Oracle Earnings/Market Close
Oracle (ORCL) earnings and tepid guidance were not a crowd pleaser:
REPORTS Q3 $0.30 V $0.30E, R $5.35B V $5.42BE
- Q3 non-GAAP operating margin was 41% v 39% y/y
- Q3 new software license sales were $1.6B
- Q3 data, middleware new license sales were +20%
- Q3 applications new license sales were +7%
The indices ended the day in negative territory and I’m feeling a bit seasick looking at daily charts. The up/down trading action is extreme and really wearing on traders nerves. So many are hoping against hope that everything is OK in the financial world, but reality keeps poking it’s head into their dreams. Hate it when that happens!
Senator Dodd is going to hold hearings on April 3 concerning the Fed/ JP Morgan/Bear Stearns/et. al., love fest. I hope our elected officials will be asking the really tough questions, like "Hey, was that really legal?" or "Explain why a Bear Stearns bankruptcy would have brought the world to a screeching halt" or "How the hell do we fire you, Bernanke?" We’ll see.
“How the hell do we fire you, Bernanke?”
I don’t know. That’s sort of like asking how you throw a bank robber who’s just killed the teller, the bank manager, most of the customers, and three cops in jail.
Here’s one way you do it. Sen Dodd throws down the Trump gang sign and says “Ben. You fucked up our currency. You fucked up our economy. And you fucked up our country. And Ben, one last thing. YOU’RE FIRED!”
Could you explain what would happen if BSC or another IB, all w/ big derivatives on their books, were allowed to fail? That would unwind the $516 trillion in derivatives, causing a financial collapse of the economy. The Fed had to intervene to save our economy from total collapse. A freeze of all economic financial activity. But eventually this will happen. However, I see why they had to act. I have never read what the derivatives unwind would actually do….do you know?
There is nothing in the Fed charter that directs them to pre-empt investment banks from going bankrupt. In fact, investment banks have going bankrupt since the advent of commerce. Risk vs. reward vs. failure. It is quite literally the pith essence of capitalism. Cleaning crap out of the financial system helps to restore its health. The Fed is part of the PROBLEM, not part of the solution. They, namely Alan Greenspan, caused this problem, and they, namely Ben Bernanke, are making it worse. The longer they intervene and manipulate the markets the worse the ultimate crash is going to be.
We agree 100% Rogue Poster… The Fed, in their attempt to hide from the American people just how bad everything is they are making it worse.
Schahrzad: We will try to explain more about the unwinding of derivatives later on. It’s an enormous headache for global finance that cannot be fixed to everyone’s satisfaction. The ultimate bottom line is that a great amount of capital is being destroyed, and nothing can bring it back. Most of it was “on paper” and that paper is going up in smoke.
Thanks, Lisa. I myself do not know what would happen, but can only imagine it was something so bad, they broke all the rules to prevent it. However, they only delayed what they want to avoid.