Imminent and severe market correction

[numbercruncher]

IMF head in shock fiscal warning
By Chris Giles and Gillian Tett in Davos

Published: January 27 2008 23:03 | Last updated: January 27 2008 23:03

The intensifying credit crunch is so severe that lower interest rates alone will not be enough “to get out of the turmoil we are in”, Dominique Strauss-Kahn, the managing director of the International Monetary Fund, warned at the weekend.

In a dramatic volte face for an international body that as recently as the autumn called for “continued fiscal consolidation” in the US, Dominique Strauss-Kahn, the new IMF head, gave a green light for the proposed US fiscal stimulus package and called for other countries to follow suit. “I don’t think we would get rid of the crisis with just monetary tools,” he said, adding “a new fiscal policy is probably today an accurate way to answer the crisis”.

http://www.ft.com/cms/s/106230b0-cd29-11dc-9b2b-000077b07658.html


Its kinda like living in a financial soap opera now a days, wonder when Hollywood will make the movie " Financial Armageddon " or similar

 

[explod]

http://www.ft.com/cms/s/106230b0-cd29-11dc-9b2b-000077b07658.html


Its kinda like living in a financial soap opera now a days, wonder when Hollywood will make the movie " Financial Armageddon " or similar

He he he he well the book came out in Jan 07 and all that is unfolding was predicted in that.

 

[Aussiejeff]

Well, well, well....

European & asian markets *TANKED* big time earlier last night, which you might have thought would have sunk the DOW too. But somehow, the Yanks said "N-Y-A-A-A-H!" to that idea and their market *SOARED* last night. Either they are CRAZY CONTRARIANS or they know something other markets don't?

So, will our puny OZ market be caught between a "rock & a hard place" today??? Picking what the DOW is going to do overnight these days is fraught with LUCK, IMO....

Chiz,

AJ

 

[Awesomandy]

Things are looking bad, but when the DOW opened, they suddenly thought that everything is going to be ok with the upcoming rate cut in a few days time. So, if we are lucky enough, we might get at least 3 days of green before the carnage eventually returns.

 

[Kauri]

Well, well, well....

European & asian markets *TANKED* big time earlier last night, which you might have thought would have sunk the DOW too. But somehow, the Yanks said "N-Y-A-A-A-H!" to that idea and their market *SOARED* last night. Either they are CRAZY CONTRARIANS or they know something other markets don't?

So, will our puny OZ market be caught between a "rock & a hard place" today??? Picking what the DOW is going to do overnight these days is fraught with LUCK, IMO....

Chiz,

AJ

Sallie Mae... funded..
housing data... now estimated at over 70% chance of 50bps cut

I thunk..

 

[Nyden]

Sallie Mae... funded..
housing data... now estimated at over 70% chance of 50bps cut

I thunk..

& this 50bps solves what, exactly?

What's the lowest they can actually go? Surely they can't actually go to 0%! I mean, the only thing keeping this market afloat is the "oh they'll cut interest rates again!" But, what is going to happen when they can't?

Are they expecting people to be that stupid in their time of need, to go out and spend their $600 rebate cheques on TVs, & Stereos?

They'll put it in the bloody bank! Pay off some debt! Which equates to zero stimulus...

Not to mention a tanking dollar equates to higher prices for everything ... hmm, what's that going to affect? Oh yes, spending

 

[Edwood]

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/01/28/bcnspain128.xml

Spain in trouble by the look of this - have to wonder what value if any these MBS' have... could cause problems for European union and euro

 

[numbercruncher]

Dubbya just had his little spiel, Im more convinced than ever that hes a 6 pack short of a carton.

The White House has said the plan would add 500,000 jobs and put $100 billion in tax rebates into the hands of consumers. It would limit rebates primarily to individuals making less than $75,000 and couples making less than $150,000.

The plan has its critics. "It is ridiculous for the administration to claim that the stimulus package [will] create more than half a million jobs by the end of 2008." said Chris Edwards, director of tax policy studies at the libertarian Cato Institute. "If that was true, why wouldn't the government just mail $100 billion in 'rebates' to Americans every year?"

http://money.cnn.com/2008/01/28/news/economy/sotu_final/index.htm

 

[Awesomandy]

Sallie Mae... funded..
housing data... now estimated at over 70% chance of 50bps cut

I thunk..

Futures are now suggesting that there is a 86% chance of a 50bps cut, but the chance of a bigger cut is a lot smaller.

And, funny enough, HSI and N225 are up at the moment - that is, we are the only ones in the red.

 

[Real1ty]

Dubbya just had his little spiel, Im more convinced than ever that hes a 6 pack short of a carton.




http://money.cnn.com/2008/01/28/news/economy/sotu_final/index.htm

NC, Surely you are not suggesting they actually let him have an input into any decisions.....

 

[ithatheekret]

You've got to see the funny side of everything .

