Will the Financial Crisis Continue???

Well Justin what else can they do, this is to avoid the mass hysteria that can take hold of consumer spending and make other areas of the markets have a ripple effect.

The holidays are just around the corner so we don't want people to start hiding money under their pillows and between their mattresses in case banks run out of money

Our nation wants people to spend, spend and spend some more or what they can not afford.

Now has anybody noticed that gas prices are going up again?

I expect we will see continued volatility this week as the markets wip-saw & wobble there way towards an overdue correction. In my opinion this isn't going to happen tomorrow, or the next day, but I will be surprised if the markets don't fatigue before the end of the year (Sept/Oct). Continued panic selling, and buying spikes, as an unforgiving market attempts to drain every last nickel it can get Credit derivitives are the achilles heel imo.

Energy calls, long a few good miners & uranium's...sidelined broad market equities.

dude like the best way to describe the financial world is this.

imagine yourslef walking around with a full pail of water and trying to keep the water from overflowing

Asian Markets down today - 8/14

Nikkei is down sligtly, markets are not settled, the more cash put into the system the more fear it seems to generate in the long run!


[edit on 8/13/07 by mel1962]

One of the results of markets problems is the lack of consumer confidence.

If the markets do not perform better even with all the transfusions it has been given, investors may hold back until the opportunity comes around for them to benefit.

it is the FEDeral reserves getting really spooked globally

that CREDIT DERIVATIVES market is collapsing amid decreasing liquidity

Credit derivatives market is 30 TRILLION

and the housing crash is the trigger foreclosures -tightening credit

this is very bad and was predicted earlier in march by the same man who saw the housing bubble in 2003 MICHAEL HUDSON he has an I-tulip interview that you may want to google

read this link

www.marketoracle.co.uk...

Mods, the previous poster has been spamming this stuff in all the financial threads.

Example

Originally posted by cpdaman


it is the FEDeral reserves getting really spooked globally

that CREDIT DERIVATIVES market is collapsing amid decreasing liquidity

Credit derivatives market is 30 TRILLION

that's the 1st domino, all those derivatives & debt obligations scattered
throughout all that 'paper' ... the sub-prime debt also the creeping defaults
on above prime mortgage debts is making all that 'paper' worth maybe
.02 cents on the dollar.
Unless-Until, the auditors can get a reasonably accurate value on those
CDOs, Collateralized Debt Obligations, noones goingto buy any in the forseable future...
and all those investmant banks, hedge funds, pension funds, mutual funds that bought the overpriced debt obligations that bundled all sorts of mortgages to the poor, the wealthy, & commercial paper
then set an arbitrarily high price on the debt instruments (paper)
so the brokers and the issuing investment banks each made a bundle on the sale of very un-liquid paper...

There are +10,000 brokers/traders who no longer have a exaggerated
income from selling the paper, which is steadily spiraling to Zero value$$.

& Justin is quite right. the Fed has pockets only 'so deep' & will not be able to add more than a Trillion to proping up the 'Liquidity' for anything like a year or even 6 months.

the Fed can/must create a diversion, a head fake so the public takes their eye off the football

??unwind down to 10,500 ?? August next year, then a bounce up as opinion & sentiment suggests that the Democrat figure head
(of the Republi-Crat Party) will take over the White House in '08

I don't know about spamming, but this is a train that has been along time traveling into another train. If you didn't see, thats because you believe everything CNBC and Kudlow says and ignore the warnings of Krammer!

But, really I hate to see it happen because its only going to hurt most of us, unless your independently weathly!

It will be interesting to see what happens in Asia tonight, already the NZX is down 1%!

Subprime, Derivatives, oh my!

Originally posted by St Udio

the Fed has pockets only 'so deep' & will not be able to add more than a Trillion to proping up the 'Liquidity' for anything like a year or even 6 months.

Nice post St Udio...one word on 'liquidity'.....

Liquidity (available cash) is great if you can monetize the assets without causing the prices to drop. You can only accomplish this if there are buyers for these assets. There aren't any buyers. In theory, the Fed can print $ to infinity and pump it into the banks...but under the current circumstances...to what avail?

'Uncle' Harry Schultz put it this way today:

"For years, greed has been the underlying force in mkts. Now fear is replacing it. Once underway, it is an even stronger force. While central banks try to hose down the mkt's fear-flames with money, it doesn’t change the liquidity problem. Lenders fear to lend & borrowers fear to borrow. Money 'in the system' is of no real help. Someone has to borrow it. Who will? We’re back to being unable to push a string. We’re into the very early beginnings of the unwinding of the derivatives hurricane long forecast...."

Good-on-ya cpdaman! By the way, that's me buzzing off your wing

Asian Markets are off down almost 2%!

