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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Gib Bogle who wrote (73169)	4/5/2010 1:01:39 PM
From: Haim R. Branisteanu	Respond to of 74559

US TSYS/TIPS/STOCKS: Tsys chop around near the day's lows; cash 10Y yield now at 3.994% after testing 4.0% earlier twice in the day. Tsys traders cited asset allocation out of Tsys futures and Tsys cash issues, and buying of stocks (S&Ps, other such stocks); not so much this moment, but today. - US TSYS/TIPS: Looking at 10Y TIPS, traders expected the 1.75%-1.77% zone would be where the 10Y TIPS reopening gets done. And some noted the TIPS are a specialty market and were not expecting to take part in the auctions; others already had some TIPS and were holding onto those. So thus it would likely be the index-type US funds and foreign official accounts who buy the 10Y TIPS reopening auction. "I do think they have a large paydown in the auction," said one trader. "For those who roll over the TIPS, there could be a fair amount of buying needed." Provided by: Market News International

To: Gib Bogle who wrote (73169)	4/5/2010 3:48:58 PM
From: Maurice Winn	1 Recommendation Respond to of 74559

Gib, that's right, there are already plenty of regulations. The market is taking care of it: <we don't need financial regulation, the market will take care of it. It's amazing, but there are people who claim to believe this.> The problem has been too much regulation. The most basic part of too much regulation is that the government runs the money supply. Fortunately, my prototype Qi money is coming along nicely, doing laps of my shed without missing a beat. Then, because governments love OPM more than anything, they dabble in swarms of ways, normally including extracting tithes of loot to their own accounts. There are more regulations on money than there are on growing potatoes but food is a lot more basic and important than money. Money can be left to people to dabble in as they wish. It can be free of regulations. People, probably including you, love to deride Rogernomics and quarter of a century later are still blaming Rogernomics for ills such as unemployment, poor economic performance, house prices, health system financial woes, and anything else they think of. But, strangely, nobody is changing things back to how they were. They moan about the deregulation but are NOT wanting to go back. How about foreign exchange controls, and you aren't allowed to take your money out other than $100 a day? Are you in favour of that? Fixed exchange rate so insiders can score a fortune when word is passed around that a devaluation will be on next week? Railways which either broke or stole your goods and if they didn't they took a month and cost a fortune? Trucks not allowed to make deliveries of over 100km? A queue for a telephone with only special people being allowed to have one? Carless days? The latest silly idea is to break banks up as though having lots of smaller ones doing stupid things will make things better. In fact it's easier to regulate one big thing than lots of littlies who will get up to all sorts of tricks of the trade. A swarm of little banks going broke will be at least as bad, and probably worse, than a few big banks going under. Meanwhile, putting my money where my mouth is, today I shorted a Tonka Truckload of Wells Fargo at $31.47 to add to my previous J P Morgan short at $45.77. The financial relativity theory event horizon implosion is not over yet. This time, when the banks find that mortgage payments are not keeping up with expectations, the banks will not be bailed out so enthusiastically by politicians who will be a bit more mindful of the electorate's anger at being impoverished with absurdly high government imposts while their creditors are handed loot by the $100 billion to pay each other bonuses for a job well done. Interest rates have been slashed. Savers who worked for decades, stacked up some money and put it in the bank are not feeling rewarded with almost zero interest rates. They have worked and saved and don't get even a Happy Meal in return. In New Zealand, I had a stash of US$ and the banks pay 0% interest. In the USA there's about 0.1% coming in on my account. That isn't enough incentive for savers to save, especially when their savings are being diluted by high speed pixelation processes by the Fed and Treasury at high rates to fund the gifts to shareholders, employees and big creditors of the bust banks. This time, when the banks come begging, maybe later this year, as economic pressure continues on their mortgagors and house prices do not magically go back up, and California goes bust along with other states and local authorities, and pensions are not paid, salaries are paid by IOU, and even fewer people will be able to maintain their mortgage payments, the politicians will not be so forthcoming with $100 billion cheques to bail out the banks. There's no need to anyway. I'll take over Wells Fargo. The bond holders and shareholders will be out of luck. I'll take over the houses which are mortgaged and rent them to the existing owners who will still need a place to live. Rents will be way down but that's okay. Heck, I might let them live in them rent-free if they upgrade them, maintain them and guard nearby properties. There are huge commercial loans going belly up too. I'd like to own some huge buildings around New York and across the USA. J P Morgan must be holding a lot of such collateral. Owning J P Morgan and Wells Fargo will be fun. No government required other than to enforce contracts. The existing regulations work well enough. Daughter Emily works for Barclays and I see Bob Diamond is being criticized for big bonuses. I must say that Emily likes her bonuses. I had suggested a couple of years ago that they take over Lehmans [seeing the bust coming]. Indeed they did when the bust came though I doubt it was at my suggestion. No regulation was needed. Lehmans went bust and somebody else took it over. Keep calm, carry on. Would you like to buy a house in the USA from me [Wells Fargo]? I will have lots for sale at bargain prices. Or maybe you'd like to rent one for a holiday during our winter.... now arriving. Sunny California is great in June and July, when it is NOT warm here. Mqurice