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Imminent and severe market correction

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Yes , I'm stoked . But I think we should leave excuberance to the Fed lovers , just spotted our inflation data ......... up 1%


The RBA will be praying ......... lead us not into temptation ...........


Rate hike coming , so get padded up and don't forget your b.... protector .

Googly coming down the pitch and it's a wrongun' .
 
ithatheekret said:
Hong Kong rates have just done their mirror image due to the peg , 75bps cut.
Click to expand...

Where does this leave the mid-east oilies.. particularly if BB goes another half at months end... they weren't too happy before this with a lot of talk of breaking away...I thunk
Cheers
...........Kauri
 
ithatheekret said:
I'm amazed at the amount of people that think the 75bps emergency intermeeting cut is a good signal . It smacks of desperation to me and the Fed just choked at the wicket . Bring on Poole for the next Fed Head .
Click to expand...

It was desperation all right, but what choice did they have especially given that they earlier broadcast that they would cut to protect the economy but didn't follow up with action promptly. Regardless of whether or not it is the best way to go, this is the route they broadcast they would take and the market was getting dissapointed with the lack of action... any action.

The economy has finally got George W's full attention in his last months of office by reports that he is putting bitter differences aside to excpedite a rescue package. Both sides of congress had earlier agreed on a plan but Bush would not endorse it, consequently nothing has hit the ground yet to benifit consumers.
 
Whiskers said:
It was desperation all right, but what choice did they have
Click to expand...
Agreed. They had no choice. Unlike the BOE and our RBA, the US Fed have a dual mandate - they are tasked with both stable prices and sustainable economic growth. To me that's about as achievable as a blind guy on a tight rope. Fortunately the RBA and BOE have a much more realistic task; price stability.
His 'rescue package' is likely to have more to do with vote winning than real fiscal stimulus. Their own forecasts suggest the US$140b will only have a 0.3% increase on growth. If they were serious about fiscal stimulus as against vote winning, they'd have done something else. The truth is corporations don't vote.

Last time they attempted something like this, there was a large amount of evidence the rebate was saved (or used to pay down debt) far more often than it was spent - in effect just shifting the money from the government's bank account to an individuals and thus resulting in very little real economic growth.
 
Kauri said:
Where does this leave the mid-east oilies.. particularly if BB goes another half at months end... they weren't too happy before this with a lot of talk of breaking away...I thunk
Cheers
...........Kauri
Click to expand...

That's a darn good question , yesterday they plunged with us , the Baltic is still weak and I watched Saudi Basic Industries Corp ( SABIC) drop just under 10% , this group are the worlds largest market valued chemical co .

Not game to look today , but it is interesting that Kuwait has just dropped the corporate tax rate from 55% to 15% for foreign investors .

They've got a raging inflation problem emerging as well , so I expect something to move in the Saudi zone at least .
 
doctorj said:
If they were serious about fiscal stimulus as against vote winning, they'd have done something else.
Click to expand...

...long before now.

I think thats the point. Bush has been asleep at the wheel re the economy for too long and almost anything will be perceived as a positive move now.
 
The FTSE,CAC & DAX all now in red territory after appreciable opening gains.
FTSE has dropped over 1% in last half hour.
 
BoE holding rates steady. Might explain some of the red now in Europe, at least FTSE.


http://www.bankofengland.co.uk/publications/minutes/mpc/pdf/2008/mpc0801.pdf
 
PPT at work yesterday.

From Rick Ackerman

This is shown in the S&P futures chart above (below) -- as compelling a picture as you will ever see of what traders refer to as “strong hands.” This is not the buying of mere institutional traders second-guessing each other so as to produce a raggedy series of lows. Rather, it is a buyer whose 1255.50 bid was set in concrete, fearlessly oblivious to the selling panics that had overwhelmed the world’s bourses for two consecutive days. The bid held for long enough to exhaust sellers, as it doubtless was intended to do, causing the major averages to rally back to unchanged on the strength of the massive short-covering that followed.
 

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Yes it just makes a mockery out of free markets hey, but the alternative or perhaps even the inevitable could be total collapse, guess they just choose the lesser of two evils until they can fight no more !
 


The ES was limit down at 1255.50 ... You could bid up from that level only until the pit session opened at 8.30am CST. Not sure who Rick Ackerman is but he maybe should check his facts...
 
SYCOM doomage and Dow futs -200 an hour before open.
 
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