update on posts below

• Cramer worried about unemployment, but thinks the fed should cut rate, i am worried about unemployment, liquidity and the asset preserving, do u think a rate cut could do miracles? he did.
• Like i said 1987, cramers in line
• woa, insider news wachovia u guess whose buying?
• Its now about faith and confidence, not the lack of liquidity and risk aversion
• bank holdings on Lehman. be wary
• China planning to come back in style? wachovia and now pushing markets.
• Is it the storm? experts are getting more blatant, frm Shorting , to hurricanes, whats next.
• Citic buys 2 in 1??
• No chance to blame speculators, demand has been on the rise since starting this year!!!!

I think China is being a vulture now, they know they holding massive portions of DOllars, they have tons of cash, they can buy, they have the capital and the financial means, they might strike when the crisis implodes too many a time, wait and see they are as impatient as "ants on a hot pot"

• China supports US T bond
• Russia at brink of failing first
• China shows great interest
• China intervenes are they exposed?
• China insurers protected?

Asia + US

Desperations in raising capital, ECB BOJ nFeds make a joint effort to save markets.

By Bloomberg,
Central Banks Offer Extra Funds to Calm Money Markets (Update2)
By John Fraher and Simon Kennedy

Sept. 18 (Bloomberg) -- The Federal Reserve, the European Central Bank and the Bank of Japan united with their counterparts around the world to offer an additional $180 billion to markets facing their worst crisis since the 1920s.

The Fed said it authorized central banks to auction the funds to ``to address the continued elevated pressures in U.S. dollar short-term funding markets.'' Policy makers ``continue to work together closely and will take appropriate steps to address the ongoing pressures,'' a joint release said. The Bank of England, the Bank of Canada and the Swiss National Bank also participated.

Finance officials have struggled to restore confidence in markets this week as concern mounted more banks will follow Lehman Brothers Holdings Inc. into bankruptcy. The cost to hedge against losses on U.S. government debt climbed to a record yesterday, the U.K. government was forced to sponsor a rescue of mortgage lender HBOS Plc and Russia poured money into its banks.

``There's a complete lack of faith in the markets,'' said Jim O'Neill, chief economist at Goldman Sachs Group Inc. in London. ``There's a lot of cash hoarding and people losing trust in banks, so the central banks are acting to relieve that. This might not be the last time they have to act.''
Limit Doubled

The Fed said the ECB has been authorized to double its existing limit to $110 billion from $55 billion and the Swiss central bank can offer an extra $15 billion. New swap facilities with the Bank of Japan, the Bank of England and the Bank of Canada amount to $60 billion, $40 billion and $10 billion, respectively.

The Bank of Japan said its dollar-swap agreement will be conducted ``appropriately in view of the prevailing market conditions.'' That statement was published after its policy board held an emergency meeting in Tokyo today.

The action is the latest attempt by central bankers to coordinate their response to the financial crisis. In December, they joined forces to boost dollar liquidity around the world after interest-rate reductions in the U.S., the U.K. and Canada failed to ease concerns about bank lending.
The announcement boosted European shares and U.S. futures, which have been pummeled this week as contagion spread through financial markets. Europe's Dow Jones Stoxx 600 Index, which has dropped 8 percent this week, gained 0.8 percent to 260.15. Futures on the Standard & Poor's 500 Index added 1.2 percent. More than $19 trillion has been wiped off the value of global stock markets since Oct. 31.

Failure to calm markets will see central banks inject even more cash, said Robert Barrie, an economist at Credit Suisse Group in London. Other options central banks could take include accepting greater collateral denominated in foreign currencies and increasing lending to banks abroad.

``The lack of dollars has been making the financial crisis worse around the world, which is why we now have this coordinated response,'' Barrie said.

The markets gonna like this move, but again for how long? It is these coordinated actions that make taxpayers suffer and deprive the public proper utilization of funds, what happened to corporate governence and the function of a government?

