| Quote From Source: |
| NEW YORK (Fortune) -- You might expect Jim Rogers to be gloating a little bit. After all, the famed investor has been predicting a recession in the U.S. economy for months and shorting the shares of now-tanking Wall Street investment banks for even longer. And with fears of a recession sparking both a worldwide market sell-off and emergency action from Federal Reserve chairman Ben Bernanke, Rogers again looks prescient - just as he has over the past few years as the China-driven commodities boom he predicted almost a decade ago began kicked into high gear. But when I reached him by phone in Singapore the other day there was little hint of celebration in his voice. Instead, he took a serious tone. "I'm extremely worried," he says. "I have been for a while, but I just see things getting much worse this time around than I expected." To Rogers, a longtime Fed critic, Bernanke's decision to ride to the market's rescue with a 75-basis-point cut in the Fed's benchmark rate only a week before its scheduled meeting (at which time they cut it another 50 basis points) is the latest sign that the central bank isn't willing to provide the fiscal discipline that he thinks the economy desperately needs. "Conceivably we could have just had recession, hard times, sliding dollar, inflation, etc., but I'm afraid it's going to be much worse," he says. "Bernanke is printing huge amounts of money. He's out of control and the Fed is out of control. We are probably going to have one of the worst recessions we've had since the Second World War. It's not a good scene." |
| Click source url to view entire story. |
I bet it gets better before it gets worse....
I'm wondering if there won't be a rally on wall street tomorrow.....NY Giants win the superbowl....
I'm gonna buy some stock lol.
I think we just start our 3rd leg down that will take us below 12000 on the Dow. There was heavy selling into the close ...not a good sign.
Dow finished down 370 points. It is pretty close to having lost all the emotional gain observed after the announcement of a stimulus pack and two rate cuts. The economy is in big trouble. Bush's new $3.1 trillion dollar budget isn't going to give anyone confidence.
| Quoting Indy - posted on 2/5/2008 at 16:35 |
Dow finished down 370 points. It is pretty close to having lost all the emotional gain observed after the announcement of a stimulus pack and two rate cuts. The economy is in big trouble. Bush's new $3.1 trillion dollar budget isn't going to give anyone confidence. |
Here is the view of Wells Fargo's Senior Economist on today's ISM report. This economist doesn't cast doubt on the numbers like the Market Desk. This is a special report released immediately due to the potential signaling of a recession. The report anticipates a widespread selloff in equities as a result.
“There was a stunning drop in the January ISM Non-manufacturing index today. The index composite, a new measure, plunged to 44.6 in January from 53.2 in December. The business activity index also plunged to 41.9 from 54.4. This is the lowest reading on this index since October 2001, a number that indicates contraction in the services economy. This is a huge drop for this index. It usually never moves more than a point or two in any direction month to month. This data, if valid, raises the odds that a nationwide recession is currently underway. Now we have a payroll contraction and a contracting ISM Non-manufacturing index indicating a possible recession start date in January, stay tuned. To add to the confusion, this data largely contradicts the ISM manufacturing data for January that revealed a rebound in manufacturing and a return to expansion in the manufacturing sector. The ISM Non-manufacturing data was released earlier than expected today, apparently because the number was leaked to the markets. Expect global equities to sell off appreciably from here and equity values could remain under duress for some time. Equities opened down about 170 points on the Dow.
The ISM Non-manufacturing sub-component on new orders dropped more than 10 points to 43.5 in January from 53.9 in December. The plunge in the employment and import components was nearly as large. The employment component dropped to 43.9 in January from 51.8 in December, while import component dropped to 41.5 in January from 50.5 in December.
Yesterday, we also received important, though not entirely unexpected, news regarding the current condition of the bank credit crunch. The Federal Reserve released its senior loan officer survey for Q1 2008. The report showed widespread additional tightening of loan terms and standards across a broad spectrum credit, especially mortgages, home equity, and commercial real estate. Despite the Fed rate cuts to date, banks have continued to tighten credit further. If a recession has indeed begun, tighter bank credit will like make matters worse. Given the data we have at the moment, one can expect the Federal Reserve to cut another 50 basis points at the March FOMC meeting as they try to bailout a faltering economy.”
Scott A. Anderson, Ph.D.
Senior Economist
Wells Fargo Economics
This data is free for all. Its alarming as hell and goes right with what I have been saying. Cash is king at this point.
This is a scary read
http://news.yahoo.com/s/ft/20080219/bs_ft/fto021920081334359078;_ylt=AozoX8V3CwKFRV6c_RfR1f0E1vAI
http://www.nbc11.com/news/15345539/detail.html
Well when your area is too high priced......people cannot afford to live there. When they cannot afford to live there you cannot collect taxes. No taxes...no town. Pretty simple economics.
People are still wanting too much for their property everywhere. prices HAVE to come down. Its going to make every sore in the ass from this screwing. Those that had equity in their homes are going to lose it and break even when the prices do drop. No more trading in cars and houses every two years like in the past. You better make sure you really like your house and car when you sign on that dotted line because you will be in it for a while.
i wonder how much of this already is due to al gore and his scare tactics. granted, there r a lot of factors in this other than al gores agenda...thats for sure but icecap.us had a great article on how laws that r already in place due al gore's hoax r killing people in the pocket book. nobody is focusing on this at all it seems though.
| Quote From Source: |
| Feb. 22 (Bloomberg) -- Joe Lents hasn't made a payment on his $1.5 million mortgage since 2002. That's when Washington Mutual Inc. first tried to foreclose on his home in Boca Raton, Florida. The Seattle-based lender failed to prove that it owned Lents's mortgage note and dropped attempts to take his house. Subsequent efforts to foreclose have stalled because no one has produced the paperwork. ``If you're going to take my house away from me, you better own the note,'' said Lents, 63, the former chief executive officer of a now-defunct voice recognition software company. Judges in at least five states have stopped foreclosure proceedings because the banks that pool mortgages into securities and the companies that collect monthly payments haven't been able to prove they own the mortgages. The confusion is another headache for U.S. Treasury Secretary Henry Paulson as he revises rules for packaging mortgages into securities. |
| Click source url to view entire story. |
That is seriously funny.
thats crazy.
