Guess who can't fund their biz? Let the short begin! (liquidity crisis part deux)

just wanted to make a quick thread and a general ping to ATS members who are savvy in the markets. So friends, who else has been buying puts and shorting all the big names these past two weeks?

I was told, in confidence, yesterday by a colleague in-the-know at (insert name of most sleazy of mortgage fraudster bank here) that they are having some extreme difficulties in their corp treasury generating cash to fund their businesses the past two weeks specifically. Even in the Short term funding markets where these firms will borrow and return billions in a day- nobody wants to lend to (these specific robber barons) money, as if there is an expectation for a very negative event on the near horizon. Those who followed the Bear and Lehman crises will agree this sounds far too familiar not to be concerned.

Now guess what vampire bubble-inflating monster I'm referring to? I'd just come out and say it, but I promised not to give the name. However, the above clues are more than generous.

the winner gets (nothing) except the knowledge that can add many zeros to your (soon to be) worthless fortune of (imaginary) dollar bills. Lets hope you can buy whatever you need to survive before that second part. LOL!

reply to post by chaeone86


Hey you wrotten in your title "deux", the french of "two"

reply to post by LaTouffe


yes.... as in the second part of this massive financial crisis. i mean, we could argue this might be the 3rd liquidity crisis, even the 4th or 5th if your count LTCM as one... but lets not get carried away with semantics.

So latouffe- have you been shorting this POS market?

Funny you put this up, My company i work for, big construction company on the west coast, is having cash flow problems big time. We are short paying venders and getting nasty phone calls. Our problem is we are not getting payed by the owners of the buildings. Its been like this for a month now.

The SHTF soon

reply to post by camaro68ss


Yes, the cost and scarcity of funding has become a large obstacle for many businesses, big and small. The frightening part is now its squeezing both ends- we have asset inflation increasing cost of business, especially amongst core industrials that rely on stable prices in commodities markets and transportation of goods (oil). This is a real double whammy.

though our credit markets unfroze, they never truly thawed out. A banks ability to lend and provide favorable financing to industry was one way business could ease the pain of asset inflation. however, banks are less willing to lend and are struggling with a new regulatory environment that has limited new "innovative" (ridiculous) solutions that enable banks to be more aggressive in these markets and then offer clients ways to reduce exposure to asset price volatility. Whats the use in selling financial products when the cost of that Dodd-frank hiring will eat up most of your *potential* profit especially when youve no idea how extensive those reporting and control requirements will be (so ultimately no real clue what they will yet cost).

So big publicly traded home builders like toll and ryland end up as sitting ducks for the market jackals to short silly and profit from their own sectors inability to support the very industries they are designed to enable. Thats our free market. Embarrassing.

whats particularly bleak about what i heard was a bank itself, one of the big ones, was getting squeezed by external funding issues. This is not good. One constant throughout this 2 year money game has been that the TBTFs will keep running, regardless of their zombie insolvency. They will be supported and allowed to borrow, spin off, steal and book-cook their way thru this for the greater good (not something i support in anyway, FYI!).

its deja vu from 3 years ago when this all started. banks warry about lending to themselves... the very foundation of their business shaking in its boots. oy.....

reply to post by chaeone86


well, that was cute. its BAC. duhhhhhhhhhhhhhhhhhhhhhhhhhhhhh