Imminent and severe market correction

[Uncle Festivus]

I wasn't sure where to put this, except here.

Quite shocking really.


Fannie Mae CEO Allison nominated to run TARP

PRESIDENT Barack Obama nominated Fannie Mae Chief Executive Herb Allison to oversee the Treasury Department's Troubled Asset Relief Programme, putting him at the heart of the administration's drive to bolster the US financial system.


Can someone please comfort me that Obama is not putting in place the same stooges that got them into this mess in the first place?

Please??

There, there Kennas (consoling pat's on back) everythings going to be allright. Allison took over from the previous incompetant last September or thereabouts, so can't really blame him for anything - so far

 

[Sean K]

There, there Kennas (consoling pat's on back) everythings going to be allright. Allison took over from the previous incompetant last September or thereabouts, so can't really blame him for anything - so far

Oh, that's not too bad then.

I thought a peadophile was being put in charge of the kindergarten .....


Looking forward to you calling a bottom UF. It will mean we have a few more months of shorts to put on! LOL :

 

[drsmith]

Market minima might have been a better phrase bearing in mind the analogy above.

 

[Uncle Festivus]

Oh, that's not too bad then.

I thought a peadophile was being put in charge of the kindergarten .....


Looking forward to you calling a bottom UF. It will mean we have a few more months of shorts to put on! LOL :

Hmm...not understanding that but...are the green sprouts frost hardy in a financial winter???

 

[Sean K]

Hmm...not understanding that but...are the green sprouts frost hardy in a financial winter???

Just noting that this thread started in April 07.

 

[CanOz]

Apparently this was circulated before the open in the US.....its unsupported at this stage.

The Turner Radio Network has obtained the stress test results. They are very bad. The most salient points from the stress tests appear below.

1) Of the top nineteen (19) banks in the nation, sixteen (16) are already technically insolvent.

2) Of the 16 banks that are already technically insolvent, not even one can withstand any disruption of cash flow at all or any further deterioration in non-paying loans.

3) If any two of the 16 insolvent banks go under, they will totally wipe out all remaining FDIC insurance funding.

4) Of the top 19 banks in the nation, the top five (5) largest banks are under capitalized so dangerously, there is serious doubt about their ability to continue as ongoing businesses.

5) Five large U.S. banks have credit exposure related to their derivatives trading that exceeds their capital, with four in particular - JPMorgan Chase, Goldman Sachs, HSBC Bank America and Citibank - taking especially large risks.

6) Bank of America`s total credit exposure to derivatives was 179 percent of its risk-based capital; Citibank`s was 278 percent; JPMorgan Chase`s, 382 percent; and HSBC America`s, 550 percent. It gets even worse: Goldman Sachs began reporting as a commercial bank, revealing an alarming total credit exposure of 1,056 percent, or more than ten times its capital!

7) Not only are there serious questions about whether or not JPMorgan Chase, Goldman Sachs,Citibank, Wells Fargo, Sun Trust Bank, HSBC Bank USA, can continue in business, more than 1,800 regional and smaller institutions are at risk of failure despite government bailouts!

The debt crisis is much greater than the government has reported. The FDIC`s "Problem List" of troubled banks includes 252 institutions with assets of $159 billion. 1,816 banks and thrifts are at risk of failure, with total assets of $4.67 trillion, compared to 1,568 institutions, with $2.32 trillion in total assets in prior quarter.

Put bluntly, the entire US Banking System is in complete and total collapse.

Shorts finally kicked in last night, will the buyers come back this time?

Cheers,


CanOz

 

[bowman]

Financials down, gold up. Rings a bell somewhere.

 

[Sean K]

Apparently this was circulated before the open in the US.....its unsupported at this stage.

"The Turner Radio Network is described by some monitoring groups as a white supremacist organization."

Off CNBC.

Looks like a good rumour.

The report's not supposed to be out till May isn't it?

 

[shag]

Financials down, gold up. Rings a bell somewhere.

look thats no problem the old 308 or 30 wouldnt fix, then u have a great rug too.
thats why its handy to have an extra 'club' in the bag, with a few tinnies for afterwards....