| Quote From Source: |
| Feb. 28 (Bloomberg) -- American International Group Inc., the world's largest insurer by assets, posted its biggest quarterly loss as a publicly traded company after an $11.1 billion writedown of guarantees sold to fixed-income investors. The fourth-quarter net loss of $5.29 billion, or $2.08 a share, compared with profit of $3.44 billion, or $1.31, a year earlier, New York-based AIG said today in a statement. AIG declined in extended trading. The insurer has dropped 21 percent in New York trading since Chief Executive Officer Martin Sullivan, 53, replaced Maurice ``Hank'' Greenberg in March 2005. AIG has units that originate, insure and invest in subprime mortgages and said it expects more writedowns this year amid the worst U.S. housing slump in a quarter century. |
| Click source url to view entire story. |
| Quote From Source: |
| Feb. 29 (Bloomberg) -- The yen rose to the highest in almost three years against the dollar after Federal Reserve Chairman Ben S. Bernanke said some U.S. banks may collapse. The currency headed for a second monthly gain after Bernanke told the Senate yesterday ``there probably will be some bank failures,'' prompting investors to cut holdings of higher- yielding assets bought with loans from Japan. The dollar also headed for its biggest monthly loss against the euro since September before a U.S. government report that will probably show consumer spending stayed at the weakest in six months. ``There are renewed concerns over U.S. financial institutions, causing some investors to be risk averse,'' said Hideaki Inoue, chief manager of derivatives and fixed-income investment in Tokyo at Mitsubishi UFJ Trust and Banking Corp., a unit of Japan's largest publicly traded bank by assets. ``The yen is being bought.'' |
| Click source url to view entire story. |
This month starts the main ARMS reset and will go until July
Actually Jan and Feb were pretty high as well. We will not know just how bad those two months were for a couple more months but if this first quarter turns out to be devestating then the next quarter is going to finish us off. Third quarter we should flatten out....and should start recovery heading into 2009.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/03/ccview103.xml
It would seem that just about anybody that bought a home in 2003,04,05 and part of 06 is gonna get screwed. Their payments are jumping from 1500 a month to 6000 a month. Since the bubble popped they cannot sell their homes for what they paid for them, they cannot afford the higher payments so they are walking away.
This will get worse before it gets better....I do see some light at the end of the tunnel but not until well into 2009 and possibly until 2010.
So the worst is yet to come.
| Quoting Indy - posted on 3/3/2008 at 13:18 |
So the worst is yet to come. |
Their payments are jumping from 1500 a month to 6000 a month
that is simply unbelievable.
Looking at that graph posted above I must think the US housing market is in serious trouble by the end of the year. A massive number of ARMs reset this summer. That will take another 90 days or so before it results in a default. You are looking at a flood of new foreclosures in fall/winter. Housing values will be trashed and you may very well be looking at a number of upside down mortgages by spring of 2009. There are still a larger number of ARMs that include subprime loans through early summer of 2009. This will likely extend the housing crisis to the start of 2010.
This may stagnate the new housing market for many years to come because people would have lost a significant portion of their home value and won't be able to move. People will be trapped in mortgages they can't unload. They won't be able to build that dream house. In fact with so many people trapped in mortgages it will likely drag out the foreclosure problem for many years to come. Certainly not to the level I'd expect through mid to late 2009 but certainly higher than in years past.
The idiots thought they could just flip the houses for equity when the mortgage went up. Except prices didn't keep rising at the rate they were. I work with the idiots that were peddling those loans and it was obvious to everyone involved what was going to happen. We were talking about it as far back as 2003.
| Quote From Source: |
| DUBAI (Zawya Dow Jones) -- Mideast sovereign wealth funds may fail to save troubled U.S. banking giant Citigroup Inc. unless more cash is pumped into the lender, the head of a $13 billion Dubai-owned investment firm said Tuesday. Sameer Al Ansari, Chief Executive of Dubai International Capital told delegates at a private equity conference that it will take more than the combined efforts of the Abu Dhabi Investment Authority, the Kuwait Investment Authority and Saudi investor Prince Alwaleed bin Talal to save the bank. "It's going to take more than that to rescue Citi," Ansari said. He added that more write downs are expected and that Gulf investors would be required to bolster Citi. The Abu Dhabi Investment Authority, or ADIA, a sovereign wealth fund owned by the world's fourth-largest oil exporter, last year bought a 4.9% stake in Citigroup. |
| Click source url to view entire story. |
buh bye
| Quote From Source: |
| Fed Chief Bernanke Says More Needs to Be Done to Prevent Home Foreclosures WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke called Tuesday for additional action to prevent more distressed homeowners from falling into foreclosure. "This situation calls for a vigorous response," Bernanke said in a speech to a banking group meeting in Orlando, Fla. Even with some relief efforts under way by industry and government, foreclosures and late payments on home mortgages are likely to rise "for a while longer," Bernanke warned. Rising foreclosures threaten to worsen the problems in the housing market and for the national economy, which many fear is on the verge of a recession or in one already. |
| Click source url to view entire story. |
Well the market reclaimed some of the loss but we still ended up 45 points down. I don't see how much more its going to take before there is a big crash. I'm pretty sure the market is pricing in all of the rate cuts and that has helped but I don't see those rates being passed onto the consumer. Instead those cheap rates are being used by the banks to pad their accounts to cover the staggering losses. From what I have seen the 30 year rates have gone up.
The dollar is more worthless. At least oil dropped but gold is staggering...it will hit 1000.00 and soon. Platinum is out of the world and silver looks like a good bet. Of all things ..lead has gone way up. Go try to buy some 12 guage shot shells. The price has doubled because the price of lead has doubled. Used to be able to buy a bag of 25lb shot for 20 bucks. Its damn near 60 bucks with tax now.
