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Xavior
01-24-2008, 23:40
I see everyone is enjoying theirselves in this bear market

A recession is a great time to be investing ;)


On another note, anyone hear about the French guy who lost 7.1 BLN dollars for his bank with his trading? I mean, Citibank lost 18 BLN in one year, and thats a huge organization. This is one guy... :P

Crimson Shadow
01-25-2008, 07:24
Whats the point of investing that kind of money....its not like you are going to need more than 1B in a lifetime.

Missionary
01-25-2008, 10:11
i guess thats 7bill in dollars you mean lol. only 3bill in pounds. if the bank are stupid enough to put that much money into 1 persons hand then they deserve all they get lmao. plus they are french so ya cant feel sorry for them :P hehe.

Mwahahahaha
01-25-2008, 19:06
He didn't lose that kind of money in the stock market. He lost it in the futures market, where you only have to put up a fraction of the money to take that kind of risk.

I believe he's set a world record though, even the infamous Nick Leeson only managed to lose a fifth of what he did.

The risk management systems of Societe General were obviously seriously lacking, and considering the person in question came from the back-office before being promoted to the trading desk, he knew so. An employee from hell, in other words. Instead of informing his superiors, he decided to ruthlessly exploit it and ****ed up completely. Now his whereabouts are unknown.

The funny thing is that he is probably the main reason why the fed decided to reduce the fed funds rate by 0,75% a week before the fed normally makes decisions on the interest rates. The unwinding of his massive positions in the S&P 500 futures caused the alarms to go off in the fed, and they reduced rates to calm the markets.

Mr President
01-25-2008, 19:31
http://forums.nation-wars.com/vbtrade.php?do=topportfolios


I wish CC (Circuit City) would rebound a little bit so i could unload them. The other 2 i have are doing ok.. Was doing really well a few weeks back... Should have sold them then! :(

Xavior
01-27-2008, 01:12
@ Pres:

I managed to get CC when i thought it hit rock bottom. Lets hope it doesn't go back down :P

As i hear it, the interest rate was dropped because of Martin Luther King Day. The world markets were down dramatically. I believe every major market lost some 4-5%. Here in Canada, the TSX lost 600 pts (5%), and the smaller venture lost 250 pts (10%).

The next day when the US markets opened, it was down 400 pts from the getgo, and very soon after, the FED announced the emergancy rate cut, and the market bounced back.

But the way i see it, panic selling is a great opprotunity for short term investors.