14 replies to this topic

[mike123]

That may explain the very high short ratio on DOW yesterday. Someone knew it. If you have to borrow money to cover margin calls, it means you are losing a lot of money.

[mike123]

That may explain the very high short ratio on DOW yesterday. Someone knew it. If you have to borrow money to cover margin calls, it means you are losing a lot of money.

Actually all the major banks borrowed from FED. No one is spared.

[selecto]

Even ones that don't need it. They are running a mini domestic carry trade.

[mike123]

Even ones that don't need it. They are running a mini domestic carry trade.

5.75% is hardly a bargain.

[mike123]

Even ones that don't need it. They are running a mini domestic carry trade.

5.75% is hardly a bargain.

Ecomony just starting to turn and all big banks are already in trouble. Wonder if all the risk officers will keep their jobs.

[selecto]

They are borrowing "on behalf of clients."
Surely, not as a favor.

[DraggdOut]

hence why I shorted RKH, as well as several other implicated names, on Friday afternoon, as posted

[mike123]

They are borrowing "on behalf of clients."
Surely, not as a favor.

That was a spin. If you have free money at 2,3,4,5 % from deposits why borrow at 5.75%?

[relax]

exactly great spin bear bait

[humble1]

i know they said they are acting as an agent, but still it raises eyebrows. they either didn't want to, or couldn't, finance the loan themselves. so they took the probably-garbage paper to the fed. so the fed is going to end up holding garbage and maybe a lot of it and this makes it harder for the market to finally clear. REMEMBER JAPAN !!!!!!!! now, here is some perspective: $500 million doesn't sound like a whole lot in today's market, BUT the avergae TOTAL DISCOUNT WINDOW borrowing was well below $300 million before this crunch hit.