| Quote From Source: |
| March 6 (Bloomberg) -- Carlyle Group's publicly traded mortgage bond fund failed to meet margin calls and said it received a notice of default as banks call in loans against even the highest-rated bonds. Carlyle Capital Corp. missed four of seven margin calls yesterday totaling more than $37 million, the Guernsey, U.K.- based fund said today in a statement. The fund expects to get at least one more notice of default related to the margin calls. The collapse of the subprime mortgage market has prompted investors to flee all but the safest forms of debt, leading to the failure of hedge funds including Peloton Partners LLP. The Carlyle fund raised $300 million in July and used loans to buy about $22 billion of AAA rated agency mortgage securities issued by Fannie Mae and Freddie Mac, securities that have the ``implied guarantee'' of the U.S. government, according to Carlyle. |
| Click source url to view entire story. |
| Quote From Source: |
| Industry Group Says Home Foreclosures at Record High Last Quarter WASHINGTON (AP) -- Home foreclosures soared to an all-time high in the final quarter of last year, underscoring the suffering of distressed homeowners and the growing danger the housing meltdown poses for the economy. The Mortgage Bankers Association, in a quarterly snapshot of the mortgage market released Thursday, said the proportion of all mortgages nationwide that fell into foreclosure shot up to a record high of 0.83 percent in the October-to-December quarter. That surpassed the previous high of 0.78 percent set in the prior quarter. "Clearly it's the worst it's been," chief association economist Doug Duncan said in an interview with The Associated Press. More homeowners -- at the same time -- fell behind on their monthly payments. |
| Click source url to view entire story. |
I just read another troubling statistic. Those that are maxing out their credit cards are now borrowing against their IRA's and 401k's to make ends meet. The rate of borrowing has gone up quite a bit. So they have no home equity, no credit, and soon they won't have retirement accounts.
http://www.sptimes.com/2008/02/29/Business/Borrowing_against_ret.shtml
Homeowner equity is lowest since 1945
http://news.yahoo.com/s/ap/20080306/ap_on_bi_ge/home_equity
Its like someone installed U.S. Credit Vista Edition. lol
| Quoting FatalWishes - posted on 3/6/2008 at 12:30 |
Homeowner equity is lowest since 1945 http://news.yahoo.com/s/ap/20080306/ap_on_bi_ge/home_equity |
| Quote From Source: |
| Wall Street Drops on Continuing Worries About Credit Markets, Bleak Reading on Foreclosures NEW YORK (AP) -- Stocks tumbled Thursday as the ailing credit market and a spike in home foreclosures intensified the market's worries about a sagging economy. The Dow Jones industrials gave up 214 points. Concerns about credit grew after Thornburg Mortgage Inc. and a Carlyle Group bond fund revealed troubles with investments backed by mortgages. The entities failed to make margin calls, which are payments to guarantee much larger debt or investments. And the genesis of the credit concerns that erupted last year -- souring mortgage loans -- dealt investors another blow after the Mortgage Bankers Association reported that home foreclosures rose to record levels in the fourth quarter. Worries about defaults have made lenders hesitant to extend credit, preventing the credit markets from functioning normally. |
| Click source url to view entire story. |
| Quote From Source: |
| WASHINGTON (AP) -- Employers slashed jobs by 63,000 in February, the most in five years, the starkest sign yet the country is heading dangerously toward recession or is in one already. The Labor Department's report, released Friday, also showed that the nation's unemployment rate dipped to 4.8 percent as hundreds of thousands of people -- perhaps discouraged by their prospects -- left the civilian labor force. The jobless rate was 4.9 percent in January. Job losses were widespread, with hefty cuts coming from construction, manufacturing, retailing, financial services and a variety of professional and business services. Those losses swamped gains elsewhere including education and health care, leisure and hospitality, and the government. |
| Click source url to view entire story. |
job levels, consumer confidence, savings, equity ...etc etc ALL DOWN
got cash ?
| Quote From Source: |
| NEW YORK (AP) -- U.S. stock futures signaled a sharply lower open Friday after the government's much-anticipated February employment report came in weaker than expected. The Labor Department's report that employers cut jobs by 63,000 last month -- the most since March 2003 -- unnerved investors worried about the health of the economy and who had been expecting a 25,000 gain in jobs. While the unemployment rate fell to 4.8 percent, the decline reflects people leaving the labor force. The highly anticipated report came minutes after the Federal Reserve announced it would take fresh steps to ease credit troubles, including boosting the amount of money it will auction to banks. The move stoked worries that the employment reading would be weaker than expected. The Fed said it will increase the size of its March 10 and 24 auctions to banks to $50 billion each. The auctions had been slated for $30 billion each and central bank officials said they plan to even bigger amounts for future auctions if need be. Also, the Fed said that it will, starting Friday, begin a series of repurchase transactions expected to reach $100 billion. Dow Jones industrial average futures fell 129, or 1.07 percent, to 11,941. Standard & Poor's 500 index futures fell 11.90, or 0.91 percent, to 1,296.00. Nasdaq 100 index futures fell 8.25, or 0.48 percent, to 1,706.00. |
| Click source url to view entire story. |
if it holes 12, which I think it will, all bets are off.
I think I'll make this my tag line...
---------------
got cash ?
Phew!!
So far so good. Looks like the Dow found support at 12k.
Nasdaq seems to be holding up...but its already at its lowest level in years.
Lets see how this day unwinds. Many investors do not like holding things over the weekend in case of bad news so there could be a mass sell off around 2-3:00 pm. Lets just wait and see.
ruh roh -- man the life boats
As of 1:49pm the Dow is down 142.87 and below 12k.
| Quote From Source: |
| Right now, things look bad. Every day, the economic news looks worse. Unemployment has been creeping up. The service sector is shrinking for the first time in half a decade. Consumer confidence is declining. The stock market's performance of late reflects this news. The S&P 500 is down nearly 9% year to date, and some stocks have been completely mauled. It's just a couple of months into 2008, and InterContinental Exchange (NYSE: ICE), Garmin (Nasdaq: GRMN), and Baidu.com (Nasdaq: BIDU) have already all been clobbered by more than 30%. You might expect that sort of monthly volatility from small caps, but these are well-known companies that had market caps of $10 billion or more. And none of them has really announced any bad news. Things look so bad that you might think that there's nowhere to go but up. But I think this crisis has just begun. |
| Click source url to view entire story. |
And down and down and down it goes
Where it will stop, nobody knows.
Somebody needs to slap Bush and the Fed and say hey "We are already in a recession, and its going to get much worse".
If it takes about 10 months to have foreclosures in stats out, it will be mid 2009 before we ever get close to being out of this mess and well into 2010 before we can put it behind us and start fresh. And that is not taking into account what the actual recession and job loss will do to the economy. We may not see daylight until 2010 or later 
This friggen blows. I want somebodies ass on a platter and in jail.
Much of what happend was pure greed. I cannot imagine very much of it was even legal.
This friggen blows. I want somebodies ass on a platter and in jail.
HA - I've felt that way for Years !!
