World economy talk

[uls]

tight credit indicator: rising Libor

CNNMoney.com - ‎‎Lending rates: The 3-month Libor rate rose to 1.31% from 1.29% on Friday, according to data on Bloomberg.com. The overnight Libor rate rose to 0.33%

MONEY MARKETS-Dollar Libor rates rise on credit risk concerns
LONDON, March 9 (Reuters) - Interbank U.S. dollar borrowing costs rose on Monday on growing fears over ailing U.S. automakers and financial institutions, with dollar swap spreads moving to their widest since early January.

[tidus1203]

Bagsak nanaman stock market sa US. Araw-araw na lang... Initially umakyat dahil sa Merck-Sanoffi merger pero wala din. Ginagamit talaga ang up-days or any uptick in prices to sell rather than a chance to spark some kind of rally...

I see more pain ahead...

[uls]

and consider this dude ---

there were 3 deals last night:

the Merck-Schering deal, Dow Chemical and Rohm & Haas near deal, and Genentech about to accept bid from Roche

but guess what? the market ignores it

wala na gana ang mga tao

paulit ulit na sila nasunog

nasa sidelines na sila

the hell with cheap stocks

there's almost no trading

even in bonds

one word the describe the market: ANEMIC

[tidus1203]

Opps... Merck-Schering pala at hindi Sanoffi... Pareho kasing S eh Yan I am one example of a person who does not care with all these mergers

[uls]

HSBC share price rise in Hong Kong today, reversing yesterday's slide

HK government is suspicious hehe

there's talk that some investors were shorting HSBC shares yesterday

HSBC Rises in Hong Kong, Reversing Yesterday’s Last-Minute Drop
http://www.bloomberg.com/apps/news?p...s.g&refer=home

Hong Kong’s Securities and Futures Commission is probing the closing-auction trade, Financial Secretary John Tsang told reporters today in comments broadcast by local television. The city’s stock exchange has pledged to improve the closing auction process to reduce volatility and forestall market manipulation.

“I wouldn’t comment on any individual stock, but I understand a lot of Hong Kong people are holding HSBC shares so the government is concerned about the drop,” Tsang said. “I have met with the SFC yesterday and they are investigating.”

[tidus1203]

Once upon a time I traded HK stocks and malikot talaga mga traders dyan... Daming manipulation and dagdag-bawas hehehehe. When I say dadgdag-bawas the manipulators pad (also known as padding) the bid with orders tapos when other people see that the bid is thickening sasali din sila and buy up the stock then suddenly they cancel their orders and slam the stock down

[uls]

News closer to home

March 10 (Bloomberg) -- Philippine exports fell the most in at least 28 years in January, deepening the country’s economic slowdown as demand for Asia’s electronics and other goods plunge amid the global recession.

Overseas sales dropped 41 percent to $2.49 billion from a year earlier, a report by the National Statistics Office showed in Manila today. That compares with a revised 40.3 percent fall in December and is the biggest decline since Bloomberg data began in January 1981.

[Gen. Miting]

napansin ko nga, yun mga red ribbon cakes hindi na nauubos ngaun kahit gabi na

[Monseratto]

Stocks are up on sentiment that Citi is doing well, despite the ticking timebomb in its books. Don't bet on the economy yet since whatever happening in stocks won't last.

[tidus1203]

Classic bear market rally if I ever seen one... Sharp, fast and very temporary

[uls]

++++++++++++++++++++

[uls]

short covering lang yan

and ibabalik daw kasi yung uptick rule -- which means you can only short a stock when the price is going up

so those with short positions had to buy the stocks they were shorting (bank stocks, GE etc), resulting in a rally

aside from the news Citi made a profit in the first 2 months of this year, this is what's responsible for the rally last night:

SEC may reinstate rule to restrict short selling
http://www.google.com/hostednews/ap/...hiTUAD96REACG0

WASHINGTON (AP) — Facing pressure from some members of Congress, securities regulators will consider reinstating a Depression-era rule aimed at preventing a massive plunge in a stock price caused by a rush of short sellers.

The Securities and Exchange Commission could propose restoring the so-called uptick rule, which it eliminated in July 2007, as early as next month. The rule requires short sellers_ those who try to profit from a stock's decline by selling borrowed shares — to sell at a price above a stock's most recent trading price.

and there's talk they are gonna suspend the mark-to-market accounting rule

Uptick rule eyed, Fed chief backs accounting tweak
http://www.reuters.com/article/newsO...5295YC20090311

WASHINGTON (Reuters) - U.S. Regulators will consider reviving the "uptick" restriction on short-sellers of stocks and a top monetary official lent his support on Tuesday to modifying an accounting rule that has forced banks to take billions of dollars in writedowns.

