HowardTraders of Mortgage Backed Securities Cry
October 25th 2006 02:54
Democrats and Laborers Unite, Democrats and Laborers
Unionists Rally for Sen Menendez, Trenton, NJ
I Just love a good political rally. Yes, friends, the election is less than two weeks away. What does it mean for the United States and the world. The Democrats may take the House and even the Senate. This could have the following results:
1. Nothing- if they kiss the Bushies, and go along to get along
2. Something- a lot of noise, but back down to Synarchist bankers who want war and chaos
3. Impeach Cheney and Bush
Is it really that stark a decision. I think so, but let's look at certain economic points. I by the way, check out http://dealbook.blogs.nytimes.com/.
It's pretty good, though it totally lacks any real judgment on the political situation and how that relates to the business situation. The NY Times just did some expose on how the energy deregulation was a giant ripoff for Goldman Sachs, the Blackstone Group, KKR, etc. The regulated companies were forced to sell their plants on a discounted deadline, and then with their deregulated subsidiaries, in many cases, buy them back at higher prices. A $5 billion rip off ffor Wall St.. Energy prices in Texas and Pa. are going through the roof, starting with electricity.
Now the traders of Mortgage Backed Securities (MBSs) are crying "Uncle".
The ABX index (according to Bloomberg writer Hamish Risk) is up 30%, denoting increased risk of housing defaults, and also defaults in the over $6 trillion mortgage security market. This in term affects the credit default swap market, created by the London based Markit group, to measure prices on $565 billion of bonds on the sub-prime mortgage market.
Or how does the old song go, "Pick the number right, and win a million tonight, C'mon play, New York and London numbers!!!"
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