maybe an up day coming

[muldoon]

Looks like the tide is changing a bit tonight. 

Big news, Warren Buffet is buying a piece of Goldman Sachs for 5 billion.  This is the start of private money that has been sitting on the sidelines and is now coming in.  Perhaps he feels GS has a clean book and he understands the risk, perhaps he thinks the opportunity of a lifetime is before him. 

Just a few hours later, Japans Sumitomo Financial announced it was also buying into goldman sachs. 

This is a huge vote of confidence.  If I had to guess they are betting the bailout plan occurs and that GS is the beneficiary of it over the next 12 months.  Dont want to miss the looting if it happens. 

Aside from that, something else caught my eye tonight.
Release Date: September 24, 2008
For release at 1:00 a.m. EDT

Today, the Federal Reserve, the Reserve Bank of Australia, the Danmarks Nationalbank, the Norges Bank, and the Sveriges Riksbank are announcing the establishment of temporary reciprocal currency arrangements (swap lines) to address elevated pressures in U.S. dollar short-term funding markets. 
... 
These new facilities will support the provision of U.S. dollar liquidity in amounts of up to $10 billion each by the Reserve Bank of Australia and the Sveriges Riksbank and in amounts of up to $5 billion each by the Danmarks Nationalbank and the Norges Bank.   In sum, these new facilities represent a $30 billion addition to the $247 billion previously authorized temporary reciprocal currency arrangements with other central banks:  European Central Bank ($110 billion), Bank of Japan ($60 billion), Bank of England ($40 billion), Swiss National Bank ($27 billion), and Bank of Canada ($10 billion).

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new firestarter money, something to cheerlead about, way oversold conditions.  sounds like recipe for rally tomorrow.  too bad we cant get a short sqeeze as well.  still nothing resolved, doesnt look like it will hold for any real length of time to me if it happens. 

[Sassy]

I've almost finished the book Den of Thieves about the Drexel Burnham fiasco with Michael Milken...  Goldman Sachs featured in that robbery, also, among lots of other investment companies.  And at that time they were only leveraging 3:1, not 30:1 & 100:1!!!     So, if anyone read the articles I posted in another link  http://www.agorafinancial.com/afrude/   Why is it the US taxpayer is being asked to bail out all these greedy, mismanaged - I guess I shouldn't say mismanaged as those who rule the roost know exactly what they are doing...  raping the US taxpayer...?    What has happened to any oversight?  Guess that stopped when building 7 at the World Trade Center went down in 7 seconds (47 stories mind you) from a phenomenon never before occurring.  Just a side note, though... the SEC (Securities & Exchange Commission) was housed there investigating a lot of questionable trading - specifically Enron...   

can anyone explain these things to me???   

[peternap]

Maybe muldoon. I've been gone all day (went Sailing)

The naeket still isn't convinced and I'm still not dancing a jig. Buffet's done a good job but sure isn't what I consider a role model.

[ScottA]

Close muldoon but it's down again for the third day in a row. Though not as bad today. I still say down until the congress signs.

[muldoon]

scott, your right.  You may even be right when you said it's intentional as well. 

We are now back to where we were last week when I made my depressing statement in terms of the credit market.  The TED spread is now over 3.  This is used as a credit market indicator.  It says that right now we are worse than 1987, way worse than our March lows and nearly worse than last week.  http://www.bloomberg.com/apps/quote?ticker=.TEDSP:IND

The CDS spreads are also off the chart.  http://www.bloomberg.com/apps/cbuilder?ticker1=USSP2%3AIND  This is another credit market indicator, this one prices in risk of default placed on bonds.  It causes the cost of money to go higher.  The reality is that really no borrowing of any kind is occurring right now. 

Obviously a liquidity problem of some kind?  Money is not flowing into the market and therefore it is not moving within it.  Yes, our own Federal Reserve is removing funds.
http://www.gmtfo.com/reporeader/OMOps.aspx

They are in congress saying they need 700 billion at a time with no upper limit to offer liquidity because there is none.  While in the other hand they are taking money out of the system and removing the liquidity that was there to exacerbate this problem.  The slosh on 9/18 was 190B - highest ever; today it is 65B, they removed 125B from the system in 4 days. 

There are two reasons for this, 1) is your line of thinking.  They are intentionally going to tank this market until they can loot the treasury, an outright act of extortion.  2) They are broke and unable to continue any further interjections or sustain the level they once did.  I dont want to post an opinion here and distract anyone because I dont know the answer, I do know that either scenario is bad. 

The president has announced a prime time news conference tonight.  McCain has announced he is putting the campaign on hold and wants to postpone the debate for tomorrow.  He is on his way to Washington to work on this plan.  Basically the entire world is waiting to see what happens next.  I expect fireworks.