SERVING THE QUANTITATIVE FINANCE COMMUNITY

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BullBear
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Joined: August 18th, 2007, 8:33 pm

congress morons

September 29th, 2008, 9:30 pm

The guys from the congress are really morons!1st the FED did a lousy job rescuing bear sterns some months ago... If they were to teach a lesson to wall street that was the right timing, not now.2nd letting lehman fall increased market suspicion and fear. It was the kick start of the current meltdown. (This decision was such a crap decision. Paulson and Bernanke should pay for this action! They've pulled the meltdown trigger...)3rd they announced a bailout plan before its approval was guaranteed which increased market suspicion even furtherFinally, the morons from the congress spent several days doing politics instead of promptly accepting the plan. What else could they do? Where the fu** do they live? What were they thinking about in today's voting? If they want to punish wall street (which I agree with) they first have to bailout the financial system and the credit market. They need to restore market players confidence. Latter, they can approve other measures to protect tax payers and punish wall street greedy executives.One year after the beginning of the crisis now we are even worse! We are on the verge of a major and historical meltdown and our fate depends on a couple of morons sitting their fat asses in the US congress.If those morons don't fix their voting tomorrow, with the VIX at 46.7 signaling huge market fear, we are in deep shit. Even worse will be seeing Asia and Europe under huge pressure tomorrow! UBS, Credit Suisse, Commerzbank, ING ... who's next?I think the Central Banks should step in tomorrow morning for an emergency interest rate cut of 100 bps to boost market confidence. How the fu** can Trichet be thinking about inflation risk in a verge of a financial meltdown?? At least Bernanke acts more quickly on this subject!We are also in the need of a bailout plan for EU banks. It would be nice to see the EU rescuing the financial system while they can...
 
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farmer
Posts: 13477
Joined: December 16th, 2002, 7:09 am

congress morons

September 29th, 2008, 10:08 pm

QuoteOriginally posted by: BullBearWe are on the verge of a major and historical meltdown and our fate depends on a couple of morons sitting their fat asses in the US congress.What, are you on welfare? That is the most pathetic thing I have ever heard from someone who can spell. If the assets are worth something that Congress should buy them, then go borrow money from the Fed and bet on a rebound. If the Fed won't lend you US dollars, then organize a complex series of barters.Congress isn't stopping anyone from pricing things at fair economic value.This is ridiculous.
 
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Paul
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congress morons

September 29th, 2008, 10:15 pm

Agree. (With BB!)I do get the impression that blaming and punishing are high on some people's agendas. Silly. Blaming and punishing can be done any time in the future. There are more pressing matters now. If 'Wall Street' wanted to it could teach the politicians a lesson before the politicians teach it a lesson. I.e. give the market a serious caning tomorrow, bring about depression asap, show who's boss!!! Ok, the western economy would collapse, the American Empire would collapse (even sooner than expected), but 'Wall Street' would then be relatively higher up the ladder, albeit a shorter ladder than otherwise, looking down on 'Main Street.' This political brinkmanship with people's lives is not pretty to watch.P
Last edited by Paul on September 29th, 2008, 10:00 pm, edited 1 time in total.
 
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croot
Posts: 104
Joined: July 23rd, 2006, 8:30 pm

congress morons

September 29th, 2008, 10:25 pm

wait and see
Last edited by croot on September 29th, 2008, 10:00 pm, edited 1 time in total.
 
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farmer
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congress morons

September 29th, 2008, 10:34 pm

QuoteOriginally posted by: Paulgive the market a serious caning tomorrow, bring about depression asap, show who's boss!!! Ok, the western economy would collapse, the American Empire would collapse (even sooner than expected), but 'Wall Street' would then be relatively higher up the ladderBah. Half the people in the US could die tomorrow, and it would be business as usual in six months.
 
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farmer
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congress morons

September 29th, 2008, 10:57 pm

From CNN.com:QuoteRepublican congressional aides also said calls from constituents were running 10 to 1 against the legislation.
 
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EBal
Posts: 431
Joined: May 20th, 2005, 1:30 pm

