7 replies to this topic

[nimblebear]

Today's abrupt U-turn was blamed by the media on hedge fund worries. Sure, the market goes up, then down,and then all of sudden people get cold feet. Its old news. If they are going to start re-pricing stocks based on hedge fund worries, then they need to take this down a lot further than they have IMHO. $400 Trillion in notional derivatives. How do you assess the risks with that ? The number is mind boggling. Contracts interwoven across the planet. Everybody has everything hedged and re-hedged against the hedge. Who's kidding who ?

[selecto]

I think one of the concerns is that the players may need to sell other stuff, including equities, to raise cash, as in: when you can't sell what you want, you sell what you can.

[ogm]

Here is the big worry. BSC bail out plan failed. As in no one wants to bail em out. Apparently not even Fed. So there will be no LTCM style help for BSC or for any other troubled hedge fund, and there will be plenty of those. So the risk needs to be repriced.

[BigBadBear]

is this the official permabear thread ? Just to le you guys know I expect all new hiighs by Monday

[selecto]

"Just to le you guys know I expect all new hiighs by Monday." That's as 42.93 move on the SPX in 5 trading days? Wow.

[Jnavin]

Keeping a record of BBB's apparent trades: he's long SPX at 1506.

[OEXCHAOS]

Hey, BBB, what's the trend NOW? I'm just sayin'... A lot of us here WANT to be bulls, really, we do. But Daddy... Mark

[selecto]

Observation deleted. (Bite my toung.)

Edited by selecto, 26 June 2007 - 07:06 AM.