is going off the chart here...don't look to the equity markets for clue's - debt/bond market tells all.
We are going to see something Big, very big before this is all over - very LTC-esque; bank on it.
Calif Utilities are going BK Reorg - when, not if and it will have huge ramifications all thru the financial markets.
NAZ rocket ? .... tic' toc' - short covering & a tape painted prop job along with the ESF plugging the dike - as outflows by foreign investors are ramping unabated... Fed has to Cut which will ultimately weaken the US dollar - even though they will prop it up as they cut - it's all inevitable....throw in an Oil/Energy Crisis on top of a slowing US Economy; Financial Market/Bond problems & say hello 1980 Deja-Vu all over again....
PS: You heard it here first:
Greenspan retires by the 4th of July.
He see's what Julian Robertson, Buffet, Soros, Shopkorn, Vinik & Cramer and most importantly what Rubin who got while the "getting was good" - all see... 12-18 mos of HELL - dead ahead ~
PS: JQP re: "got Gold" ?
... yes; I do - "stocks" not the metal FYI.
... and yes; it's for a "Trade" as I was/am hoping for a 6-8%ish XAU move perhaps.... bought 5-6 Gold/Silver stocks moving into margin with my puts & shorts; but when I move max margin for a trade - I either catch the move, or I stop out - I won't ride any move down and/or a failure to move up.
If I get a 2% move today - it's better than a stick in the eye; I ring the register & take the margin off & go back to 50% Golds... and patiently wait for "when, not if" to evolve.
And the day isn't over & the BOA problem is most assuredly very real & very large.
Remember the post where I listed the 7 largest US Banks & how their derivative exposure exceed their market cap/equity exponentially in some cases ? - along with the comments by Greenspan about "derivatives" and his simultaneously rushing thru new bank failure reform ?
This derivative exposure has exponentially risen just since the fall of 1999 - literally all in the last 12-15 mos.
This is an unprecedented rise in Banking Derivatives & Greenspan is on record with Congress on his feeling on this - he is more than worried; it was pretty sobering to read his words & when he personally not only pushed Congress, but rushed Congress to pass new Bank Failure reform & said no one would be "Too Big to Fail" - that should have been a wake up call for what was going on; but it wasn't... same thing LTC did... it's was literally free money - borrow Gold at 1% to 1.5% - yes; "one percent" - the cheapest money known to man... then they levered it 10:1 and higher into long the US Dollar and often even NASDQ stocks... and where is the US Dollar heading & what has the NAZ done ? - Gold & the XAU has refused to move any lower...
"Too big to Fail ?"
... we just might find out if the Utilities collapse & go BK in California & they will.
Bill Gross the BOND KING of Pimco is buying German Bonds - foreign bonds & has railed on the risk in the US debt markets.
Their are some very high-brow research notes circulating in the market that are sobering... and an intra-day suprise .50bp Fed Cut wasn't a "good thing" as we now know.
BOA isn't down 7% because of rumor.... it would be down 15% if it wasn't being propped up to "calm" the markets.
The Pillars are cracking & wobbling here folks - wake up.
Greenspan is trapped & now with this Energy Crisis along with a California Utility Bond default.... he's got too many holes in the dike & not enough fingers.... "when, not if".... tic toc'
CNBC alert:
PIMCO's Director said the market right now is an "Exloding Bubble" - and that we're on the "Dark Side of the Moon".... if that doesn't sober people up - nothing will.... Fools & Gamblers will be shown for what they are in this market environment ....
NAZ Rocket down -111 and the NAZ is now down 1500 unabated points in an unbroken downward trend since 3900... and 1000 points since my comments about NAZ 2558 were unanimously chastised here.
So; this is a "NAZ Rocket" ?
ROFLAMO- I reiterate - we have absolute MORONS here on this thread... blind, bullshitting, cut & paste fools....Casino Gamblers who are clueless.... who've never even thought about an exit strategy, about capital preservation, about risk offsets - hedges, who don't use stops & who see this as a "NAZ ROCKET" ?
... same fools who will give it all back for the 3rd & 4th time here shortly. |
