Are we in the middle of a financial meltdown?

1,054 posts in this topic

 

Young David moved to Texas and bought a Donkey from a farmer for $100.

The farmer agreed to deliver the Donkey the next day.

The next day the farmer drove up and said, 'Sorry son, but I have

some bad news, the donkey died.'

David replied, 'Well, then just give me my money back.'

The farmer said, 'Can't do that. I went and spent it already.'

David said, 'Ok, then, just bring me the dead donkey.'

The farmer asked, 'What ya gonna do with him?

David said, 'I'm going to raffle him off.'

The farmer said, 'You can't raffle off a dead donkey!'

David said, 'Sure I can Watch me. I just won't tell anybody he's

dead.'

A month later, the farmer met up with David and asked, 'What happened

with that dead donkey?'

David said, 'I raffled him off. I sold 500 tickets at two dollars a

piece and made $998.'

The farmer said, 'Didn't anyone complain?'

David said, 'Just the guy who won. So I gave him his two dollars

back.'

David now leads the US bank bailout team.

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It's going to take a long while before things look truly better..

We're talking years though... :(

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I still think the whole thing is heavily oversold - and right now I'm losing money over it. Just can't see some solid businesses losing this much cash through a downturn.

 

EDIT : At least RBS are up 11% - good for you worm! (and me too but my stake there is tiny)

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EDIT : At least RBS are up 11% - good for you worm! (and me too but my stake there is tiny)

but its still below my average! and looking at the general picture as well, I dont think that there's going to be much joy coming from banking shares for a good while yet!!!

 

as I mentioned before, I think Im just going to completely ignore my RBS shares for a while! perhaps then something magic might happen whilst Im not looking!

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Unless you're ready to buy, it's probably best not to look at any of your shares for a while..

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I still think the whole thing is heavily oversold...

The US economy is tanking - have you seen the retail sales figures (October shows a 2.8% fall compared to September)? As it's a major market for German exports that can't bode well.

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The Mortgage Backed Securities market is tanking again. Since Paulson refused to buy the shit, it appears no one else will either. Spreads are back to October levels. Interbank lending seemingly frozen again. It's mid-October all over again, except now we have somewhat better visibility on the horror that is industrial orderbooks. And it's bad.

 

I recall my banks analyst saying in mid-September, "Get ready for Nuclear Winter". Tja.

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Here is this year's bestselling Christmas card:

 

post-3591-1227185806.jpg

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Anybody have any suggestions on how to find a job in the US during this mess? We want to go 'home'.

 

fyi - project manager - technical - MBA grad with 20 yrs experience looking for leads.

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The Mortgage Backed Securities market is tanking again. Since Paulson refused to buy the shit, it appears no one else will either. Spreads are back to October levels. Interbank lending seemingly frozen again. It's mid-October all over again, except now we have somewhat better visibility on the horror that is industrial orderbooks. And it's bad.

 

I recall my banks analyst saying in mid-September, "Get ready for Nuclear Winter". Tja.

Check out the CMBX-NA-AAA 5.

 

Ouch.

 

Even great cash-generative, underleveraged companies are now paying more than deadbeats were for a mortgage this time last year.

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Not sure if Metro is an "underleveraged" blue chip, though... :rolleyes:

 

(Edit: OK, apparently they are rated BBB+, so it isn't exactly a junk-bond)

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