Imminent and severe market correction

[chops_a_must]

The Tory shadow Chancellor of the Exchequer is calling for the nationalisation of the whole banking industry... and the gu'mint is taking it seriously http://www.telegraph.co.uk/finance/...t-could-take-shares-in-high-street-banks.html

I don't know about you lot, but I'm assuming crash positions.

I was in the High Court the other day, and the Commonwealth QC trotted out parts of the bank nationalisation act.

Didn't seem to have anything to do with the case, but seems to be on a lot of people's minds for some strange reason.

 

[Green08]

Watching CNBC Dow Fut nearly - 300. Their Joe just keeps shaking his head 9000 area coming.

 

[chops_a_must]

Just got this e-mail, sounds pretty serious:

Crisis hits Japan!



Following the problems in the sub-prime lending market in America and the run on HBOS in the UK , uncertainty has now hit Japan .



In the last 7 hours Origami Bank has folded, Sumo Bank has gone belly up and Bonsai Bank announced plans to cut some of its branches. Yesterday, it was announced that Karaoke Bank is up for sale and will likely go for a song, while today shares in Kamikaze Bank were suspended after they nose-dived.



Samurai Bank is soldiering on following sharp cutbacks, Ninja Bank is reported to have taken a hit, but they remain in the black. Furthermore, 500 staff at Karate Bank got the chop and analysts report that there is something fishy going on at Sushi Bank where it is feared that staff may get a raw deal.

 

[nunthewiser]

Just got this e-mail, sounds pretty serious:

LOL ........... sheet me i nearly ran for the door with my swag to camp on bendigo banks front porch till they opened !!

 

[Green08]

CNBC Sqwark Box

The US has $600 Billion in Europe which is frozen in assets and they can't get it. Alot of it is pension funds.

Now they are saying though house prices dropped 20% in the US they believe they have another 16% to drop over 18 months. The Fed's $700B won't be enough.

Charlie Gasporino and Steve Listmen (think that’s how you spell it) have alot of insight. I'm abit addicted to this every night with Joe, Carl and Becky they have fascinating guests from everywhere. Will argue out right I remember Rick Santelli and a guy from another floor just screaming. May not be conducive but they are trying to get the information out.

 

[chops_a_must]

That bell weather GE getting absolutely crushed.

Took a position on the open.

Ugly.

 

[skyQuake]

and there goes dow 10k!

 

[chops_a_must]

and there goes dow 10k!

Without even a whimper.

I keep hearing this large cracking noise everytime I look at the market...

 

[brty]

And there goes 9900,

Whoops, 9840

Watch out below.

brty

 

[dhukka]

Any chance they hit the 10% circuit breaker today?

 

[mayk]

Sure the night (err Day) is still young. Every time I click it goes down 20 points. Seems like sky is falling!

 

[chops_a_must]

Any chance they hit the 10% circuit breaker today?

I'll bet a coke on it not happening.

That's how confident I am...

 

[brty]

Dhukka

Any chance they hit the 10% circuit breaker today?

Probably a very good chance, after all, it's not like there will be a short covering rally.


brty

 

[dhukka]

Dhukka


Probably a very good chance, after all, it's not like there will be a short covering rally.


brty

Haha, yeah where are those terrible short sellers to save the day? Sure is a lot of egg on a lot of faces right now.

 

[chops_a_must]

Haha, yeah where are those terrible short sellers to save the day? Sure is a lot of egg on a lot of faces right now.

You are a criminal dhukka.

 

[chops_a_must]

Geez... and didn't the markets just love the latest miracle cure?

Faded extremely hard...

 

[dhukka]

Bit vague though wasn't it. The Fed is going to buy commercial paper. How much exactly? The commercial paper market is about $1.6 trillion in size, is the Fed gonna stand behind all that?

 

[chops_a_must]

Bit vague though wasn't it. The Fed is going to buy commercial paper. How much exactly? The commercial paper market is about $1.6 trillion in size, is the Fed gonna stand behind all that?

Yeah, I really don't get it TBH.

Hurry up and declare communism already! It'd be cheaper this way.

 

[Aussiejeff]

Yeah, I really don't get it TBH.

Hurry up and declare communism already! It'd be cheaper this way.

Actually, I believe there would have to be a genuine People's Revolution first (including mandatory guillotining for the existing Financial Market Royalty, with public viewing stalls ala the French Revolution) to achieve a satisfactory transformation into a "fairer" Communist State.

:behead: :behead: :behead:

 

[Bushman]

Wow - the US consumer has rediscovered the joys of the piggy bank.

WASHINGTON (MarketWatch) -- U.S. families paid off consumer debts at the fastest pace in more than 10 years in August, a sign that consumers are rushing to pare back their spending and save more money as the economy slips deeper into recession.
It was the first month since January 1998 that consumers had paid off more debt than they took on.
Borrowing to buy an automobile declined sharply. Consumers also charged less on their credit cards than they paid off.

The immediate effect on corporate America - well have a look at BoA:
"While showing more realism with plans to raise $10 billion of new common and cut the dividend in half, Bank of America suffers as the largest U.S. consumer bank at a time of greater consumer weakness," Deutsche Bank analyst Mike Mayo said on Tuesday."

This is the saviour of Merril's. Ouch - stage III of the credit crunch? Lets hope not as BoA would really be a wipeout. Could the Fed even bail them out?

For the moment they are (finally) conserving cash by slashing their dividends in half and trying to raise $10bUS on the equity markets. Well d'uh - cashflow 101 is being enacted.

Share price down +20% overnight.