I think the Fed Funds futures players have been reading this article...now feeling less optimistic about rates to zero...
reuters.com
Some investors wondered whether the bank's maneuvers had contributed to that day's global markets fall, and to the U.S. Federal Reserve's decision to cut interest rates.
The Federal Reserve said Thursday it had not been aware of SocGen's problems when it decided on a emergency 75 basis point cut this week......
........SocGen accused the trader of taking "massive fraudulent" positions in 2007 and 2008 on European equity market indexes, meaning he was gambling on broad movements in share prices.
When the bank discovered the hidden trades on Jan. 19-20, it decided to close the positions in the market quickly. But this coincided with a market rout, and the bank ended up nursing losses of 4.9 billion euros.
Re: The crazy numbers... one of the things that tipped me off really early about the lunacy in Iraq was that the numbers being quoted to the officialdom were just plain stupid. One article had the audacity to suggest that early on in the insurgency there were only 500 people in all of Iraq that were "dead enders" that were causing all the trouble, meanwhile the Abu Ghraib prison was holding more than 3000.....
The point is, the internet is great and all, but people make stuff up and call it news and one guy quotes another guy and boom,,, Soros is telling us the subprime and derivatives mess is 45 trillion and we're all gonna die... Whereas, only a fraction of that magically stupid number is significant, and a whole lot of irrational fear is created.
So, with that said, I'm not convinced we're in a currency crisis, a derivatives crisis, or a banking crisis yet. We are in a wealth transfer crisis, but this was created by the same bastards who have been selling us out for the last 15 years anyway...
Add to this, worldwide printing going at a stupid rate, and I keep asking myself, what the hell is keeping the dollar from hitting the bottom, with the chinese screaming the whole way?
The only answer is, the dollar is fairly valued where it is.
Voodoo |
