Is tonight the night the US markets really fall apart?

[chops_a_must]

LONDON (Thomson Financial) - The US Federal Reserve Bank has quietly relaxed its debt collateral rules, allowing borrowers to use distressed debt as collateral to raise emergency funds, the Telegraph reported, citing banking sources.

The change, carried out yesterday, means that banks are able to use asset-backed commercial paper (ABCP) loans as collateral to raise funds, the newspaper said.

The Telegraph said this change in regulations, combined with a quiet reduction in the rate on four-week Treasury Bills to 4 pct, shows the Fed stepping in behind the scenes to prevent a meltdown across global markets.

But surely all that will do is make the ABCP's worthless as well?

 

[brettc4]

A link for you.

Plunge_Protection_Team

 

[clowboy]

Anyone got a link for futures? Ie what the Dow is likely to open at?

Thanks

 

[vicb]

Try this one
http://money.cnn.com/data/premarket/index.html

 

[billhill]

This is pure speculation on my part, but I wouldn't be surprised if someone really big has been seriously wounded in the credit market strife. Rams etc ain't big in that context.

I'm thinking in terms of a major investment bank or someone like General Motors etc finding themselves in serious trouble. I just can't believe that with so much happening the end result will be limited to a few hedge funds and non-bank mortgage lenders.

have to agree with you here Smurf. This is why i am out of the market. So far this hole fiasco seems to be spreading further then anyones predictions. And if small mortgage lenders or hedge funds can spook the market into the current situation surely the risk is a huge collapse if a big player goes down. The risk of that occuring seem to be firming by the day.

 

[insider]

Some of the members over at HC think that the Dow is going to jump 200 plus tonight expecting the reserve bank to cut interest rates and some financials of other sectors like media and stuff... I hope not

 

[BradK]

Apparently the FED just cut .5 points off interest rates... havent seen it yet... big rumour though - effects?

Brad

 

[Bushman]

Some of the members over at HC think that the Dow is going to jump 200 plus tonight expecting the reserve bank to cut interest rates and some financials of other sectors like media and stuff... I hope not

They have just announced that they have cut the discount rate on loans to banks by 50 bp.

http://www.cnbc.com/id/20316042/site/14081545

 

[insider]

I suppose they have to do something else... after all they've been pumping sooo much money into the markets and people keep cashing it all in...

 

[bruno]

before the cut in rates the doe futures was down nearly 200 pts.
i just had a look after reading about the cuts and its jumped to up 151 in no time.
this could be a very interesting night.

 

[GreatPig]

That (or something) has just put a rocket under the FSTE.

GP

 

[Bushman]

Europe has reversed as well. FTSE is up 4%, CAC 3%. Dow Futures have now turned up 250 pts.

The market seems to like this.

Not sure about the long term wisdom of this? How long can the Feds prop up Wall Street financials by printing money? Guess they had to do something especially with the Yen rising against the USD and the Nikkei getting smashed 5% as a result.

 

[Awesomandy]

This is definitely looking like WW2. Japan is getting smashed, and Europe/America are celebrating.

 

[Rob_ee]

You've got to love that Yank logic.

All problems solved .. apparently..

DOW up 320 points in the 1st 10 minutes of trade after rate cut

Quite amusing to watch

Rob

 

[moXJO]

You've got to love that Yank logic.

All problems solved .. apparently..

DOW up 320 points in the 1st 10 minutes of trade after rate cut

Quite amusing to watch

Rob

Hope it holds and our market follows been buying in on a few stocks these last 2 days.

 

[Ken]

Very Volatile.

Up and down like a yoyo.

Take profits when you can, depending on your strategy.

A lot of share prices will not recover chartwise.. they looks horrible. And there's a lot of chartist who trade speculative stocks.

 

[springhill]

You've got to love that Yank logic.

All problems solved .. apparently..

DOW up 320 points in the 1st 10 minutes of trade after rate cut

Quite amusing to watch

Rob

Like watching lemmings follow each other head first over a cliff :bonk:

OMG is that me turning bearish!!!???

 

[Kauri]

They might have played their pinch hitter a tad early... not a lot left on the bench to bring on when the subprimers score the next run....

 

[insider]

What happens when you put a bid beyond the offer say I bid $5 and someone is selling at $4.50?

 

[resourcesman]

agree with you there kauri
would have liked to see this a little later so that the effect of this cut would be more powerful