Imminent and severe market correction

[chops_a_must]

OK.

So what have I missed?

 

[wayneL]

OK.

So what have I missed?

Us, UK & Aus have turned into hybrid soviet socialist states.

Joe Schmuck must take on private risk, but if your big enough, risk is socialized.

Welcome back to a brave new world.

 

[chops_a_must]

Us, UK & Aus have turned into hybrid soviet socialist states.

Joe Schmuck must take on private risk, but if your big enough, risk is socialized.

Welcome back to a brave new world.

Cool.

Sounds like I'm back in my 16 year old communist chops element.

I can't trust you Wayne. I leave you alone and the world economy goes belly up.

This never happens to me when I play Civilization 4.

My first decree is to rename Federation Square, Red Square.

 

[wayneL]

Cool.

Sounds like I'm back in my 16 year old communist chops element.

I can't trust you Wayne. I leave you alone and the world economy goes belly up.

This never happens to me when I play Civilization 4.

My first decree is to rename Federation Square, Red Square.

Yes, apparently us evil short sellers have trashed the world economy.

 

[nunthewiser]

Yes, apparently us evil short sellers have trashed the world economy.

INFIDEL!!!!!

 

[Whiskers]

Lookout Above

: ​

 

[chops_a_must]

Yes, apparently us evil short sellers have trashed the world economy.

Personally, I blame Adam Smith.

I guess my great great granddad has been vindicated. He always told me, "Only the state can control capital", and that ultimately capitalism destroys itself.

I'd say buy gold, but don't keep it under your bed, I will be there.

 

[Uncle Festivus]

LONDON (MarketWatch) -- The U.S. Securities and Exchange Commission early Friday issued an emergency order temporarily banning short selling in the shares of nearly 800 financial institutions.

The regulator said the move was needed "to protect the integrity and quality of the securities market and strengthen investor confidence," and added it was acting in concert with the U.K.'s Financial Services Authority, which announced a similar ban on Thursday.

Also, it was decreed that selling of equities will only be allowed on days starting with S, or Saturdays & Sundays. However, since these are non trading days there will be no selling from now on, thank you - Henry Paulson.

The Paulson/Bernanke creed -

Give me your tired derivatives, your poor investement bankers, your huddled masses in tents yearning to breathe free, the wretched refuse of your teeming CDO's. Send these, the homeless, tempest-tossed foreign creditors, to us: I lift my lamp beside the golden one way door.
Which leads to the room of immorality​

On a lighter note, bubbling in the back ground is something called the real economy, the one where people have jobs and actually make things. Or perhaps don't have jobs and don't make things & don't buy houses or cars. Speaking of cars, odds for a bail out of General Motors bail out/bancruptcy just blew out with it's CDS rates.

It's the Oliver Twist economy - "Please sir, can I have some more". And more shall be delivered from the bottomless money pit?

Next weeks candidates - General Motors, Goldman Sachs, Morgan Stanley, or any other bank or institution NOT too big to fail?

 

[Awesomandy]

Next weeks candidates - General Motors, Goldman Sachs, Morgan Stanley, or any other bank or institution NOT too big to fail?

Despite the US plan (whatever it might be), people are already pulling money out of their Morgan Stanley accounts, so while the stock price is rebounding (for now), I can't imagine them having a healthy cashflow at the moment.

 

[Uncle Festivus]

Lookout Above​

: ​

So, are you saying something will be dropped on us from a great height

It would be interesting to see what ROE the US Fed got out of all their 'investments' over the last week. Let me see, the Dow finished the week before at 11400, finished this week at 11400, so for an outlay of $400B, $500B or whatever, they are - treading water, or whatever the sludge they find themselves in.

Same again next week fellas?

Our thoughts & gratitudes go out to the good citizens of the US, who have pledged their hard earned tax's to subsidise the bail out of the world.

 

[wayneL]

:bricks1:

http://www.nytimes.com/2008/09/20/w...gin&adxnnlx=1221869143-GlbZF0piHT9zlGiBWJ7tZg

Congressional Leaders Stunned by Warnings

By DAVID M. HERSZENHORN
Published: September 19, 2008

WASHINGTON ”” It was a room full of people who rarely hold their tongues. But as the Fed chairman, Ben S. Bernanke, laid out the potentially devastating ramifications of the financial crisis before congressional leaders on Thursday night, there was a stunned silence at first.

Mr. Bernanke and Treasury Secretary Henry M. Paulson Jr. had made an urgent and unusual evening visit to Capitol Hill, and they were gathered around a conference table in the offices of House Speaker Nancy Pelosi.