DOW JONES INDUSTRIAL AVERAGE IN
(DJI: ^DJI)
Index Value: 11,895.08
Trade Time: 4:00PM ET
Change: Down 146.70 (1.22%)
Not as bad as I feared, but still down quite a bit.
I just thought of something. As home values plunge....
I know in my area taxes are based on the value of the home. So these towns that are going broke because of plunging home values....will go bankrupt as prices of homes go down and less taxes are being paid.
Its good for me though. My yearly property taxes are really high.
| Quote From Source: |
| NEW YORK (CNNMoney.com) -- The FBI has launched an investigation into the lending practices of battered home lender Countrywide Financial Corp., according to a report in The Wall Street Journal. The mortgage company is suspected of widespread fraud, the paper said, which may have contributed to the subprime mortgage crisis that has rocked the U.S. economy. The probe will examine underwriting and mortgage origination practices, and whether the company misrepresented losses related to subprime loans. Bank of America, which agreed in January to acquire Countrywide for $4 billion in stock, denied any knowledge of a federal investigation. |
| Click source url to view entire story. |
Well futures look pretty good this morning.....the fed is trying to ease the liquidity problem. I think they are trying to stop a market crash. This is just a band aid. I don't think we can buy our way out of this problem....guess we will have to wait and see.
http://www.bloomberg.com/apps/news?pid=20601087&sid=abE2POU03HA0&refer=home
Yay government.....loaning 200 billion in Treasury Securities. We may climb above 12k on the dow again.
eh - market when up slightly and is already dropping again...
the dow has been gored by a bull (pun intended) and the 'Fed' just put on another Flintstones bandaid. whooopie
the price of gas is -still- going up and the housing market is
-still- going down.
got cash ?
Oh don't worry...the bull as walked away and the Bear is taking a nap right now after chewing so much off the market for the last couple of weeks. He will wake up and we will have our bear market going as strong as ever shortly.
The market can handle only so many down days then it must bounce....and this bounce will be short lived.
The credit crisis will not be fixed nor will it stop the foreclosures. This is a short term bandaid that is pronlonging an already slow death.
Want to know why the governement is putting money into it? Because nobody else will.... Here is why
| Quote From Source: |
| American financial institutions are drastically overleveraged and what we are seeing is a deleveraging of them...period. It all goes back to a company having $40B in equity with $1 trillion in assets and $960B in debt. A 4% deterioration in asset values eliminates $40B in equity and effectively makes the company worth $0. 4% is not a big move either. These institutions got greedy, pressed up on high risk assets and the downside risk is 10%+ for many of them. They are underwater big time because of their ridiculous debt:equity ratios. Now they are trying to bail themselves out by making more high risk bets, hedges, etc. and many of them are going bad. They need access to capital to keep making those bets. Who wants to provide capital to companies with these Balance Sheets though? The sovereign wealth funds are starting to figure it out and they don't want a piece of it. Only the Fed will fund these drug induced gambleholics, with tax payer money no less. I think that the problem is far greater than $500B too. Commercial paper reflects a 6% default rate because this is the next paper to go bad and somebody has the sense to price it in right now and stop lending to these idiots with 30:1 leverage. Cash flow is nice but a company's ultimate value is based on the creation of long term equity on its Balance Sheet, that is accounting in its simplest form. |
| Click source url to view entire story. |
| Quote From Source: |
| Got this from Yahoo....... http://biz.yahoo.com/ap/080311/fed_credit_crisis.html So the FED is injecting $200 billion in the market right now plus the $100 billion it is auctioning off plus another $100 billion it has dedicated monthly to give away as needed, and we don't know how much they have been injecting each day either. If this article does not present a case for hyper-inflation plus super slow growth creates super stagflation -> deep reccession -> possible depression. The FED is putting $300 billion dollars in the financial system just to have all these institutions lose it in one month!!!!!!!! Lets add it up, how much has our FED contributed that we know of so far? $20 billion in auctions in December $30 billion in auctions in January $40 billion in auctions in February $100 billion in auctions in March $200 billion in just giving money away to institutions in March $100 billion to give away just in case institutions need it in March. ________________________________ $490 billion dollars have been injected in the financial system since December and all of it has been lost on bad investments in the markets!!!!!!! And the media make you think $12 billion a month on the worthless war in Iraq is a lot of money, that's chump change compared to this!!!! This is getting ridiculus!!!! Somebody needs to stop this guy Bernanke, he is doing nothing but taking over Greenspan's spot in the fleecing and killing of the American Economy!!!! |
| Click source url to view entire story. |
So basically people are gambling on bad bets to save themselves the staggering losses from the housing market and making things worse. The taxpayers are paying for them to do this.
Its like going double down on a losing bet. Double or nothing.....and we will have nothing.
If they would have just rolled the market over and let the recession come and get it all out of the way we might have been ok. Now I'd have to say we are not going to have a recession and this could lead to a depression as banks fail.
Yah I was thinking the dow would be between 9500-10500 by the time this mess is over...
Now I'm thinking 8000-9000...yup...you got that right. We are setting ourselves up for a crash of historic proportions. We are heading towards a time where there will be the greatest seperation between the haves and have nots.
They need to stop importing shit from China and India and fire up some jobs over here and really quick.
They need to stop importing shit from China and India and fire up some jobs over here and really quick.
HA !
that'll only happen *after* the fact to put millions of unemployed, HOMELESS to work... classic strategy of the 'ruling class'.
Good volume and good rise today. In fact the best up day since 2002. I'm not all that convinced. There are always good up days or rallies in a bear market.
The down stocks still outpaced the upstocks in volume today, but leading stock outpaced declining stocks 5:1. Most of what was going on is buying and not short covering which means there are a lot of stocks still shorted so....apparently I'm not the only one that is not convinced.
There is a lot of work to do in the coming weeks to convince me and if today signals the end it will be one of the shortest bear markets I've ever seen and personally I think we are in one of the biggest messes we have ever been in. Still lots of hedge funds on the brink, foreclosures are not going away, banks are still worth zero, inflation still looms, and 1 day no matter how good it was still didn't erase the almost 1000 points we lost in the last couple of weeks.
We would need 3 days of gains like this to get back on track and above 13k.
Who knows we may get it...don't argue with the market. We had some up days during the second leg down in the market as well.
Enjoy the uptime because bad news will not stop rolling out. There are still billions of dollars to write off coming.
