As the Bailout Plan Gets Closer >What will it bring?

Mystery Blogger sense on this post...

In the wake of the bailout plan, there are numerous outcomes that are possible. Today the market futures show a positive slant, as talk suggests that Washington is making progress toward a deal on the $700 billion bailout plan. The current expectations is we'll see a deal no later than Monday. Joining Bernanke & Paulson, Bush warned the country, last night, that a economic disaster awaits if Congress does not hand over the $700 billion, and soon.

In the wake of an agreement for a bailout plan, there are numerous outcomes that are possible. With the importance of this plan deemed super critical, the speculation to its outcome has run rampant. With the American taxpayer funding the bailout a certain outcome, there will be others. To better understand what is truth, and what are the consequences, read the report below. It provides great insight and a comprehensive perspective to a wide range of interesting economic outcomes.

The Kirk Report
Posted by Kirk at 1:03 PM
Thursday, September 25, 2008


Truth or Consequences

Bernanke moves closer to cutting interest rates
Remarkably, Wall Street's consensus on earnings is "Fine in 2009"
Hedge funds move $100 billion into safe havens
Credit derivatives market shrinks 12%
Credit default swaps explained
A simple explanation of what went wrong
A big slowdown in stock buybacks
No IPO flow (which has historically been a bullish signal)
The bailout will make all of us rich?
Working folks are outraged about the government's proposed Wall Street rescue
Bernanke's $700 billion dollar bazooka
Few lawmakers or administration officials are talking openly about where the government plans on finding a spare $700 billion
Paulson cannot be allowed a blank check
A bailout above the law
Are we just a nation of morons, led by idiots?
No, really, how much is $700 billion?
According to David Weidner, how the bailout will benefit us!
Facts on the government bailout
Stopping a financial crisis, the Swedish Way
Lesson from savings and loans rescue
Bill Gross to the rescue
What the death of the investment bank means for Wall Street

"To suggest that September was difficult, volatile, perplexing and frustrating is a little like saying teenagers make sense or that economists speak English." - Laszlo Birinyi

Millions of americans spend half of their income on housing
Mortgage rates jump in wake of bailout plan
Home builders keep guessing
New home sales fall to weakest level in 17 years
FBI investigates four firms at heart of the mess
SEC presses hedge funds
Exploiting FDIC loopholes enriches former U.S. bank regulators
The New Communism
The largest U.S. bankruptcies
More healthcare inflation
Buffett and The Magazine Cover Indicator
Time to take a look at some sector performance
Pickens funds are down about $1 billion
Short-sale ban is hitting mutual funds
The short-selling ban is taking the hedge out of hedge funds
Did you know that nearly 20% of the S&P 500 now covered by no short list?
Traders wonder what is going to happen when the short-sale ban ends
Auto-maker loans advance
Emerging markets hit hard by Wall Street crisis
Huge losses for equity funds in China this year
Customers spark run on Asian bank
Paulson’s hedge fund targets UK banks
Some traders think this might be a good day to spend on the sidelines. Not Scott Black
Trader Mike shares his stock filters
Even legendary stock screen strategies are struggling in this market
Cash is king!
8 stocks that look ripe for a turnaround
A pitch for three cheap stocks
Time to look at railroad stocks again?
Potash is among top stocks with insider buying, buybacks
L-3 Communications shows earnings consistency

"The principals of successful stock speculation are based on the supposition that people will continue in the future to make the mistakes that they have made in the past." - Edwin Lefevre

Alan Farley's 20 tips for market survival
Indeed, the tough get going when the going gets tough
Success in trading is probably far more related to talents, skills, and effort than personality features
What to do with large bid/ask spreads
A nice ETF roundup by Morpheus
Trading activity has soared, reflecting high anxiety as many investors rushed to move money in their portfolios
TD Ameritrade to support clients stuck in Reserve
Glitches on several electronic exchanges led to thousands of canceled trades and stuck some investors with unexplained losses
It's time to reconsider retirement investing rules-of-thumb
Does shopping at Sam Club's and Costco really save you money?
With the credit crisis rupturing the American economy, right now is the perfect time to teach young people the value of spending without borrowing
Rososo is a clean, minimalist RSS feed checker
Although it won't matter, here's how to write to Congress
The World's 10 Greatest Beaches (I think you missed a few)
Tiger's desert paradise
Keeping faith in tough times

"When you lose, don't lose the lesson." - Dalai Lama

link to this kirk report post

Financial Market Manipulation >What has this country become??

