Comments on: The House Votes YES on the Revised Bailout Bill http://raincityguide.com/2008/10/03/the-house-votes-on-the-revised-bailout-bill/ Seattle's Leading Resource for Real Estate Information Sun, 08 Nov 2009 01:47:42 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: BombayTrader http://raincityguide.com/2008/10/03/the-house-votes-on-the-revised-bailout-bill/#comment-326294 BombayTrader Wed, 08 Oct 2008 11:45:07 +0000 http://raincityguide.com/?p=2576#comment-326294 In response to my post # 5 : So, here we are !! A fully coordinated interest rate cut has been announced by the Fed, ECB, BOE and the People's Bank of China. A beautiful trap has been setup for the short-sellers after the Asian markets closed today. A short squeeze in the futures markets tonight in Asian and then a short squeeze in the cash markets at the open tomorrow. How many more days will this "artificially induced rally" hold up ? The most decisive battles will now be fought over the next 10 trading days. Think deeply, trade well. BombayTrader In response to my post # 5 :

So, here we are !!
A fully coordinated interest rate cut has been announced by the Fed, ECB, BOE and the People’s Bank of China.

A beautiful trap has been setup for the short-sellers after the Asian markets closed today. A short squeeze in the futures markets tonight in Asian and then a short squeeze in the cash markets at the open tomorrow.
How many more days will this “artificially induced rally” hold up ?

The most decisive battles will now be fought over the next 10 trading days.

Think deeply, trade well.
BombayTrader

]]> By: BombayTrader http://raincityguide.com/2008/10/03/the-house-votes-on-the-revised-bailout-bill/#comment-326240 BombayTrader Mon, 06 Oct 2008 20:25:29 +0000 http://raincityguide.com/?p=2576#comment-326240 Yes - I predicted that the Dow would be 9,800 in two months when it was around 10,800. I had fantastic trades on the mini-sized Dow futures last week and this. If you prefer charts, here is the link to the chart I just uploaded : http://tinyurl.com/4lqweo or visit bombaytrader blogspot com Click on the chart for a finer image. I see a strong support around 9,560, and if there is a rally or short-squeeze then the upside is around 10,700. Today, the Dow bounced back from an intra-day low of 9525.32 - which was around what I see as a strong support. Think deeply, trade well. BombayTrader. Yes – I predicted that the Dow would be 9,800 in two months when it was around 10,800. I had fantastic trades on the mini-sized Dow futures last week and this.

If you prefer charts, here is the link to the chart I just uploaded :
http://tinyurl.com/4lqweo

or visit bombaytrader blogspot com

Click on the chart for a finer image.

I see a strong support around 9,560, and if there is a rally or short-squeeze then the upside is around 10,700. Today, the Dow bounced back from an intra-day low of 9525.32 – which was around what I see as a strong support.

Think deeply, trade well.
BombayTrader.

]]> By: Roger Ingalls http://raincityguide.com/2008/10/03/the-house-votes-on-the-revised-bailout-bill/#comment-326237 Roger Ingalls Mon, 06 Oct 2008 19:59:17 +0000 http://raincityguide.com/?p=2576#comment-326237 Hey Bombay...didn't you predict 9800 DJIA? Hey Bombay…didn’t you predict 9800 DJIA?

]]> By: BombayTrader http://raincityguide.com/2008/10/03/the-house-votes-on-the-revised-bailout-bill/#comment-326227 BombayTrader Mon, 06 Oct 2008 14:57:14 +0000 http://raincityguide.com/?p=2576#comment-326227 Alas, superlatives fail me !! http://online.wsj.com/article/SB122325337693906423.html A 35 year-old ex-Goldman Sachs banker, Mr Neel Kashkari, will be heading the $700B bailout operations. I hope and pray this is not going to be a "Heck of a Bailout" Brownie !! Alas, superlatives fail me !!

http://online.wsj.com/article/SB122325337693906423.html

A 35 year-old ex-Goldman Sachs banker, Mr Neel Kashkari, will be heading the $700B bailout operations.

I hope and pray this is not going to be a “Heck of a Bailout” Brownie !!

]]> By: BombayTrader http://raincityguide.com/2008/10/03/the-house-votes-on-the-revised-bailout-bill/#comment-326226 BombayTrader Mon, 06 Oct 2008 14:36:53 +0000 http://raincityguide.com/?p=2576#comment-326226 In order to ease liquidity, the Reserve Bank of India (RBI) today cut the CRR rate by 50bps to 8.5% effective from Oct 11, 2008. http://economictimes.indiatimes.com/RBI_cuts_CRR_by_50_basis_points_to_85/articleshow/3566949.cms In all likelihood, other central banks, especially the People's Bank of China and Bank of Japan, will initiate new liquidity measures later this week. European Central Bank and the Federal Reserve Bank will suit soon. The world is on the edge of a financial abyss ... In order to ease liquidity, the Reserve Bank of India (RBI) today cut the CRR rate by 50bps to 8.5% effective from Oct 11, 2008.

http://economictimes.indiatimes.com/RBI_cuts_CRR_by_50_basis_points_to_85/articleshow/3566949.cms

In all likelihood, other central banks, especially the People’s Bank of China and Bank of Japan, will initiate new liquidity measures later this week.

