Australian (ASX) Stock Market Forum

Imminent and severe market correction

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Kauri said:
Latest market RUMOURS..
George Soros has warned that the current situation was "much more serious than any financial crisis since the end of the war."

Enough for now ... I guess
Cheerfull
...........Kauri
Click to expand...



and I bet he's all cashed up
 
LONDON, Jan 22 (Reuters) - European shares swung wildly in morning trade on Tuesday and traded 0.8 percent lower after turning briefly positive on market talk of central bank interest rate cuts.

At 0914 GMT, the FTSEurofirst 300 index of top European shares was down 0.8 percent at 1,269.66 points, having fallen as much as 4.4 percent earlier in the session and then risen almost 0.5 percent as the rate talk swirled.

"Theres's rumours about concerted rate cuts... they're talking about the Fed, the ECB, the Bank of England and the SNB all cutting rates," a trader said.

Traders in Paris cited market talk of a rate cut of between 75 to 100 basis points from the U.S. Federal Reserve.
Click to expand...

http://www.reuters.com/article/marketsNews/idCAL2217832720080122?rpc=44
 
dhukka said:
Got any insights into the mood in old blighty today wayne?
Click to expand...
VI's are spinning their hearts out... don't panic, we won't have recession, it's a US problem, blah blah. We have the BBC whose remit from Crash Gordon is to ramp property and lie about how good the economy is.

But the horses are restless, most folks know we in for tough times.
 
A significant rates cut now has the potential to delay the inevitable and induce stagflation. So you get a relief rally today in turn for an even bigger calamity down the road.

To quote an excellent article in CNN Money today:

'But Bernanke is setting the stage for an even bigger recession down the road. Just as the ultra-low rates of the early 2000s created many of the problems we're experiencing today, pumping money into the system would probably stoke inflation, forcing the Fed to hike rates sharply in the near future. "It's better to take a small recession and kill inflation immediately instead of facing high inflation and a really big recession later," says Carnegie Mellon economist Allan Meltzer.'

Is this another case of 'notonmyshiftism'? Here is the link to the article for those who interested.

http://money.cnn.com/2008/01/18/news/economy/cure.fortune/index.htm

So a big Fed cut now could well mean that this thread lives on for another few years. And I was so looking forward to creating the 'Imminent & Meteoric Bull Market' thread in a few months time :(
 
Not as bad as some headlines would portray.

But first impressions count.

As Bushmans post highlights things are not quite the same this time and Ben really doesn't want to cut more... but he opened his mouth and put it out there that he would agressively cut rates to save the economy.

He should have kept his mouth shut if he wanted to deal with it differently, but having opened his mouth, he now has to deliver even if he has to take it back sooner than otherwise anticipated.

Every Major U.S. Bank Was Profitable Last Year: John M. Berry

Commentary by John M. Berry

Jan. 22 (Bloomberg) -- With all the large writedowns and losses announced for the fourth quarter, hardly any attention is being paid to just how profitable U.S. banks really are.

That inattention has raised unnecessary concerns that the banks may be so crippled by losses that they will cut lending to the point it might undermine the U.S. economy.

Some commentators have said the banks are in the worst shape since the Great Depression. That isn't close to being correct.

Other analysts have raised the specter of the stagnant Japanese economy of the 1990s, when banks there were crippled by huge losses when a real estate price bubble burst at the beginning of that decade. This comparison also is off base.

Even Citigroup Inc., by far the hardest hit of the big U.S. banks by subprime-related problems, earned $3.62 billion last year. That was with a $9.83 billion fourth-quarter net loss and more than $22 billion in writedowns and additions to loan-loss reserves.

http://www.bloomberg.com/apps/news?pid=20601039&sid=aELWaQomFgNw&refer=columnist_berry
Click to expand...
 
Uncle Festivus said:
Blow-off top in world markets - get ready!

~~~~~~~~~~~~~~~~~~~~~~
Mr Murray said investors could ill afford to ignore warnings from the likes of Alan Greenspan. The former chairman of the Federal Reserve warned earlier this year that the US faced the risk of recession.
Click to expand...

Has anyone thanked the reality of uncle ? and the vision of waynel ?

(quietly i suppose)
 
Some very interesting stories? circulating re the Fed's agenda currently... however it seems the markets worldwide and FX (carries in particular) are still waiting to hear, or not, from BB, pre the open. Am positioning my trades accordingly.. :)
Cheers
........Kauri
 

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