Malaysia reacted well with these news with the come back of CPO and the positive sentiments implanted by the foreigns but i think some short-covering had to do with all the buying or else the last minute fizzle from - 5 to -11points should not be ignored , the market will give impression that no one will be allowed to fail with the government , not knowing that it is their money used to resuscitate the dead banks! Hang Seng was bouncing from a key support level of17500-16500, with the news it closed with almost no changes from a milestone up, lets see some updates :-

• first reactionof last nites closing
• US and Europe takes the baits( i quote More than $19 trillion has been wiped off global stock- market value but the valuation of CDOs are between 50 to 80 trillion, thats still a 4:1 ratio)- bankers are still not lending they are exploiting the loans by 302 basis.
• The very optimistic trader, confident and making profits in a bear market (pro)
• we are at that time of the year near festive season, retail should be a great indicator of the economy, visa, Amex, Master should benefit, but outlook is still gloomy for me to start buying.
• The devils advocate
• China's the giant to scoop, WB waiting people to strip
• Prepare to face the Axe, develop a great skill and sell it it is going to save your life
• Now they can solve things, dont do anything, Selling will ease at a point, how about when it is zero?
• No protectionism, if AIG can pull thru the crisis, the biggest beneficiary would be the feds and the nation, but how does profits transfer to the public?
• If fear and excuberant is an indicator, it would dominate all indicators
• Will he save Americans, traditionally elections in US and rallies run concurrently
• Job market
• Short sellers, are you the culprit?
• the oracle

The Feds need help? The worst is not over!!!

" I could clone Einstein several hundrend times, and yet still unable to work on the mortgages they covered"- WB

When I say Feds involved, the Feds are truly involved(see this)!!! Take a look at the Bottom part of post 1, I mentioned that who is next and today we see blood on the streets again, as you see I only suggest you o hold if you can take a devaluation of up to 50% in the few months till 2009 period where I foresee many uncertainty and unwinding is half way thru!! They say we are half way there but 62 trillion of CDS show that we are less than half way thru, the market acts as a sweeper, to clear the path of dust and dirt. Feds need to act super fast and clear AIG illiquid position as soon as possible, more money created in thin air they fight the gold bug no longer!!! 20 day bill, 76 day bills what will the rates look like you tell me, see this: (bloomberg)

• US Treasury rates

“No one and I emphasize no one can beat the forces of nature and the market force! WB followers of then hear that market are irrational, and now when all are still swimming with their tops off, I assume he is behind their listing out his Buys when the downturn strips all holders to their birthday suits!” Many large corporations are still holding cash and we look at Microsoft, Coke, we look at sovereign wealth funds, the new hedge funds, Funds that promote 100% capital perseverance, C.Ds! There are still companies that are worth taking a look and it is all about timing! We all know that any sane human would be stupid to try time markets; I suggest is study behavioral patterns, take the big downfalls to compare, what are the reactions when bottoms show!

You will argue that we have technical indicators, hell I love TA they study price behavior, but its those things that is futile as it will tell u the volume, distribution, the buying pattern, the selling pattern, at a certain level, a certain price, with the assumption that price have a memory! Bear in mind, Bear!! That we are now in a situation that is so new, and such a glum that no one can explain to what extent the severity of toxic loans are going to haunt us to!!!

Look at stocks that are able to produce results to downstream and upstream in the line, look into their book values, their debts, their tangible assets and assets, think of their management as a operation focused which is to boost on their productivity and efficiency! In such a situation, we need to tell ourselves there will be no more easy money, we’ve been working smart too long, so smart we buried ourselves! Analyst reports are a bunch of excrement full of foul smell and waste, would you follow the guide of analyst who keeps that Strong BUY but yet he doesn’t buy!!! Why give the call when you are not confident with your interpretation.

Buy stocks that are undervalued, I would just say that Warren bought stocks that have 2x the value of what he was paying, or what he valued them at and you should be doing what he has been doing for so long! Cut the speculation act, do not play with thin lines unless you have a closet full of cash, even full of cash are you sure all this cash won’t be deemed as FIAT when dollar loses its front line defense! The dollar lose sight of gold today, and it shows that efforts to manipulate gold prices are gone, Feds books also need tidying! What is that news going on now Wachovia is going to merge? Read post 1 bottom. I have been nothing but spot on, we have more derailing to go, either we see a strong nationalization of assets, a big wave of mergers and acquisitions, or else we see a massive devaluation of equity, real estate and debased currency!

All the options above are assumptions and it up to you to judge yourself give me some comments. AIG have a wide range of products, and cannot be allowed to fail… think yourself if government buys their dirty loans, and gives them ample cash, what does that imply? Would you buy a business that has a central weight in all aspects of life in 130 countries and basically all walks of life!! I am not stating a buy cause I am worry to what extent the dilution will affect the price but take a look at its holdings vS assets Vs debts Vs premium.

At the time writing China investment Corp has begun its actions spreading its possible wing to take in Morgan Stanley which was about to take Wachovia in a merger, i reiterate many companies are sitting on cash piles, waiting the correct moment like this to buy a US business, Chinese are real capitalist compared to Americans.(Buffett Style) Wa Mu have no other options but to Auction itself out, would anyone take a stake in that company?