Thought Id start this one going because its rather dead on this board at the moment and I suppose all my usual muckers are either at the Stella tennis event watching Dim Tim (lose again) or at Henly Regatta eating cucumber sandwiches (they wish,...NOT).

Anyway please feel free to just talk to yourself blast away and let it go on any company or subject you wish. Just wish Id thought of this one before.

cheers GF.

Speculators had previously targeted VW... borrowing shares in the company to bet that the automaker's price would inevitably tumble due to slumping demand.... Oh dear
Hedge funds grizzling that there should have been a limit rule on Volkswagen
.whatever nextIm going to sleep a happy bunny tonight!

Hi Tabasco,

Yes caught really short with their pants down.
It goes to show that shorting can falsely inflate the price of a share not just the usual of dragging it down.
A top hedge fund manager tried to justify the shorting of shares by using the example of bank shares.
He stated that since the temporary banning of shorting such shares the SP's had in general gone down. Of course he did not mention that one of the main reasons some banks share nosedived was initially because of the huge percentage of their shares being shorted had a negative sp effect.
I have nothing against those who short shares as if there is a way of dealing in shares that is legal then I blame the legislators not those who use the allowed method.
It is a fact that those who agree or disagree in the method must surely admit. Naked shorting, and I am on about what people generally refer to as shorting takes a huge amount of transparency away from the SP, often giving a false impression of value to a company.
Your example of the current shorting of VW proves the point.

Jonathan Ross and Russell Brand are to be suspended and all their shows taken off air until the BBC has investigated their prank calls made on Radio 2.... and dont ever bring them back...Pair of cretins!!!!!

worth reading.

http://www.bankofengland.co.uk/publications/fsr/2008/fsrfull0810.pdf



If you don't want to read the whole thing for yourself one view of the report is:

Published in Your Money on 28 October 2008
24 comments

The Bank of England says that global losses on toxic assets have now soared to $2.8 trillion. There could be more financial instability to come.

The latest Financial Stability Report from the Bank of England makes for depressing reading. Lets start with the outlook for insurers.

Insurance companies
The Bank of England warns that insurance companies could hit trouble. Insurers hold a significant proportion of their assets in shares and corporate bonds, and the value of these assets has fallen in recent months.

The danger is that falling asset values could mean that insurers wont have enough assets to meet capital adequacy requirements. So insurers might have to raise fresh funds from the stock market or the government.

The Banks report, however, argues that regulatory reforms in 2004 have reduced the chances of an insurance crisis. The report also points out insurance companies generally havent used much leverage (borrowing to increase returns on investments.)

Hedge funds
Its a different story with hedge funds though. These funds are notorious for using leverage and are paying the price now. Hedge funds have, on average, fallen 10% in value in last quarter, according to the bank. As a result, hedge fund investors are withdrawing money which is forcing share sales by the funds.

Whats more, in the current climate, hedge funds are struggling to borrow to cover their losses, which means they have to sell more shares.

Banks and toxic debt
Banks losses on toxic debt in the UK, Europe and US have more than doubled to $2.8 trillion (1.8trillion), according to the bank. Non-financial companies may also wish to borrow more from the banks on existing credit facilities as the economy slows.

That means banks may need to raise further capital at some point. That money may come from the stock market or governments. Todays report also says that banks need to reduce their reliance on short-term money markets for funding.

The falling pound
The banks report doesnt touch on the falling pound which I think is another big issue in the current crisis.

The pound had edged up today but the current rate of $1.57 per pound is still well below the $2 rate we saw in the summer. Thats bad news for those of us who want to travel to the US, but more importantly, it could also inflict further damage on our financial system.

Financial website, breakingviews, reports that the UK financial system has 333bn of foreign interbank deposits. A falling pound might encourage some foreign investors to withdraw cash and that could hurt UK banks further.

Emerging markets
Some emerging market economies are in deep trouble such as Ukraine and Hungary. Put simply, these countries have borrowed too much and may not be able to pay back their loans. Banks in the developed world that have significant operations in these countries will suffer.

Housing Market
Away from the Bank of England, the FSA has released some gloomy data on repossessions - the number of repossessions has risen 71% over the last year.

What now?
The UK economy is clearly in serious trouble. The only question is whether well see further major instability in the financial system. Ive said before that I thought we were probably through the worst in the banking crisis. I worry I may have been too optimistic.

Tobasco,

Fully agree.

This is me,

Good interesting article.

Am I right in thinking that BP pay out divi's 4 times a year? seems to be 14 cents[US ?] for Q3. Thinking it may be a good income share over time and divi, though not guaranteed, should be safe as long as they keep making BIG profits[again not guaranteed]
Alex

One to share with you that's a joke -but it's not. It's one to make a very strong mental note about:

A new client had just come in to see a famous lawyer.

Can you tell me how much you charge? said the client.

Of course, the lawyer replied, I charge 200 to answer three questions!

Well that's a bit steep, isn't it?

Yes it is, said the lawyer, And what's your third question?

Alex - you're right - BP divi 4 times a year.

pretty neat to use and free to register , freeview on yer pc . pretty handy in my house anyways when the footies on!!
quality is fantastic!

http://www.tvcatchup.com/?member=lob_on

Watch Live Television Online For FREE
TVCatchup is a new service which lets you watch live television online. There are currently 15 channels to choose from, it's totally legal and ... Read Moreabsolutely free!