We are still 2100 pts down from last years high of 14280 on the dow and 606 down on the Nasdaq....so we have a ways to go.
| Quote From Source: |
| The mortgage foreclosure crisis has caused a drop in cities' revenues, a spike in crime, more homelessness and an increase in vacant properties, a survey of elected local officials out today shows. About two-thirds of 211 officials surveyed by the National League of Cities reported an increase in foreclosures in their cities in the past year, according to the online and e-mail questionnaire. A third of them reported a drop in revenues and an increase in abandoned and vacant properties and urban blight. "There's a reduction in revenues at the same time that more services are needed," says Cynthia McCollum, president of the National League of Cities and councilwoman in Madison, Ala., a suburb of Huntsville. "Because of foreclosures, people are stealing, crime is on the rise and we don't have more money for cops on the street." |
| Click source url to view entire story. |
uhm... look at the volume.
Yup, good up spike then a selloff. I suspect profit taking after a huge run up yesterday and a bit this morning. That dip this morning was a shakeout trying to get rid of the weak hands before the build up.
I don't think anybody is really convinced that this 200 billion injection is going to solve or fix anything.
We'll see where we end up. I'm thinking we may end to the up side and possibly tomorrow before the bad news starts rolling out again. Then we start heading back down. Still a lot of shorts out there. Patience is a virtue.
| Quote From Source: |
| March 12 (Bloomberg) -- The dollar fell to a record below $1.55 per euro as firms from Citigroup Inc. to Goldman Sachs Group Inc. said the Federal Reserve's plan to inject $200 billion into the banking system may fail to break the freeze in money-market lending. The U.S. currency erased almost half of yesterday's 1.6 percent rally versus the yen, which came after the Fed said it would lend Treasuries to financial institutions in return for mortgage debt. Traders bet the Fed will cut rates by as much as three quarters of a percentage point next week to avert a recession, while the European Central Bank keeps borrowing costs unchanged at 4 percent. ``It's difficult for the dollar to gain traction,'' said Paresh Upadhyaya, who helps manage $50 billion in currency assets as a senior vice president at Putnam Investments in Boston. ``The Fed is probably running out of options; the market is fixated on interest-rate differentials, which are clearly negative for the dollar.'' |
| Click source url to view entire story. |
Well that turned to shit
Symbol Last Change
Dow 12,110.24 Down 46.57 (0.38%)
Nasdaq 2,243.87 Down 11.89 (0.53%)
S&P 500 1,308.77 Down 11.88 (0.90%)
10-Yr Bond 3.4830% Down 0.1130
NYSE Volume 4,310,200,000
Nasdaq Volume 2,122,825,500
You are not going to believe this shit.....
| Quote From Source: |
| Fed to Lend $200 Billion, Accept Mortgage Securities March 11 (Bloomberg) -- The Federal Reserve, struggling to contain a crisis of confidence in credit markets, will for the first time lend Treasuries in exchange for debt that includes mortgage-backed securities. The Fed said in a statement in Washington it plans to make up to $200 billion available through weekly auctions. Officials told reporters on condition of anonymity that the program may be increased as needed. The Fed coordinated the effort with central banks in Europe and Canada, which plan to inject up to $45 billion into their banking systems. |
| Click source url to view entire story. |
| Quote From Source: |
| The FED is now letting non-depository institutions (hedgefunds, brokerages, investment banks) borrow from them and guess what our FED is using as collateral for them to borrow money? Our great FED, lead by "our boy" Bernanke, is using Private Mortgage Securities(MBS's, CDO's, SIV's) as collateral for treasury securities (the $200 billion they are letting these banks borrow). |
| Click source url to view entire story. |
so here is a question, if u have a loan say on a house and the bank u got it from fails, do u still have to pay it back?
| Quoting MountainManMike - posted on 3/12/2008 at 19:49 |
so here is a question, if u have a loan say on a house and the bank u got it from fails, do u still have to pay it back? |
dang, there goes my free house idea, lol
http://finance.yahoo.com/
blood in the streets
| Quote From Source: |
| LONDON (Forbes)- Carlyle Capital stood on the brink of collapse on Thursday as lenders were expected to take possession of all the investment fund's remaining assets after failing to reach an agreement on $16.6 billion of debts. Hopes that its parent company, the Carlyle Group would come to the rescue have also failed to materialize. |
| Click source url to view entire story. |
| Quote From Source: |
| March 13 (Bloomberg) -- The dollar fell below 100 yen earlier today for the first time since 1995 and dropped to a record low against the euro after a Carlyle Group fund moved closer to collapse, adding to turmoil in financial markets. `Sentiment for the dollar continues to deteriorate very, very rapidly and if we're not careful this will turn into a dollar crash,'' said Mitul Kotecha, head of foreign-exchange research in London at Calyon, the securities unit of Credit Agricole SA, France's second-biggest bank. |
| Click source url to view entire story. |
| Quote From Source: |
| March 13 (Bloomberg) -- Gold rose to a record in London and approached $1,000 an ounce on speculation credit-market turmoil will spur demand for the metal as a haven from declines in stocks and the dollar. Gold for immediate delivery rose $10.95, or 1.1 percent, to $993.88 an ounce as of 11:41 a.m. in London, exceeding the previous all-time high of $992.05 last week. |
| Click source url to view entire story. |
Oh this is going to be a bad day...I can tell already....the headlines on Yahoo are anything but pretty this morning.
I've been warning ya'll since when???
LOL gold finaly hit 1000.00.... I saw that one coming
http://biz.yahoo.com/rb/080313/markets_gold.html
....Oil should rally another day...its over 110.0 now
http://biz.yahoo.com/ap/080313/oil_prices.html
and the markets over seas have tanked across the Glob?? I think they meant Globe...maybe not. With the mess we are in maybe they did mean Glob ??
AP
Global Markets Tumble
Thursday March 13, 7:52 am ET
By Toby Anderson, AP Business Writer
Markets Across the Glob Sink on Worries About US Economy
http://biz.yahoo.com/ap/080313/world_markets.html
And mentioned above by Avastar...
Caryle shares plunged 70.3 percent to 83 cents in Amersterdam trading Thursday.
They're done. Game over. No Fed and taxpayers to bail them out eh? Should have moved to America. Bush and Bernanke would have saved you at taxpayers exspense!!
