Are you really making money?

uasish · #71 17th March 2008, 08:58 AM

Money supply data of US:=
http://www.federalreserve.gov/releases/h6/current/

US stopped giving M3 Datas from 2006 :=
http://www.newyorkfed.org/aboutthefe...int/fed49.html

deepsa52 · #72 17th March 2008, 09:14 AM

Uashish, M3 is very valuable information but that is not being posted because they don't want to post. Thats just my opinion - the economists at federal reserve don't want to make it popular.
People differ in their opinion, but see the chart and probably you see what it means.

BTW, seeking alpha has generally excellent commentary . But some articles are downright retarded.

http://seekingalpha.com/article/2102...pply-reporting

One more here

http://seekingalpha.com/article/5819...orse-than-that

sujit_76 · #73 18th March 2008, 07:15 AM

India has its own problem with FCCB. Companies are not providing for any interest on them which mature in 2010-2011. If market remain like this those FCCB holders might want there money back with interest.
Another problem is with the forex derivative products sold by our bank to their clients. Now we are getting to know that they may be illegal and banks should opt for an out of court settlement.
I think in 10-15 days we will have a clear news on these. Just see ICICI tumbled to 750 coz its the most aggressive bank and it will be hit the hardest.

deepsa52 · #74 18th March 2008, 06:01 PM

Capitalism at its best, even $2 a share is better than nothing.

http://seekingalpha.com/article/6900...tearns-bailout

deepsa52 · #75 19th March 2008, 06:48 AM

Two firms escaped Lehman saying they are still surviving and MF global still hanging on. We may see some celebrations.

ICAGO (Reuters) - MF Global (MF.N: Quote, Profile, Research), the world's largest broker of exchange-listed futures and options, sought to reassure investors it had enough funds for normal business, even as its stock plunged on Monday.

Down about 50% lasrt week. This is where it gets scary for retailers like us - waking up one day and finding that our brokerage is gone.

There are around $500 trillion dollars of derivatives being traded in the markets, no one has a clue where the derivative land mines are going to explode and how much these are junk instruments. Anyways, next few years are going to be action packed.

Source - marketwatch.

*
U.S. annual gross domestic product is about $15 trillion
*
U.S. money supply is also about $15 trillion
*
Current proposed U.S. federal budget is $3 trillion
*
U.S. government's maximum legal debt is $9 trillion
*
U.S. mutual fund companies manage about $12 trillion
*
World's GDPs for all nations is approximately $50 trillion
*
Unfunded Social Security and Medicare benefits $50 trillion to $65 trillion
*
Total value of the world's real estate is estimated at about $75 trillion
*
Total value of world's stock and bond markets is more than $100 trillion
*
BIS valuation of world's derivatives back in 2002 was about $100 trillion
*
BIS 2007 valuation of the world's derivatives is now a whopping $516 trillion

uasish · #76 19th March 2008, 09:52 AM

............." BIS 2007 valuation of the world's derivatives is now a whopping $516 trillion"........... now i know why we are after this,becoz in the above List this is the Highest !!

deepsa52 · #77 20th March 2008, 06:18 AM

Yes, they have a few options - either keep quiet and let a world wide collapse of the financial systems happen due to deleveraging of real estate backed derivatives or keep generating credit for the firms , bail out the firms and devalue the dollar and let the whole world bear the burden. I think the latter is happening now. Fed pumped in close to a trillion dollars in credit last year I think, not sure of exact figure.

The first one would have ended the misery quickly. I don't know how deep Indian Investment houses are in derivatives .

Bear Sterns was leveraged around 30:1 in derivatives and it fell down in a couple of days.

In the worst case situation is paper currencies will get worthless in a few years time, best case situation is real estate values start going up in a few years time and the situation stabilizes with out any derivative explosions.

deepsa52 · #78 20th March 2008, 07:11 AM

It is quite possible for India to avoid a meltdown, if it decouples more from Europe and US, but that is almost the only option available

uasish · #79 20th March 2008, 09:05 AM

deepsa52,

Paper currency becoming worthless ! You are really hurt ,hey take a break to get a perspective.
When Warren Buffet warned us that these sophisticated exotic Derivatives are going to be the begining of Doom ,we actually never believed him.

Asish

Venkat123 · #80 20th March 2008, 09:24 AM

$516 T is the notional amount.

Is the Indian market open today?