World economy talk

[uls]

very large 3 day drop

Dow Industrials


S&P 500


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yep

oil falls below $75

magkaka-rollback yan

100% sure next week meron rollback

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check out the volatility index

[tidus1203]

Speaking of the devil!

http://newsinfo.inquirer.net/breakin...ck-pump-prices

It pays to monitor the markets...

[Monseratto]

A $ 6 drop and all you get is this?

At 12:01 a.m., Shell will implement the following roll backs: P1 per liter for diesel and kerosene, P0.50 per liter for unleaded and premium gasoline, and P0.25 per liter for its V-Power product

[Monseratto]

OT subject, Americans are real hypocrites. Like as if they are saints when it come to spying on its own citizenry.

U.S. enables Chinese hacking of Google

(CNN) -- Google made headlines when it went public with the fact that Chinese hackers had penetrated some of its services, such as Gmail, in a politically motivated attempt at intelligence gathering. The news here isn't that Chinese hackers engage in these activities or that their attempts are technically sophisticated -- we knew that already -- it's that the U.S. government inadvertently aided the hackers.

In the U.S., the 1994 Communications Assistance for Law Enforcement Act required phone companies to facilitate FBI eavesdropping, and since 2001, the National Security Agency has built substantial eavesdropping systems with the help of those phone companies.

In the aftermath of Google's announcement, some members of Congress are reviving a bill banning U.S. tech companies from working with governments that digitally spy on their citizens. Presumably, those legislators don't understand that their own government is on the list.

http://www.cnn.com/2010/OPINION/01/2...ex.html?hpt=C2

[uls]

here's an example of how the Fed creates money out of thin air

the Fed makes $1.5T of Fannie and Freddie debt disappear

($1.5T of debt is transferred to taxpayers)

http://hussmanfunds.com/wmc/wmc100125.htm

How to spend $1.5 trillion without Congressional approval

Step 1: Federal Reserve purchases $1.5 trillion in Fannie Mae and Freddie Mac securities, creating $1.5 trillion of monetary base to pay for these purchases.

Step 2: U.S. Treasury quietly announces unlimited support for Fannie Mae and Freddie Mac on December 24, 2009, exploiting a loophole in a 2008 law that was originally written to insure a maximum of $300 billion in total mortgage principal (not losses, but principal).

Step 3: Over the next several quarters, the U.S. Treasury issues $1.5 trillion in new Treasury debt to the public, taking in the $1.5 trillion in base money created by the Fed in Step 1.

Step 4: U.S. Treasury hands that $1.5 trillion in proceeds from the new debt issuance to Fannie Mae and Freddie Mac.

Step 5: Fannie Mae and Freddie Mac use the proceeds to redeem the $1.5 trillion in mortgage securities held by the Fed, thus reversing the Fed's transactions in Step 1, without the need for any other "unwinding" transactions (watch). The base money created by the Fed comes back to the Fed, and the mortgage securities purchased by the Fed disappear, by burdening the American public with a new, equivalent obligation in the form of U.S. government debt.

Outcome: The Federal Reserve closes its positions in Fannie Mae and Freddie Mac securities, the quantity of outstanding Fannie Mae and Freddie Mac liabilities declines by $1.5 trillion, thus allowing their remaining assets repay the remaining liabilities without a $1.5 trillion hole of insolvency, and the outstanding quantity of U.S. Treasury debt expands by $1.5 trillion in order to protect the lenders, while ordinary Americans continue to lose their homes and jobs.

Throughout this crisis, the ultimate objective of Bernanke and Geithner has consistently been to protect the bondholders. This objective will not change unless the leadership changes.

[james00112233]

A $ 6 drop and all you get is this?

yun nga rin ang pinagtataka ko kung paano nila na-compute yun....
kapag naman tumaas lang ng $2 eh biglang magtataas din sila....

[uls]

^^

if you followed closely, it was 2 rollbacks

one rollback was when oil fell below $80

and the other one was when oil fell below $75

for now, wala na rollback

oil is price holding around $75

[tidus1203]

here's an example of how the Fed creates money out of thin air

the Fed makes $1.5T of Fannie and Freddie debt disappear

($1.5T of debt is transferred to taxpayers)

http://hussmanfunds.com/wmc/wmc100125.htm

Right, thats why the paper money we have in our wallets are a JOKE! Its value is just as good as TRUST, and we all know TRUST can easily vaporize. They can be made to re-appear and can be made to disappear at will by the central banks. True wealth are the real assets. LAND, GOLD, COMMODITIES. Sabi nga ng mga old American commercials "Got milk?" I say "Got Gold?"

