Citi bailout

[John Adams]

The monetary base, which essentially represents the amount of (paper) currency available in the economy, has increased by $600 billion since August, which is exactly the amount of excess reserves held by the banking system. So "team Bush" has already flooded "the banking system with paper." Why is "team obama" getting the blame for that?

 

Don't worry: I'm not blaming Team Obama at the expense of sparing Bush.

 

Team Obama just happens to have a plan that calls for more of the same and will be in charge in the coming year when the inflation pressures start to mount.

[TPS]

Don't worry: I'm not blaming Team Obama at the expense of sparing Bush.

 

Team Obama just happens to have a plan that calls for more of the same and will be in charge in the coming year when the inflation pressures start to mount.

The thing that people don't seem to realize though is the FED, under Bush or Obama, can reverse what it's done when things improve. Just as it can flood the system with "cash" or liquidity, so can it take it away. Money gets created when the banking system starts lending, and right now it's not.

 

As I keep saying, inflation will occur only if the money gets into the hands of those who spend it--in fact, it's more correct to focus on his fiscal stimulus plan as what might bring about inflation, not the banking system awash with liquidity. The other force that could bring inflation about is the investing class gets confident in speculating in commodities again. The interesting thing about the past 15 years (or so) is that with all of the money sloshing around the globe what we experienced was several asset inflations (tech, real estate bubbles) while goods inflation was tamed by globalization (at least until this past year when the brief commodity speculative bubble caused prices to rise).

[SD Jarhead]

At the end of the day, gold isn't looking like a bad investment in times like these. whether you believe we're entering end times or not. And, if you can find it, the price is right. Where else are you going to put your money right now?

 

Does anyone not see that we as a nation (world) are rapidly changing our spending and borrowing habits reverting back to good old fashioned pay as you go? Or do you see this as a bump in the road and once this 'small' recession passes, we'll go right back to our old habits that got us here? I think that so many people have been burned by their own poor decisions or by the disappointment and anger of what has happened in the market that we're experiencing a tectonic shift in long term consumer behavior.

 

The catch 22 of our whole situation is that in order for our economy to quickly turn around we need people to start borrowing and buying again. But at the end of the day, that won't help fix the economy but simply make it worse. This surely is an oversimplification of the issue but you get the point.

[erynthered]

Team Obama just happens to have a plan that calls for more of the same and will be in charge in the coming year when the inflation pressures start to mount.

 

Yeah but at least he wants to do the job.

 

 

 

 

 

 

 

 

Good one.

[GG]

Wow.....I hope some of you here don't have any money with Citi. Not because they are insolvent, but because their head analyst is obviously crazy. I mean....what kind of fringe lunatic would predict the sort of stuff that he is?

 

Dwight Drane does not work for Citi

 

Just the basic fact that you call him Citi's head analyst indicates your knowledge of financial institutions.

 

And yes, if you read through the whole article you catch a warning about the potential of a negative feedback loop that's perpetuated by fear mongers who insist that the world is about to end. Sound familiar, mr. fireman?

 

Of course it doesn't scratch the surface of what exactly gold reserves will do in times of a global crisis. China's hoarding of gold is a very smart financial hedge. But if the meltdown occurs as you predict (hope) in 2010, they surely wish they would have a dozen Nimitz class carriers, instead of a bunch of yellow rock. Who will have the money or even care to buy gold when the wold is melting. Gold's historic value is due to its global acceptance and transportability. It's value is not that great during real global instability.

 

You can file the gold going to $2,000 in the same place where $250 oil is. Very plausible cya scenario, but other things would happen to undermine the prophecy where people have bigger things to worry about than hoarding gold. But hey, doesn't stop the cackles to return to a gold standard, no matter how outdated the idea is.

[Dwight Drane]

Just the basic fact that you call him Citi's head analyst indicates your knowledge of financial institutions.

 

I'm sorry. I'm not used to working at a place that has hundreds of redundant layers where nobody really has to put their a$$ on the line and they can coast for years by just not saying anything to rock the boat.

 

Please educate me as to what that is like, and the proper translation of the title; "Chief Technical Strategist" of Citibank.

[John Adams]

The guy's a currency person. If all the money on the sidelines right now heads back into the market in the next 3 years, that might affect gold too, and not in a good way.

