Monday, July 14, 2008

No PPT Nosiree


Look at the volume spike and then tell me there was no intervention. Sure there are other (probably more likely) explanations but at this point it doesn't matter, there is a perception of meddling.

Update: Here is the qwhole day withh all three spikes.



Nothing to see, move along, move along...

15 comments:

Pleather Murse said...

Worth a read, from Bloomberg: "The U.S. Treasury Department's plan to shore up Fannie Mae and Freddie Mac is an 'unmitigated disaster' and the largest U.S. mortgage lenders are 'basically insolvent,' according to investor Jim Rogers. .... `I don't know where these guys get the audacity to take our money, taxpayer money, and buy stock in Fannie Mae,' Rogers, 65, said in an interview from Singapore. `So we're going to bail out everybody else in the world. And it ruins the Federal Reserve's balance sheet and it makes the dollar more vulnerable and it increases inflation.' from http://tinyurl.com/5jcxrj

Bill in NC said...

"During much of Japan's lost decade of the 1990s, Americans called for an end to the nation's coddling of weak banks. Better to let them keel over, along with the paper tiger companies they sustained. No company was 'too big to fail,' Washington said.

Yet here, in the aftermath of a financial crisis brought on by what were once called American virtues - financial engineering and risk management - Washington may bail out Fannie and Freddie for the simple reason that they are too big to fail.

If they go down, so do whole neighborhoods. So, perhaps, does the global financial system.

'The thing we have to do now is to make sure that Fannie and Freddie remain solvent and continue to make loans,' Baily said. "We just don't have any choice."

http://www.iht.com/articles/2008/07/13/business/guarantee.php?page=1

Peripheral Visionary said...

Interesting day. Rob called it, the theme of the day is the smaller banks. FNM and FRE are holding together, but since the Fed has hinted that it won't be saving anyone else, the others are falling apart. Regional banks way down, NatCity, Zion's, and WaMu getting *hammered*, with no relief in sight. Downey is on the edge of the abyss.

Nervous investors mull more potential bank failures (MarketWatch)

"National City shares were briefly halted Monday amid a panic-driven plunge before the company in a statement tried to quell what it called market rumors. 'National City is experiencing no unusual depositor or creditor activity,' the Cleveland-based bank said. Still, investors shrugged off the news and the shares were off more than 25% at last check."

Yikes. Paging Kirk, Scotty says he can't hold it together much longer . . .

Casey Serin said...

Keith at Housing Panic sometimes uses one of my favorite blogging labels: "Casey Serin destroyed the world financial system"... I don't think it's much of an exaggeration!!

Can any California residents do me a favor this November and vote out any public official who hasn't unequivocally called for my arrest and indefinite detention?

Kthxbye. :-)

Jean ValJean said...

sh*t, I wonder if Wells Fargo would be a safe move.

Fuck you, Casey! (the real one)

soem dood said...

Keith had it about right, CS -- two words 'moral hazard.'

When the Fed, the politicos, the lobbyists, the flippers, the "government Backed Enterprises" like Fannie and Freddie are all giving each other a reach-around, with the bill going to the taxpayer... what do people THINK the eventual outcome has to be? The sad thing is that none of the participants even care what the outcome is, as long as they personally can leap free of the smoking wreckage as it plummets down the canyon...

Casey Serin said...

Fuck you, Casey! (the real one)

You're welcome! ;-)

Can we petition the CIA to do an "extraordinary rendition" on me? Seriously, I've caused as much damage to America as any hardened Afghani terrorist... :-p

Send me to Egypt or something, maybe they can waterboard me with the greenish algae-ridden sludge from the infamous pool...

Akubi said...

Any thoughts on Wachovia?

w said...

Wachovia seems to still have a little time. But watch for signs after WaMu Fed is announced.

Pleather Murse said...

Its having repurcussions in the Asian markets already. Hang Seng down about 4% today.

Edgar Alpo said...

The "No PPT" crowd really crack me up, they are so smug and self-assured about it too.

Josey Wales: "Don't piss on my boot and tell me it's raining".

Casey Serin brings down world financial system. LMAO!!

william bills said...

15 million share spikes? Big Woop. Especially when WM did around 200 million in total volume. And the stock is at $3. Looks like some big dawgs bailed to me. I'm mean think of all the value managers trapped in these things! It would take more than a couple 15 million share trades to manipulate that stock. And with the Fed running low on powder.......they aren't gonna save WM.

Akubi said...

@W,
I came across this earlier this morning: ...among the major banks Wachovia will face the “greatest reckoning” with reduced profit opportunities and surging credit costs.

w said...

@Akubi,

Very interesting. Wachovia is definitely in trouble from what I have read from smart people. My sense is that WaMu is in more immediate trouble because they grew fast in bubble areas taking on expensive leases and are heavy into HELOCs and Sub-prime which will have a recking sooner than the Option Arms of Wachovia's Golden West. But that is just my cursory thought process, so take it for what it is worth.

Akubi said...

@W,
Occasionally, I'm not all that off track with my random concerns of koi and fishnets and such. Later discovered Wachovia was featured on Drudge today.
Perhaps Dawg could become the next Drudge if he spent time decoding his audience...