Australian (ASX) Stock Market Forum

Imminent and severe market correction

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the BDI just keeps dropping... doesn't bode well for the skippy, amonst others.. another record fall in the Baltic Dry Index which dropped 5.74% to 6,915 and six month lows and down from record highs of 11,039 on Nov. 13th. The fall bodes poorly for the global growth outlook
Cheers
.........Kauri
 
Hi, Can some educated fella let me know if all the big troubled financial institutions of the USA have presented their Quarterly report?

I think as the big ones like Citi, MER and others have written off $$Billions, Plus a Fed rate cut of .5 will initiate a small rally.

Especially some blue chips might post some odd profit ( Like HP, Dell and MSFT.. though intel posted a profit but it was below expectations..). This might create an illusion of things settling down.

Am I slightly on track in my thinking? I am hoping for a suckers rally.
 
I thought I was a bear, but this is scaaaaaary:

http://www.jsmineset.com/

Posted On: Thursday, January 17, 2008, 5:45:00 PM EST

The Panic Starts

Author: Jim Sinclair




Dear CIGAs,

There is no doubt the Fed and the PPT are meeting right now. A drop of over 300 points on the Dow after the Chairman of the Federal Reserve speaks publicly presages a $1000 break in gold coming quite quickly, if not tomorrow.

Unless the equity markets can be calmed, a panic is about to happen, making the statement "This is it" a horrible reality.



If the equity markets cannot be calmed then:

* Recognize this is the Formula happening like everything else much sooner and much bigger in its implications than anticipated.
* Gold will rise to $1650 as an almost immediate effect of what will be done to attempt to fend off a total panic starting to take place in general equities, therein threatening to be followed by all credit markets of all kinds.
* The funds and hotshot short term traders in gold shares will be killed by the upward explosion of the gold price about to occur.
* The PPT and the Fed will step out of gold’s way because gold is one of the tools used in 1930 by Roosevelt and in 2000 by Bush. It will be used again now on the upside.
* Gold is the only insurance there is against what all this means because a panic in equities will blow the financial system, already coming apart, to smithereens.
* All country funds would shut down on any further investments in "at the wall" financial institutions.
* The rollover in credit and default derivatives would exceed the entire foreign debt of the USA.
* The rest of the $450 trillion dollar mountain of derivatives would start a disintegration like nothing you have every seen in your lifetime.
* Consumer demand would slam shut.
* The auto industry might as well go into liquidation this coming Monday, avoiding the June 2008 rush.
* The US dollar would burn a hole in the floor going directly to .5200 or lower.
* As the dollar disintegrates gold would rocket to and through $1650 in days.
* The markets for general equities would all have to institute total trading halts every 100 points on the downside for 30 minutes each.
* All commercial call loans would be called.
* All debtors one day late on any payment, lacking grace period, would be liquidated. All debtors over one day of the grace period would be liquidated.
* It is clearly visible to anyone with eyes or a mind to think that the PPT has lost all semblance of control in the equity markets and will soon in all remaining markets.
* The commercial paper credit market which is almost dead will die totally.
* Should no emergency action take place soon, you will see an old fashioned panic of the 1929 variety.
* Just as emotional fools sell gold and gold shares, be assured that more emotional general equity fools will unload and bring the averages down more than ever in history in one day.
* Recognize this is the Formula happening like everything else much sooner and much bigger in its implications than anticipated.
* Emergency action will be all splash and theatrics but truthfully the cat is out of the bag. It buys some time but corrects nothing. It makes the Formula 100% correct.
* There now must be EMERGENCY ACTION because the Chairman of the Fed has BOMBED OUT PUBLICLY and a PANIC is about to occur. Expect EMERGENCY ACTION in days, not weeks.



If you have not protected yourself, you may only have days to do so now.
Click to expand...
 
Just saw on BBC that fiscal stimulus package will be unveiled on Friday in the US. The speculation seems to be it will consist of tax cuts and rebates.
 
OK2 said:
Is the current situation still called a correction or what is the correct terminology for it? There is a term for everything else, what is this versions of what is happening.......ie, dotcom
Click to expand...

Economic distress or a financial correction , usually due to an economic contraction .
 
Awesomandy said:
That person has probably watched too many TV shows lately... severly dramatised disasters... the hurrican that will flatten New York... the cold freeze that will send half of the earth into an ice age... etc, etc...
Click to expand...
The guy is a gold bug. They all seem to be like this.

But the scary bit is that the scenario is possible. The infuriating bit is that things have been allowed to develop to a stage where it is possible.

This wouldn't be good for anyone, even gold bugs, so let's hope it never plays out like that.
 
This is the worry I would say , if it gets back near this event , trillions not billions will have been wiped from the market . But it's not just the US , I've got at least another 10% off the Hangseng B's , maybe 15 - 20% if fear grips hard .
 

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wayneL said:
The guy is a gold bug. They all seem to be like this.

But the scary bit is that the scenario is possible. The infuriating bit is that things have been allowed to develop to a stage where it is possible.

This wouldn't be good for anyone, even gold bugs, so let's hope it never plays out like that.
Click to expand...


"...LETS HOPE..." Living on hope leads to no hope. I had a read of the blurb and it makes a lot of sense. Go through it and pick out the bits that may be wrong. If after thinking about it you cannot, then perhaps we should at least be prepared for the worst as we are prepared for the best.

Just picked up some Oxiana at a rediculously low price. Yep I'm a gold bug but the gold bugs have been studying the world currencies big time for years. That's why they are gold bugs.

The seppoes have spent all the borrowed money. I feel for the unfortunates that will be thrown out of work and into poverty
 
The UK Guardian is reporting that a Scottish Equitable 2 BLN GBP UK property fund, was forced to shut its doors to withdrawals yesterday after the slump in commercial prices triggered panic selling by small investors. Scottish Equitable said yesterday that 129,000 small investors in its property fund will not be able to access their money for up to a year, although payments relating to regular income already being paid, retirements and death claims will not be affected. It said the fund, invested in London office blocks and shopping centres across Britain, no longer had sufficient cash reserves to meet demands from investors wanting to withdraw their money. Its "buffer fund" was down to 1% of its total assets, instead of the usual 10-15%.
The Guardian states that the crisis in the UK"s commercial property market is now worse than at any time since the early 1990s, when Olympia & York, the company that began the Canary Wharf office development in London, went into administration. Fears that the run on these funds will spread have been fed by financial advisers continuing to recommend that investors take their cash out of the funds that remain open.
 
I am in the USA today and was told that 100 thousand Mortgage brokers are looking at flippin hamburgers for A WHILE!!
 
Getting close to the end of the day , the quality and value buying should be commencing .

Look for something blue and today should show how BLUE it is .
 

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