 

I am not confident enough to make a prediction on gold or the market. You're a better man than me if you feel like you have your finger on the pulse of what's happening now. DD thinks the world is ending. DD's rants are just variations on songs I've heard from my years working in and around goldbugs--so paint me skeptical. Some say we're close to bottom and things will get better--I'd like to think that's true but don't buy it. There's inflation, US auto, and maybe some more bank fun yet to come. Beats the !@#$ outta me when this is over but I do think the worst of the market drop is probably behind us.

[GG]

I'm sorry. I'm not used to working at a place that has hundreds of redundant layers where nobody really has to put their a$$ on the line and they can coast for years by just not saying anything to rock the boat.

 

Please educate me as to what that is like, and the proper translation of the title; "Chief Technical Strategist" of Citibank.

 

Ah, there you have it. No one else but you puts their career on the line. It's all about you.

 

The picture certainly emerges. Wonder how much of a voluntary decision it was for you to "leave" your former employer? Yeah, you put your a$$ on the line, but it wasn't your money. It was your trading book, but not your money, not your capital ratio to worry about, nor life beyond the next trade. It was the company's money and you probably put your A$$ on the line at an oversized risk to your employers. They probably didn't appreciate your superior wisdom. After all how can they miss the genius in their midst, when they have a whole company to run.

 

You're like the throttle assembly guy in a car plant who doesn't care about the guy making the brakes. After all, your job is the most important one, because no one else is putting their a$$ on the line for their job.

 

To answer your question, a chief foreign exchange technical strategist in any firm simply gives opinions on the directions of currency markets. His opinion takes into account other analysts' views, including the chief economist and industry, country, and countless other specialists. Their job is not to tow the company line, but to give advice to clients based on his area of expertise. He doesn't consult with Citi's board of directors on whether his opinion will rock the boat. Nor does his opinion differ from the common sense concern that increased global monetary supply in the last 6 months is inflationary, by definition.

[Dwight Drane]

Ah, there you have it. No one else but you puts their career on the line. It's all about you.

 

The picture certainly emerges. Wonder how much of a voluntary decision it was for you to "leave" your former employer? Yeah, you put your a$$ on the line, but it wasn't your money. It was your trading book, but not your money, not your capital ratio to worry about, nor life beyond the next trade. It was the company's money and you probably put your A$$ on the line at an oversized risk to your employers. They probably didn't appreciate your superior wisdom. After all how can they miss the genius in their midst, when they have a whole company to run.

 

You're like the throttle assembly guy in a car plant who doesn't care about the guy making the brakes. After all, your job is the most important one, because no one else is putting their a$$ on the line for their job.

 

To answer your question, a chief foreign exchange technical strategist in any firm simply gives opinions on the directions of currency markets. His opinion takes into account other analysts' views, including the chief economist and industry, country, and countless other specialists. Their job is not to tow the company line, but to give advice to clients based on his area of expertise. He doesn't consult with Citi's board of directors on whether his opinion will rock the boat. Nor does his opinion differ from the common sense concern that increased global monetary supply in the last 6 months is inflationary, by definition.

 

Let me guess. You had white meat with a touch of gravy?

 

I'm a dark meat guy myself. I'll have a leg and work around the rest.

 

 

Happy Turkey Day!

[erynthered]

Posting on Thanksgiving on the PPP = Loser.

 

 

Btw I dont remember if I've posted here on Turkey day. Feel free to search the banks.

[Ramius]

Let me guess. You had white meat with a touch of gravy?

 

I'm a dark meat guy myself. I'll have a leg and work around the rest because that and some freeze-dried sides are all that remain. I used the computer time while the rest of my housemates were squatted around the candle lit blanket on the concrete floor, so i missed out on most of the food.

 

 

Happy Turkey Day!

 

fixed.

 

And i am a poker guy, but not video poker. I actually like lining up against guys like you at the table, because you're easy to read. You'll play it big off the flop acting like you know what the hell you are doing even though you only hold pocket 7's. But then you start to sweat when the turn card comes out and you still dont have your 3rd 7, and your pocket 7's can be beaten by a pair on 3 of the 4 community cards. So you check, trying to pretend you're smarter than everyone, but not wanting to lose even more of your money. Then the river comes out and you realize you are SOL, stuck with your pair of 7's and nothing else. At this point, you'll try again to act smarter than everyone and bet big. Your bet will be an attempt at a bluff or buy-the-pot move, but the problem with you is, you dont want to lose all your $, so your bet wont be big enough. You'll quickly get called, beaten, and will take a huge hit on a single hand. But hey, you can still go brag to your 8 housemates about how smart you are.