Financial markets and the Chinese Curse

[Satch]

Contrary to popular belief, there are three:

1. May you find what you are looking for

2. May you come to the attention of those in authority

3. May you live in interesting times


2 and 3 have already come true.

1, being the "solution" to the current banking woe, may come true at 07.00 Monday.

I shall be down in the bunker with tin hat on.

 

[Shude]

1, being the "solution" to the current banking woe, may come true at 07.00 Monday.

I shall be down in the bunker with tin hat on.

I will be at a job interview with a share dealing company at 11:15am on Monday so I'll ask if anything happened

 

[Satch]

I have worked in the City for 22 years and there is nothing which could possibly prepare us for what is going to happen next week. Only comparables are the 1973 crash and the 1930's and neither of those carried the misery of cross contamination by Credit Default Swaps.

The Lehman CDS auction last Friday produced less than 10 cents on the dollar. That means others are going to have to find $400Bn on failed Lehman CDS's alone, i.e more that half of the entire US rescue amount. Letting Lehamns go down ranks as one of the biggest mistakes ever.

As a result banks have been defaulting on Repos in order to hang on to cash.

Never mind the stock market prices, that is just a symptom. The disease is far worse than that.

So, Monday 07.00 looks like being a watershed in the Financial world.

 

[Deleted member 6183]

Contrary to popular belief, there are three:

1. May you find what you are looking for

2. May you come to the attention of those in authority

3. May you live in interesting times


2 and 3 have already come true.

1, being the "solution" to the current banking woe, may come true at 07.00 Monday.

I shall be down in the bunker with tin hat on.

DRAGON!

Is it you?

 

[st4]

DRAGON!

Is it you?

Nah, he is on the other place under the same alias.

 

[e55]

I have worked in the City for 22 years and there is nothing which could possibly prepare us for what is going to happen next week. Only comparables are the 1973 crash and the 1930's and neither of those carried the misery of cross contamination by Credit Default Swaps.

The Lehman CDS auction last Friday produced less than 10 cents on the dollar. That means others are going to have to find $400Bn on failed Lehman CDS's alone, i.e more that half of the entire US rescue amount. Letting Lehamns go down ranks as one of the biggest mistakes ever.

As a result banks have been defaulting on Repos in order to hang on to cash.

Never mind the stock market prices, that is just a symptom. The disease is far worse than that.

So, Monday 07.00 looks like being a watershed in the Financial world.

I work in the financial services sector in the city. I think theres going to be a few less banks by the end of the week.

Tomorrow once the markets open its judgement day...........

 

[RoseTattoo]

I work in the financial services sector in the city. I think theres going to be a few less banks by the end of the week.

Tomorrow once the markets open its judgement day...........

There are a lot of things to work their way through the system yet, not least the consequences of the Lehman auction, before we see this spilling over into other industries, in what I saw described this morning as the Meltdown scenario. Once the dominoes start falling there, the last two weeks will seem like a tea-party.
Today though, with the US and Japan closed there is a little breathing space and I can see no significance in this morning's bounce. Rather we need a week of stability, the Leham's insureance to be covered and any other secrets, still in the woodwork to be controlled.

 

[Defiant]

I can't decide which of our Presidential marionette candidates I'd rather see saddled with the next four years. I'm honestly unclear on which one I have the greater distaste for. However, regardless which one "wins", he'll be in for more than I'd wish on him.
Cinch-in tightly, boys.