And finally...retail sales....
http://biz.yahoo.com/ap/080313/economy.html
Yup, they confirmed the worst. People aint buying shit. Everybody has tapped their home equity, credit cards, and 401ks...people are strapped.
I'm going to watch stocks like Deck and Crox and Finl (finish line)...
I don't see ppl buying 30 dollar t-shirts and 40 dollar sandals, and 200 dollar a pair of sneakers in a recession. I'm going to short the shit out of those stocks.
LOL, right out of the gate...
Dow 11,918.44 191.80 (1.58%)
Nasdaq 2,212.07 31.80 (1.42%)
S&P 500 1,286.94 21.83 (1.67%)
Back under 12k...that didnt last long did it.
| Quote From Source: |
| NEW YORK (Reuters) - Home foreclosure filings in February edged down from January but were a whopping 60 percent higher than a year earlier, real estate data firm RealtyTrac said on Thursday. The surge in foreclosures from a year earlier indicated that the cycle has yet to hit its peak, the firm said. Home foreclosure filings in February totaled 223,651, down 4 percent from January, RealtyTrac, an online market of foreclosure properties, said in its February U.S. Foreclosure Market Report. The figure is a total of default notices, auction sale notices and bank repossessions, In January, home foreclosure filings had risen 8 percent from December. |
| Click source url to view entire story. |
funny - the DOW actually went up 35, but I decided long ago
it has no connection with reality.
Its interesting to see that the money is going into the old leaders such as some Solar stocks and Fertilizers.
POT, MON, CF, TNH, AGU...all being driven by bio fuel.
When this group crashes its gonna hurt worse than the solars.
fatal, what do u think of RZ right now?
I think its time to buy more....
When they are up and running they just have bills to pay for the land and facilities and overhead. They don't have to buy coal, or uranium rods or pay to dispose of them either. All the energy they use to create energy is free.
There are Geo Thermal plants all over Europe and Greenland that are doing very well. When they are up and running you will be glad you kept investing in them. Don't put your money into something that has already had money put into it...put it into where it will go eventually. Once they start up and start posting profits they will be very popular and everybody will be buying up shares.
Learn from Wayne Gretzsky. He was good because he never skated to where the puck had been, but to where it was going. Investing is the same idea. RZ has had the shit kicked out of it. No worries....I have about two grand tied up in it and will by more as it keeps going down. It called averaging down. Its pretty risky....but with the cost of energy going through the roof I feel pretty safe being tied up with RZ. I won't put more than a few thousand in it though. It is still gambling.
"Be greedy when others are fearful and fearful when others are greedy" ~
Warren Buffet
Just stay away from the financial sector for a while. And be damn glad you don't own any Bear Stearns stock.
| Quote From Source: |
| California Median Home Prices, Sales Plunge in February LOS ANGELES (AP) -- Median home prices plunged in many of California's most populous counties in February, with Southern California leading the slide with an overall drop of 17.9 percent compared to a year earlier, according to new housing data released Thursday. ADVERTISEMENT The drops reflect a deepening housing crisis in the state, which saw home values soar during the housing boom then decline sharply in most areas. Median home prices fell this year in 15 major counties, DataQuick Information Systems said. The median price in a six-county area of Southern California fell to $408,000 -- the lowest level since October 2004, when it was $402,500. That median is 19.2 percent below the region's peak price of $505,000 last summer, and it's 1.7 percent below January's median, the firm said. |
| Click source url to view entire story. |
| Quote From Source: |
| Stocks Rebound From Steep Drop As S&P Forecasts End Is Near for Asset Write-Downs NEW YORK (AP) -- A fractious Wall Street rebounded from an early plunge to finish moderately higher Thursday, after Standard & Poor's predicted financial companies are nearing the end of the massive asset write-downs that have devastated the stock and credit markets. The S&P projection gave investors some hope that the seemingly unrelenting losses from the mortage and credit crisis might indeed be bottoming out. Standard & Poor's Ratings Services said it estimates writedowns of subprime asset-backed securities could reach $285 billion globally, up from its previous projection of $265 billion, but added that "the end of write-downs is now in sight for large financial institutions." |
| Click source url to view entire story. |
Well today we find out Bearn Sterns has been lying and needs a bailout....
http://biz.yahoo.com/ap/080314/bear_stearns.html
http://biz.yahoo.com/ap/080314/fed_credit_crisis.html?.v=20
http://online.wsj.com/article/SB120550108028136579.html?mod=hpp_us_inside_today
http://business.timesonline.co.uk/tol/business/economics/article3542775.ece
“The only reason the Fed would do this is if they knew one or more of their primary dealers actually wasn't flush with cash and needed funds in a hurry,” Simon Maughan, an analyst with MF Global in London, said.
Yup, we are heading down today. Lets see where we close.
I thought all the news yesterday was too rosey of a picture. This is far from over. I almost posted the headlines from this morning.
They were full of flowers, and rainbows, and happy bunny stories about how much money we are all going to make because Uncle Sam saved us.
This whole thing still smells....and it just got put out into the hot sun and sprayed with sewage water.
And finally.....the tab goes to the taxpayer. Yes we have to bail out Bear Sterns.
http://finance.yahoo.com/tech-ticker/article/6242/Pathetic-Bear-Stearns-Bailout:-Who-to-Blame?tickers=bsc,jpm
So let me get this straight.....
The Fed has already handed out 498billion and now we have to bail out Bear Sterns, plus another 170 billion in Tax Rebates that are our tax dollars that we have to pay taxes on again, and over seas conflicts.
Then our gas is higher than shit, our food costs god knows how much, somebody is making bio-fuel that we don't even have access too driving the costs of everything up, the dollar is worthless, we are paying for two fucking wars, credit cards are maxed, 401ks are bleeding out due to loans and the market, health insurance is for the rich only, and our homes are fucking worthless with no equity and getting cheaper by the minute.
Just how the hell are we supposed to pay for all of this? We are going to rack up a trillion in debt on top of the trillion in debt from the wars. Our Kids are never going to pay this shit off. Hell, their kids are going to be poor.
| Quote From Source: |
| Moody's Cuts Washington Mutual's Senior Unsecured Rating to "Baa3," a Step Above Junk NEW YORK (AP) -- Moody's Investors Service cut Washington Mutual Inc.'s debt rating on notch above junk status Friday and said the outlook is negative for all of the company's affiliated businesses because of worse-than-expected fallout from the mortgage crisis. The credit rating agency lowered the Seattle-based bank's senior unsecured rating to "Baa3" from "Baa2." Another downgrade would put the ratings for the nation's largest thrift into speculative grade, or "junk," territory. Moody's also lowered Washington Mutual Bank's long-term deposit rating to "Baa2" from "Baa1," but left the bank's financial strength and short-term ratings unchanged. |
| Click source url to view entire story. |
Dollar falls below parity vs Swiss franc
http://sg.news.yahoo.com/rtrs/20080314/tbs-markets-forex-swiss-franc-7318940.html
I dont know how much more bad news we can stand at this point before there is panic in the major markets. All markets across the globe have gone down and adjusted accordingly but we are walking a razor thin blade and we teeter to either side its going to be a long way down to the bottom. I can almost see a day where they will have to halt trading to stop the blood flow.
S&P seeing light at the end of the tunnel yesterday that we may be reaching a bottom? That was a miner with a flash light taking a dump before he started digging down deeper.
S&P was way too early on that call. Just wait until fall of this year. Its gonna be a hell of a ride.
Man I am just sitting here fuming. This is Robin Hood in the reverse.
Steal from the poor to keep the suits happy. Thank you FED!! Bernanke is a crook. Steal from the taxpayers to save your buddies.
Somebody from JP morgan bought 55k puts on Bear Sterns yesterday. They made millions off of that today. Fucking bastards, this was all a setup. Just a short while ago, The CEO of Bear Sterns stated they were good to go and had lots of liquidity. Now today they are about to go under. This was planned and timed with the market.
This is a crock of shit. I'd blame Bush but he's not smart enough to figure all this out.
Why should we have to bail out Bear Sterns??? Fuck em.....its their fault. Let em go under and take all those other rich assholes down with em. Sure it may hurt us but at least they will be hurting too. There is not much left to sponge from the middle class anymore.
This Novembers election is going to be Huge.
U S A
Use
Societies'
Assets
good thing im lower class and have nothing more to be taken from me, lol...other than gas in my gas tank, lol.
| Quote From Source: |
| The developer of the Cosmopolitan Resort Casino, a $3.9 billion condo-hotel complex on the Las Vegas Strip, has been notified by its primary lender that it will begin foreclosure proceedings. The move by Deutsche Bank AG, the lender on a $760 million senior loan, comes after the developer, Ian Bruce Eichner, wasn't able to finalize a deal for new financing amid the credit crunch. Mr. Eichner in late February cut a tentative deal with two of his other lenders, Global Hyatt Corp. and New York hedge fund Marathon Asset Management, for a possible rescue of the twin-tower project. A default ... |
| Click source url to view entire story. |
yet the market keeps chugging along here in durango. its ridiculously frustrating. im never going to be able to afford a house here.
and now theres news that rent is going to go sky high this coming year. too much demand in the town now...we can thank the fact that were a sanctuary city for that.
| Quote From Source: |
| NEW YORK (CNNMoney.com) -- JPMorgan Chase & Co. said Sunday that it would acquire troubled Wall Street firm Bear Stearns amid deepening fears that Bear's demise could have sent shockwaves across the already shaky financial markets. The deal values Bear Stearns at $236 million, or just $2 a share - shares had closed at $30 on Friday, down 47% that day. JPMorgan is taking immediate responsibility for Bear's trading obligations and assuming "management oversight" of the firm's operations. The deal is subject to approval by shareholders but has already been approved by the Federal Reserve and other regulators, according to a statement released by JPMorgan. |
| Click source url to view entire story. |
Market is going down tomorrow...the futures are way down...
http://www.bloomberg.com/markets/stocks/futures.html
Now that Bear Stearns has been exposed for lying and being in way bigger trouble nobody believes anything the other banks are saying.
I hope there is not a mass sell off tomorrow but its not looking good right now. Our banking system is in serious trouble tomorrow.
DJIA INDEX 11,726.00 -258.00
S&P 500 1,259.10 -33.90
NASDAQ 100 1,684.50 -40.00
Not looking too good...
http://www.bloomberg.com/markets/stocks/futures.html
That emergency rate cut the Fed just did today won't do anything to calm the already jittery nerves. Tuesday is just going to make things worse I'm afraid when they cut rates again. I think that big sell off we have been waiting for is going to happen this week. I hope I'm wrong about all of this.
We may be in serious trouble. That means EVERYBODY. Not just those in the market.
If there is a run on the banks...all that paper we have been trading that we call money is worthless. It is based on faith and there is none left in the banks. No faith left in the Fed either. We don't have the gold to base our money on either. Its just paper..it really is worthless.
JPM/FED/Bear Stearns all knew last week what was gong to happen. Stock holders got totally screwed. Billions have been lost and when the market opens up tomorrow andybody holding BSC is going to have no money. 15000.00 just became 1000.00 over the weekend. Nobody is going to trust the fed or the banks. Nobody is going to want to hold their troubled bank stocks over the weekend anymore. Watch some of the bank stocks tomorrow.
This is about as serious as it gets. This coming week may make history. We are setting up for a true Black Monday in the market. God I hope I'm wrong and things work out for the best.
I hope for some miracle....but I wouldn't be holding any financial stocks at this point.
The Fed should leave things alone. Let the economy take the hit and correct itself. Let it weed out the bad players and move on.
They need to raise the rates. They must raise interest rates.....inflation is going to make this bad situation worse. Once the financial credit mess gets fixed we will have to deal with that. This mess is not anywhere near over. This year is going to be tough for everybody.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aS87YcPKuDDE&refer=worldwide
All faith has been lost.
http://www.reuters.com/article/businessNews/idUSSYD10719020080317?feedType=RSS&feedName=businessNews&rpc=23&sp=true
http://www.ft.com/cms/s/619b6d18-f392-11dc-b6bc-0000779fd2ac.html
I hate to say I told you so...
But I told you so.
I cannot stress how serious this is.....People better pay attention to their banks. I mentioned over a month ago to move your retirement funds out of the market. Tomorrow will be too late to do it I'm afraid.
After market trading and pre-market trading is usually a lot more volatile so things may look way worse than they actually are. Cooler heads may prevail as the professional traders step in. Still a lot of bulls out there......
I think the bears are gong to short the shit out of the financial institutions though and that is a worry right now.
