Imminent and severe market correction

[ithatheekret]

Well sassa , the demand side for our ore has only just started to blossom , many believe we are midstream , but at present the above ground stockpiles are spoken for months in advance , that means every pile of ore at a mine you can see ready for carting , is already sold and it's owner is awaiting its arrival . This has been the case for over a year now , which has led many mining companies into expansion projects . The globes largest importer of ores has fallen to the wayside and lost its place to China , which is on a major infrastucture revamp and rebuild . This will take at least another couple of decades as the great Chinese modernization starts to head inland away from the coastal regions . I haven't seen one analyst put this into their calculations , but if they were to start reading the Chinese papers , it is obvious the collective has their sights set on moving goods across China , making it a super exporter , servicing the needs of Asia .

Now there's the reasoning , but take heed at the rising rhetoric coming out of the USA , these are discomfort signals , and they are struggling with the fact that the slow long route China has taken is succeeding . The good part for us is that the journey is continuing , this can only semaphore a further rise in our dirt miners . The time frame for the All Ords rise depends on the market , but at a rough guess , and unless the next Big Kev stuffs it up , I'd say we'd see 7300-7500 by 2009 .

PS.. I also have the AUD surpassing the peaks we last saw when the Americas Cup was battled for off Fremantle , then it hit 1.20 , I expect that to be left behind by 20 pips at least !

 

[Kauri]

and it just keeps on coming...
Cheers
..........Kauri

November 02: The WSJ is reporting that Merrill Lynch in a bid to slash its exposure to risky mortgage- backed securities, has engaged in deals with hedge funds that may have been designed to delay the day of reckoning on losses, people close to the situation said. The article goes on to say that "the transactions are among the issues likely to be examined by the Securities and Exchange Commission. The SEC is looking into how the Wall Street firm has been valuing, or "marking," its mortgage securities and how it has disclosed its positions to investors, a person familiar with the probe said. Regulators are scrutinizing whether Merrill knew its mortgage-related problem was bigger than what it indicated to investors throughout the summer."
The story is a real negative for an already beleaguered Wall Street and the AUD and other carry trade currencies have been sold against the JPY since the story broke a short time ago.

 

[Uncle Festivus]

and it just keeps on coming...
Cheers
..........Kauri

Watch out Kauri, you'll get a speeding ticket from the ostrich mob with all those D&G snips

 

[Kauri]

Watch out Kauri, you'll get a speeding ticket from the ostrich mob with all those D&G snips

D&G???? who/what is that???
Cheers
.........Kauri

 

[Uncle Festivus]

D&G???? who/what is that???
Cheers
.........Kauri

Doom & gloom or reality & facts?

 

[SevenFX]

Doom & gloom or reality & facts?

UF aren't the markets driven from D&G as the media puts it, AND relaity and facts as the company reports it...????

Think Kauri is just referencing creditable sources that paint the picture as they see it..

SevenFX

 

[sassa]

Think Kauri is just referencing creditable sources that paint the picture as they see it..
SevenFX

As they see it or as the picture really is.The Fed pumped $41b into the markets yesterday,the second largest one day amount ever.It was reported that this money went mostly to Citi who are in a real bind and could fold.
The fat lady(my apologies)has not appeared on stage yet as other Wallstreeters are expected to have larger exposure.And plenty of people have warned that this will take years to repair and at the same time will provide volatility in the markets worldwide.
Will today be Black Friday in America and the market take another large hit?
As Dan Koenig once said,"The market always has a surprise over the horizon.Firstly,it shows its ugly head and then along comes the tail which seems to have no end."

 

[Kauri]

Rumours now floating around about the last NFP figures.... D&G or B&Z ??
.........and Barclays...
Cheers
..........Kauri

 

[sassa]

Rumours now floating around about the last NFP figures.... D&G or B&Z ??
.........and Barclays...
Cheers
..........Kauri

NFP?non farm payrolls?
D & G?B & Z?
Please explain.
What's the rumour or not prepared to repeat?

 

[Kauri]

NFP?non farm payrolls?
D & G?B & Z?
Please explain.
What's the rumour or not prepared to repeat?

Doom and Gloom....Boom and Zoom.. all depends what side of the market you are sat on I guess..
Rumours that Barclays has been quietly dipping into the ECB lending facility for credit but I strongly guess it is someone mischieviously trying to talk thier holding up..
Cheers
..........Kauri

 

[explod]

Doom and Gloom....Boom and Zoom.. all depends what side of the market you are sat on I guess..
Rumours that Barclays has been quietly dipping into the ECB lending facility for credit but I strongly guess it is someone mischieviously trying to talk thier holding up..
Cheers
..........Kauri

It is generally well known that The US is overstretched and up to its eyeballs in debt. The world is now awake and will not lend them anymore. They are broke and there is no one this time around to turn to. Not gloom and doom, just an ordinary given.

If you invest on facts and the given you will do well. I feel very sorry for the ordinary innocent Americans who are going to have to change thier lives dramatically to survive and most will suffer enormous hardship. It was generally said also that 'if America sneezed the rest of the world would catch cold'... we will all cop the finacial effects when it hits the fan and the great companies of America fall down.

Instinctively we do not want to contemplate that the safe world we grew up in may be crumbling. Some of us are going to have to realise it big time soon and in high places. We are the witness to the greatest calamity since earth was created. Too many people. (over population = polution)

Doom and gloom ..... or fact?.

