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Imminent and severe market correction

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HBOS spokesman says the bank continues to access wholesale markets whenever appropriate, and has a diversified business with an "exceptionally strong" balance sheet (Reuters). (now where have I heard that bearfore???...)The latest rumour : HBOS... is that another UK bank might ride to the rescue if needed...
not the old lady surely..... she must surely Rock.. :band

Cheers
...........Kauri
 
Kauri said:
HBOS spokesman says the bank continues to access wholesale markets whenever appropriate, and has a diversified business with an "exceptionally strong" balance sheet (Reuters). (now where have I heard that bearfore???...)The latest rumour : HBOS... is that another UK bank might ride to the rescue if needed...
not the old lady surely..... she must surely Rock.. :band

Cheers
...........Kauri
Click to expand...

I'm getting RUMOURS of an emergency BOE meeting over the matter pending an emergency bailout. Lloyds are are the bank implicated as the rescue rider (according to rumour.
 
wayneL said:
I'm getting RUMOURS of an emergency BOE meeting over the matter pending an emergency bailout. Lloyds are are the bank implicated as the rescue rider (according to rumour.
Click to expand...

What about the money from the VISA float being used to bail the whole financial system out? Shall the world become permanently indebted to VISA? :rolleyes:
 
wayneL said:
I'm getting RUMOURS of an emergency BOE meeting over the matter pending an emergency bailout. Lloyds are are the bank implicated as the rescue rider (according to rumour.
Click to expand...

A mod posting rumours.. I feel better now.. :D ...
as i have stated before.. whether the rumour is true or not is surprisingly irrelevant.. it is the immediate affect it has on the market and the pre-knowledge to be able trade it that is important... for me at least

incidentally.... :) ..
MPC Canceling Easter Break Is "Absolute Rubbish" - BoE

Cheers
..........Kauri
 
I might nip down to the High Street later on and see if there any queues outside The Halifax. :eek:
 
wayneL said:
BTW, Doesn't HBOS own Bank West?
Click to expand...
Is that the very same bank that was recently trying to expand into the Eastern states with high deposit rates & 'accommodative' lending criteria. And here I was thinking the local banking system would have it's first casualty, but it turns out the damage might be inflicted from above???

_____________________________________________________

March 19 (Bloomberg) -- U.S. regulators may reduce capital requirements imposed on Fannie Mae and Freddie Mac, the world's largest mortgage companies, to help them expand their combined $1.5 trillion in investments and revive the market for home loan securities, according to people with knowledge of the transaction.

Mmm.....something frenetic happening behind the scenes here?

______________________________________________________

 Chrysler is trying to cut its way back to significance. It's going to hurt.

The automaker's 71,000 employees will be on "mandatory vacation" for two weeks in July when all operations across the country are shut down, the company said Thursday.


36740253-13215012.gif


A forced break is drastic, though for Chrysler perhaps not surprising considering its financial straits.

After losing $1.6 billion last year, it announced plans to shutter offices, reduce its workforce, eliminate dealerships and do away with redundant models. But with one of the least fuel-efficient fleets on the road, inventory piling up on dealer lots and the popularity of its top seller -- the Dodge Ram pickup -- slumping along with the housing market, there's reason to suspect that cutting alone won't be the solution.

Unless Chrysler figures out how to increase sales and build cars and trucks that people want, the 83-year-old company's prospects will be dim.

But will it be Chrysler? Will Ford or GM be the first to go under, or will the Fed bail them out too?

_____________________________________________________
 
the latest rumour is...(..insert here....) after Barker, a BoE MPC member, is slated to stand in for Gieve, the BoE Deputy Governor responsible
for financial stability, at a Newmarket lunch tomorrow

Cheers
...........Kauri
 
Extract from an interesting article on the Fed and the "liquidity" it is pumping into the financial system.

"A whole lot of misinformation has been floating around about how the Fed is adding so much liquidity to the market, much of it slyly fostered by the Fed itself. But when you look closely at the Fed's language and, more importantly, its actions over the past week, it just is NOT so. The Fed has apparently cut its asset base by $4.5 billion over the past 5 days, not including whatever amount is fed out through the Discount Window today for the rescue of Bear Stains. Over the past two weeks it looks like they have cut about $12 billion. (For those who want to verify, you can find the data on the NY Fed website for the SOMA and the FRB website for the TAF.)More...."
http://wallstreetexaminer.com/discuss/index.php?topic=4.0
 
"When the Fed dropped the Discount Rate in August and wanted to encourage the commercial banks, it staged a ceremonial borrowing by C, JPM, BAC and WB. Remember that? They each borrowed $500 million to show others how to do it. Most importantly, they said they didn’t really need the money but were showing support for the Fed’s actions and to reduce the stigma associated with borrowing from the Discount Window. Within a few days, the $2 billion of ceremonial money was returned and we know what happened after that - almost no one else borrowed for months. And by the way, consider what we ended up learning over the next few months about the four banks that stepped up to the plate. According to them at the time, they didn’t need the liquidity. Okay - whatever you say! So forgive me if I am not impressed by Goldman and Lehman testing out the Fed’s new play thing and showing up for the PDCF ceremonies. According to them, their liquidity is excellent, maybe even “the best it’s ever been”. And by the way, they didn’t need the facility but were trying to support the Fed and help reduce the stigma. Okay - whatever you say!"
Thanks to Mike at Hedgefolios.
 
A platitude that continues to do the rounds among pollyannas is that if you take out financials the rest of the US market is doing fine. However there is increasing evidence that the 'contained' credit crisis is leaking over into other parts of the economy. This is what Howard Schultz, CEO of Starbucks had to say yesterday:

"You have an economy that really is in a tailspin, and many would say the consumer is in a recession,'' Schultz told more than 6,000 shareholders at the company's annual meeting in Seattle. "We are dealing with things that we haven't seen before in terms of how people are responding to how tough it is.''
Click to expand...

Click here for the full story.
 
Aussiejeff said:
But more importantly, WHO WILL BAIL OUT THE FED?????
Click to expand...

Love the great short one liners and that's a beauty A. J.

Time to start the Easter party, anyone for4 roulette at Crown this Sat.tdy arvo.

He died so mankind could prosper, so we should give some away.

cheers explod
 
Whiskers said:
Good post... and point, Seaking.

No reflection on Wayne... is there! :cautious: ;)

'Tis all getting a bit boring now, all this economic woes.

The counter wave of all the gloom and doom... a bit of a return to favour of the USD should smooth things out in the next month or so. :cool:
Click to expand...


Time to put the shorts on, the best contrary indicator for the direction of the market has spoken.
 

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