Imminent and severe market correction

[Edwood]

hey chaps - 3 peaks domed house. looks a bit like the DOW hey. 7,500 anyone? (not tomorrow btw )

Dow at close last night

Dow futs down to 9295 just now, not too far to 7,500 now....

 

[solomon]

I must say Edwood that the charts do look remarkably similar.

 

[mayk]

Is FED acting as a bank now?

http://online.wsj.com/article/SB122339483324611667.html?mod=special_page_campaign2008_mostpop

The Federal Reserve said it will bypass ailing banks and lend directly to American corporations for the first time since the Great Depression, and it hinted strongly at further interest-rate cuts -- a cocktail of unconventional and conventional remedies for an economy whose prognosis is deteriorating rapidly.

The historic and potentially risky move of lending to nonfinancial corporations, the latest in a string of extraordinary steps taken by the Fed over the past month, carries the government deeper into the role of propping up private markets.

 

[CanOz]

Is FED acting as a bank now?

http://online.wsj.com/article/SB122339483324611667.html?mod=special_page_campaign2008_mostpop

You know, depending on the Corp, they may be less risky than the banks!

Cheers,


CanOz

 

[MS+Tradesim]

Given the crazy volatility lately these probably mean nothing but any FTSE or DJIA futs traders care to comment?

 

[MS+Tradesim]

Can this be right? Or data error? 340 odd pts??????

 

[chops_a_must]

Correct.

YM at 9640 on my screen.

 

[Trembling Hand]

LOL

rate cuts everywhere!!!!!!!!!

 

[chops_a_must]

LOL

rate cuts everywhere!!!!!!!!!

At the moment I keep getting that "dig up stupid" simpsons scene in my mind.

Seems more than applicable to the current situation.

 

[gav]

where do u guys get your live US data from?

 

[Trembling Hand]

From our brokers. IB.

Cheapest way is through a cfd provider

 

[gav]

Oh OK, couldnt find anywhere on Commsec that has it, not even slightly delayed? Ive just been watching from CNN (although I know thats not live).

Did it really just drop from 190pts up to 60pts up in the minutes?

 

[Kauri]

the co-ordinated rate cut,.... totally unexpected as it was...., will encourage some back into the markets and carries.. butt, as the root of most of the mayhem is the freezing of credit, and I don't see this cut as doing enuff to get Banks lending to each other agin, I already hear a faint clamouring in the distance as the punters at the bar start calling for the next shout... and Uncle Ben and his mates have deep pockets full of taxpayer funded credit cards....

Cheers
..........Kauri

 

[solomon]

This is sadly humourous - the FED's reasons for cutting rates (from www.marketwatch.com)

"Moreover, the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit."

Leaving aside the fact that some business models genuinely make a healthy use of credit, the FED's reasoning on the household's seems crazy. People's spending is going to be restrained because they can't access money that they don't have and that is a bad thing! Credit got us all into this mess, but it sure isn't going to get us out of it, and promoting it right now seems to be like giving booze to an alcoholic.

For me, this statement from the FED saying it is trying to pump air into the credit bubble which has already burst has me in a panic. I don't know whether to laugh or cry. This whole thing is probably going to get much worse.

 

[kransky]

yes.. imo the more they put this off the harder the fall will be..

seems like all the apples are going into the same basket which is already mostly full of bad apples.. end result is one sh!ty basket.. lol

you know what i mean... ?

 

[chops_a_must]

The problem as I see it is this:

They are punishing savers at the time they are most needed to pay down debt, de-leverage and provide a base for the next cycle.

So what is going to happen when we have trawled the bottom for a length of time and we are needing re-stimulation? There is nothing, there can be nothing.

In the selfish act of attempting to bail out everything, only slowing the inevitable decline, that is all, they are reducing potential benefits in the future.

 

[chops_a_must]

And hardly surprising, the futures go into reverse. Lol.

 

[mayk]

What a joke, DOW is like a yoyo tonight. I don't get why US FED is so bent on pleasing and cushioning the stock market. I think the sooner they stop interfering the sooner things might get better. They have a new thing to announce every day.

Now everyone has forgotten about the bailout altogether.

 

[Awesomandy]

What a joke, DOW is like a yoyo tonight.

That's to be expected. It's completely fueled by emotion at the moment. Tonight has been a little bit like this... OMG... rate cuts everywhere.. Buy! Buy! Buy!... oh, wait... may be those rate cuts won't really fix the problem... hmm... Sell!!!

 

[Kauri]

S+P..from where I sit... gazing out to the neighbours... the bottom is in sight... and..ooops... damme... she caught me looking..

Cheers
............Kauri