MERCATO LIBERO

in bocca al lupo. avanti a tutta forza a Paolo e Michele.

saro

http://arabianmoney.net/2009/07/22/marc-faber-says-sp-looking-too-expensive/

http://arabianmoney.net/2009/07/12/gold-should-reach-15000-an-ounce-says-rich-dad/

Interessante e non banale la precisazione del video sul fatto che nel 1934 era deflazione, negli anni 70 inflazione, così faccio contenti sia Barrai che Mazzalai.

Il Folletto

completamente out of control

Fed Proposed To Become Next AIG
Tyler Durden's picture
Submitted by Tyler Durden on 08/21/2009 11:23 -0500


You thought the Fed had a lot of freedom? You ain't seen nothing yet. According to two MIT economists, Ricardo Caballero and Pablo Kurlat, the Fed should directly get into the credit default swap business to "prevent the next crisis." Says the WSJ:

Their proposal will be debated today at the Fed’s annual Jackson Hole, Wyo., symposium by the world’s leading central bankers and economists. Harvard’s Kenneth Rogoff, former chief International Monetary Fund economist, will present a critique.

Just in case you missed what destroyed AIG, and what, contrary to the current CEO's desire, will be the reason why AIG will be subsidized by taxpayers for centuries, is selling gluts of CDS on virtually anything that had any risk in it. But the MIT guys think next time around AIG should actually be the Fed:

The two professors say the underlying idea — selling insurance against extreme financial risk — should be in the Fed’s arsenal to manage financial crises.

“Insurance is an effective and cheap tool during a panic,” they say in their Jackson Hole paper. The Fed did provide an ad-hoc form of insurance during the crisis -– guarantees to Citigroup Inc. and Bank of America Corp. on the value of more than $400 billion in assets they held. More broadly, the Fed provided insurance to the whole financial system when officials there vowed to do “whatever it takes” to stabilize markets last fall and extended their safety net beyond banks to AIG. The professors say the bank guarantee program should be formalized in instruments called tradable insurance credits which could be triggered by banks and even hedge funds if another crisis erupts.

Alas, some red light aheads of this proposal are imminent:

There are some practical problems with the idea. The Fed was able to offer these guarantees to Bank of America and Citigroup using legal authority only allowed during “unusual and exigent” emergencies. To make ‘TICs’ a formal part of its toolkit, it would likely need congressional approval. That would likely be a tough sell with Congress now populated by many restive lawmakers who complain the Fed used its power too expansively during the crisis.

This may be a tough nut to crack as lately over 280 members of Congress have been pushing for limited the Fed's powers, not expanding it.

Yet most interesting, is that the Fed may have well already entered the CDS arena. Recent TIC data (not Tradable Insurance Credits, but the Treasury International Capital variety) indicate that beginning in March the Fed started getting involved in derivatives classified as "Other Contracts By Risk Type", to the tune of over $1.3 trillion dollars!

Perhaps before the Fed decides to wholeheartedly dominate CDS trading in addition to every other component of the financial system, the can clarify what exactly is the nature of these various "other" derivatives. Granted, while trillion is the new million, US taxpayers may be quite curious to know why since the start of QE the fed has been involved with not only Credit, but Equity and All Other types of this new form of derivative contract.

Il Folletto

Come vorrei essere in quella sala!!! La passione per il trading è il mio pane, avete una spalla sempre pronta a collaborare con voi...paolosolemail@yahoo.it ciao buon trading^ Paolo L.

Un remake di attenti a quei due!!

Complimenti, bravi.

Che esperienza! Al di la' dellle indicazioni pratiche che dara' ci faccia partecipi, se puo', delle emozioni e dell'atmosfera che si vivono in una "stanza dei bottoni" come quella... e buon viaggio da un suo fedele lettore in estremo oriente. MrDany

beh che dire.....complimenti ed auguri.
peccato solo che sarà in lingua inglese.....tagliando di fatto dall'esperienza chi la lingua non la comprende....
Peccato!

all the best guys |||
just waiting for your success

gino

vai Paolo salutaci il mitico Michele e buon trading.Seba

IN BOCCA AL LUPO :-) CIAOOO!

spero che tu ci vada con ryan air e non con cai ......

Mi riallaccio al commento delle 19,31. Se per caso vi scappasse qualche frase in italiano non sarebbe
male. In ogni caso Auguri!!.
Ferruccio.

ciao paolo ti seguo anche io.lorenzo il toscano

fateci sognare ...... vi seguiro' con interesse e curiosita'

Grandi! Finalmente due grandi maestri per guidare noi smanettoni dellinvestimento nella borza!

W Paul and Michael