Items of Interest:
Yesterday, Max Payne had a sneaky peek premier on Wall Street. A Credit Crisis Production, directed by Alan Greenspan, and written by Congress and the last two administrations opened to horrible reviews.
Investors and pensioners hope Max has a very short run and that he's soon available only in the DVD bin at Walmart.
However, one pundit thinks Max will have a long run.
Capitulation, BOOYAH -- Now we’re in trouble. Jim “Mad Money” Cramer has thrown in the towel.
The hyperactive CNBC showman has urged investors to get out of the stock market, and sharpish:
Whatever money you may need for the next five years, please take it out of the stock market right now, this week. I do not believe that you should risk those assets in the stock market right nowYou might need to see this to believe it - here’s the link to the video.
I don’t care where stocks have been, I care where they’re going, and I don’t want people to get hurt in the market,” Cramer told Curry. “I’m worried about unemployment, I’m worried about purchases that you may need. I can’t have you at risk in the stock market.
Adam Warner / Daily Options Report: Viewer E-Mail -- ... THIS [Cramer] may be a better bottom signal than anything...
BeSpoke: The Cramer Crash?
A Day (Gasp) Like Any Other -- Is it ever going to end?
We woke up Monday morning, all of us, hoping for the best but bracing for the worst. The federal government’s $700 billion bailout package had been passed into law, which offered hope of a respite from this unrelenting crisis — or at least a chance to catch our breath.
We all needed a break. But we didn’t get one. Instead, we got yet another horrible weekend. In Europe, the credit contagion raged like a wildfire. The Dutch government seized Fortis, the Belgian-Dutch bank. The German government bailed out a huge lender, Hypo Real Estate. European governments raced to follow Ireland’s lead and guarantee all bank deposits, fearing that if they didn’t, depositors would move their money to “safer” countries with guarantees. The euro and the British pound sank against the dollar...
Five Things You Need to Know: Debt Crisis vs. Liquidity Crisis -- Here are some interesting datapoints that all these easy-credit-addled geeks clamoring for a Federal Funds rate cut - such as Pimco's Bill Gross - may not have noticed:
- Since the Federal Reserve Open Market Committee began lowering interest rates on Sep. 18, 2007 the S&P 500 has declined more than 30%.
- Over that same period, the PHLX Banking Index (BKX) is down 42%.
- The PHLX Housing Index (HGX) is down 57%.
- The PHLX Semiconductor Index (SOX)... Whoa, stop right there. What do semiconductors have to do with subprime mortgages or credit default swaps? ... is down 44%.
- Since the first special Term Auction Lending Facility was created by the Federal Reserve and offered on December 17, 2007, the SPX is down 27%, the BKX down 28%, the HGX down 19% and the SOX...Whoa, again with the SOX, what does that have to do with the TAF? ... is down 32%.
- Since the Term Securities Lending Facility was created by the Federal Reserve and offered on March 27, 2008, the SPX is down 20%, the BKX is down 20%, the HGX is down 20% and the SOX... No, it can't be!... is down 20%.
- Since the Treasury Department's proposal on September 19 of the Troubled Asset Relief Program (TARP), separately, a new $50 billion program to insure investments and the termination of short selling on financial stocks, the SPX is down 16%, the BKX is down 22%, the HGX is down 21%. the SOX... Do NOT Say It!... is down 17%.
- Since the passage of TARP on October 3, less than two trading days ago, the SPX is down 3.8%, the BKX is down 5.5%, the HGX is down 3.5%, and yes, the SOX is down 3.5%.
Fed's new tool: Business loan bailout -- Federal Reserve to buy loans crucial to business to unfreeze markets
The Federal Reserve announced a new program to help the battered market for short-term business loans - taking its closest step yet to lending directly to businesses.
The program addresses commercial paper, a form of short-term funding crucial to many businesses operations....
Discussion:Space Cowboy / Shakesville: Bush: Legacy of Debt
Discussion:Michael Liedtke / Associated Press: Sandler defends Golden West in Wachovia debacle; ‘SNL’ skit stingsAli Gharib / The Huffington Post: SNL's Neocon Inside JobFausta / Fausta's Blog: Live from New York...it's Saturday Night on the bailout!Drillanwr / Pat Dollard: Why The SNL Bailout Skit Video We Ran Earlier Is ‘No Longer Available’ - UpdatedNoel Sheppard / NewsBusters.org: NBC Scrubs ‘SNL’ Anti-Democrat Bailout Skit From WebsiteConn Carroll / The Foundry: The Left's Crony Capitalism Hits ‘Saturday Night Live’Wordsmith / Flopping Aces: SNL Bailout Skit Pulled from NBC Website. Why?GregInFla / www.redstate.com: SNL Bows to Liberal Pressures, as it Pulls Skit from WebsiteThe Anchoress: Obama/Ayers: Palin DID handle that well! - UPDATEDEd Driscoll.com: Watch The Banned SNL Bailout SkitGreg Ransom / PrestoPundit: WILL THE CULTURE FINALLY CATCH UP with the fact that it is no longer 1928 …
Where'd the SNL bailout skit go? Update: Legal threat?
Discussion:Teresa / Terry Ann Online: NBC.com Pulls Bailout SkitMichelle Malkin: The forbidden skit: Full transcript and screenshots of SNL's Soros …THE CITIZENS JOURNAL: Bawney Fwank - GOP Attack on mortgage crisis is RACIST!The Campaign Spot: Ads Can Do It, SNL Can Do It, So McCain Can Do It In the DebateMary Kane / The Washington Independent: SNL Takes on the Mortgage CrisisBookworm Room: Someone at SNL has been reading the right papers *UPDATED*Peter Viles / L.A. Land: “Saturday Night Live” pulls bailout skit
- Are We Depressed Yet? - Steve Fraser, Los Angeles Times
- We're Not Headed for a Depression - Gary Becker, Wall Street Journal
- The System Needs Emergency Surgery - Gerard Baker, Times of London
- How the Recession Will Remake Politics - Jonathan Chait, New Republic
- Economic Questions for the Candidates - Stiglitz, Hubbard & Scholes, NYT
- The End of Americanized Finance? - Roy Smith & Ingo Walter, Forbes
- The Beginning of Market Wisdom - John Hussman, Hussman Funds
- Nothing to Fear But McFear Itself - William Gross, Pimco Asset Management
- McCain Must Talk Growth and Recovery - Larry Kudlow, RealClearMarkets
- A Bailout That Deserved to Pass - Vincent Reinhart, The American
- A Costless Bank Rescue Proposal - John Tamny, RealClearMarkets
- The Demise of a Giant Hedge Fund - Andy Kessler, Weekly Standard
- Which Clinton Economy Does Obama Like? - R. Resendes, Capitalist Nexus
- Continued Growth Belies Global Hysteria - Daniel Ben-Ami, FundStrategy
- What Caused The Financial Crisis? - Tyler Cowen, Marginal Revolution
- Is It Time to Panic Yet? - Kurt Brouwer, Fundmastery Blog
- Unlike Evan Newmark, I'm Not Buying Financials - Market Movers
- What Are We To Make of Monday's Ups and Downs? - Free Exchange