Monday, September 15, 2008

The end of the shadow banking system...as per Roubini


One of my favourite qoutes happens to be:... Remember I have no predictive powers - well it seems even I have it once in a while... Leh will soon be history - my good friends at Lehman sending me goodbye notes - I am sad to see these good people lose their jobs due to one of the most incompetent management teams in history. Too big too fail ----

Well moving on .. all night Fed, Paulson and their merrymen been busy telling us everything is fine.. but..


  • AIG is next - asking for Fed help according to WSJ
  • Consortium of banks (9 in all) will put forward 50 bln. to save their own ass
  • Bank of America will be nationalised inside one year - why would you buy Merril stocks @ 25-28 USD, when they could have been bought for 13 or less in the market?

Whats next?

Fed cuts rates Tuesday - this could be the 2nd worst Monday in history - be warned....The SEC- useless as they are could reinstitute: uptick rule, no short selling.....The US is moving fast and furious towards: The Socialist State of America.

Friends - be extremely careful now - this is even for old hand like me unique circumstances - fortunes will be lost and made in the next 72 hrs - make sure you understand the game, please!

Strategy:

Still same: Long EUR/USD, JPY, short-end FI, short Dax and S&P- cash at 75%...


Links:


Again friends.... be careful out there... remember ending sentence from Hill Street Blues? If not.... http://tinyurl.com/6h93ak

Best wishes,

Steen

2 comments:

Anonymous said...

...if the markets are leaving you without a place to put all of your cash, you can always find something at the Damien Hirst sale at Sothebys today and tomorrow. How about a golden calf for 8 million? Would you consider that a good investment Mr. J?

Saxo Macro said...

Being a poor, simple farmer it strikes me as slightly bid in price - but then again compared with Barclays or BoA shareprices its cheap ;-)