Imminent and severe market correction
- Thread starter Uncle Festivus
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geeeeeez.... so much for the bounce... watch the XAO free fall again tomorrow... or should I say today... It might be just me but I think Friday will be horrendus...and Monday is a public after all so that is one extra night of potential carnage to be factored in on Tuesday from the Dow... In these conditions it is not a good idea to hold over night IMO
wayneL
VIVA LA LIBERTAD, CARAJO!
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Kauri
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the sibilant sound of snapping sub-prime clacker valves has been resounding through the bund all morning... apparently..
Cheers
........Kauri
Whiskers
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FWIW: Breakilg News from Reuters
Congressional Budget Office says does not expect economic slowdown to become a recession 9:19am EST
Congressional Budget Office says does not expect economic slowdown to become a recession 9:19am EST
O well in that case im bullish again.....
Whiskers
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Yeah... and how about another 50/75bps next week!
They might as well go straight down to 1% again and be done with it!
wayneL
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Todays US market has the PPT's fingerprints all over it IMO.
Compare intraday charts over the last few days.
Compare intraday charts over the last few days.
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Good.... We don't want the market to decline in one day... Spread it out...
I need more time to get properly set.
3 months would be good, we will see....
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I thought it was a classic text book bear rally , with a touch of over the top .
600 odd points the rally adds up to , but it was done in half a day or just under . How many shorts got caught would be good to know , they would have added to the up tick . I think the banks were buying each other from the onset , consolidation in the sector has to be on the cards across the board . I was amazed here at home to find out that a bank knew all my holdings in stocks , I was transferring accounts ( starting to ) and it was a phone enquiry , the young chap , sprouted off my share holdings , my view of privacy changed straight away , there is none and they lost the account .
The humour spot was hit when I heard that banks will be raising capital to bail out bond insurers . That makes sense ....... not . And just who will be bailing the banks out , if the capital raisings they get go off book .
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Hmmm. The DJIA rallied strongly around 4.7% overnight in the last 3 hours of trade up to 12270 pts with no sign of the rebound wavering, right up to the close...!
Be interesting to see how our market reads between the two contrary lines...
On the one hand, we see a TANKING euro market overnight and on the other, a REBOUNDING US market overnight. Mebbe a 1-2% rise here? Gee, I'm getting dizzy from watching the dailly SP graph lines going up and down like Yo-Yo's!!! LOL
AJ
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Us?
When I think about it, the BIG banks can still do ok out of a tanking stock market - where does all that money from converting falling stocks to cash end up? Yup ... generally back into the BIG banks hungry vaults. They must be starting to swim in the stuff like Scrooge McDuck!!
They will be amassing oodles of cash deposits, for them to on-loan oodles out to each other... thus massaging their respective enterprises back to rosy health. Hehe.
Chiz,
AJ
Talk about throwing good money after bad, ala Bank of America style. Makes the mind boggle.
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MBIA closed some 50%+ up from memory that I spotted on Bloomberg this morning before heading in to the office. Ambac similar rally. And the timing of the announcement seemed to coincide with the late rally across financials. The market seems to have absorbed the announcement as fact that these two bond insurers will be saved by the banks.
All a bit crazy at the moment.
Cheers,
Michael
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Aha! So THAT'S who's left holding the leaking Sub-Prime buckets! The Bond Insurers huh? NOW we know where all those Billions of mysterious e-$'s have been hiding...
AJ
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Us?
When I think about it, the BIG banks can still do ok out of a tanking stock market - where does all that money from converting falling stocks to cash end up? Yup ... generally back into the BIG banks hungry vaults. They must be starting to swim in the stuff like Scrooge McDuck!!
They will be amassing oodles of cash deposits, for them to on-loan oodles out to each other... thus massaging their respective enterprises back to rosy health. Hehe.
Chiz,
AJ
Yes , but it surely must depend on how many assets have been moved from Tier 1 to Tier 2 until they start performing again , if liquidity is in constant supply the shocks can be absorbed into Tier 2 models . But the assets must be valued first much the same as in a takeover process , that means by their models that a consolidation has to occur because only a few have bigger piles of cash that were moving around their economy . That's what's been happening for years, hot money now being cooled in vaults . The model works okay but it's not infinite , there in lies the problem . The Funds that have magically appeared over the years have been like rabbits multiplying , it's just time to go wabbit hunting , a good farmer will blow the burrow too .
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I know old news, and borrowed from another thread, but:
I am still stuggling to work out what actually happened last night in the good ole US of A.
Bush convenes Plunge Protection Team
By Ambrose Evans-Pritchard, International Business Editor
Last Updated: 1:18am GMT 11/01/2008
Bears beware. The New Deal of 2008 is in the works. The US Treasury is about to shower households with rebate cheques to head off a full-blown slump, and save the Bush presidency.
On Friday, Mr Bush convened the so-called Plunge Protection Team for its first known meeting in the Oval Office. The black arts unit - officially the President's Working Group on Financial Markets - was created after the 1987 crash.
Read more from Ambrose Evans-Pritchard
Crisis may make 1929 look a 'walk in the park'
Financial outlook 2008: The experts' views
It appears to have powers to support the markets in a crisis with a host of instruments, mostly by through buying futures contracts on the stock indexes (DOW, S&P 500, NASDAQ and Russell) and key credit levers. And it has the means to fry "short" traders in the hottest of oils.
This last line says it all really...
Full story here:
http://www.telegraph.co.uk/money/ma...008/01/07/ccview107.xml&CMP=ILC-mostviewedbox
I am still stuggling to work out what actually happened last night in the good ole US of A.
Bush convenes Plunge Protection Team
By Ambrose Evans-Pritchard, International Business Editor
Last Updated: 1:18am GMT 11/01/2008
Bears beware. The New Deal of 2008 is in the works. The US Treasury is about to shower households with rebate cheques to head off a full-blown slump, and save the Bush presidency.
On Friday, Mr Bush convened the so-called Plunge Protection Team for its first known meeting in the Oval Office. The black arts unit - officially the President's Working Group on Financial Markets - was created after the 1987 crash.
Read more from Ambrose Evans-Pritchard
Crisis may make 1929 look a 'walk in the park'
Financial outlook 2008: The experts' views
It appears to have powers to support the markets in a crisis with a host of instruments, mostly by through buying futures contracts on the stock indexes (DOW, S&P 500, NASDAQ and Russell) and key credit levers. And it has the means to fry "short" traders in the hottest of oils.
This last line says it all really...
Full story here:
http://www.telegraph.co.uk/money/ma...008/01/07/ccview107.xml&CMP=ILC-mostviewedbox
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