Markets reception to bailout plan

Pretty big sell-off going on now. Are people unhappy with the plan, think it’s not going to be passed, focusing on other issues, or what is the problem?

LIBOR OIS at 220. The Fortis bailout is just a prelude.

The bailout is not going to solve anything. More and more people are starting to realize that the “cure” is worse than the “sickness.” We go into depression either way.

Yeah I mean I think things are looking pretty bleak JDV. Those US Dollar shorts I set up last week really gave me trouble in the sleeping department however the more I think about this the more I feel two things: the currency is the stock of the country and the USA is probably a great short at this stage. Willy

I better start making plans to exit this country ASAP. The effects of a depression will be worse in USA than in the “3rd world” countries.

US may be a 3rd world country soon. Just a big one.

I think people in the 3rd world nations are better equipped to handle adversity than spoilt americans. Those people never had the riches to begin with and are content with just the basics.

I was talking with a lot of people I trust over the weekend and they all told me that playing currencies is a mug’s game and that I should focus on security selection. Fine. But I just refuse to see how any of this is going to help the greenback over the next 12 to 18 months. I mean may-be I’m missing something. Fine let’s say I am. But this is starting to get pretty bleak for them. Willy

Poof - playing currencies is a fine way of making money, but you have players in the market who are actively trying to hurt you with big wallets. If you have sleepless nights about it, it’s easy to get knocked out.

I think the bailout has led people to start believing that the sh*t has really hit the fan (which it has)

Well I think early on the problems appear to be: 1. No real executive control unless there is an equity stake in the firm, big deal, that’s really the only way you DO get to exude control over CEO pay so this is nothing “new” or “sweeping” or “bold” as that idiot George W. Bush commented this morning [he’s such a loser that guy]. and 2. The assumption that these putrid papers will aprpeciate in value. Willy

People need to take a look at the Fed’s balance sheet…we are screwed.

“Oil is down because of the U.S. dollar. I think the markets are also cautious about the bank bailout and there is some sense that the risky package could be bearish for oil demand,” said Mark Pervan, a senior resource analyst at the Australia & New Zealand Bank (ANZ), based in Melbourne. this struck me as a surprise, i thought oil was going to shoot through the roof

equity_analyst Wrote: ------------------------------------------------------- > People need to take a look at the Fed’s balance > sheet…we are screwed. Where do you find that?

All this fear…we must be getting close. Last night the scoreboard broke and Al Michaels said “The scoreboard is about as frozen as the credit markets”. You look me in the (virtual) eye and tell me that’s not a damn bottom.

bchadwick Wrote: ------------------------------------------------------- > equity_analyst Wrote: > -------------------------------------------------- > ----- > > People need to take a look at the Fed’s balance > > sheet…we are screwed. > > > Where do you find that? Also, check out this chart, it’s from way back in May but…well you’ll see: