Imminent and severe market correction

[white_goodman]

Ze Germans aren't happy it would seem - article quoting Germany's Finance Minister Peer Steinbrueck.

http://www.marketwatch.com/news/sto...-BC7E-4178-9BFE-F9A8C897D209&dist=SecMostRead

Two things that struck me about the article -

1. Herr Steinbrueck believes that the US will lose it's status as 'superpower of the global financial system' via the death by a 1000 cuts it is enduring at the moment (presumably to be replaced by those sensible Germans -oh the irony); and

2. I know how senstive the shorters are to any overt criticism of their trading system, so I note that I am quoting the journo who has paraphrased the good minister; here it is -

' The finance minister said he would push for a global ban on speculative short selling and would use next month's meeting of the Group of Seven finance ministers and central bankers in Washington to press for new rules that would prevent banks from fully securitizing loans and selling them to third parties. '

So it would seem that ze Germans ain't that keen anymore on 'speculative' short selling (I'm guessing this is directed at hedge funds) and securitisation! Would have thought you just need to temper securitisation of leveraged mortgages to get the desired effect but then again my name is not Herr Steinbrueck.

just dont mention the war

 

[IFocus]

Ze Germans aren't happy it would seem - article quoting Germany's Finance Minister Peer Steinbrueck.

http://www.marketwatch.com/news/sto...-BC7E-4178-9BFE-F9A8C897D209&dist=SecMostRead

Two things that struck me about the article -

1. Herr Steinbrueck believes that the US will lose it's status as 'superpower of the global financial system' via the death by a 1000 cuts it is enduring at the moment (presumably to be replaced by those sensible Germans -oh the irony); and

2. I know how sensitive the shorters are to any overt criticism of their trading system, so I note that I am quoting the journo who has paraphrased the good minister; here it is -

' The finance minister said he would push for a global ban on speculative short selling and would use next month's meeting of the Group of Seven finance ministers and central bankers in Washington to press for new rules that would prevent banks from fully securitizing loans and selling them to third parties. '

So it would seem that ze Germans ain't that keen anymore on 'speculative' short selling (I'm guessing this is directed at hedge funds) and securitisation! Would have thought you just need to temper securitisation of leveraged mortgages to get the desired effect but then again my name is not Herr Steinbrueck.

Who mentioned the war......

I am not sensitive to the ban on short selling I just cannot see any evidence on how it can change market direction.

Having gone through the days when it was all the Day Traders fault the arguments are eerily similar.

Any way it appears its a brave new world, where am I going to hide the gold bars

 

[deadset]

How much do you think the push to 'get the deal done' because of the election?

It works both ways, it could be political catastrophe if they make a blunder, so this would tend to draw the process out. The longer it draws out, the greater the danger of collapse. The public doesn't understand the implications fully from what I can tell, and a few politicians are still getting their head around it. So maybe if there's a few bumps along the way, then they'll get the message. It's going to be interesting.

 

[refined silver]

WaMU, just gone bust. Biggest bank so far.

Bought by JPM who are the Feds consolidator, and who have had more money from the Fed under the table than anyone else, already 100s of billions.

 

[lusk]

WaMU, just gone bust. Biggest bank so far.

Bought by JPM who are the Feds consolidator, and who have had more money from the Fed under the table than anyone else, already 100s of billions.

No surprise if you look at who created the FED and who has interests in it. Most think the FED is part of the government, its not it was created by banks to protect banks, JP Morgan is involved.

 

[acouch]

http://www.youtube.com/watch?v=Bjpor8iBe58&NR=1

ac

 

[wayneL]

From my mate at MacBank

 

[lusk]

http://www.youtube.com/watch?v=Bjpor8iBe58&NR=1

ac

Ron Paul always stands up and give's Bernanke a serve. He even mentions the constitution, maybe the guys that wrote it might have known something back then.

 

[pepperoni]

Ron Paul was great ... bernanke was like something out of a scary NWO movie.

 

[wayneL]

Ron Paul was great ... bernanke was like something out of a scary NWO movie.

Art imitates life...?

 

[acouch]

From my mate at MacBank

haha loved it

have a great weekend
ac

 

[dhukka]

Ron Paul always stands up and give's Bernanke a serve. He even mentions the constitution, maybe the guys that wrote it might have known something back then.

I think it's a tragedy that you have someone like Ron Paul, who understands economics, understands the problems with the Federal Reserve and can see where they are headed, yet you know, that 99% of the other elected officals in the room have little to no understanding to what he's on about and are probably saying to themsleves, not that nutjob Ron Paul prattling on about the constitution and the Federal Reserve again. Sad really.

 

[wayneL]

I think it's a tragedy that you have someone like Ron Paul, who understands economics, understands the problems with the Federal Reserve and can see where they are headed, yet you know, that 99% of the other elected officals in the room have little to no understanding to what he's on about and are probably saying to themsleves, not that nutjob Ron Paul prattling on about the constitution and the Federal Reserve again. Sad really.

I note that he often gives Mises and the Austrian school a plug in his speeches. This will not endear him to the current batch of economists who have been indoctrinated to disregard the Austrian school... even though the modern schools are a load of bollox and failing us.

Infuriating really.

 

[dhukka]

I note that he often gives Mises and the Austrian school a plug in his speeches. This will not endear him to the current batch of economists who have been indoctrinated to disregard the Austrian school... even though the modern schools are a load of bollox and failing us.

Infuriating really.

Couldn't agree more. Just maybe the Austrian school has a chance at getting more mainstream exposure at a time like the present. Wishful thinking?

 

[Macquack]

Ron Paul always stands up and give's Bernanke a serve. He even mentions the constitution, maybe the guys that wrote it might have known something back then.

Thomas Jefferson 3rd President of the US and Founding Father had vision. He saw this coming way back in 1802. In a letter to the Secretary of the Treasury :-

"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." Thomas Jefferson

 

[chops_a_must]

Art imitates life...?

It's all ok.

They've got this guy Not Sure.

 

[kransky]

I think it's a tragedy that you have someone like Ron Paul, who understands economics, understands the problems with the Federal Reserve and can see where they are headed, yet you know, that 99% of the other elected officals in the room have little to no understanding to what he's on about and are probably saying to themsleves, not that nutjob Ron Paul prattling on about the constitution and the Federal Reserve again. Sad really.

That is the unfortunate reality now days.. i feel like politics is such a waste of time.

I have read that before about Jefferson, those old timers really had their heads screwed on right... but boy has the train come off the tracks in the US of A, in so many ways

 

[chops_a_must]

Well... Mr Doom reckons gold is good, but so to with the USD, which I find weird... unless they go the reverse peg like I proposed.

 

[wayneL]

Monday, according to many commentators, the market is either saved or goes over the edge.... a thousand FTSE points according to my soothsayers.

I've placed a bit of an each way bet. If we're saved, I make a little bit of money (that's the place bet), if we tumble into the abyss, I'm a rich man. Loss situation if the market dithers and vols collapse on Monday.

I think it will be a long weekend.

 

[wayneL]

Another bank down the slot.

:sleeping::sleeping::sleeping:

Bradford and Bingley to be nationalized.

http://www.telegraph.co.uk/finance/...ford-and-Bingley-to-become-latest-victim.html