You are a good man, but I still can't guess what you are referring to....help a brother out here Jif!
BUCK T! Have you no pacifying words this time? 8 years ago I told you 5000/500 and you laughed. We are almost there my man!! :evil: by the way..a few years ago they would SHUT DOWN trading when it reached a certain mark..They stopped why? Today is THE DAY!
Jiffy, I still don't know what 5000/500 means....obviously market related and I assume that it suggests that we'd get to 500 before we reach 5000 on some index but I'm uncertain which one.....in any event, we are prepared today to re-test the lows put in earlier in October and we're trading at 2003 levels. It ain't pretty for sure.....but hell Jiffy, we just elected a socialist for President. What do we expect? :wink: you are referring the NYSE circuit breakers and they are still in place....the trip level is a 10% decline. If the Dow declines by over 10%, during any given day, trading is halted for an hour....if it declines by 20% trading is halted for 2 hours and in the event of a 30% decline, the market closes for the day. Suck it up Jiffy....this is no time for weenies!
Terry, I realize that you just want Jiffy to spell it out but I am certain he is referring to the Dow being at 5000 and the NASDAQ being at 500.
Actually not Tom.....my assumption was that he was saying that one particular index would reach 500 before it reached 5000 and I scoffed.....I just couldn't figure out which index he was taking about. Thanks, that's helpful. Jiffy, ain't gonna happen.....now go buy something! 8) But not with any money you're gonna need anytime soon!
Buck T knows what I mean lololl! Im looking for some words of widom...and dont give me that REBALANCE crap . I aint buying nada!! Even my 2 year old car is going to push 3 years!!
......I'm afraid we are truly in uncharted waters. I see things daily in the capital markets that have not taken place in my lifetime and unlikely to ever take place again and defy any and all economic and financial theory and logic that presently exists. It's a market driven by fear, plain and simple and logic has been thrown out the door for the time being......I don't believe that that can be a permanent condition and I can only act in the manner that my education, experience, training, brains and instincts tell me to do.... The yields on short-term t-bills is effectively zero, the dividend yield on the Dow and S&P 500 is in excess of that on long treasury bonds.....that is just nuts. Spreads on AAA secured-debt securities on projects that are strongly cash flow positive approach that of junk just 12 months ago.....it is crazy! Call me crazy, but I selling bonds and cash and buying equities and commodities.....until I run out of money or balls.....whichever comes first and right now my balls are bigger than my wallet! If it goes, it's taking me with it......fook 'em!
BuckeyeT....lockeroom talk from health club, overheard one stockbroker type say that Barclays has issued some preferred stock that had a 16% coupon(I think that's what he said) but that it all went to private placement. What's that all about and if true how could they afford to pay 16%?
They did and ran into a real sh!tstorm...they raised $15 billion of "reserve capital" at a coupon of 14% - in effect similar to what we would call preferred stock over here. They opted to not participate in the government program - similar to our TARP - and elected to raise the capital on their own so they would not have to be under the thumb of the government. Rather than go through a public offering to raise the capital they approached some existing investors in the Middle East and solicited the "private placement" of funds for the capital injection. Why 14%? That is what it took to induce the private investors to part with their cash.....and they need the capital and did NOT want the govts money with strings attached.... It created a real firestorm amongst existing investors in that they were not offered the opportunity to participate, it materially diluted their interests and it was damned expensive - but mgt believed that to be the better course rather than to have the Govt meddle in their affairs......at the end of the day, mgt had to agree to forsake bonuses and a number of other acts to appease the masses.....fun times for all! :wink: