Taipan Investor Financial

Taipan Covers the Investment World in Stocks, Options, Forex, Commodities

Today is Monday, January 05th, 2009

About the Author

Taipan is a retired commodity broker, forex trader and portfolio manager who enjoys following the forex, stock, and commodities markets and drawing upon his 40 years or so of trading experience to post articles to a series of blogs. While Taipan is not always right with his forecasts he usually offers some interesting insights into markets. Actually if he weren't so modest he would tell you that in the big strategic picture he is almost always right. Taipan is very distrustful of statements made by stock brokers, stock analysis, so called forex experts, and in general talking heads. The investor who thinks that the playing field is level and that he can depend upon MSNBC and CNN for inside trading information has got to be at least a little nuts. If you want to trade well you had better develop your own style and your own sources of reliable information. This blog will attempt to provide market trading information that will be helpful. However, always keep in mind that any decisions made to trade using this information are your sole responsibility. Taipan has been around long enough to know that the markets can make a fool out of anyone so never blindly follow what someone else suggests. To trade well you have to think well and the thoughts need to be your own.

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What Crisis After Bear Stearns?

March 19th, 2008 • Related • Filed Under

What Crisis After Bear Stearns?

After 85 years of being one of the leading financial institutions on Wall Street the Bear is dead.

Well, perhaps not completely, not yet. But to the employees of Bear Sterns who watched in horror as the stock fell from a high of over $160 a share last year to all of a $2 a share buyout price by JP Morgan death must seem like a reality.

The big question is what now and who may be next?

There are those who believe that the failure of a major firm like Bear Stearns may signal the low point of this down cycle. Others believe that with the huge uncertainly of toxic debt instruments in the trillions of dollars over hanging the market that the worse by far is yet to come.

JP Morgan has revealed that the Bear has exposure to some 13 trillion in crazy ass derivative instruments. No, that is no a typo, that is trillion with a capital T. The derivative market is the real killer if the credit implosion continues. The market is so huge that no one has a good handle on it.

Should the derivative market start to unravel we had all better head for the hills. The world financial system as we know it will come tumbling down and make what has taken place so far look like child’s play.

That must be the monster market that the Fed and other central bankers around the world are scared to dead of. Keep your eye on the derivative market. There is no way the central bankers can contain the damage to the world financial system if severe mark downs began to occur.

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