congress morons

September 29th, 2008, 11:16 pm

Below are some quotes from the Treasury Secretary. I was wondering why should anyone trust him anymore; he is either a lier or incompetent, maybe both but I tend to think it is the former. There is no doubt something needs to be done about this crisis. A number of people predicted current events and warned about the dangers as far back as several years ago. Why should we not listen to what these people have to say about solutions to the current problems, but instead blindly and quickly accept this plan, which would probably not even help? This administration is known to consistently use the scare tactic to justify moronic actions that have been disastrous; this is just another one of them in my opinion.May 31, 2006"The risk I worry about the least right now is a dramatic drop in the dollar. And I don't believe there is a general housing bubble. There might be anomalies in certainregions but I don't see a real estate bubble across the U.S."September 16, 2006"U.S. economic growth is settling into ranges more in line with our long-term potential. The residential housing market is cooling from record unsustainable growth rates, but growth in the U.S. economy is being supported by other components. Higher wages, strong company profits and business spending will offset a weaker housing market."December 11, 2006"We have had a correction in the housing industry and we are in the process of transitioning to a more sustainable growth rate.""We do not want Americans to become over-extended and see their dream end in foreclosure."March 13, 2007"The fallout in subprime mortgages is] going to be painful to some lenders, but it islargely contained."April 20, 2007"All the signs I look at" show the housing market is at or near the bottom. The U.S. economy is very healthy and "robust."June 20, 2007"We have had a major housing correction in this country. I do believe we are at or near the bottom. It doesn't pose a risk to the economy overall.""I tried to make clear we will be dealing with the subprime issue for some time and that there will be losses along the way. It is a natural outgrowth of what we've seenin the housing market and certain lending practices. As mortgages continue to reset, this will take time to work its way through the system. But I continue to believe thatthis risk is largely contained. It doesn't pose a significant risk to the economy overall."July 26, 2007I don't think [the subprime meltdown] it poses any threat to the overall economy."August 1, 2007[...worries over problems in the subprime mortgage market spilling over into other sectors.]"The market has focused on this. There's a wake-up call, and there's an adjustment to this repricing of risk, but I see the underlying economy as being very healthy.""As an economic matter, this is largely contained because we have a healthy and diverse economy."September 9, 2007"I never thought of myself as a cheerleader. I believe our economy is healthy."October 30, 2007"I believe there is enough strength in our economy that we will continue to grow through this though housing is the weakest part of the economy."November 23, 2007"I think we're working our way through this. But I also recognize that it's going to take longer for these markets to operate the way they should be, and until they are, there's a certain amount of fragility in the system."December 17, 2007"I don't think what we need is a big government bailout right now. I think what we need is to help the markets work the way they're intended to work and avoid thoseforeclosures that are preventable."January 8, 2008"...let me be clear: There is no single or simple solution that will undo the excesses of the last few years."March 4, 2008"Most of the proposal [bailouts] I've seen would do more harm than good. Investors, lenders or speculators should be accountable for the risks they took. Let me be clear: I oppose any bailout. I believe our efforts are best focused on helping homeowners who want to stay in their homes."March 16, 2008"I've got great confidence in our financial market, our financial institutions. Our markets are resilient. They're flexible. Our institutions, our banks and investment banks, are strong."May 16, 2008"We are still working through housing and capital markets issues, and expect to be doing so for some time. We also expect to see a faster pace of economic growth beforethe end of the year.""We are seeing signs of progress as capital and credit markets stabilize. The markets are considerably calmer now than they were in March.""Some bumps in the road" are likely, especially in the housing sector, but we are closer to the end of the market turmoil than the beginning."
Last edited by EBal on September 29th, 2008, 10:00 pm, edited 1 time in total.
 
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Traden4Alpha
Posts: 23951
Joined: September 20th, 2002, 8:30 pm

congress morons

September 30th, 2008, 12:22 am

Perhaps all this is for the long-term best. Wall Street thought it was "too big to fail" and that smug belief in salvation at taxpayer expense was its ultimate downfall. If people continue to use the same flawed empirical approaches to estimating risk, then the data generated by this failure will lead to somewhat safer behavior in the long-term. Unfortunately, in the short term, the political backlash against the financial industry will only serve to deepen the credit crisis.It is too bad, however, that more people (especially lawmakers!) don't understand the financial industry and its critical importance to everyday life.
 
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jomni
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congress morons

September 30th, 2008, 12:38 am

They just missed a potential money making opportunity.
 
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ChicagoGuy
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Joined: April 13th, 2007, 1:45 am

congress morons

September 30th, 2008, 2:37 am

I think it time to stop trying to see who we can blame for this and take action. Perhaps in a year or two in the future, academics can start writing articles about the crisis and distributing the blame. For now, they should keep the general public out of this issue since 99% dont really understand the situation and pass this thing. Today made me realize that they should make macroeconomics and microeconomics necessary courses in high school.I am sure 98% of Americans havent taken a single class in economics. Out of the 2% who have, how many understand credit derivatives, liquidity, mortgage backed securities, etc.? Why should their opinion count if they dont understand the consequences of certain actions taken by congress? Congressmen should stop caring about getting themselves re-elected and prioritize the economic health of the US and world above everything right now. Democracy let me down today...In addition, they are missing out on an investment opportunity like Jomni said.
Last edited by ChicagoGuy on September 29th, 2008, 10:00 pm, edited 1 time in total.
 