Federal Reserve Chairman Ben Bernanke said he was opposed to suspending mark-to-market accounting but said the rule tended to reinforce economic trends and improvements could be made.

The prospect of the changes helped U.S. stocks to their best day in four months, cheered by Citigroup saying it was profitable in the first two months of 2009.

[tidus1203]

Yeah I am ok with the uptick rule... But I am not ok with eliminating mark-to-market. Why? It just erodes confidence and creates suspicion among investors. If the accounting departments of the banks can just pull a value with their tricks for their assets in the books and not let the market decide the price for those than people will just be suspicious if the value are just created by accountants rather than real market participants (real BUYERS).

[emanzano]

So much for the people who say we are too pessimistic. Its proceeding as I have believed it to unfold...

Sige na Ben Bernanke. I know your itching to click File>Print I mean we all know you are doing it but make it vocal like Mervyn King did. Come on I know your finger is itching to Press Alt+F and P

I still think you are being too pessimistic. The way an outsider would read the tone of this thread, he'd think the end of the world was imminent. Unemployment's at 8%... that's bad, but that's just about 1/4th the 30% unemployment rate during the great depression.

And despite them printing all this money, inflation worldwide seems to be in check.

[uls]

IMHO, the reason why there's almost no inflation is coz money is being destroyed (deleveraging) faster than money is being created

Recently, the ADB reported $50TRILLION was wiped out in this crisis

Asia hit hard by financial crisis
http://news.bbc.co.uk/1/hi/business/7931861.stm

The financial crisis wiped $50 trillion (£35tn) off the value of financial assets last year, the Asian Development Bank (ADB) said.

Nearly $10 trillion of those losses were in developing Asia alone (Asia excluding Japan), it said, the equivalent to one year's GDP.

Global Financial Assets Lost $50 Trillion Last Year, ADB Says
http://www.bloomberg.com/apps/news?p...LDM&refer=home

March 9 (Bloomberg) -- The value of global financial assets including stocks, bonds and currencies probably fell by more than $50 trillion in 2008, equivalent to a year of world gross domestic product, according to an Asian Development Bank report.

Asia excluding Japan probably lost about $9.6 trillion, while the Latin American region saw the value of financial assets drop by about $2.1 trillion, said Claudio Loser, a former International Monetary Fund director and the author of the report that was commissioned by the ADB. The report didn’t give a breakdown of asset declines in other regions.

to have inflation, more money has to be created than previous amount created

but instead, money is being destroyed, and not enough money is being created to replace the amount destroyed

that's deflation

that's what they are trying to fight

i remember i came across something about BoE's Mervyn King having a problem about money supply is not rising fast enough... but i can't remember where i saw it...

so i googled "supply of money is not rising fast enough"

here's the result
http://www.google.com.ph/search?hl=t...Maghanap&meta=

BOE'S KING-PROBLEM IS THAT SUPPLY OF MONEY IS NOT RISING FAST ENOUGH - [ Isalin ang pahinang ito ]BOE'S KING-PROBLEM IS THAT SUPPLY OF MONEY IS NOT RISING FAST ENOUGH. Wed, Feb 11 2009, 11:14 GMT http://www.afxnews.com. ** For highlights of comments by ...
http://www.fxstreet.com/news/forex-n...3-148aa74b7cdc - 34k - Naka-cache - Mga katulad na webpage

The patient is bleeding, but not enough blood is being transfused to replace the blood lost

it will take time for their inflationary efforts to work

there's a $50TRILLION hole in the global economy

it's a gigantic hole to fill

and deleveraging is still going on

it will take time

it's like trying to fill a drum with water but there are holes in the drum

we won't be seeing inflation yet

[uls]

Related:

45 percent of world's wealth destroyed: Blackstone CEO
http://www.reuters.com/article/ousiv...52966Z20090310

NEW YORK (Reuters) - Private equity company Blackstone Group LP (BX.N) CEO Stephen Schwarzman said on Tuesday that up to 45 percent of the world's wealth has been destroyed by the global credit crisis.

