Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: pogohere who wrote (82728)	11/5/2011 3:19:33 AM
From: elmatador	Respond to of 217910

Germany mocked for 55-billion euro bank accounts error that has exposed it to charges of ridicule for being inept and hypocritical after its steady criticism of Greek bookkeeping practices. Finance Minister Wolfgang Schaeuble has summoned executives from the nationalized mortgage bank Hypo Real Estate (HRE) to explain how they made a simple accounting error that ended up raising Germany's total debt load by 55 billion euros. reuters.com

To: pogohere who wrote (82728)	11/5/2011 3:31:40 AM
From: pogohere	Read Replies (1) \| Respond to of 217910

Imagine this: Destructive, Destructionism And Inflationism by Doug Noland November 04, 2011 . . . Italian yields jumped 16 bps today to 6.35%, tacking on another 34 bps for the week. The spread to bunds surged 69 bps to 453 bps. One is left pondering how the Italian bond market would have fared had the ECB not surprised the market with a rate cut and not continued to aggressively buy Italy’s debt. Tuesday from the FT: “A trader of Italian government bonds said: ‘It was meltdown at one point before the ECB came in. There were no prices in Italian government bonds. That is almost unheard of in a big market like Italy. There were just no buyers and therefore no prices.’” Just to think that there were “just no buyers and therefore no prices” in the world’s third-largest sovereign debt market. To have Greek yields this week approach 100%. To have speculative positions in sovereign debt early in the week lead to the eighth largest bankruptcy filing in U.S. history. And there were heightened market concerns as to the safety of “segregated” brokerage assets (in response to MF Global issues) and the integrity of the Credit default swap (CDS) marketplace (Greece and beyond). To have G20 policymakers, again, fail to reach a consensus as to how to approach the European debt crisis. To have Greece spiraling out of control. The wrecking ball has been just chipping away at the bedrock of market faith in contemporary finance. (more) prudentbear.com

To: pogohere who wrote (82728)	11/5/2011 8:30:03 AM
From: yard_man	Read Replies (1) \| Respond to of 217910

>> in the short term if the margin calls trigger asset sales globally << I think it is designed to cause the reverse and probably will. Shorts and longs both use margin. The question is: How well capitalized the marginal player is in each camp. It is just a guess on my part: but currently, we have had one heckuva a short covering rally and a short lull -- who is more likely to be "pressing bets?" My guess is shorts. Add this to ECB rate cut and ... well let's see what happens on Monday. Short, and wishing I were just flat into this.