Rescue Package
More bank failures to come
24/11/08 09:02
Hi Traders
First I want to thank all the attendees at the Charlotte, NC workshop. It is always a pleasure to share my experiences and trading methods with the group. I hope that the content of the workshop has offered a clear vision and further insight into the FX market. I want to thank Angie Crisp for organizing the workshop and to Greg Crisp for his guest presentation. As you know, Greg has been a student of mine for three years and has become an independant thinking and hhighly successful full time trader. Although he uses my methods and market approach, he succeeded because of the commitment, effort and study he made to the business. All the students show great aptitude for the business and I hope I can continue to be a part of your growth as a trader. The process and pursuit of success in this business will enhance many area's of your life.
The US government has stepped in once again to shore up financial market stability, this time with a joint rescue package from the Treasury, Fed and FDIC for the US' second-largest bank, Citigroup! If you have not done so already, please view the video FDIC chariman posted in the blog, where the undertones suggest further bank failures. Hang on folks!! The government and the bank identified an asset pool of about $306bln worth of distressed real-estate backed loans and securities. Under the plan, the bank would be responsible for the initial $29bn of losses on the portfolio. The Treasury, FDIC and Fed would then take on any additional losses, with the Fed acting as the backstop. Treasury will also provide a $20bln cash injection (in addition to $25bn already issued under TARP) in return for preferred securities in the bank. On the economic front, US President-elect Obama announced a new initiative aimed at creating 2.5mln new jobs, which may act as good intentions but will likely not outweigh the tsunami of job losses to come as the auto industry and other related manufacturing suffer badly in the coming months. The new stimulus package could be in the range of $500bln to $700bln and Congress is expected to have it ready for Obama to sign shortly after his inauguration. Obama will also formally announce his economic team, with Timothy Geithner as Treasury secretary and Lawrence Summers as head of the White House National Economic Council. Read More...
First I want to thank all the attendees at the Charlotte, NC workshop. It is always a pleasure to share my experiences and trading methods with the group. I hope that the content of the workshop has offered a clear vision and further insight into the FX market. I want to thank Angie Crisp for organizing the workshop and to Greg Crisp for his guest presentation. As you know, Greg has been a student of mine for three years and has become an independant thinking and hhighly successful full time trader. Although he uses my methods and market approach, he succeeded because of the commitment, effort and study he made to the business. All the students show great aptitude for the business and I hope I can continue to be a part of your growth as a trader. The process and pursuit of success in this business will enhance many area's of your life.
The US government has stepped in once again to shore up financial market stability, this time with a joint rescue package from the Treasury, Fed and FDIC for the US' second-largest bank, Citigroup! If you have not done so already, please view the video FDIC chariman posted in the blog, where the undertones suggest further bank failures. Hang on folks!! The government and the bank identified an asset pool of about $306bln worth of distressed real-estate backed loans and securities. Under the plan, the bank would be responsible for the initial $29bn of losses on the portfolio. The Treasury, FDIC and Fed would then take on any additional losses, with the Fed acting as the backstop. Treasury will also provide a $20bln cash injection (in addition to $25bn already issued under TARP) in return for preferred securities in the bank. On the economic front, US President-elect Obama announced a new initiative aimed at creating 2.5mln new jobs, which may act as good intentions but will likely not outweigh the tsunami of job losses to come as the auto industry and other related manufacturing suffer badly in the coming months. The new stimulus package could be in the range of $500bln to $700bln and Congress is expected to have it ready for Obama to sign shortly after his inauguration. Obama will also formally announce his economic team, with Timothy Geithner as Treasury secretary and Lawrence Summers as head of the White House National Economic Council. Read More...
Another Rescue Package, Another Day
15/10/08 19:53
The wave of contentment inspired by the global rescue
packages for banks has faded in similar fashion to
any previous rescue "plan" as the market digests the
full implications on global economies. The US
Treasury's decision to take equity stakes in US
banks, totalling up to US$ 250 bln is marks a major
step towards a gradual resolution of the credit
crisis, though Paulson himself yesterday warned
against expecting any speedy return to normality and
said that more steps may need to be taken. In other
words, Paulson is cognizant of risks that may
eventually pound on the markets driving them deeper
still. Read
More...
Rescue Plans Ineffective as Global Financial Turmoil Continues
07/10/08 22:26
Ref UBS
We continue to see hightened levels of volatility in the forex market as the historic global financial shift continues. As we have discussed in Pro Traders Club, the rescue plans, although necessary to soften the impact, will not outweigh the tremendous strength of mass market forces. EURUSD traded up to a high of 1.3743 from 1.3567, while USDJPY traded in a 101.06 to 102.87 range. US stock markets help up at the start of the US session. However, the weight of uncertainty overwhelmed the market again, and losses in financial stocks once again lead the overall market lower. The S&P500 closed the session down 5.7%, while the Dow was down 5.8%, and the Vix index closed higher at 53.68, an insurmountable level. Read More...228-205 Votes against the financial rescue package
30/09/08 09:51
The House of Representatives voted 228-205 against
the financial rescue package - an unexpected defeat
after the assurances from congressional leadership
over the weekend. Read More...