Monday, October 20, 2008

Monday, 20 October 2008 Market Report

Market is up on Bernanke's talk to Congress, hinting at rate cuts.

India Central Bank workers to strike Tuesday, 10/21/08.

The payouts on the Lehman default are to take place tomorrow. If there is any hint of a hiccup the markets will flip out. Expect hiccups.

From Forbes:
About 350 different counterparties to the Lehman CDS contracts attended the auction, where it was determined that Lehman's debt would be worth only 8.62 cents on the dollar in bankruptcy. Those who sold insurance against Lehman's default (the "protection sellers") therefore must pay out 91.38 cents for each dollar of debt they insured. This is the largest payout ever in the $55 trillion credit default swap market. After netting out offsetting positions, cash payments will be approximately $270 billion, a huge amount even for this crisis, which has seemed to know no limits on the size of write-offs. And all this for just one default!

22 States Are in Heap big Trouble
The states cited have already started laying off employees, freezing salaries, freezing hiring in the face of declining tax revenues.

Buffett believes in America, tells us to "buy American." Some background required: Bufffett has made a ton of money in the last couple of years betting against America - specifically shorting the US dollar. Also, Buffett's investment strategy is not quite the same as your's and mine: he buys ownership in companies, not stocks. He's buying infrastructure, the true wealth of a country.

China won't bail out Pakistan, turns to IMF
Pakistan joins Iceland, Hungary, and Ukraine on Debtor's Row.

Circuit City to close 150 stores, slash thousands of jobs to avoid bankruptcy. No word on when they appeal to Washington for a bailout.

Prepare yourself for even more election fraud - West Virginia Gazette reporting Democrat votes getting flipped to Republican ones.

And we've been waiting for this one - stupid Catholic bishop from the Plains states to criticize the Dem candidate for (wait for it) - abortion.
Archbishop Chaput of Denver speaks out against Obama because he is pro-abortion. Chaput wants more unwanted babies born because they're easier marks for predatory priests.

1 comment:

Francis Deblauwe said...

Due to Denver archbishop Chaput's controversial statements, I just made a quick study of the attention 5 "social sins" receive from Googlers, and the geographic distribution. Have a look at my Word Face-Off blog post.