Being a real believer in capitalism and having a passion for the stock market, this is a sad day for the good old USA. Banning the short selling of stock by the SEC is an outrage, one that will be heard for a long time to come. I'm not sure many Americans understand what this action means, but let's just say it reeks of socialism.

But rather than listen to what one man thinks, below is a summary consisting of commentary from a few of the top free market capitalists. You decide what the truth is, and what's the official BS.

SEC: Ban All Short Selling
Here is tonite's theater of the absurd SEC headline:

SEC intends to temporarily ban short selling, but it's not clear if the commission has approved the move. Cox is briefing congressional leaders. Separately, the government is seeking congressional authority to buy distressed assets.

This is nothing short of a total panic by people who have no clue what they are doing. And to think, I mocked Russia for being a nation run by market commies.

This is the ultimate bailout attempt, which will have repercussions far far beyond our imaginations:
1) We suffer a loss of Market Integrity; The US is now a Banana Republic

2) Blatant market manipulation: this is nothing more than an attempt to force markets higher;

3) 60 days prior to a presidential election? This is a none-too-subtle attempt to influence the elections -- especially coming on top of the Fannie/Freddie bailout;

4) The coming pop will create a huge air pocket, ultimately leading to us crashing much lower;

5) Expect a huge increase in volatility -- upwards first, then down;

We Are A Nation of Morons, led by complete Idiots, making us complicit in our own self destruction.

Bloomberg:
Financial regulators in the U.S. and U.K., attorneys general in New York, Texas and Connecticut, and the three largest U.S. pension funds are cracking down on short sellers in the wake of the collapse of Lehman Brothers Holdings Inc. and American International Group Inc.

Hedge funds and investors who profit from share declines are being scrutinized after a crisis of confidence in the financial industry erased more than $3 trillion from stocks globally this week. Goldman Sachs Group Inc. and Morgan Stanley, the only remaining independent securities firms on Wall Street, suffered the worst-ever declines yesterday. Morgan Stanley's chief executive officer, John Mack, said short sellers may be spreading false information and using abusive tactics to attack companies.

"You have to enforce the rules with regards to short selling,'' said Mario Gabelli, who oversees about $28 billion as chairman and chief executive officer of Gamco Investors Inc. in Rye, New York. "Shorts were running amok.''

The U.S. Securities and Exchange Commission said it may require hedge funds to disclose short-sale positions and plans to subpoena their communications, while the Financial Services Authority in the U.K. banned short selling financial shares for the rest of the year.

New York Attorney General Andrew Cuomo began an investigation into whether bears illegally drove down stock prices of financial firms. The California Public Employees' Retirement System and the New York State Common Retirement Fund decided to stop lending shares for short sales, after a similar move by the California State Teachers' Retirement"

Marketwatch:
"Gathering anger over short selling of vulnerable financial stocks exploded into the open Thursday as top market regulators and industry giants took steps to limit the practice and begin investigation into possible abuses.Britain's stock market regulator on Thursday banned short selling in financial companies and said it might extend the ban to other sectors. The move followed the Securities and Exchange Commission's curbs on the practice that went into effect Thursday morning.

In other steps aimed squarely at the bearish practice, the country's largest pension fund, the California Public Employees' Retirement System, said it was taking steps to limit the practice on three financial stocks and the New York attorney general called for a wide-ranging investigation of the short selling of some prominent financial companies, including Goldman Sachs (GS) and Morgan Stanley (MS).

The concerted reaction followed two days of sharp declines in global stock markets, triggered by mounting fears that the credit crunch would spin out of control and deepen the financial crisis. As stock declines have deepened, the role of short sellers has come under fire."

And then there is this from Tom Brown, long and wrong all the way down:

"The moves should help restrain the abusive short-selling practices lately rampant in the stock market," said analyst Thomas Brown of Bankstocks.com. "Short sellers can no longer deceive their brokers about their intention or ability to deliver shares."

Sources:

Short-Selling Crackdown Extends to New York, London

Michael TsangBloomberg,

Sept. 18 2008

http://www.bloomberg.com/apps/news?pid=20601087&sid=aQeq1yaXSHzQ&

Regulators, industry giants seek to curb short selling

Matt Andrejczak, MarketWatch,

5:48 p.m. EDT Sept. 18, 2008

http://tinyurl.com/banshorts-upyours
Thursday, September 18, 2008 07:50 PM

Consolidated source content from:
The Big Pucture
Thursday, September 18, 2008 07:50 PM
Link to from here