Wall Street Close to Next Great Depression

By Margareta Pagano, Business Editor

Wall Street is bracing itself for another week of roller-coaster trading after more than $300bn (£150bn) was wiped off the US equity markets on Friday following the emergency funding package put together by the Federal Reserve and JPMorgan Chase to rescue Bear Stearns.

One UK economist warned that the world is now close to a 1930s-like Great Depression, while New York traders said they had never experienced such fear. The Fed's emergency funding procedure was first used in the Depression and has rarely been used since.

A Goldman Sachs trader in New York said: "Everyone is in a total state of shock, aghast at what is happening. No one wants to talk, let alone deal; we're just standing by waiting. Everyone is nervous about what is going to emerge when trading starts tomorrow."

.....


Mr Taylor added that he expects a sharp downturn in the real UK economy as the public and companies stop borrowing. "We have never seen anything like this before. This is new territory for us. Liquidity is being pumped into the system but the banks are not taking any notice. This is all about confidence. The more the central banks do, the more the banks seem to ignore what's going on."

Source

Here we go. The next depression is there. The global economic house of cars is about to collapse. Many analysists have predicted this would happen and it seems we're about to experience what people felt during the depression of the 30s.

We have almost reached peak oil, imagine what nuclear capable countries in the Middle East will do when they run out of oil in about 20 years.

Then the increasing tensions between Westerners and Muslims. Not to speak of Russia, China and the battle for the last resources.

A great mix for a third word war, I would say.






[edit on 17-3-2008 by Mdv2]

I just heard on my local news station a talking head saying that the Banks are firm and that the FDIC Insured Baaks are covered up to 100,000 Dollars. Well what if you have much more than that? Is this a good time to start moving funds and if so to where? This is a serious inquiry please.

Originally posted by antar
Is this a good time to start moving funds and if so to where? This is a serious inquiry please.

Being a student I have not much capital to withdraw from bank accounts, however, the bit I have used the bit I have for investment in silver coins.

It is highly recommendable to withdraw and invest in gold and other precious metals. First it was Northern Rock, now it is Bears and tomorrow it is yours.

I do not think that the wallstreet trouble is linked to oil-peak . I would say it is more a financial engineering to take over huge companies with a fraction of the initial cost - example today , when JPM managed to purchase an investment company @ 2% of the 2007 value!
The actual oil peak is artifficially created, as the real oil peak shoud come by 2015-2020.The artifficially created means - reducing the oil output by closing down rafinering capacity or other means. The result ? even more money for the strings pullers..

Start putting you money in your mattress! (or buy gold)

While this advice sounds crass - a friend of mine with a lot of money had a specific type) forget the name)of savings account with citigroup (1.2 Million). He received a call saying that a hold had been placed on his money (he later found out that EVERYONE had a hold placed). Now, mind you, this account is about as safe a place as you can put that kind of money. Very low risk - a virtual "mattress" if you will. Well, he happens to know the VP at the NY Citi office and called her. She told him that honestly he will be lucky to get half of it back.

Once I get more details - I will chime in.

This is REALLY bad folks. Any spare dime you find - put it away. This is only going to get worse.

Wall Street is the whole broad spectrum of the American economy,

what we are mainly dealing with here is the 'Financial Sector
... a very important slice of the economic pie, but still only a fraction
of Wall Street.


Bear Stearns has been assimilated by JPMorgan & by extension the FederalReserve...a coup, at $2. per share.


the Fed and many Investment banks are steadly releasing only dribbles
of truth/fact to the public...
the Bear Stearns financial insolvency was only the first to be made public....
as the powers-that-be keep us in a mesmerized state, so that the American socio-economic model doesn't completely breakdown in a single week.


so far, only the shareholders of BearStearns have seen their investments & retirement monies totally evaporate...
and that body of people is a manageable number which are diverse & seperated...
exactly what is needed (in the Fed & gov't view) as a test model, to iron out the protocols and mechanisms needed in response to the much broader systemic financial collapse which is still ahead.

what is the coin with the best metal-value in the US? I guess in the UK I would go for the 2 pence coin .. at least you can have some value by the value of the incorporated metal (coper is very expensive! )

reply to post by sty


The only precious metal I have in the home is lead...and alot of it...your gold is nice, but when my lead is pointed at you (via Glock), my new gold will be really nice.
Using Gold or Silver is a smart investment now as long as society doesn't collapse. Assuming that there is a total meltdown of society, you would need someone who will barter with you for it. I think me trading my salt for some almost fresh food is a better offer to the farmer than a brick of gold...
Every time I hear the US economy is going to crap, I think of how hard I had to fight to get my NY Yankee and Detroit Tiger baseball tickets...they both are pretty much sold out (single seats available for you bachelors out there). Detroit and Michigan have been in serious economic trouble now for at least 4 years, but yet the Red Wings, Pistons, Lions and Tigers have very little tickets available. If money is so tight, why is that happening? Why do I still wait 45min to 1.5 hours for a table at a restaurant on a Thursday night? Why are the Casinos still so damn full? Ignorance perhaps?
Just a rant, thanks for listening...

Originally posted by antar
I just heard on my local news station a talking head saying that the Banks are firm and that the FDIC Insured Baaks are covered up to 100,000 Dollars. Well what if you have much more than that? Is this a good time to start moving funds and if so to where? This is a serious inquiry please.

Bad news Antar: I just read an article on the whole sub-prime mess and how it affects U.S. citizens. The person interviewed (some sort of financial analyst or such) said that the FDIC only insures the banks. It doesn't insure an individual's bank account.
And there you have it, we're screwed.

To me Wall Street is just like Las Vegas. People are gambling and at times casinos fail due to bad luck. Sometimes they all lose.

As you can see by the main board this is already been discussed (since yesterday)

Wall street Fears great depression

Now here is a strange add-on that I read today.

First...
All Kuwait's Cabinet ministers resign
www.presstv.ir...

Second, which was in my country...
The Hungarian Stock Market President resign
I can provide a link for it, but it's on Hungarian.

Two resigns on one day. And one is in the wealthiest country on the planet, which is depending from oil.

It's remembering me for fleeing rats on a sinking ship. Taking no responsibility for anything, rather resigning. Then someone else will be blamed for these things.


[edit on 17-3-2008 by Dark Crystalline]

This is getting uglier and uglier,

Strauss-Kahn spoke at a conference on structural reforms in Europe organized by the Organization for Economic Cooperation and Development, or OECD.

U.S. economic forecasts will be downgraded by both the IMF and the OECD, said Strauss-Kahn and Angel Gurria, the OECD chief, in a joint news conference.

Worry about the damage of the growing credit crisis led the Federal Reserve to make a rare weekend move, lowering a key lending rate before Wall Street opened Monday.

money.cnn.com...

IMF
www.imf.org...

OECD
www.oecd.org...

So US is about to be dawngraded.

There is no depression on the way. Not even close. These are rumors so people will dump stock and the rich can buy them up cheap. The middle class is dying to be sure.....but the people with money are making money..More billionaires now than EVER......The plain truth is that big corps are working with opec to drive the cost of everything up, so the average joe must sell his small stock portfolio to survive..look hard at this

www.rogueinvestor.com...

Lehman brothers stocks fell 20% yesterday! 20% in a single day!

Analysts say that if Lehman doesnt rebound it could be subject to a hostile takeover... or even worse it could collapse by the end of the week.

Well, now, that is weird. Why would cabinet ministers, etc. resign from Hungary and Kuwait? What's up with that I wonder?

It feels like the economy is nose-diving very rapidly these last few weeks. This is only the beginning, folks.