[Tyler_JC]

$this->bbcode_second_pass_quote('joeltrout', '')$this->bbcode_second_pass_quote('dinopello', '1')1% is outta sight ! But companies will often cut their dividend if the yield gets above a certain number like 10% so you rarely will sustain that.

[LoneSnark]

[Armageddon]

At what point will countries stop accepting dollars for oil ?

[Concerned]

$this->bbcode_second_pass_quote('mkwin', '
')$this->bbcode_second_pass_quote('', 'H')aven't there been some huge cash infusions into the major banks from places like Singapore, Kuwait and Abu Dhabi? I would also note this:

[bodigami]

$this->bbcode_second_pass_quote('dinopello', '')$this->bbcode_second_pass_quote('NTBKtrader', 'I') bought gold stocks when gold was around $400 however those stocks have not seen the appreciation that gold has had.

[bodigami]

$this->bbcode_second_pass_quote('mkwin', '')$this->bbcode_second_pass_quote('Bas', '')$this->bbcode_second_pass_quote('Tyler_JC', '(')...)

[SchroedingersCat]

Does it matter that the banks reserves are now negative? As in they have borrowed form the Fed to cover all their reserve requirements and then some? I saw a mention of this over at TOD and had to look for myself:
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS

Check out the second chart: Not seasonally adjusted.
Total Non-borrowed Required
39989 -1387 38278

This has not happened in the last 50 years that the Fed's post data for. Not even close.

[patience]

YEAH! It means the banks are insolvent. No reserves of their own. And from a Tickerforum thread, The FDIC has to FIRST pay the FHLB, if they have leins on an insolvent bank. Most of the big banks do have FHLB money, so depositors are out of luck.

These banks are BROKE. Dead banks walking. And I see people debating what to do with an IRA? I'd rather have 60% to 80% than 0%.

So, we got insolvent banks, little to no FDIC protection, (FDIC is hiring to deal with 300+ banks going under next year-rumor from and "insider"), and J6P tapped out. An impotent FED, whose job is to protect banks, not the sheeple. And we have really stinking stock fundamentals.

Okay, I'm not buying any gold, or gold stocks. Roosevelt proved how secure gold is, and the past month proved to me how secure banks and stocks are. I ain't no rocket scientist, nor money guru, so, I'm just gonna buy groceries and tools and stuff. You folks have fun in the markets, and best of luck to you. I think you're gonna need it.

[Armageddon]

The Fed will print as much money as it needs to and keep the banks propped up. This thing won't tank yet. A slow painful death is the plan. $5.00 gas, $4.00 bread and $6.00 milk by the summer.

[LoneSnark]

^ Can we quote you in a few months?

[Armageddon]

$this->bbcode_second_pass_quote('LoneSnark', '^') Can we quote you in a few months?

[Pretorian]

$this->bbcode_second_pass_quote('Armageddon', 'T')he Fed will print as much money as it needs to and keep the banks propped up. This thing won't tank yet. A slow painful death is the plan. $5.00 gas, $4.00 bread and $6.00 milk by the summer.

[Pretorian]

$this->bbcode_second_pass_quote('Armageddon', 'A')t what point will countries stop accepting dollars for oil ?

[Armageddon]

$this->bbcode_second_pass_quote('Pretorian', '')$this->bbcode_second_pass_quote('Armageddon', 'T')he Fed will print as much money as it needs to and keep the banks propped up. This thing won't tank yet. A slow painful death is the plan. $5.00 gas, $4.00 bread and $6.00 milk by the summer.

[SchroedingersCat]

I'm sorry. Perhaps my last post wasn't clear. All of the banks that fall under the supervision of the Federal Reserve are as of last week supposed to have about 39 billion dollars in reserve. They have -1.4 billion. Up until Dec 2007 they were hanging on. As of now, they not only don't have these reserves, they are in the red. All the reserves the banks are supposed to have are instead actually borrowed from the Fed. Those 'anonymous auctions' the Fed set up a couple months back? That was so no one would know who was in the hole. Now it doesn't matter: they are all in hock.

That story about Citibank limiting ATM withdrawals? They didn't have a security problem -- they have no money! None of the banks have money. The Fed is the only bank in the US right now. The rest are insolvent. My guess is all the write downs the banks took because of the worthless debt on their balance sheets would probably add up to about 40 billion. What happens when more write downs are required?

This has never happened. Can't wait for the next report.

[yesplease]

How do you know all banks are insolvent, isn't the nonborrowed reserve the sum of all lending institutions? By that I mean couldn't some be solvent and others could be pretty far up shit creek, with the net being the nations toe in the water?

Back in the USSA...

[Bas]

$this->bbcode_second_pass_quote('zensui', '
')What's a blue-chip?

[mkwin]

$this->bbcode_second_pass_quote('Tyler_JC', '
')Posters have forgotten what I was talking about already.

A 75% decline in the DJIA would lead to an average dividend yield of 11% for the Dow 30 stocks.

A great dividend is one that pays out a yield equal to the 10 year note. That means that even if the stock doesn't move, you still cover your opportunity cost.

I just don't see stocks falling below that point.

The current ten year yield is 3.5%.

That implies a "fair price" for the DJIA of around 9,800 assuming that investors believed that stocks were going nowhere for ten years.

That would be a 30% decline from the peak of 14,000.

[Ferretlover]

That Mastercard commercial ("Gallon of milk: $125.
Groocery shopping when you're not hungry? Priceless!") was aired again last night.
Gee, what do you think Mastercard is trying to tell us?......

[shakespear1]

Someone at MC is getting a "Wall Street Root Canal" and subconsciously reflecting it in their decision to make such a commercial.

SICK !!!!