So said Ben bhai ..
Last two days the market has been pretty ruthless.. and the Times says “two of the scariest days ever in financial markets.”
I was totally lost on what was happening around me. GE had to raise 15 Bn of capital, Buffet was the saviour, put in 3 Bn for 10% preferred and a warrant to buy stock of GE at 22.25, a discount to the ydays closing price.
Today, the CDS spreads got wide for most of the SOLID companies, like ATT, JOYG, Mariata.. Commerical paper market froze..There were some corporate bonds yielding 200%, maturing in the next 1-2 months.. I guess the ripples of financial, credit market meltdown is spreading to other sectors now. Add to it the redemptions in hedge funds. There is no sector good enough to park the money.. Gold is coming down.. as the dollar is going up (Well, technically dollar should be weak coz the economy is gettinng screwed, but the twist is that the Euro and other basket of currencies are getting far weaker than the dollar, making dollar relatively strong.. Ferts had a VERY pathetic/scary/shitty day today.. MOS was down 41% in a single day.. POT, CF, AGU - nothing was spared. Tech names - AAPL, GOOG are trading at their liwest levels.. Coal, corn, wheat, soybeans are off their peaks.. Commodities are no longer recession proof.
Investors had ample time to judge whether the bail out woudl actually "bailout" the economy, and, I guess, the consencus is that it does not. So tomw, if the congress approves the bill (which they have to) the market will have a knee jerk reaction, but would lose its gains by the eod.
I wanted to post the CDS spreads along side the price action in the past two days, for soem sectors.. but havr to be at work early tomw..
Good night. . Hope we get over this as a bad dream.. :)
Last two days the market has been pretty ruthless.. and the Times says “two of the scariest days ever in financial markets.”
I was totally lost on what was happening around me. GE had to raise 15 Bn of capital, Buffet was the saviour, put in 3 Bn for 10% preferred and a warrant to buy stock of GE at 22.25, a discount to the ydays closing price.
Today, the CDS spreads got wide for most of the SOLID companies, like ATT, JOYG, Mariata.. Commerical paper market froze..There were some corporate bonds yielding 200%, maturing in the next 1-2 months.. I guess the ripples of financial, credit market meltdown is spreading to other sectors now. Add to it the redemptions in hedge funds. There is no sector good enough to park the money.. Gold is coming down.. as the dollar is going up (Well, technically dollar should be weak coz the economy is gettinng screwed, but the twist is that the Euro and other basket of currencies are getting far weaker than the dollar, making dollar relatively strong.. Ferts had a VERY pathetic/scary/shitty day today.. MOS was down 41% in a single day.. POT, CF, AGU - nothing was spared. Tech names - AAPL, GOOG are trading at their liwest levels.. Coal, corn, wheat, soybeans are off their peaks.. Commodities are no longer recession proof.
Investors had ample time to judge whether the bail out woudl actually "bailout" the economy, and, I guess, the consencus is that it does not. So tomw, if the congress approves the bill (which they have to) the market will have a knee jerk reaction, but would lose its gains by the eod.
I wanted to post the CDS spreads along side the price action in the past two days, for soem sectors.. but havr to be at work early tomw..
Good night. . Hope we get over this as a bad dream.. :)
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