Finally, a plan that frontally-attacks bank profits in order to help the worldwide economy.
Flatten the yield curve and support MBS! Should have been done in 2008/2009.
The banks have two choices now: 1) go out of business, probably prior to mid 2013 or so, or 2) lend money with Fed support for home buyers and refinancers.
A brilliant "force majeure/major" or however it's said in French!
Maybe Ben read our recent post proving the math about the prior yield curve!!!!!
Thursday, September 22, 2011
Wall Street Fraud - Profit from the Game!
At almost exactly 2PM Eastern US Time today, there was an instant market shake-up as described in our previous post today. It happened exactly at the same time a news-release was floated about 16 European banks. The release originated in Europe.
Some quick geography tells us that 2PM on Wall Street was very late evening anywhere in Europe; however, the US markets were still struggling for two additional hours in a very volitile day. A hugely "down" day. But one of those hard working folks in Europe was in-fact working late to "release" the news event at that precise time of the Wall Street day.
That's probably why the Euro will be valuable forever... because Europeans in general and on the average are arduous work-ethic oriented high-productivity individuals...
Think about this one. Sometimes you may have experienced a "broker" call prompting you do act under certain conditions because it was a good day to do so. Then, the condition happened(!) with enough time for you to confirm your buy order for that day(!!) Enough people listening to that story can produce enough "authorized" volume for the quants to be turned on.
Of course, those folks who were phone-called get wiped out in a day or so, but the quants have already acted on the accumulated volume.
You can profit by reacting in the exact opposite direction once you know how to avoid the scam.
Some quick geography tells us that 2PM on Wall Street was very late evening anywhere in Europe; however, the US markets were still struggling for two additional hours in a very volitile day. A hugely "down" day. But one of those hard working folks in Europe was in-fact working late to "release" the news event at that precise time of the Wall Street day.
That's probably why the Euro will be valuable forever... because Europeans in general and on the average are arduous work-ethic oriented high-productivity individuals...
Think about this one. Sometimes you may have experienced a "broker" call prompting you do act under certain conditions because it was a good day to do so. Then, the condition happened(!) with enough time for you to confirm your buy order for that day(!!) Enough people listening to that story can produce enough "authorized" volume for the quants to be turned on.
Of course, those folks who were phone-called get wiped out in a day or so, but the quants have already acted on the accumulated volume.
You can profit by reacting in the exact opposite direction once you know how to avoid the scam.
fed operation twist and the euro/us_dollar spike today - 16 euro banks
No surprise from the large market drop today. If this was a surprise to you, you need to read our prior blog entries. If you understand the market situation, you should have made lots of $ today.
The best way to understand is from the "quant" large % upward shift in the US markets today after the European "announcement" about the 16 banks. There are two ways to understand:
First, the currency markets (all stock trades are nothing more than currency trades for now) involve people who react to news and help to set currency valuations. Computers cannot do this, only people with a limited reaction time. A quick education in Forex will help you with this.
Once a person reacts, even mistakenly, to a news event, then sometimes the computers/algorithms take over quickly to trade... just like today's 100 point (Dow) upward mid-day move in all the major US indices simultaneouly followed by a nearly-immediate drop of the same magnitude(!)
A European "report" was mistaken to read that 16 banks had increased capitalization while the report in fact stated that 16 banks were failing stress tests and needed to raise capital (very bad news.)
Enough said about the quants (massive machine trading from algorithms) for now.
Second and the most important, take a look at the next post.
The best way to understand is from the "quant" large % upward shift in the US markets today after the European "announcement" about the 16 banks. There are two ways to understand:
First, the currency markets (all stock trades are nothing more than currency trades for now) involve people who react to news and help to set currency valuations. Computers cannot do this, only people with a limited reaction time. A quick education in Forex will help you with this.
Once a person reacts, even mistakenly, to a news event, then sometimes the computers/algorithms take over quickly to trade... just like today's 100 point (Dow) upward mid-day move in all the major US indices simultaneouly followed by a nearly-immediate drop of the same magnitude(!)
A European "report" was mistaken to read that 16 banks had increased capitalization while the report in fact stated that 16 banks were failing stress tests and needed to raise capital (very bad news.)
Enough said about the quants (massive machine trading from algorithms) for now.
Second and the most important, take a look at the next post.
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