How is this market at 8,500

tin foil hat time........

barry o says "now is a good time to buy stocks" feb 24 (approx)

fed turns on the printing presses, aig gives up on its cds trades...bailout and fed printing presses funnel through AIG to banks, brokers to buy the market and continue to buy the market

stress tests announced....stress test results announced 6-8 weeks later and every bank is up 35-50% or so during that time frame. they all place secondaries getting the capital they need to be "solvent" as per the stress test

government engineered this market rally in the last 8 weeks...im in your camp sean...it baffles me every day

mark to market accounting changes (banks now show profit instead of loses), trillions of $ pumped in into the market by the gov, also inflation........nice 3 team parlay there will equal to 8500 on the dow how long this fake rally lasts idk, I just sold what i bought at 7000

That sounds about right to me.  I see it going fairly high though and a good year out before the ripping though.  For one reason, cost basis is pretty low.

stocks down, bonds up, commodities up, dollar down...all closing in the same day.....when was the last time this has occurred?

i have a few positions

T - forever, dividend stock, good cash flow

my newest positions

TBT, SLV - feb 09

FAZ began it last week under 5

all 3 of those indirectly short the government

Hmmm...of course 5 bn seems like chump change these days

The closure of BankUnited, which had $12.7bn (£8bn) in assets and $8.6bn of retail deposits, will cost the FDIC’s insurance fund – which all banks pay into to cover losses for depositors in this sort of situation – an estimated $4.9bn. This makes it the second-costliest collapse of the crisis to date, after IndyMac which cost the fund close to $11bn.

At least they didnt handle it like total baffoons like they did with IndyMac..they got private investors together, worked it out slowly and it made a bad situation better, unlike how they screwed up IndyMac.

   Yeah, they better get good at it, it is going to be happening a LOT more than up until now...

you mean like a US Senator causing a run on a bank by publicly questioning its solvency

Correct and if you remember I had some IndyMac at the time. I think they didnt need to go under honestly.

It cost me quite a bit of coin thanks to the Schumer schmuck.

Two Illinois banks with combined assets of almost $1 billion were closed by regulators, pushing the toll of failed U.S. lenders to 36 this year amid the longest recession since the 1930s.

Strategic Capital Bank in Champaign and Citizens National Bank in Macomb were closed and the Federal Deposit Insurance Corp. was named receiver of both, the FDIC said. Strategic Capital’s deposits were assumed by Midland States Bank of Effingham, Illinois, and deposits at Citizens National were purchased by Morton Community Bank.

“Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage,” the FDIC said.

Regulators are closing banks at the fastest pace in 15 years, including BankUnited Financial Corp. in Florida yesterday, and pumped $200 billion into the biggest banks in a Treasury rescue program. Costs from closing banks in the second quarter climbed to more than $8 billion, including $4.9 billion for BankUnited, from $2.28 billion in the first, FDIC data show.

Here is a nice little wrinkle that is not getting enough play. 

If someone who is getting ready to fall behind on their mortgage payments calls up a bank, the bank can enter into a "loan modification" or a "troubled debt restructuring".

So if I call up Bank A and say I am about to fall behind they will take my 6 payments that I can not make . . . throw them at the end of my loan (so my loan is now 30 years + 6 months) and I don't fall into the delinquency bucket.

Hmmm . . . nice little trick eh?  Some banks I am sure are pushing things back a year or more. 

Without this little trick I am sure that delinquencies and foreclosures would be MUCH, MUCH worse.  They already are getting bad.

Just wait until all of those 5-1 arms that were orignated in the 2004-2007 bubble start adjusting . . . round two will take place.  Only thing saving those people now is low rates.  If rates ever go up those people are screwed because they aren't refinancing anywhere and will be at the mercy of the Bank and whatever index they track (usually 10 year treasury).

i do...would have like to see you sue Schumer. i called his office and yelled at his staffers over it

Another surge today in the market . . . could be a good entry point for FAZ.  I believe FAS was driven by JPM today (JPM = 8% of FAS holdings).

I will look to see what happens in the market tomorrow before dipping my toes into some FAZ.  Problem with that stock is usually things are decided in the pre market and you if you wait until 9:30 to 10 you've missed the run.

vh - anything below 5 is a steal. this mkt is a complete goof...no one knows who is buying or why they are buying

large professionals are out of equities...or only have 10% of their AUM in equities  

Closed out the DXO position- bought at 2.84, sold at 4.25 after hours- looking for a pullback; will reenter if I can get in 3.75 or less.

geithner told china "we have a plan" to cut deficits

bernanke told congress this morning "we need a plan"


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