explod
explod
- Joined
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Citigroup analysts have stated that a tightening of the rules regarding banks' off-ballance sheet vehicles (SIVs etc.) would force the banks to respond and could result in up to $US 5,000 Billion of assets (read "loans") coming back onto the books of the US banks. That's $US 5 TRILLION of liabilities which have been kept off the ballance sheets of these banks. When they arrive there, they will blow the total liabilities of American banks into orbit. The main rating agencies in the US are all still trying to regain some credibility, having missed the main event while it was building up and then scrambling since last August. They have now placed most major US banks on a credit watch and even downgraded some of them."
""This is bigger than the subprime mess"
I wonder what the price on his head is?
According to an interview yesterday on the BBC ,George Soros is short in both European & American Markets,quite pessimistic.Cheers Mike
So he's shorting the market...hence the outward pessimism. It would be great if the media wouldn't give these people the time of day.
He's a trader/investor not an economist.
After all they're only trying to keep the bastards honest , but perhaps and just perhaps , they will go the same way our Dems went or are heading ........ into obscurity . Gag the truth and publish the BS .
Like the unemployment situation is due to teenager workers .
MOOOOHAAAHAAA .
"Teen unemployment rose 3.3 points, which was probably exaggerated by some calendar issues. But teens are less than 5% of the workforce, so they contributed just 0.2 point of the total rise. Adult unemployment rose from 4.5% to 4.8% - and it was a clean move, with no rounding funniness. The adult participation rate rose 0.1 point, and the EPR [Employment Population Ratio] fell by 0.2 point. Also, the composition of the unemployment rise shows that it wasn't just the kids: permanent job losers and re-entrants accounted for 0.2 points of the rise, and new entrants just 0.1 point.
If you want to spin a story out of this, it could be that people are re-entering the labor force because they're having a hard time making ends meet."
-Liscio Report
Stock investors looking for good news after Friday's rout in the U.S. won't be happy with the message coming from global bond markets.
Economic strength outside the U.S. has been a source of stability for corporate earnings amid the turmoil of the real-estate market collapse and credit crunch. Now, global bond markets, which have been more pessimistic than stock markets, are flashing warning signs about the outlook for both growth and inflation.
For big developed economies -- most notably Europe, bond investors are signaling that the big risk is a severe economic slowdown. In emerging markets like China and India, inflation is a more serious threat. If these economies stumble or run into an inflation problem, that removes an important prop from under the stock market.
Investors don't need bond markets to tell them which way is down -- the bad news just keeps coming. Downgrading the monolines will wipe billions off bonds. Lehman is toast -- they just don't know who is big enough to bail them out.
So, anyone want to take a punt on where the market is headed tonight?
I don't do waves -- I'll just stick to my megabear forecast. Down, with the worst yet to come, no bottom this year. Whiskers?
I've just checked CFE in London. It's up. That is one that should be up here tomorrow. I doubt that it will be the only one. The price of oil and the credit squeeze may make the overall market fall but the oil and gas should do OK. All is never lost. When the speculators turn from buyers to sellers they will talk the market up again.So, anyone want to take a punt on where the market is headed tonight?
?
Lehman Loses $2.8 Billion, Plans to Raise $6 Billion
Lehman Brothers Holdings Inc., the fourth-largest U.S. securities firm, reported a record $2.8 billion second-quarter loss and said it will raise $6 billion in capital in a public offering.
Lehman fell as much as 11 percent in New York trading after the firm said it sold about $130 billion of assets during the quarter. The New York-based bank reduced mortgage-related assets and leveraged loans by about 20 percent, it said today in a statement. The figures are preliminary and the final results will be released June 16.
Chief Executive Officer Richard Fuld, 62, is adding to the $8 billion he raised since February to quell concern that the collapse of the mortgage market would bring his firm down. Financial companies have raised more than $285 billion from investors to make up for almost $390 billion in writedowns and credit losses.
``I am very disappointed in this quarter's results,'' Fuld said in the statement. ``However, with our strengthened balance sheet and the improvement in the financial markets since March, we are well-positioned to serve our clients and execute our strategy.''
Lehman dropped $3.49 to $28.80 at 7:24 a.m. in early New York trading after the company said it would sell common and preferred stock that converts to common shares in three years. It didn't say how much of each type would be sold. The company had $3.7 billion of writedowns on its portfolio of mortgage- related assets and leveraged loans during the quarter as hedges against the positions lost money, the bank said.
Originally Posted by Whiskers
I don't normally study overseas charts too much, but I decided to test my EW skills :
What I am thinking is the US finished a 5 leg up and had a little corrective wave A, B, C...
I reckon we've finally hit bottom for awhile again..
You may well be correct at this time, but if we follow the U.S. market leads then according to SOME we will be in for further trouble.
http://www.safehaven.com/article-10466.htm
http://www.safehaven.com/article-10463.htm
It will whipsaw with a negative bias until the permabulls capitulate under overwhelming evidence. Stand close to the exitsI usually am thanks sassa.... but you're right, there will be more pain to come... carried over for another day, eh Uncle Festivus.
Actually, that should be about 11,800'sh.
Whereas to me it looks like a target of around 10,000.
I wonder who'll be closer.
And of course there are differing opinions as to the market's performance-It could well be in now. The market likes the better than expected retail sales. Inventories are up also. Oh and I think they liked kicking a couple of arses at Lehmans.
Get another positive CPI tomorrow and I think I'd be game to say game over. Economic ruin and recession a non event... apart from the anxiety and panic attacks some have suffered.
In the morning … bidding the market up on 2 reasons …
- a good feeling that retail sales will come in better than expected
- the rollover of the leading equity futures contracts
So the game was BID ON HOPE in the morning … bash some shorts …
then the news flow … OVERWHELMINGLY NEGATIVE … as always …
Today …
- Lehman makes some management changes without cutting the man responsible … the CEO
- Yahoo and Microsoft take some air out of M&A hopes as they end talks
Result … markets loses all hot air from the morning …
hits NEW LOWS …
and then … as seen many times before … the last 30 mins.
10 points squeeze … to bash some shorts …
Do I hate it??? … YES
Can I change it??? … NO
Why does it function?
As to much money is around … stupidity rules and the greed is big enough for most investors to “better” stay in the market …
Horrible … But payday looms
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