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Monday Message Board

September 8th, 2008

It’s time once again for the Monday Message Board. Post your thoughts on any issue. Civilised discussion only. Please avoid snarks and trolling and strictly no coarse language.

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  1. observa
    September 8th, 2008 at 11:12 | #1

    With the news that Freddie and Fannie have been placed in ‘conservatorship’ by the US Fed, can you believe that the ASX has supposedly risen 3% on the news? I would have thought any fool investor could see receivership by any other name.

  2. Spiros
    September 8th, 2008 at 11:17 | #2

    On the contrary, Observa. The news isn’t that F&F are in trouble. That was known weeks ago. The news is that they are not going to be allowed to fall over. If this stabilises the credit crunch, then it’s good for investors. It’s especially good for investors in banks, which is why banks are leading the rally.

  3. observa
    September 8th, 2008 at 11:28 | #3

    How does shifting the patently obvious losses from F&F to the US taxpayer possibly thwart a global recession in the medium term? What will that inevitably mean for these sudden ASX investor enthusiasts? With F&F investors having lost 90% of their equity to date, it’s true there is their remaining 10% to be immediately gleaned from this move, but that is dwarfed by by the liability for US taxpayers now. Hobsons or Paulsons choice I guess.

  4. Spiros
    September 8th, 2008 at 11:43 | #4

    “How does shifting the patently obvious losses from F&F to the US taxpayer possibly thwart a global recession in the medium term?”

    The US taxpayers have very deep pockets. They’ve already sunk $1 trillion in Iraq, and counting, and barely batted an eyelid. Keeping F&F afloat is chicken feed by comparison.

  5. derrida derider
    September 8th, 2008 at 12:20 | #5

    “The US taxpayers have very deep pockets” – but not limitless ones.

    The prospect of additional on-budget liabilities of this scale should already make people chary of buying US Treasury bonds. It can’t be good for the USD.

    Mind you if McCain gets up then his unfunded tax cuts and the prospect of more wars of choice oughtta end the role of the USD as the world’s reserve currency. If I was a commodity exporter I reckon I’d already be asking for payment in Euros.

  6. gerard
    September 8th, 2008 at 13:26 | #6

    not just commodities – Chinese manufacture exporters are being squeezed by the falling dollar and are taking yen and euro wherever they can.

  7. joe2
    September 8th, 2008 at 22:51 | #7

    Looks to me like, George Bush, America, has gone for the protect ‘The Pyramid Building Society option’, in the supposed, ‘lame duck’ period.

  8. Ian Gould
    September 8th, 2008 at 22:58 | #8

    ‘With the news that Freddie and Fannie have been placed in ‘conservatorship’ by the US Fed, can you believe that the ASX has supposedly risen 3% on the news? I would have thought any fool investor could see receivership by any other name.”

    Maybe the markets know something you don’t.

  9. Ian Gould
    September 8th, 2008 at 23:00 | #9

    How about that Western Australian state election?

    It’s not certain yet but it looks like the Liberals might have managed to extend their losing streak yet again.

  10. observa
    September 10th, 2008 at 20:55 | #10

    “Maybe the markets know something you don’t.”
    They’re just a bit slow on the uptake Ian-
    http://www.news.com.au/business/story/0,27753,24325762-31037,00.html

  11. SJ
    September 10th, 2008 at 21:36 | #11

    obby, no one ever clicks on the links you post, and you know you’re not allowed to post the whole thing.

    Has it ever occurred to you that it’s possible to quote a sentence or two, or to give a one paragraph summary of what you think the story says?

    At the moment, all you’re doing here is wasting your time.

  12. observa
    September 11th, 2008 at 13:16 | #12

    Fair enough SJ. It’s yesterday’s news anyway, just like Freddie and Fannie. Ask the Lehman Bros now.

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