Uncle Al had his go , Pellet , I mean BB , um Ben is there , and now Jean Claude damn damn and damn is in the zone .......... and they're all behind the curve

 

[Sean K]

You've got to see the funny side of everything .

Uncle Al had his go , Pellet , I mean BB , um Ben is there , and now Jean Claude damn damn and damn is in the zone .......... and they're all behind the curve

Gotcha secret! I think you're the only one to understand most of your posts. You're the Rubic's Cube of posters. I can usually get 2 sides out, 3 at the most. The rest is technicolour. Cheers, kennas

 

[ithatheekret]

Are you in England Kennas ?

I didn't mention them , I want to revisit there again one day


But anyway , They're all forced into playing the M3 game , when / if we look back for years now , there has been a stand off in monetary policy strategy .
The old fox was quite vocal about it , but he's got an entirely different European banking picture now , than he had when he made his previous statements , well rhetoric . I've referred to him as the old provincial frenchman too , this was due to his policy as set out . Yet now he has had a massive blow up in his brief , and his use of money supply data has rasped the US admin from day one . He now has to use a more sophisticated means of measuring risk in financial accounting .

He had his eye on inflation at all costs , sure he's printed a bit , but with the last round of European financial news , with more to come , he will be more worried about the accounts than inflation , he has no choice or Europe will lose it's hold in the markets , the hold the US banks tear at whenever they can . I'd say it's more precious than Danone to the French .

And Gordon , well .... pass . He had the BoE as his ward , now he has England .

 

[wayneL]

And Gordon , well .... pass . He had the BoE as his ward , now he has England .

Ahem.... It's Crash Gordon; if you please.

 

[Stormin_Norman]

And, funny enough, HSI and N225 are up at the moment - that is, we are the only ones in the red.

we had a public holiday yesterday. it would be a hangover from not trading down yesterday with the rest of asia.

 

[ithatheekret]

Yes apologies Wayne , I meant Crash . The man that sold gold for the price of a swank night out in Soho .

How about Cable last night

Not scared of rate cuts , would be nice if it dripped down to UK homeloans , that's a relief they need on top of coping with the ridiculous tax regime they are under , robbery .

 

[ithatheekret]

A Brown statement ..... sorry a Crash statement .


" All I believe and all I try to do comes from the values I grew up with: duty, honesty, hard work, family and respect for others. I am a conviction politician ... My conviction is that everyone deserves a fair chance in life ... that each of us has a responsibility to each other ... that when the strong help the weak it makes us all stronger. Call it the driving power of social conscience, call it the better angels of our nature, call it our moral sense, call it a belief in civic duty. I joined this party as a teenager because I believed in these values. They guide my work, they are my moral compass. This is who I am.
And because these are the values of our party, too, the party I lead must have more than a set of policies - we must have a soul. "


Heretics ! eeeek ...........

 

[Kimosabi]

A Brown statement ..... sorry a Crash statement .


" All I believe and all I try to do comes from the values I grew up with: duty, honesty, hard work, family and respect for others. I am a conviction politician ... My conviction is that everyone deserves a fair chance in life ... that each of us has a responsibility to each other ... that when the strong help the weak it makes us all stronger. Call it the driving power of social conscience, call it the better angels of our nature, call it our moral sense, call it a belief in civic duty. I joined this party as a teenager because I believed in these values. They guide my work, they are my moral compass. This is who I am.
And because these are the values of our party, too, the party I lead must have more than a set of policies - we must have a soul. "


Heretics ! eeeek ...........

Double Speak translation of the above statement, below. I think this is what he was really trying to say...

" All I believe and all I try to do comes from the luciferian values I grew up with: duty and hard work for my family and masters. Dishonesty, contempt and disrespect for all others. I am a malconviction politician ... My malconviction is that nobody deserves a fair chance in life ... that each of us has a responsibility to their masters ... that when the weak help the strong it makes the strong, stronger. Call it the driving power of social manipulation, call it the luciferian angels of our nature, call it our immoral sense, call it a belief in my totalitarian duty. I joined this party as a teenager because I believed in these values. They guide my work, they are my immoral compass. This is who I am.
And because these are the values of our party, too, the party I lead must have more than a set of policies that benefit the people - we must not have a soul. "

 

[ithatheekret]

Watch out Kimosabi the Fed head hunters could be about , you could end up Fed Chairman .

 

[Kimosabi]

Watch out Kimosabi the Fed head hunters could be about , you could end up Fed Chairman .

If I was FED Chairman, I'd be pushing interest rates up to 20%, clean the debt puss out of the system, put the Fed back in the Hands of the People and let the market decide if they want to go back to some sort of Gold Standard where there is only a limited amount of money.

No more manipulation of the monetary system by a small group of people. Peoples savings will increase in value instead of decreasing in value because of inflation. I'd change the tax system so that people get rewarded for saving instead of getting rewarded for making a loss and borrowing money. I'd get rid of Income Tax as well, everyone should be entitled to keep the fruits of their labour...

Basically I'd stop everyone from being enslaved to the minority control freaks...