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gardener3
Posts: 1496
Joined: April 5th, 2004, 3:25 pm

congress morons

September 30th, 2008, 3:10 am

QuoteOriginally posted by: ChicagoGuyI think it time to stop trying to see who we can blame for this and take action. Perhaps in a year or two in the future, academics can start writing articles about the crisis and distributing the blame. For now, they should keep the general public out of this issue since 99% dont really understand the situation and pass this thing. Today made me realize that they should make macroeconomics and microeconomics necessary courses in high school.I am sure 98% of Americans havent taken a single class in economics. Out of the 2% who have, how many understand credit derivatives, liquidity, mortgage backed securities, etc.? Why should their opinion count if they dont understand the consequences of certain actions taken by congress? Congressmen should stop caring about getting themselves re-elected and prioritize the economic health of the US and world above everything right now. Democracy let me down today...In addition, they are missing out on an investment opportunity like Jomni said.You may be right:"Among 38 incumbent congressmen in races rated as "toss-up" or "lean" by Swing State Project, just 8 voted for the bailout as opposed to 30 against. By comparison, the vote among congressmen who don't have as much to worry about was essentially even: 197 for, 198 against."and the result:
 
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BullBear
Topic Author
Posts: 860
Joined: August 18th, 2007, 8:33 pm

congress morons

September 30th, 2008, 4:33 am

QuoteOriginally posted by: ChicagoGuyI think it time to stop trying to see who we can blame for this and take action. Perhaps in a year or two in the future, academics can start writing articles about the crisis and distributing the blame. For now, they should keep the general public out of this issue since 99% dont really understand the situation and pass this thing. Today made me realize that they should make macroeconomics and microeconomics necessary courses in high school.I am sure 98% of Americans havent taken a single class in economics. Out of the 2% who have, how many understand credit derivatives, liquidity, mortgage backed securities, etc.? Why should their opinion count if they dont understand the consequences of certain actions taken by congress? Congressmen should stop caring about getting themselves re-elected and prioritize the economic health of the US and world above everything right now. Democracy let me down today...In addition, they are missing out on an investment opportunity like Jomni said.I agree! The time for punishments or finding the people to blame is not now! Right now we need to clean this mess and avoid a global meltdown. This is the move in need of fast politician decisions. They'll have time to ramble and beat about the bush latter... Now is the time to act!
 
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Martinghoul
Posts: 3256
Joined: July 18th, 2006, 5:49 am

congress morons

September 30th, 2008, 6:35 am

QuoteOriginally posted by: BullBearQuoteOriginally posted by: ChicagoGuyI think it time to stop trying to see who we can blame for this and take action. Perhaps in a year or two in the future, academics can start writing articles about the crisis and distributing the blame. For now, they should keep the general public out of this issue since 99% dont really understand the situation and pass this thing. Today made me realize that they should make macroeconomics and microeconomics necessary courses in high school.I am sure 98% of Americans havent taken a single class in economics. Out of the 2% who have, how many understand credit derivatives, liquidity, mortgage backed securities, etc.? Why should their opinion count if they dont understand the consequences of certain actions taken by congress? Congressmen should stop caring about getting themselves re-elected and prioritize the economic health of the US and world above everything right now. Democracy let me down today...In addition, they are missing out on an investment opportunity like Jomni said.I agree! The time for punishments or finding the people to blame is not now! Right now we need to clean this mess and avoid a global meltdown. This is the move in need of fast politician decisions. They'll have time to ramble and beat about the bush latter... Now is the time to act!I agree as well... I see the argument against the bailout, but risk/reward-wise it doesn't make any sense to me. Provision of credit, at least for the moment, is a public good and the US govt just abdicated on its coordination duties. To me, the argument put forward by the bailout opponents is that the system fundamentally needs to change (which I don't necessarily disagree with), but they're essentially saying that they are happy to implement the change by destroying the system as it exists now.The one significant development that I think may come out of it is a major political backlash against incumbent monetary policy doctrines. Anyone willing to give me odds that we're seeing the end of independent Central Banks as we currently know them, with all their inflation targets et al?
Last edited by Martinghoul on September 29th, 2008, 10:00 pm, edited 1 time in total.
 
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Paul
Posts: 10789
Joined: July 20th, 2001, 3:28 pm

congress morons

September 30th, 2008, 6:47 am

QuoteOriginally posted by: farmerFrom CNN.com:QuoteRepublican congressional aides also said calls from constituents were running 10 to 1 against the legislation.Politicians are supposed to act in the best interests of their constituents, not just blindly do whatever some poll says! Especially if the constituents don't know what is going on (as ChicagoGuy points out). If this isn't sorted out asap then I stand by my forecast of the traditional October crash!P
 
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daveangel
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congress morons

September 30th, 2008, 6:51 am

QuoteAnyone willing to give me odds that we're seeing the end of independent Central Banks as we currently know them, with all their inflation targets et al? over what timescale and what is your bid ?
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