World economy talk

[uls]

Tidus, actually Geithner and Bernanke renounced it

Geithner, Bernanke reject new global currency idea
http://www.reuters.com/article/GCA-E...52N52420090324

WASHINGTON (Reuters) - U.S. Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke on Tuesday dismissed suggestions by leading emerging economies that the global economy move away from using the dollar as the main reserve currency.

In a congressional hearing on Capitol Hill, U.S. Rep. Michele Bachmann, a Minnesota Republican, asked Geithner: "Would you categorically renounce the United States moving away from the dollar and going to a global currency as suggested this morning by China and also by Russia, Mr Secretary?"

Geithner replied, "I would, yes."

She posed the same question to Bernanke, who said: "I would also."

[uls]

got this from email

sorry no link

TEN OBAMA HEADLINES YOU WON"T BE READING

1. Obama To America: Whoops! I Made Things Worse

2. Obama: Turns Out We Won't Recover, Sorry

3. Obama To America: We're Screwed, Really

4. Obama: Actually, We Forgot To Add A Zero At The End of the Debt Total,
But It Was Tim Geithner's Fault

5. Obama: Yes, I Do Hate Capitalism

6. Obama: All Your 401(k)s Are Going To Zero HAHAHAHAHA!!!

7. Obama: I Wasn't Born In America, But I Love It Anyway!

8. Obama: Screw China, Hell No We Aren't Going To Pay Them Back

9. Obama: It's A Great Time To Buy American Stocks, But Stay Hedged By Buying Long-Dated Puts!

10. Obama: Your Dollars Are A Joke

#8 China is screwed haha

[uls]

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[tidus1203]

Tidus, actually Geithner and Bernanke renounced it

Geithner, Bernanke reject new global currency idea
http://www.reuters.com/article/GCA-E...52N52420090324

I guess just got excited as I was also listening to the TV while I was typing it. Yung tanong pala is would you renounce it rather than would you endorse it. I knew saying YES was weird...

[uls]

check this out

From making $750,000 a year to becoming a pizza delivery guy

[ame="http://www.youtube.com/watch?v=teXPMVg-4q4"]YouTube - ABC 20/20 Hedge Fund to Pizza Delivery[/ame]

[tidus1203]

Yep meron nga dating former investment banker now just a taxi driver... The excesses in Wall St. are over. Sabi nga ni Jim Rogers the farmer who create real goods should be the one riding Mazaratti's and not the bankers from Wall St. who just push paper around.

Anyway, the chairman of the DJI commitee is saying that Citigroup might want to do a reverse stock split so it won't be removed from the index. That's just magic trickkery and illusion. Reversing splitting will not make the company any better the shares would just look expensive because supply is cut. Kamo, why is Citigroup even considerd a bluechip. Bluechips don't ask money for survival, they should be captains of their industry...

http://www.cnbc.com/id/29864724

[uls]

^^^

decreasing the number of shares to drive up share price?

hopefully above $5 to avoid getting delisted?

that's pathetic

[uls]

^^^

decreasing the number of shares to drive up share price?

hopefully above $5 to avoid getting delisted?

that's pathetic

[tidus1203]

By the way regarding that guy who made $750K a year. If I made that much a year for 10 years I might not even work at all after that... Now he can't pay his mortgage?? Credit cards over $100,000. I mean he was simply LIVING BEYOND HIS MEANS PERIOD! And he deserved it and I have no sympathy for him whatsoever! He had a great income but he didn't know how to save and be frugal especially when he was just starting out his hedge fund.

[uls]

hahaha

the American way

[tidus1203]

Yep the American way I make $750,000 a year lets buy a $5M house and put it in a 15 year mortgage. Also lets buy that Audi Q7 I have been dying for 3 year car loan. The Chinese way, I make $750,000 a year lets buy a $350,000 suburban home and pay it in cash, and then lets buy that Toyota Camry also in cash. The leftovers lets invest it into land and lets rent it out...