[uls]

"Got Sugar?"

hehe

[uls]

can you sa "turnaround"?

in anticipation of the Carabobo oil field auction, Venezuela's genius president -- Hugo Chavez -- pleads for foreign investment

hahaha

Venezuela's President Chavez: 'We Need' Foreign Oil Investment
http://www.nasdaq.com/aspx/stock-mar...oil-investment

CARACAS -(Dow Jones)- Venezuela President Hugo Chavez, who in recent years has nationalized dozens of foreign companies including oil firms, on Tuesday acknowledged his country needs investment from foreign oil companies.

"Investment and experience from foreign oil firms is necessary in Venezuela," he said. "We need it."

The frank remarks by Chavez, a declared anti-capitalist and Marxist, come ahead of Thursday's long-awaited Carabobo oil auction, where many major oil firms, including Repsol (REP, REP.MC), Chevron (CVX) and Japan's Mitsubishi, are expected to participate.

The auction is for seven oil blocks in eastern Orinoco region, which contains vast reserves of recoverable petroleum.

Drilling has already begun in some parts of the Orinoco, but the government hopes the promising blocks that are part of Carabobo will significantly boost output.

Venezuela produces some 2.3 million barrels a day of crude, according to independent estimates, while the Carabobo blocks alone could produce up to 1.2 million barrels a day by 2015.

Venezuela's economy is in recession and inflation was 27% last year.

after nationalizing foreign oil companies, now he says needs foreign investments

haha

genius

now he knows why he need foreigners

those nationalized oil companies are being run into the ground by his own people

colossal mismanagement of the economy has turned Venezuela into a failed petro-state

[uls]

where is the smart money going?

look at the recent US Treasury Bill auction results



Treasury sells $10 bln in 1-month bills at 0%
http://www.marketwatch.com/story/tre...-01-26-1149450

NEW YORK (MarketWatch) -- The Treasury Department sold $10 billion in 1-month bills (UST1MO 0.01, -0.01, -47.37%) on Tuesday at a rate of 0%, the fourth time since December that the government has sold the short-term securities for no yield at all. Bidders offered to buy 5.55 times the amount of debt being sold. Later in the session, the government will auction $44 billion in 2-year notes (UST2YR 0.80, 0.00, -0.50%).

the US Treasury has again sold short-term debt at ZERO YIELD

why would investors park their money in something very liquid and yielding 0?

FEAR

[uls]

after Greece, it's Portugal

Fitch threatens Portugal with a downgrade

http://www.gftforex.com/resources/fo...asp?id=1850608

Posted 1/27/2010 5:52:00 AM

The [PORTUGUESE BUDGET], agreed on last night, does not convince [FITCH] as the rating agency voices its disappointment with the measures. The planned spending cuts are not aggressive enough, Fitch judges, and the upward revision to 2009's deficit to 9.3%/GDP from initial estimates of around 8.0% makes matters worse. With the efforts lacking bite in the agency's opinion, a rating downgrade is more likely than not. Recall, Fitch has so far kept the country's AA rating but had changed the outlook to negative last year. On a somewhat conciliatory note, Fitch acknowledges that the need to consolidate has been recognised in Portugal. Portuguese/Bund spread back in to 95.6bp after temporarily blowing out to 100bp+ 10:39 GMT - Fitch warns the negative outlook remains for [PORTUGAL] after the 2010 budget draft, and a 'downgrade is more likely than not' - more to come . No major reaction so far, but the line could well inspire some natural profit taking ahead of the next multi account offers zone at 1.4080/00 in [EUR/USD]

Spain will be next

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Greece seeks China investment in bonds: report
http://www.marketwatch.com/story/gre...k=MW_news_stmp

HONG KONG (MarketWatch) -- Greece is encouraging China to buy up to 25 billion euros ($35.2 billion) of its government bonds, as the European nation struggles to fund its soaring public debt, the Financial Times reported Wednesday.

Greece is asking for help from China

Greece is bankrupt

--

Shanghai's stock index fell below 3000 today

it's a big deal

[uls]

FEAR

the one month T-bill is trading at negative yield

-.01

[uls]

USD index

[tidus1203]

Daming mga bankrupt or near bankrupt dyan sa EU. Spain, Portugal and even Ireland. Germany lang talaga matino dyan!

Now the EU is weighing if Greece should be removed from using the single currency as to not affect its credibility any further.

http://macedoniaonline.eu/content/view/6093/46/

[tidus1203]

AAPL iPad

Looks like investors think this is the next Apple TV? (aka flop)

[uls]

either one of two things will happen

the EU bails out Greece

OR

they let Greece fail and the monetary union breaks apart

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EUR/USD 1.3940

USD index passes 79

[uls]

SPDR Trust

major trendline broken

[uls]

NYMEX crude

[Monseratto]

A 5.7% GDP growth in the 4th quarter in the US is good enough to spike oil prices.