opentrade

Third, no one has any clue what the GSE's are going to look like two years from now or what the guarantees on current agency bonds are going to look like in two years. opentrade: Couldn't Fed provide liquidity to players such as GS or JPM under terms "buy this sector" or "buy oh say S&P futures"?

MRZine.org 2009

Their implicit government guarantee has been used up, and so no one is going to touch them without an explicit government guarantee beyond what they have been given. opentrade: Now i'm also curious if the Fed buys equities traded on Nasdaq / NYSE / AMEX?

MRZine.org 2009

Twofish responds: opentrade: over time commodities have to come out of somewhere. my opinion is it's already apparent that china is trimming reserves for commodities.

MRZine.org 2009

The Fed doesn't have enough spare money to move stock markets very much for very long. opentrade: Well, Govt interference in the markets completely takes away the "free market" approach we all believe in …

MRZine.org 2009

I do note that a lot of the press releases of "CHINA IS TAKING OVER THE WORLD, BUY COMMODITIES" seems to from people with obvious motives to promote that idea. opentrade: why i want more input on Fed activities is I'm starting to wonder, following level3 data on flows at certain times if the govt has been interfering in the markets.

MRZine.org 2009

Above all, China has persuaded Moscow to commit significant quantities of its oil away from its traditional Western markets. opentrade responds:

MRZine.org 2009

Getting late on Friday and it's beautiful out, but some of the flight from Agencies must be political and raw fear driven, especially now that some implicit guarantees are more explicit, so when these investors move, will some move into Agencies for the yield? opentrade responds: over time commodities have to come out of somewhere. my opinion is it's already apparent that china is trimming reserves for commodities. i'm puzzled by the last few weeks. fundamentals are deteriorating and following Level 3 there's been unusual buyside activity on low volume. furthermore the indicators point to buyside margin trades. why i want more input on Fed activities is I'm starting to wonder, following level3 data on flows at certain times if the govt has been interfering in the markets. i'm sure some of you likely think this post is a little out there, but it truly seems to me gov't may have interfered with more than the adjustment of mark to market, fed buying treasuries and obama saying he sees promise …

MRZine.org 2009