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After all that happens, the value of buying insurance on debt really seems like a nice deck of cards. Either you're prepared to take the loss or you aren't. This whole hedging strategy just doesn't seem smart when debt failures seem to happen in quick succession.
I mean, I get the strategy it makes sense. But it also doesn't make sense.
Shit. I forgot to make that spin off thread.
But that's what day-traders and hedge funds do---hedge on short bets, or bet against long term value. In a parallel way, that's the SEC complaint made against GS; playing both sides of the trade and 'making markets' they know will glitch; selling the long fail side to clients but profiting on the short side via CDSs from their prop desk.Quote:
Originally Posted by Dreadnaught
Seems to me the bugger is in "intent", and that will take a long time to flush out.
The May 6 flash crash is still not completely understood, but it's clear that technicalities plus singular trades that are HUGE can put the whole system into panic. There are now so many moving parts and high frequency trades, between so many exchanges and dark pools, that the old structure of regulation and oversight, once made for the big boards (and human analysis/action) is obsolete.
What? :confused:Quote:
Originally Posted by EyeKhan
What did you guys do with Cain?
I had him for dinner, with some fava beans and a nice chianti. :DQuote:
Originally Posted by EyeKhan
He ran out of derogatory things to say so we asked to leave.Quote:
Originally Posted by EyeKhan
Ok, I assume you're referring to cannibalism and not something very erotic. Right?Quote:
Originally Posted by GGT
Ha. Like I believe that. He'd never run out of derogatory things to say. Liar. :mad:Quote:
Originally Posted by Being
She's quoting ...Quote:
Originally Posted by EyeKhan
http://2fm.rte.ie/blogs/dave_fanning...hopkinsopt.jpg
I found that erotic. Didn't you?
No. I'm more of an arse man.
You don't get turned on at the idea of cooking someone's liver and eating it? What about drying it out, crushing it up, and snorting it to get high?Quote:
Originally Posted by Timbuk2
Strangely, no.Quote:
Originally Posted by EyeKhan
Strangely, no.Quote:
What about drying it out, crushing it up, and snorting it to get high?
~
I don't like lamb's or calve's liver when it's on the menu. The idea of eating guts does nothing for me.
Now if you had a nice meaty man-thigh cooking on a spit roast, with a hint of sage and onion, I would quickly find an appetite. :yum:
I imagine you munching an ass cheek off a hairy, unskined leg. Its far less erotic than it is funny.Quote:
Originally Posted by Timbuk2
The hairs woulda burned off, silly.
And there's a lotta meat to be had on an arse cheek.
But its not as funny without the hair.Quote:
Originally Posted by Timbuk2
:haha: Erotic arse eating? You guys crack me up. ;)
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http://www.msnbc.msn.com/id/37389008..._businessweek/Quote:
Schwab worries about the little guy
‘This is the most violent period I've ever seen’
.....The May 6 crash may have been a freak occurrence, but it felt like one more sign that the deck was stacked against the little guy. "They got burned very badly before," Pennock says, "and they don't ever want to be in that situation again."
Many small investors had only begun to tiptoe back into equities when the May 6 crash and the European credit crisis rocked the markets, completing a particularly cruel cycle. In the year prior — while the S&P 500 was rebounding 69 percent from its Mar. 9, 2009, bottom — individual investors withdrew a total of $11.5 billion from U.S. equity mutual funds and poured $506 billion into lower-yielding bond funds, according to TrimTabs Investment Research. By late spring, they had just begun to reverse course, venturing back into equities by channeling $13.9 billion into domestic mutual and ETF funds in March and $6.9 billion in April. By the third week of May, they'd withdrawn $29.3 million from U.S. equity mutual funds and poured an additional $8.2 billion into bonds. An American Association of Individual Investors survey taken the week of the May crash showed investor sentiment jumped to 36 percent "bearish," from 28 percent the week before. As of May 10, according to the Federal Reserve, money on the sidelines in bank and money market accounts had reached $9.36 trillion, compared to $7.44 trillion in May 2007.
The period since early 2008 "is the worst time since I began the company," says Charles Schwab, the father of the modern American individual investor. "These are the most violent markets. Most people are still in a state of fear. I'd say 98 percent are still very concerned. And for a lot of good reasons. Look at the headlines. You've got these scoundrels doing all this stuff. People wonder, 'Who can I trust?' "