What will the Fed do ?

[SHELLY]

Oh the irony ... how about $1200 for a $100 Gold Certificate Bill

http://search.ebay.com/search/search.dll?from=R40&_trksid=m37&satitle=gold+certificate&category0=

I've got a better deal....forget the paper note!--I'll sell you $100 in gold for only $1,000!!!


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[SHELLY]

Not to change the subject but..........bank stocks at this moment are either up or way off their earlier lows. the djii is off 180 points now. me thinks the financials have bottomed it is early but they are finally not going down on bad news. the worst may be over and the time to buy may be at hand.

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[goofer]

i am being serious. one of the techniques of recognizing a bottom is when stocks stop going down on bad news and actually start to go up. i am just making an observation which may or may not be helpful

 

[SHELLY]

i am being serious. one of the techniques of recognizing a bottom is when stocks stop going down on bad news and actually start to go up. i am just making an observation which may or may not be helpful

Goofer,

I think we're just seeing the tip of the iceburg. Ya know how you pull a single thread on a sweater and whole thing starts to unravel....well this just might be that thread:

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TOKYO, Nov 9 (Reuters) - A collateralised debt obligation (CDO) managed by State Street Global Advisors has started selling assets, ratings agency Standard & Poor's said late on Thursday, raising worries that a wider array of structured securities may do the same.

S&P said it slashed its ratings on Carina CDO Ltd's top tranche of securities by 11 notches to the junk level of BB from the top-notch triple-A. S&P also chopped its ratings on the subordinate levels of the CDO, eight all the way to CC.


The trustee of the Carina CDO has started selling the asset-backed securities making up the CDO at the direction of the structure's noteholders, S&P said.

"We believe the liquidation process has begun," S&P said in its press release.

 

[goofer]

I disagree as far as the stock prices are concerned. The financials are down 40% in the last 2 months......I think the whole iceburg has been discounted. Watch how the stocks trade from here.

 

[SHELLY]

I disagree as far as the stock prices are concerned. The financials are down 40% in the last 2 months......I think the whole iceburg has been discounted. Watch how the stocks trade from here.

So you're buying?

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[goofer]

i doubled all of my financial positions yesterday.......i am hemorhaging (sp) money the last month. my game plan is to wait at least 31 days to avoid the wash rule and take the tax loss on the first lots. This dovetails nicely with the next fed meeting which is dec 11 (?). I expect they will lower by 25 bps which won't matter. But I like the way the stocks are trading today on more bad news. I think the selling has exhausted itself on the financials. The homebuilders, imo , are dead for the foreseeable future.


I chose yesterday to double down because I was shaking with fear and that is the best time for me to plow in on a contrarian bet. I am usually emotionally detached when investing so when I am scared s***less it usually is the right thing to do. We will see in the next 5 weeks how it plays out.

 

[Little Fish]

Goofer:

I happen to agree with your comment that the Banks should begin to stabilize shortly. With today's announcement from Wachovia that they will write down another $1.1B to account for additional CDO losses, one would expect the stock price to deteriorate. In fact, today the stock price is up 1%. We are near the bottom.

Little Fish

 

[SHELLY]

I chose yesterday to double down because I was shaking with fear and that is the best time for me to plow in on a contrarian bet. I am usually emotionally detached when investing so when I am scared s***less it usually is the right thing to do. We will see in the next 5 weeks how it plays out.

Goofer,

Might I suggest 'recreational drugs' as an alternative?


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[Miss Kitty]

Goofer,

Might I suggest 'recreational drugs' as an alternative?


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I just got the shakes reading all this. I am glad my money is safe in the mattress where many folks keep their guns.