[uls]

scary stuff from risk ratings firm IRA

http://us1.institutionalriskanalytic...ry.asp?tag=349

subprime losses has passed, this year losses on prime mortgages are gonna peak, and losses on commercial real estate will peak next year

As our friend Tom Zimmerman said during the last "Deflating Bubble" session hosted by AEI and PRMIA, subprime loss experience has peaked, prime residential loss rates are going to peak later in 2009 and commercial exposures will see loss rates peak in 2010. This Zombie Dance Party is just warming up.

so deterioration of asset values continue

30 cents/dollar face value today will become 15 cents/dollar face value or less by 2H 2009

The surprise facing Geithner, Bernanke et al is that by Q3, the true economic deterioration in many toxic assets will be clear for all to see. That $0.30 per $1 of face value bid that Treasury could hit today will be $0.15 per $1 of face value or less. The funds available today to deal with the financial crisis will be further dissipated. The opportunity cost to the Treasury of the Geithner/Bernanke do nothing approach to toxic assets will be enormous.

and the banks are still valuing those assets at close to face value

and the Treasury's toxic asset plan is gonna buy those assets at close to face value to avoid further writedowns for the banks

the USG is gonna overpay for the crap assets to save the banks

at the expense of the taxpayer

kaya Zombie Dance Party

the banks will be partying

[tidus1203]

EU President who is also Czech Republic premier called the US economic plan "A WAY TO HELL!"
http://finance.yahoo.com/news/EU-pre...-14737788.html

Finally the world is waking up that the US is duping them. Selling them paper and just inflate it to pay it back. China has sounded of, the EU has sounded of. The US is on a "highway to hell" Of course matagal ko na rin sinasabi yan...

[Monseratto]

EU President who is also Czech Republic premier called the US economic plan "A WAY TO HELL!"

The mainstream press is saying that on-the-way-out President Mirek Topolanek outburst was more of a parting shot, having just suffered a no-confidence vote in the Czech parliament.
But many agree that it was a general consensus among European leaders, except Great Britain. There is enough stimulas in the system

[uls]

UK recession?

no problem

we can always spend our way out of it

we just have to issue govt bonds

there will always be buyers of UK govt bonds

WRONG!

U.K. Bond Auction Fails for First Time Since 2002 on Brown Plan
http://www.bloomberg.com/apps/news?p...DAA&refer=home

March 25 (Bloomberg) -- The U.K. failed to find enough buyers for 1.75 billion pounds ($2.55 billion) of bonds for the first time in almost seven years as debt investors repudiated Prime Minister Gordon Brown’s plan to stem the worst economic crisis in three decades.

Gilts slumped after the London-based Debt Management Office, which manages bond auctions on behalf of the Treasury, said investors bid for 1.63 billion pounds of the 40-year securities. The last time the U.K. government was unable to attract enough investors was in 2002 when it tried to sell 30- year inflation-protected bonds.

“This is a warning signal investors are sending to the government,” said Neil Mackinnon, chief economist at hedge fund ECU Group Plc in London, who helps manage about $1 billion in assets and is a former U.K. Treasury official. “Investors are giving the thumbs down to the gilt market.”

Prime Minister Brown’s government plans to sell a record 146.4 billion pounds of debt this fiscal year and as much as 147.9 billion pounds in 2010 as he tries to pull Europe’s second-largest economy out of its worst recession since 1980. Brown’s plan drew criticism yesterday when Bank of England Governor Mervyn King told lawmakers in Parliament in London the government should be “cautious” about spending and deficits.

FAIL

hehe

[tidus1203]

HAHAHAHAHA!!! Governments think everytime they issue new debt someone is willing to buy. The US might be far of from that but certainly its heading in that direction. Lucky them they are still reserve currency so they can still abuse the printing press.

[tidus1203]

Double Post!

[uls]

yep

the US has advantages over the UK

like reserve currency, biggest economy...

the world considers USG debt the safest of all sovereign debt

investors are afraid of UK's public debt-to-GDP ratio

---

some positive news tonight

New home sales better than expected

Durable goods orders also better than expected.

[tidus1203]

SAFER is relative. I have also been saying this. Safe from credit risk but not safe from inflation risk. In essence, gold is safer than UST its just not as liquid but kung safe ang pinaguusapan this thing is safer, its 5000 years old safer even before Jesus was born...

[uls]

talk about USG bonds...

last night's bond auction could be a sign of something not good

TREASURIES-Bond prices tumble on debt supply worries
http://www.reuters.com/article/marke...57935320090325

NEW YORK, March 25 (Reuters) - U.S. Treasuries fell on Wednesday, with benchmark yields reaching their highest levels in a week on concerns over a surge of debt supply to finance the ballooning U.S. deficit.

Losses extended on Wednesday afternoon after tepid demand in a record-large auction of five-year Treasury notes fueled fears that investors may not have sufficient appetite to swallow all of the new supply.

there's just too much supply

and more coming