My thought for today on the Brazilian GP...... Massa gets a puncture on the first lap and Kwik-Fit is closedRaikkonen runs out of fuel and has left his can at homeAlonso hits the barrier and aint wearing his seatbelt.Kovalainen gets a speeding ticketTrulli goes off his trolley.and its Academic for Hamilton!!!

Massa-cred.Ferrari got what they deserved.and in the best possible way!!!! Yehaaaaaaa!

Well Hamilton is world champion...congratulations are in order....now : Halloween ?.....what on earth are we celebrating halloween for ? it is an an American import....., when I was a kid : the 5th of november was all important not this crap for dressed up "juvenile brats"...why does Britain have to copy the worse from over the pond....for god's sake throw all your blinkin' costumes on the Guy Fawkes bonfire...! and I wish Councils would ban fireworks from being let off on any other day than the 5th of november...now we have fireworks going off 1 week before the due date and a week later...the 5th of November is the 5th of november not the 3rd or the 10th come rain or shine...if there was terrible weather on the 5th...letting them off on the 6th could just about be tolerated, ....can you imagine the French celebrating the 14th of July on the 9th or the 18th....they would never allow it.....another example of the drop in standards in this country !.

Yeh my poor cat is well pi**ed off with it all.

And my dog as well !.

And my wife

My wife sees fireworks every night (well I can dream can't I).

Roman candles.or do you banger?

About the wife...it depends whether you love her or not...distract her and tie a rope to her foot during the fireworks display, if she notices anything say to her : "that it will only take her into sub-orbit.....it's for the kids you'll see ...it'll make them smile"....!

Euhhh !....as some of my blogs are serious..."please don't try this at home folks" !.

hear hear required!

You might enjoy this one!

The US Presidential Election - An Announcement


A MESSAGE FROM HRH THE QUEEN


To the citizens of the United States of America from Her Sovereign Majesty Queen Elizabeth II
In light of your failure in recent years to nominate competent candidates for President of the USA and thus to govern yourselves properly, we hereby revoke,renounce and declare to be void and of no effect your so called declaration of independence.
(You should look up 'revocation' in the Oxford English Dictionary).

Her Sovereign Majesty Queen Elizabeth II will resume monarchical duties over all states, commonwealths, and territories forming the Union or any part thereof (except for Kansas, which she does not particularly fancy).

Your new Prime Minister, Gordon Brown, will appoint a Governor for America without the need for further elections.
Congress and the Senate are hereby dissolved and disbanded. A questionnaire may be circulated next year to determine whether any of you noticed.

To aid in the transition to a British Crown dependency, the following rules are introduced with immediate effect:
-----------------------
1. The letter 'U' will be reinstated in words such as 'colour,' 'favour,' 'labour' and 'neighbour.' Likewise, you will learn to spell 'doughnut' without skipping half the letters, and the suffix '-ize' will be replaced by the suffix '-ise.' Generally, you will be expected to raise your vocabulary to acceptable levels. (look up 'vocabulary').
------------------------
2. Using the same twenty-seven words interspersed with filler noises such as 'like' and 'you know' is an unacceptable and inefficient form of communication. There is no such thing as U.S. English.. We will let Microsoft know on your behalf. The Microsoft spell-checker will be adjusted to take into account the reinstated letter 'u'' and the elimination of '-ize.'
-------------------
3. July 4th will no longer be celebrated as a holiday.
-----------------
4. You will learn to resolve personal issues without using guns, lawyers, or therapists. The fact that you need so many lawyers and therapists shows that you're not quite ready to be independent. Guns should only be used for shooting grouse. If you cannot sort things out without suing someone or speaking to a therapist, then you are not ready to shoot grouse..
----------------------
5. Therefore, you will no longer be allowed to own or carry anything more dangerous than a vegetable peeler. Although a permit will be required if you wish to carry a vegetable peeler in public.
----------------------
6. All intersections will be replaced with roundabouts, and you will start driving on the left side with immediate effect. At the same time, you will go metric with immediate effect and without the benefit of conversion tables. Both roundabouts and metrication will help you understand the British sense of humour.
--------------------
7. The former USA will adopt UK prices on petrol (which you have been calling gasoline) of roughly $10/US gallon. Get used to it.
-------------------
8. You will learn to make real chips. Those things you call French fries are not real chips, and those things you insist on calling potato chips are properly called crisps. Real chips are thick cut, fried in animal fat, and dressed not with catsup but with vinegar.
---------------------
9. Hollywood will be required occasionally to cast English actors as good guys. Hollywood will also be required to cast English actors to play English characters. Watching Andie Macdowell attempt English dialogue in Four Weddings and a Funeral was an experience akin to having one's ears removed with a cheese grater.
---------------------
10. You will cease playing American football. There is only one kind of proper football; you call it soccer. Those of you brave enough will, in time, be allowed to play rugby (which has some similarities to American football, but does not involve stopping for a rest every twenty seconds or wearing full Kevlar body armour like a bunch of nancies)..
---------------------
11. Further, you will stop playing baseball. It is not reasonable to host an event called the World Series for a game which is not played outside of America. Since only 2.1% of you are aware there is a world beyond your borders, your error is understandable. You will learn cricket, and we will let you face the Australians first to take the sting out of their deliveries.

12. An internal revenue agent (i.e. tax collector) from Her Majesty's Government will be with you shortly to ensure the immediate collection of all tax monies due (backdated to 1776).
---------------
God Save the Queen!