posted on Oct, 15 2007 @ 11:08 AM
I actually am very concerned about this. I too read it, but took a different point of view on it. As I am not a trader anymore, got burned out back
in 2002. Still involved, still in Manhattan, just not on wall street anymore. Maybe I should change my name......NAH....
Well, to me this is a bit ominous. I have a feeling they know whats coming. I am not pointing to ANYTHING RELATED TO THE NWO here, so don't don't
go saying the US has to be bakrupted for the NWO to take over.
I think, that if these banks are working hand in hand with the advice of the treasury, they are in it for one reason and one reason
only.........saving their ass. Not even for profit, although, profit will be had.
I think, they see whats on the horizon....the credit crunch ahs the ability to collapse more than 1 MAJOR BANK\BROKERAGE. Not the American economy,
After reading this, I do not agree that it is similar to the talks that took place in the 1990's surrounding Long Term Capital Management. These
talks are more like the talks that took place in 1929-1930 when the US Governemnt begged JP Morgan (the person, not the bank) to step up and save the
US Stock Market. There is a tremendous sprial effect that can take place with an un-winding credit economy. We have long known that our economy is
credit driven, but we let it get way out of control in the last 10 years, with essentially free money. Interest rates were so low in the US, that the
real interest rates were actually negative for some investors. Low, low loans that could be deposited in regular institutions, yileding the risk free
rate in return would actually come out ahead of the interest, once inflation was taken into account. In short you could borrow money to make
Banks don;t work together unless its for a good reason. The Treasury or the Fed requesting it, is not a good reason. There is something more.
Something has lead them to believe this would beenfit them. I am a firm believer in a big market sell off, and actually predicted it to a few friends
tot ake place this month. In September, banks tipped their hands and started releasing infomration about potential write-downs and charge offs
related to their credit losses. The markets rallied on those days, because the offenders were coming clean. I do not believe that is all they have
to show. They are still hiding things.
On top of this.......This "slush" fund will be held off the banks books. How is does that make any bank something worthy of investing in.
Sorry people...I just don't buy this. I say its bad news.
By the way, the market sell off I see, is not huge, but it is worth being worried. Dow Jones should trade down to 12,250. S&P should go to 1250.
These are great inflections spots. Corrections could be made and markets would strengthen due to cyclicality.
If the FED had not intervened with that ridiculous .50 point cut in the FED funds rate, we ould have hit these spots already and a smooth correction
could be on the way. Instead, after breaking out to new highs on expectations of future rate cuts that I do not believe will happen, the market will
fall again, this time making people throw their hands up and lose trust in the markets again. Capitulation...thats what we called in on wall street.
These are good things, healthy things for a market. Thats why people are told to be in it for the long run and only invest money you are willing to
throw out the window and not jump after.
Just my 2 cents, recently reduces to 1.67425 cents thatnks to the falling dollar. (BY THE WAY....THE FALLING DOLLAR.....THATS A GOOD THING).