 

[nizar]

As they see it or as the picture really is.The Fed pumped $41b into the markets yesterday,the second largest one day amount ever.It was reported that this money went mostly to Citi who are in a real bind and could fold.
The fat lady(my apologies)has not appeared on stage yet as other Wallstreeters are expected to have larger exposure.And plenty of people have warned that this will take years to repair and at the same time will provide volatility in the markets worldwide.
Will today be Black Friday in America and the market take another large hit?
As Dan Koenig once said,"The market always has a surprise over the horizon.Firstly,it shows its ugly head and then along comes the tail which seems to have no end."

Citi could fold?
Are you serious?

Thats BIG news.
Im sure thats not going to happen. If the Fed bailed out LTCM, surely they would do the same here, or else it would cause a real disaster IMO...

I mean, we are talking one of the biggest banks in the world

 

[CanOz]

As they see it or as the picture really is.The Fed pumped $41b into the markets yesterday,the second largest one day amount ever.It was reported that this money went mostly to Citi who are in a real bind and could fold.
The fat lady(my apologies)has not appeared on stage yet as other Wallstreeters are expected to have larger exposure.And plenty of people have warned that this will take years to repair and at the same time will provide volatility in the markets worldwide.
Will today be Black Friday in America and the market take another large hit?
As Dan Koenig once said,"The market always has a surprise over the horizon.Firstly,it shows its ugly head and then along comes the tail which seems to have no end."

WTF SASSA...WHERES THE SOURCE?

 

[Wysiwyg]

WTF SASSA...WHERES THE SOURCE?

I got it soy, mint, worcestershire, tomato, barbecue, chilli, etcetera etcetera.

Would you like fries too?:

 

[sassa]

WTF SASSA...WHERES THE SOURCE?

Sorry,unable to give link.Read on blog site.Understand it was a rash statement.

 

[CanOz]

Would you like fries too?:

I think i have that angle covered thanks Wys.

Cheers,

 

[Whiskers]

Citigroup's financial supermarket model loosing money fast - Capital reserves desperate.

CitiGroup CEO may quit at urgent meeting; Rubin asked to take over

Submitted by cpowell on Fri, 2007-11-02 22:33. Section: Daily Dispatches

Citi's Prince to Offer to Resign

By Damian Paletta, Robin Sidel, and David Enrich
The Wall Street Journal
Friday, November 2, 2007

Citigroup Inc. Chief Executive Charles Prince will offer to resign on Sunday, according to people familiar with the matter.

The development comes as board members are expected to gather for an emergency meeting this weekend, people familiar with the matter said. The meeting comes amid worries of further writedowns and pressure on Mr. Prince.

Robert Rubin, the former Treasury secretary who is the chairman of Citigroup's executive committee, is being considered as a possible interim replacement, but he has balked at taking on the responsibility, those people said. A Citigroup spokeswoman declined to comment.

Citigroup directors in recent months have publicly pledged their allegiance to Mr. Prince, and he received a key vote of confidence in early October from Prince Alwaleed bin Talal, the bank's biggest individual shareholder.

But the board's sentiment may have shifted in the wake of Citigroup's dismal third-quarter earnings report last month. Any change of heart may also have been spurred along this week after the board of Merrill Lynch & Co. ousted its embattled CEO, Stanley O'Neal.

Citigroup has lost more than a fifth of its market value since Oct. 12, the Friday before it reported that its third quarter earnings had slumped 57% under the weight of mortgage defaults and this summer's credit scare. The bank's shares ended trading down 2% Friday at $37.73.

In reporting its third-quarter earnings, Citigroup warned that it endured a surge in late payments on consumer mortgages in September, costing the bank $3 billion in higher losses and reserves against future bad loans and hurting the value of loans Citigroup hopes to sell to investors. Chief Financial Officer Gary Crittenden said the trend is likely to continue.

Citigroup also booked $1.56 billion in pretax losses tied to loans and subprime mortgages that were to be repackaged and sold to investors.

Equally important, the bank said its capital levels had dwindled to below the company's internal target ratios. Executives said the company would stop repurchasing its own shares until it rebuilt its capital, a process it hopes to complete by early next year. Some analysts and other experts think Citigroup will have to take more drastic actions, such as selling off assets or slicing its dividend payouts.

The third quarter losses came as Mr. Prince was already under heavy pressure from investors to get revenue up, cut costs and demonstrate that Citigroup's financial supermarket model can pay off. Investors have been frustrated by Citigroup's stagnant stock price.

http://www.gata.org/node/5686

 

[sassa]

WTF SASSA...WHERES THE SOURCE?

http://www.agorafinancial.com/afrude/

 

[sassa]

"The smart money is getting out.The financial stocks fell heavily ON HIGH VOLUME, and only recovered on low volume,"wrote a contributor to MarketWatch."The big institutional investors are exiting on high volume points of the day and pumping up prices during low volume time periods,like after hours' trading.That cons inexperienced traders to buy.It's the old classic'pump and dump.'"
Any bulls or bears like to comment?

 

[explod]

"The smart money is getting out.The financial stocks fell heavily ON HIGH VOLUME, and only recovered on low volume,"wrote a contributor to MarketWatch."The big institutional investors are exiting on high volume points of the day and pumping up prices during low volume time periods,like after hours' trading.That cons inexperienced traders to buy.It's the old classic'pump and dump.'"
Any bulls or bears like to comment?

Your assessment is spot on. If you go back a few years and have a look at the Telstra Share Chart you will see the same happened. Ramped up on low volume 98, smart money got out over the xmas period and into 99, then big time at the end of the financial year in june 99 and the mugs got left holding the falling baby after that.

The smart money knew that once the privatisation process had begun then the great monopoly on communications was over and it has been all down hill since then.