The point of capitulation?

mike65

Sure feels like it.

Russian MICEX suspended, Indonesian market supended Thurdsay, Hong Kong riots, Iceland suspended trading, Austria this morning.

ISEQ soon?

Lehman brothers auction of credit default swaps falls due this afternoon.

NEW YORK, Oct 8 (Reuters) - The value of credit default swaps backed by defaulted Lehman Brothers bonds will be set on Friday, with protection sellers expected to face massive losses of around 90 percent of the insurance they sold.

Bondholders have seen their investments virtually wiped out by Lehman's bankruptcy filing on September 15, with most of the defaulted bonds which will be used to settle the swaps trading in the area of 12-to-13 cents on the dollar, according to MarketAxess.

The auction to settle credit default swaps on this debt will likely be the second-largest settlement of the contracts in the $55 trillion market, following an auction to settle swaps on Fannie Mae and Freddie Mae on Monday.

Twenty-two dealers will participate in the auctions, which will determine how much protection sellers will recover after paying out the insurance. The timeline for the auctions follows, according to JPMorgan.

9:45 a.m.-10 a.m. Auction participants will submit bids and offers for the debt backing the credit default swaps, which will be used to determine the initial recovery rate of the swaps.

10:30 a.m. Auction administrators Creditex and Markit will publish the initial recovery price and the open interest for the contracts will be published. The open interest reflects the amount of bids and offers that have been made, and will show if there are more buyers than sellers, or vice versa.

12:45 p.m. -1 p.m. Participating dealers will submit limit orders for the debt on behalf of themselves and their clients to fill the open interest

2 p.m. The final price of the auction will be published

Mike

asdasd

at that price I may raid the kitty and buy some myself.

SoCal90046

I think all markets need to close for a few days to give people a breather.

asdasd

Yes, they should close for the next two days.

mike65

Har har!

Mike

mumhaabu

It must be a communists wet dream come true!

asdasd

They are getting very smug down at the socialist workers party HQ alright.

However, the smile will be wiped off their faces when the biggest crisis in Capitalism in a lifetime does not end up, once again, with a worldwide Marxist revolution. Maybe next century.

Run_to_da_hills

Nationalise the Irish banks, Merge them all into one and then issue the State bank card.

http://en.wikipedia.org/wiki/ASUS_Eee_PC#Eee_900_Series

SoCal90046

mumhaabu wrote: »

It must be a communists wet dream come true!

LOL. We'll know we're near the bottom in the US when the Communist Party USA gets a surge of support.

Clytus

I just dont get whats happening now. ECB cuts base rate by 50 points...yet today the Euribor rate goes up!!

There seems to be a totally irational fear on the markets....even giants of industry like GM are talking about trying to avoid chapter 11. GE Capital are clawing back on lending......at least in the last hour of trading the DJ came back a bit from the 8050 brink point where alot of the automated sell offs kick in.

Idu

The DJ had already traded through the 8000 mark earlier so doubt there was too many of those automated sells left

Time Magazine

asdasd wrote: »

They are getting very smug down at the socialist workers party HQ alright.

However, the smile will be wiped off their faces when the biggest crisis in Capitalism in a lifetime does not end up, once again, with a worldwide Marxist revolution. Maybe next century.

Communism only killed fifty million people. Let's give it another shot.

pjproby

Stalin is responsible for fifty million-
Mao surpassed him at 70 million and then there was Pol Pot.

SkepticOne

I think we are seeing capitulation in Irish shares at present. I think we are beginning to see the early stages of it in the US market.

Time Magazine

pjproby wrote: »

Stalin is responsible for fifty million-
Mao surpassed him at 70 million and then there was Pol Pot.

I was quoting graffiti I saw in a toilet cubicle and felt it would be unfair to edit their numbers. Though in fairness I think most political ideologies can be considered "off the table" after about the 30 million dead mark.

leninbenjamin

The Economist wrote: »

I was quoting graffiti I saw in a toilet cubicle and felt it would be unfair to edit their numbers. Though in fairness I think most political ideologies can be considered "off the table" after about the 30 million dead mark.

well if that's true, then maybe we should finally give Marxism a try seeing as it's the only one to to have hit that mark yet.