Most Asian Markets down almost 2%!

Mel, it seems that the markets are not going to do any better. We may have a chance of hart from the fed and interest rates will be taken into consideration.

I noticed today that the talking heads in the MSM have squared off against each other to do battle. Liberals and Conservatives are placing blame and looking for ways for their side to use this crisis for political gain in '08. My wost fear is that this 'excitment' will only drive the average investor away from the markets faster...sooner...which will make things even worse. Our chances of getting out of this with any degree of safety become less and less when everyone who commands our attention preaches gloom and doom.

US Markets were off as much as 350 pts today and finish 15 pts under???

Bueller . . . Bueller . . . Bueller . . . Oh no its helicopter Ben dropping billions and maybe trillions into the market through the plunge protection team!

Oh come on there is no conspiracy in the markets, its just like Kennedy got shot by a lone nut who was shot by another lone nut!

Its all good and by the way don't look behind the curtain!

Nikkei is down big time, I have feeling we are looking at a black friday!



Krammer > Kudlow!

[edit on 8/16/07 by mel1962]

[edit on 8/16/07 by mel1962]

Asian Market Crash!

Happy Days are Here Again, Helicopter Ben to the rescue!

The Fed to the Rescue!

The Fed is in full panic mode after the nikkei crashed +800 pts!

Markets are up in Australia and Japan by 2 - 3%.

Looks like Monday will open big in the markets thanks to the Fed!

Get Ready For The Roller Coaster Ride to Hell

Will the Stock Market crash


The real estate market is crashing faster than anyone had anticipated. Housing prices have fallen in 17 of 20 of the nation’s largest cities and the trend lines indicate that the worst is yet to come. March sales of new homes plummeted by a record 23.5% (year over year) removing all hope for a quick rebound. Problems in the subprime and Alt-A loans are mushrooming in previously “hot markets” resulting in an unprecedented number of foreclosures. The defaults have slowed demand for new homes and increased the glut of houses already on the market. This is putting additional downward pressure on prices and profits. More and more builders are struggling just to keep their heads above water. This isn’t your typical 1980s-type “correction”; it’s a full-blown real estate cyclone smashing everything in its path.


Tremors from the real estate earthquake won’t be limited to housing–they will rumble through all areas of the economy including the stock market, financial sector and currency trading. There is simply no way to minimize the effects of a bursting $4.5 trillion equity bubble.

The next shoe to drop will be the stock market which is still flying-high from increases in the money supply. The Federal Reserve has printed up enough fiat-cash to keep overpriced equities jumping for joy for a few months longer. But it won’t last. Wall Street’s credit bubble is even bigger than the housing bubble—a monstrous, lumbering dirigible that’s headed for a crash-landing. The Dow is like a drunk atop a 13,000 ft cliff; inebriated on the Fed’s cheap “low-interest” liquor. One wrong step and he’ll plunge headlong into the ether.

Originally posted by mel1962

The Fed to the Rescue!

between your thread here, and two other threads concerning the ongoing
market (correction) circa 15 August onward,
i addressed the problem, i also challenged the mortgage bankers & those
who created the bogus/overpriced debt instruments that are fast becoming
extremely cheap or next to worthless...that i could provide a means to save-their-butts...and the fee begins at $1,000,000.oo for my solution.
[no takers yet]

but as to the newest trick by the FED on reducing the overnight discount rate by .50%...it only allows the 'big guys on the block' to redeem a small percentage of their holdings in the bogus mortgage instruments...
the small guy owning Funds that are glutted with mortgage pape/bonds etc
are positioned low-on-the-totem-pole

all this feel-good crud, that the 'Fed did a brilliant move' is just the money mongers & TV stockmarket mongers
throwing you a load of sileage (the chopped up plant material that milk-cows get rationed twice a day in their barn stalls)

I'm glad that reasoned investors see Friday's Fed rate cut, as holding absolutely no relief for the hundreds of funds, and private equity groups,
hedge funds et al..which are strapped with the bogus mortgage paper
And the 200+ market jump (on Friday) at the initial announcement from the Fed. is being reversed this Monday, as the brokers/investment banks
see through the veneer.

i only estimate 10,000 brokerage house layoffs, the year end bonuses as never materializing, (an the resulting fallout, of an economy built like a house of playing cards)...but after today, when the MSNBC talking heads at the Market news hub said there are 53,000 brokers at all these
investment firms -who were busy selling the bogus mortgage paper & hedges- & received their extremely generous commissions already...

when i heard that all 53,000 have their heads on the chopping block....
well, i'm even more cynical of the eventual 'unwinding' and maybe the 10,500 bottom i suggested is too high itself. !!


will bore ya'll some more as the story unfolds
thanks

[edit on 20-8-2007 by St Udio]