"Between 40 and 45 percent of the world's wealth has been destroyed in little less than a year and a half," Schwarzman told an audience at the Japan Society. "This is absolutely unprecedented in our lifetime."

---

UK quantitative easing begins...

UK introduces quantitative easing
CNN International - ‎1 hour ago‎
LONDON, England (CNN) -- The Bank of England bought £2 billion ($2.8 billion) of government bonds Wednesday as the UK introduced quantitative easing to ...

Bank of England begins creating new money
International Herald Tribune - ‎2 hours ago‎
AP LONDON: The Bank of England will officially begin creating new money on Wednesday, offering to buy 2 billion pounds of government bonds, as it attempts ...

BoE starts injecting 'new' money into economy
AFP - ‎5 hours ago‎
LONDON (AFP) — The Bank of England will on Wednesday start using 75 billion pounds of newly-created money to try to rejuvenate the ailing economy. ...

Bank of England starts £2bn spending spree
guardian.co.uk - ‎6 hours ago‎
The Bank of England's historic £75bn "quantitative easing" shopping spree kicked off today with a £2bn auction, in which banks and fund managers can decide ...

[Gen. Miting]

IMHO, the reason why there's almost no inflation is coz money is being destroyed (deleveraging) faster than money is being created

Recently, the ADB reported $50TRILLION was wiped out in this crisis

Asia hit hard by financial crisis
http://news.bbc.co.uk/1/hi/business/7931861.stm


Global Financial Assets Lost $50 Trillion Last Year, ADB Says
http://www.bloomberg.com/apps/news?p...LDM&refer=home


to have inflation, more money has to be created than previous amount created

but instead, money is being destroyed, and not enough money is being created to replace the amount destroyed

that's deflation

that's what they are trying to fight

i remember i came across something about BoE's Mervyn King having a problem about money supply is not rising fast enough... but i can't remember where i saw it...

so i googled "supply of money is not rising fast enough"

here's the result
http://www.google.com.ph/search?hl=t...Maghanap&meta=



The patient is bleeding, but not enough blood is being transfused to replace the blood lost

it will take time for their inflationary efforts to work

there's a $50TRILLION hole in the global economy

it's a gigantic hole to fill

and deleveraging is still going on

it will take time

it's like trying to fill a drum with water but there are holes in the drum

we won't be seeing inflation yet

mas ok nga yan eh, sinabi ko na noon pa deflate everything .put more value in existing money

those who are losing value are those who are at the top for so long. dapat lang, the internet generation really don't give a sh!t.

losing is not all that bad. i have experienced losing like Php 4M already excluding depreciation costs, but that doesn't mean it's the end of the world for me. i see a lot of opportunities ngaun recession.

opportunities are what really make the world go round not only money. sadly, hindi na talaga pupuwede yan financial system na ganyan.

[tidus1203]

Freddie the Frankenstien is hungry again. Her big fat sister Fannie got fed 2 weeks ago and this time little brother Freddie needs feeding as well

Seriously, walang katapusan ito...

http://biz.yahoo.com/ap/090311/earns_freddie_mac.html

[uls]

haha

Another black hole

---

i was talking about wealth destruction in my earlier posts

Forbes comes out with its yearly billionaires list

http://www.forbes.com/2009/03/11/wor...res-intro.html

It's been a tough year for the richest people in the world. Last year there were 1,125 billionaires. This year there are just 793 people rich enough to make our list.

The world has become a wealth wasteland. Like the rest of us, the richest people in the world have endured a financial disaster over the past year. Today there are 793 people on our list of the World's Billionaires, a 30% decline from a year ago.

Of the 1,125 billionaires who made last year's ranking, 373 fell off the list--355 from declining fortunes and 18 who died. There are 38 newcomers, plus three moguls who returned to the list after regaining their 10-figure fortunes. It is the first time since 2003 that the world has had a net loss in the number of billionaires.

[tidus1203]

Finally Bill Gates is back at the top. For 13 straight years he was the world's richest man tapos last year Warren Buffet clipped him and he became 3rd and Carlos Slim became 2nd. Now back to normal. Gates 1st, Buffet 2nd and Carlos Slim at 3rd. Buffet got hit with his Berkshire stock, Microsoft didn't fall as much during this crisis (tech companies fared better than financial duh!). Berkshire has stakes with financial companies like American Express (credit cards anyone?) and reinssurance business (insurance for the insurance companies anyone?) General Re....