European Central Bank and the Federal Reserve Bank will suit soon.

The world is on the edge of a financial abyss …

]]> By: Friday’s Rates following the Rescue/Bail Out | Seattle Real Estate ~ Rain City Guide http://raincityguide.com/2008/10/03/the-house-votes-on-the-revised-bailout-bill/#comment-326133 Friday’s Rates following the Rescue/Bail Out | Seattle Real Estate ~ Rain City Guide Fri, 03 Oct 2008 21:29:09 +0000 http://raincityguide.com/?p=2576#comment-326133 [...] (for the 9th consecutive month); typically, this would improve mortgage interest rates.  However, as Jillayne mentions, there are rumors of the FOMC cutting interest rates; which tends to increase mortgage interest rates (bonds react negatively to inflation).  Last but [...] [...] (for the 9th consecutive month); typically, this would improve mortgage interest rates.  However, as Jillayne mentions, there are rumors of the FOMC cutting interest rates; which tends to increase mortgage interest rates (bonds react negatively to inflation).  Last but [...]

]]> By: BombayTrader http://raincityguide.com/2008/10/03/the-house-votes-on-the-revised-bailout-bill/#comment-326125 BombayTrader Fri, 03 Oct 2008 18:41:36 +0000 http://raincityguide.com/?p=2576#comment-326125 From what I understand, once the President signs this bill it comes into effect. So it seems, banks can start the cash-for-crap exchange starting late Tuesday. So, it will be like an oil-change - holding this huge economy together for sometime. What is unclear is how the Fed and the Treasury intend to administer this plan ? That was never addressed the qualification criteria clearly in the plan. Will it be based on reverse-auction ? ( Institutions holding similar debt instruments participate in a reverse auction and the Fed exchanges the instruments for cash with the lowest bidder ) Or will it be based on capital / credit requirements of the banks ? From what I understand, once the President signs this bill it comes into effect. So it seems, banks can start the cash-for-crap exchange starting late Tuesday.
So, it will be like an oil-change – holding this huge economy together for sometime.

What is unclear is how the Fed and the Treasury intend to administer this plan ? That was never addressed the qualification criteria clearly in the plan.
Will it be based on reverse-auction ? ( Institutions holding similar debt instruments participate in a reverse auction and the Fed exchanges the instruments for cash with the lowest bidder )
Or will it be based on capital / credit requirements of the banks ?

]]> By: Jillayne Schlicke http://raincityguide.com/2008/10/03/the-house-votes-on-the-revised-bailout-bill/#comment-326124 Jillayne Schlicke Fri, 03 Oct 2008 18:27:06 +0000 http://raincityguide.com/?p=2576#comment-326124 Hi BombayTrader, I wonder how long it will take for banks to start unloading their toxic waste? Hi BombayTrader,

I wonder how long it will take for banks to start unloading their toxic waste?

]]> By: BombayTrader http://raincityguide.com/2008/10/03/the-house-votes-on-the-revised-bailout-bill/#comment-326123 BombayTrader Fri, 03 Oct 2008 18:08:46 +0000 http://raincityguide.com/?p=2576#comment-326123 "Will the bailout bill do what it’s suppose to do: help “stabilize the economy?” Perhaps the markets have been rescued…for now." The Dow was up 230 points before voting, right now it is up 75 points. The economy still has fundamental problems - the bailout will solve none. We will still have a recession and a deflation. The bailout will reduce the volatility in the markets. (Yesterday, the VIX reading was above 50 - which is rare and typically seen 3-4 times in a decade.) However, the markets will still be in a downtrend. I see Asian markets bottoming out here - especially Singapore and India and rally for the next 5-6 months. “Will the bailout bill do what it’s suppose to do: help “stabilize the economy?” Perhaps the markets have been rescued…for now.”

The Dow was up 230 points before voting, right now it is up 75 points.

The economy still has fundamental problems – the bailout will solve none.
We will still have a recession and a deflation. The bailout will reduce the volatility in the markets. (Yesterday, the VIX reading was above 50 – which is rare and typically seen 3-4 times in a decade.)
However, the markets will still be in a downtrend.

I see Asian markets bottoming out here – especially Singapore and India and rally for the next 5-6 months.

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