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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: TFF who wrote (81592)	10/8/2008 7:34:58 PM
From: clutterer	Respond to of 94695

yeah what or who was he doing during the previous 2 weeks...."dah gee scooby doo...guess i can wait till the bill passes before i figure out to use it"....failed government at its finest

To: TFF who wrote (81592)	10/8/2008 7:57:07 PM
From: Real Man	Read Replies (1) \| Respond to of 94695

Message 25044832 The whole market is long synthetic calls, the market makers are delta-hedged and short puts (also long). We are in an advanced stage of a self-reinforcing derivative mess. Hank may not have the cash needed to stop it. How about 10-30 Trillion? They may need to shut down the markets. I keep hoping, though -g- The options markets are still liquid. As the mess progresses, they may become illiquid.

To: TFF who wrote (81592)	10/8/2008 8:23:35 PM
From: TFF	Read Replies (6) \| Respond to of 94695

They need to dump "mark to market" on MBS, CDO's. It sounds silly and extreme. But if they don't, it will be months before they can solve the problem via reverse auctions, capital infusions, etc. The market doesn't have months. Heck it's lucky if it has "weeks". One can only imagine the downgrades looming from rating agencies that will send more co's over the cliff. BAC dropped from 38 to 20 trying to raise money. And they are one of the "chosen" banks.