STI and sing dollar falling fast,my coffin money eroding.

[bonsoir]

Originally Posted by Darth Vader

have converted all my assets to gold,when i can smell stability i will convert them into commodities.

SGD not safe,government safe box not as full as in 1998.reduced power to defend currency.
i dont think any currency is safe at the moment.people might say US dollar is safe,i rather have gold.

I started buying gold shekels since early last year on a monthly basis...and some silver bars too..so far prices have appreciated...so ok. but gold actual price if we were to hedge against USD paper currencies floating in market should technically be worth $16,000/oz...haa...when nixon cancelled the backing of USD to gold in 1971? all kinds of money crisis started happening.... (when gold was $40/oz).

anway, i never believe in USD, it's a debt based economy....now China technically "owns' america la.....
so we will see a deflation of uSd very very soon man....even Song seng woon said this morning on radio and i quote" we will see interesting days ahead"....haaa...

[timechaser]

Originally Posted by Darth Vader

citi together with boa going to be nationalised(3 months timeframe)

Much as I would love for that to happen, it just is not feasible. Both BoA and Citi are Commercial and Investment Banks. If the government were to nationalize Citi and BoA - it would mean the US government owns both and backs their products. Ergo any and all products sold by citi would be guaranteed! Unfortunately, that will mean unfair competition.

Alternative argument - citi is split and then nationalised. That is something which the government cannot even begin to dream of doing given the deep interlinkages in the business model.

Therefore - much as one would want this to happen, it will not.

Now, regarding the Citi stock price at $1.95 as of friday close. This undervalues citi by a LOT. Therefore, given the nature of markets is not feasible. So why is citi falling? A short interest of 180 billion dollars implies the trade out in the market which people are playing is long citi bonds and short equity assuming the equity will go to zero (citi nationalised). But since the bonds are guaranteed - they will stay and yield.

[kenntona]

Originally Posted by timechaser

Now, regarding the Citi stock price at $1.95 as of friday close. This undervalues citi by a LOT. Therefore, given the nature of markets is not feasible. So why is citi falling? A short interest of 180 billion dollars implies the trade out in the market which people are playing is long citi bonds and short equity assuming the equity will go to zero (citi nationalised). But since the bonds are guaranteed - they will stay and yield.

FYI Citigroup was 2.20 post market on Friday. That's 10% up from close.

[timechaser]

Good Not that it makes much of a dfference (you know what I mean)

[Jedi R]

This is a interesting video of the problem in US.

YouTube - The Crisis of Credit Visualized - Part 1

Enjoy...

[iScoupe]

Originally Posted by Jedi R

This is a interesting video of the problem in US.

YouTube - The Crisis of Credit Visualized - Part 1

Enjoy...

Thanks for sharing . love the way they do the graphics.

[Jedi R]

So can buy citibank stock ?

[niteblu]

Originally Posted by Jedi R

So can buy citibank stock ?

you can buy any stock you want.

they were calling buy on Citi.
when it was $18
when it was $14
when it was $4

[kenntona]

If AIG nationalised by Fed, next season's Man Utd jersey will look like.......

[Anskiere]

Kenntona... That's freaking funny! Thanks!