 

[bowman]

look thats no problem the old 308 or 30 wouldnt fix, then u have a great rug too.
thats why its handy to have an extra 'club' in the bag, with a few tinnies for afterwards....

Look you might well be right. It's just that my world seems a bit upside down atm.

 

[CanOz]

"The Turner Radio Network is described by some monitoring groups as a white supremacist organization."

Off CNBC.

Looks like a good rumour.

The report's not supposed to be out till May isn't it?

No idea, like i said its unsupported at this stage. I find it interesting that banks are now reporting profits just after they changed the accounting standards.

CanOz

 

[MrBurns]

From Crikey -

Wall Street's white supremacist con job.

Glenn Dyer writes:

Here's how Wall Street was conned by a white supremacist who claimed he had a scoop on the US Treasury's "stress tests" of the 19 biggest banks.

The US market fell heavily, helped by some poor results from major companies, including a major bank. Big falls in Europe didn't help, but an early factor was a claim that the US Treasury's so-called stress tests of the country's 19 biggest banks had come up with some very poor results.

That news, on an obscure blog, got into the market and was reported. It was circulated around the world, including in Australia without too much checking. And yet by the time this had happened this morning, the US Treasury's rejection was in the market, as were details of Turner's background.

etc etc etc

 

[CanOz]

Nothing like a good scare to push things over the edge a bit. The question is, can the market bounce on this or will the current condition unwind some more?

Like they said even the rejection of the claim had little effect on the selling, which was relentless through the session, going by the 5 minute ES mini chart. I wonder what this says about the trust in the Treasury departments word?

The market was so overbought that once it pushed through support it just went into free fall for most of the session.

Cheers,


CanOz

 

[Aussiejeff]

Nothing like a good scare to push things over the edge a bit. The question is, can the market bounce on this or will the current condition unwind some more?

Like they said even the rejection of the claim had little effect on the selling, which was relentless through the session, going by the 5 minute ES mini chart. I wonder what this says about the trust in the Treasury departments word?

The market was so overbought that once it pushed through support it just went into free fall for most of the session.

Cheers,


CanOz

Then again, there's nothing like a good "soothing" speech from one of the throng of esteemed ones (eg: Timmy Baby last night) to manufacture unrestrained, over-the-top joy and bullishness by the Big Bwanks.

What happened to reason and sanity?

What planet am I on now?

Hello?

..

 

[Aussiejeff]

Then again, there's nothing like a good "soothing" speech from one of the throng of esteemed ones (eg: Timmy Baby last night) to manufacture unrestrained, over-the-top joy and bullishness by the Big Bwanks.

What happened to reason and sanity?

What planet am I on now?

Hello?

..

Planet Geithner?

US Treasury Secretary Timothy Geithner said the [size=+1]"vast majority''[/size] of US banks have more capital than needed, stoking a rally in stocks as investors await results of stress tests on the balance sheets of the biggest lenders.

http://business.theage.com.au/business/vast-majority-of-us-banks-healthy-geithner-20090422-ae7w.html

Stand by for blast off to Nirvana....

If not, drug test the guy. He might be poppin' something dangerous...

 

[shag]

doesnt that sort of depend on what your definition of 'more capital than you need' is.....
the imf report looked ominous if its true, for australasia. nz has far more borrowed funds used to inflate the property bubble than aus, plus bugger all earnings and assests left.

 

[MS+Tradesim]

Anyone have an idea why the US futs have been sold off today?

 

[Sean K]

Anyone have an idea why the US futs have been sold off today?

The flu thingy is spooking people I think.

Or, it's because it's a square of 9 wave 4 top.

 

[MS+Tradesim]

Or, it's because it's a square of 9 wave 4 top.

You could be right. I was thinking it was a blow-off top from Uranus.

[/senseofhumour]

 

[Broadway]

Anyone have an idea why the US futs have been sold off today?

Cant be bothered with charts, but this was due from friday night.

USD bought. Other currencies sold.
US bonds bought.
ES hit the top of its range on friday night late, and tried to collapse twice.
Oil got sold early this morning.
ES just completed a lower high on long term chart.

Fundamental reasons?

Chrysler sinking, stress test rumour about someone 'needing more capital'.

Should turn soon I hope, volume has started to come in.