Wednesday, September 24, 2008

SAR #8268

The problem with the market is the market.

A Matter of Taste: Ever notice you can't tell how hot a jalapeño is until you take a bite? Or how sour a cherry? RBMS and other derivatives are like that, but Paulson has this mysterious ability to value them...

Back at the Ranch: While the Paulson/Bernanke remake of "Saving Wall Street" is getting 24/7 media hype, the nation's retailers are bracing for the worst Christmas Selling Season since 1991. Why is the spotlight on the side-show? Is it the clowns?

Faux Pas : Bank of America says Paulson's bailout is mainly designed to rescue Morgan Stanley and Goldman Sachs. Who woulda guessed?

Reality Check: While the Commodities Futures Trading Commission is investigating why the shorts took it in the shorts on oil yesterday, 76% of oil production in the Gulf of Mexico is still shut in.

Update: "The people can always be brought to the bidding of the leaders. That is easy. All you have to do is frighten them with allegations their way of life is under attack and will collapse if they do not hand over their money. It works the same in any country." - Nazi Reich Marshalls Bernanke & Paulson.

Put Tab A in Slot B: Completely misunderstanding that the spike in oil prices Monday hurt those who had shorted oil and had no effect on real-world oil prices, a group of well-meaning lawmakers are talking about including bans against shorting commodities in the Save The World bill.

Stampede: That noise you hear is the rush to the door by hedge fund customers. Close behind them are the hedge fund managers, headed towards Washington....

The Other Shoe : Scientists have discovered that millions of tons of methane are being released by melting permafrost. Other scientists have detected "massive deposits of sub-sea bed methane" bubbling to the surface in the Arctic and describe them as "time bombs".

Repetitive: Pemex reports that its production has fallen 9% year to date and its exports are down 16% from a year ago. If that doesn't worry you, you don't live in the USA.

Is it Over? No. It's just beginning. There is $47 trillion in debt floating around and $180 trillion or so in derivatives that no one knows much about. Even this government cannot print that much money.

Return on Investment: Saudi Arabia is reportedly cutting shipments to some of its biggest customers, but not to the US. Arms sales do pay off once in a while.

More of the Same: The US military plans on being involved in a continuous state of war for the next 40 years. How this differs from the last 40 years was unclear. The main objective is capturing an immense share of the US budget. Again, this does not vary from past goals.

Slip Showing: Bernanke has assured the Senators that the banks would set the prices for debt sold to the government: "If the Treasury bids for and then buys assets at a price close to the hold-to-maturity price, there will be substantial benefits." For the banks. Securities fraud used to be illegal.

Porn O'Graph: The Asset/Debt ratio.

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