Trading Tips with John Bougearel

“U.S. Stocks Jump in Final Hour, Pushing Up Metal Prices; Dollar Pares Gain U.S. stocks rose in the final hour of trading on speculation the European Union may propose a solution for Greece’s budget deficit, reports Bloomberg.
This end of day soundbite provided the fodder/excuse for a short-covering rally on the Feb 5 NFP report. Traders [...]

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by John Bougearel
At today’s December 3 2009 jobs forum with business leaders, Obama confessed “We don’t have enough public dollars to fill the hole of private dollars that was created as a consequence of the crisis.”  Translated, the administration wasted all the public dollars saving the private sector (read banks, GSE’s and insurance companies) that [...]

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John Bougearel
O-badbank-ma ought to take a cue from Meridith Whitney who opined. “Simply removing ‘toxic’ assets from bank balance sheets will not directly cause banks to increase lending,” Whitney wrote in a note today. The banks likely won’t participate in selling assets if the Obama administration wants to pay fair market value for the assets [...]

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The US banking system is supposed to be backed by “reserves.” To make a long story short, our banks took a cue from the goldsmiths 100s of years ago who figured they could lend out about ten times the amount of gold they held on deposit and in normal times this system worked fine until [...]

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Back in the early 1990’s, Sweden underwent a banking crisis. Their solution was to nationalize the failed banks which involved wiping out “shareholders, bond holders, and all the bad debt and junk paper these firms” held, according to Barry Ritholtz of The Big Picture. Distresset assets were liquidated much quicker than anyone expected. The painful [...]

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by John Bougearel
More discussion on TARP has come about this past week after Obama asked Bush for the second half of the TARP funds. TARP had a few purposes. One was to stimulate lending and the other to restore financial stability. This post considers that latter purpose in all its shortcomings in response to Naked [...]

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by John Bougearel
Citigroup posted an $8.29 billion loss in Q4 08 compared to a loss of $9.8 billion in Q4 07. The $8.29 billion loss was twice as much as estimated. More than half of those losses came from subprime related, CDO, and SIV writedowns. Offsetting the writedowns was a $2billion gain related to an [...]

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by John Bougearel
Unfortunately for me, I couldn’t figure out how to login to leave a comment on Barry’s blog. Hence I am doing so here in my blog and on the Trading Goddess’ blog where I am a priveleged to be a guest blogger.  First, even though I may have cussed at many members of [...]

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