Since I swore off religion and politics, I thought I would see what you all thought about what's happening on Wall Street. It seems everyone has gone
Gekko! It blows my mind how people are allowed to trade securities like this.
Sign of the times has an article up about a major selloff in stocks --
some investors are betting tens of millions of dollars that the market is headed for a selloff -- a major selloff.
It's all about "puts" and I have no idea how it works. The only thing I know how to "put" is my right foot in and shake it all about!
and then blondesense reader "stunned" left this link in Red's Gonzo post
WARNING: PUT this on first before reading the above link
Quote - (from who I am not sure):
The following theories are being discussed widely within the stock and options markets today regarding the enormous and very unusual activity reported above and two stories below. Those theories are:
1) A massive terrorist attack is going to take place before Sept. 21 to tank the markets, OR;
2) China, reeling over losing $10 Billion in bad loans to the sub-prime mortgage collapse presently taking place, is going to dump US currency and tank all of Capitalism with a Communist financial revolution. Either scenario is bad and the clock is ticking. The drop-dead date of these contracts is September 21. Whatever is going to happen MUST take place between now and then or the folks involved in these contracts will lose over $1 billion for having engaged in this activity.
I thought this might be a good one for The Dark Wraith, but I figured he would be busy getting ready for school this week so I didn't bother him. Well, I now see Wraith has left a comment after reading stunned's link:
Good morning, Stunned.
Some very large player—some huge, ginormous player—is positioned either to make an absolute fortune or to take an ass-bath like no one has seen in a long time. The structure of this set of trades is about as stupid as stupid gets... unless it's not.
I'll tell you right now: anyone who would put that kind of insane exposure on a poker table either has twelve aces in his five-card hand, or he's trying to scare everyone else into folding. The problem with the analogy is that, in this poker game, folding isn't going to happen.
This isn't a bluff; it's a bet. And anyone who would place a bet like this knows something: he knows the financial markets of several countries are about to go to Hell, or he knows that he's about to become the poorest man the world has ever known.
Either way, 10K of contracts constructed like this takes more guts than anything I've seen before. Personally, I have no desire to even look at what's become of that situation since it opened up last week.
The Dark Wraith tries to stay calm, but finally loses it.
now what do you want to talk about?
(I'm hoping the Dark One is only going to lose it because all of this talk is just hype and bullshit at its finest and just a bunch of greedy Gekko wall street types trying to manipulate the market and none of this could possibly happen -- right DW?)