“When you listened to him describe it you gulped," said Senator Charles E. Schumer, Democrat of New York.

As Senator Christopher J. Dodd, Democrat of Connecticut and chairman of the Banking, Housing and Urban Affairs Committee, put it Friday morning on the ABC program “Good Morning America,” the congressional leaders were told “that we’re literally maybe days away from a complete meltdown of our financial system, with all the implications here at home and globally.”

Mr. Schumer added, “History was sort of hanging over it, like this was a moment.”

When Mr. Schumer described the meeting as “somber,” Mr. Dodd cut in. “Somber doesn’t begin to justify the words,” he said. “We have never heard language like this.”

“What you heard last evening,” he added, “is one of those rare moments, certainly rare in my experience here, is Democrats and Republicans deciding we need to work together quickly.”

Although Mr. Schumer, Mr. Dodd and other participants declined to repeat precisely what they were told by Mr. Bernanke and Mr. Paulson, they said the two men described the financial system as effectively bound in a knot that was being pulled tighter and tighter by the day.

“You have the credit lines in America, which are the lifeblood of the economy, frozen.” Mr. Schumer said. “That hasn’t happened before. It’s a brave new world. You are in uncharted territory, but the one thing you do know is you can’t leave them frozen or the economy will just head south at a rapid rate.”

As he spoke, Mr. Schumer swooped his hand, to make the gesture of a plummeting bird. “You know we’d be lucky ...” he said as his voice trailed off. “Well, I’ll leave it at that.”

As officials at the Treasury Department raced on Friday to draft legislative language for an ambitious plan for the government to buy billions of dollars of illiquid debt from ailing American financial institutions, legislators on Capitol Hill said they planned to work through the weekend reviewing the proposal and making efforts to bring a package of measures to the floor of the House and Senate by the end of next week......

 

[MrBurns]

It may be unchartered territory and it may not last BUT someone's making milions out of this and it ain't me.

The spike in stocks is incredible.

 

[nioka]

Our thoughts & gratitudes go out to the good citizens of the US, who have pledged their hard earned tax's to subsidise the bail out of the world.

Thoughts and gratitudes be dammed. Thoughts, blame and serve you bloody right would be more like it.

It is the nonproductive use of money that was never there in the first place by financial institutions in the USA that started this mess. Followed by plenty of wheeler dealers, some on this forum, that think it is smart to make huge financial gains using questionable trading methods.

For a country (or the world for that matter) to prosper and grow, investments should at least have a productive element. Any system designed with the main aim being to build wealth at the expense of others without an increase in productivity is doomed to failure. It is no different to pyramid selling.

Now that the failures of short selling without owning something to sell have been revealed, particularly where the aim is to purposely devalue a company, we are well on the way to correcting the correction.

 

[dhukka]

Meanwhile back in reality, another bank joined the FDIC's failed bank list:

Ameribank, Inc., Northfork, WV

On September 19, 2008, Ameribank, Inc., Northfork, WV was closed by the Office of Thrift Supervision (OTS) and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.

 

[Macquack]

It is the nonproductive use of money that was never there in the first place by financial institutions in the USA that started this mess.

I think you summed it up perfectly.

..... we are well on the way to correcting the correction.

Is that correcting the correction up or correcting the correction down.

 

[explod]

We are far from the banking problems of the US. However the real problem that will raise its head in the days ahead will be rumours and fear. A public run for cash in any country is going to cause mayhem and possibly fianancial lockout.

In my humble view.

From my studies of the last few years I was prepared for bad times but the underlying news I have picked up this morning and its swiftness has even got me a very concerned and uncertain.

Has someone got a better take?

 

[MrBurns]

Has someone got a better take?

No not a better take but I think you're right , this isn't over it's just starting and it will get worse perhaps a lot worse.
The bail out is just a smoke screen, they cant fix this problem it has to run it's ugly course, the bail out is about confidence not a real fix.

All you can do is just sit and watch it all unfold.

 

[nioka]

I think you summed it up perfectly.



Is that correcting the correction up or correcting the correction down.

For stocks that are fundamentally sound and not deep in debt, up. For stocks trading in money that doesn't exist down, down ,down.

 

[jeflin]

Meanwhile back in reality, another bank joined the FDIC's failed bank list:

More banks will fail in the coming months and it is good for the recovery of a post-bubble economy that they consolidate.

Depositors just have to watch out for their minimum sum deposits which are insured. No point withdrawing everything and putting them under their pillows.

 

[Macquack]

If the current world financial crisis (centered in the US) has been created by unlimited credit creation combined with irresponsible lending by financial institutions, then how can throwing more money at it ( "mother of all bailouts") fix the problem?