We'll have to wait and see how tomorrow unfolds. I do hope for the best. I want this market to correct itself and people to have confidence and start buying again.
Gold is now 1028 dollars an ounce, oil is now 111.13 a barrel. We will probably have 4.00 a gallon gas by this summer. Get used to it. The dollar is fucking worthless...Commodities are going apeshit right now.
http://www.bloomberg.com/markets/commodities/cfutures.html
http://finance.yahoo.com/
ALL RED
| Quoting DanG - posted on 3/16/2008 at 23:37 |
http://finance.yahoo.com/ ALL RED |
I meant the NIKKEI & HANG SENG are down.
| Quoting DanG - posted on 3/17/2008 at 00:39 |
I meant the NIKKEI & HANG SENG are down. |
"all time" low for dollar... "all time" high for oil...
and don't even ask about housing.
got cash ?
Well every market has plunged except ours. Makes me wonder what the government is up to...
The "Plunge Protection Team" may be reality instead of myth....
http://www.washingtonpost.com/wp-srv/business/longterm/blackm/plunge.htm
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/10/30/ccview30.xml
And my Favorite..
http://www.atimes.com/atimes/Global_Economy/JC18Dj02.html
Basically they are printing money to buy stocks to keep the market from plunging......
This will not end well. Why dont other markets do this? Because of inflation.....the dollar won't be worth shit. We will need a truckload of dollars to buy a pair of shoes in the future.
I know, dammit. I really wish the a$$holes in charge would knock it off.
Well I cooled off a little. See the Fed is supposed to bail out commercial banks, not security/equity/brokerage firms....like Bear Stearns. Although Bear Stearns is a Bank, it is not a commercial bank. It is not FDIC insured. Which means if you worked for them, owned stocks, or had money tied up in them, you are screwed. I think they did have some good paper but most of it was bad stuff.
So the Fed went through JpMorgan....well the shareholders got fucked. Then again..maybe not?? If the shareholders all vote no..I wonder what happens? I'm not too sure this deal is done even though its been inked. And JPMorgan has 30billion worth of insurance through the fed to back them up. That is very unfair to the stock holders of Bear Stearns. Its like a hostile takeover. The Fed gave JP Morgan 30 billion, they could have bought BSC for more than 2 dollars a share. The damn building is worth 10 dollars a share at least. None of this makes any sense.
What worries me now is the fed has opened a back door to a list of banks and firms (TBTF too big to fail) list so they run to the fed and say "We are in trouble", the Fed uses taxpayer dollars to loan out billions, or turns on the printing presses, gives them a loan at an extremely low reduced rate and saves them.
Why does the Fed have to do this? Because other banks won't loan them money. And if the other banks won't loan them money because they don't trust them!! Makes you wonder why are the taxpayers having to do it? Because they are on the TBTF list? This cannot be good. I cannot believe the market is only down 150 pts. Nasdaq and S&P are getting hammered though.
Well lets just see how this week unfolds. I don't think anybody is buying this "Fed Saved The Day thing."
We need to find a bottom to this market and right now there is no trust out there. Everybody is nervous and is sitting on the sidelines with huge piles of cash afraid to jump in waiting for the hammer to fall so they can pull the rest of their money out.
If there is some good news it would be that speculators are taking a serious beating today when it comes to oil. It is down almost 5% today. But don't worry. They will find a way to manipulate the press to get out some kind of supply shortage story to help get prices boosted back up.
| Quoting Indy - posted on 3/17/2008 at 13:02 |
If there is some good news it would be that speculators are taking a serious beating today when it comes to oil. It is down almost 5% today. But don't worry. They will find a way to manipulate the press to get out some kind of supply shortage story to help get prices boosted back up. |
Oil is down over $6 now.
After listening to the news I'm pissed off what took place with Bear Stearns. What a bullshit deal. The company that purchased Bear Stearns (BS.. lol) got a special loan from the Fed. And if the value of the new asset sinks the Fed will cover the cost. WTF.
Let the damn companies fail. They had no problem letting the homeowners fail. Why did the rescue mission start at the top instead of the bottom where the effort could have helped twice over. A bailout package for homeowners would have saved them and the banks. But this administration could care less about homeowners. As long as big business ok so is this administration. It was a disgraceful act by the Fed at the expense of taxpayers.
The story used an interesting term called "moral hazard." It talks about how moral hazard was applied to homeowners by the banks and administration meaning the homeowners should have been more responsible for their borrowing decisions so they should fail but that same attitude was never extended to the lenders. When are the lenders going to pay the price for their mistakes?
They talk about this bailout being to protect the system. Who cares. Let the system fail. We can start over again with something that actually works. The attitude is also if the Fed needs money to cover this deal involving BS they'll just print more money.
Great. Lets trash the value of the dollar even more. Our economy is a joke built on a lie. It is time to wipe the slate clean and start over with new companies and new rules.
BTW the dollar took a huge hit today. No shock there. Time to start buying a currency with some value. Maybe the Peso?
interesting video fatal. i was actually homeless for about 2 years living out of the back of my jeep. it was actually 2 of the best years of me life. if i had a quiet place to park, i might do it again...and may have to do it again if the economy keeps going the way its going.
| Quoting MountainManMike - posted on 3/17/2008 at 19:26 |
interesting video fatal. i was actually homeless for about 2 years living out of the back of my jeep. it was actually 2 of the best years of me life. if i had a quiet place to park, i might do it again...and may have to do it again if the economy keeps going the way its going. |
| Quote From Source: |
| Volatile markets and worried policy makers on Monday offered clear evidence that the months-long financial crisis linked to the U.S. mortgage market has turned into an acute crisis of confidence in the global banking system. Stunned over the weekend by the emergency bailout and sale of the Wall Street investment firm Bear Stearns, investors on Monday were digesting the reality that lower U.S. interest rates and massive liquidity injections by central banks worldwide have offered only fleeting relief from the crisis. Trust, a vital part of any financial system, was in short supply as rumors flashed around the world as to what bank, brokerage or hedge fund might fail next. |
| Click source url to view entire story. |
Well today we can expect another rate cut which pretty much screws the American public.
Why are rate cuts bad? Well for one it lowers the value of the dollar..again....and it drops the interest rate amount that you gain on your savings.
Rate cuts are supposed to drop for everybody on their credit cards, home loans, and car loans encouraging the consumer to buy. Since the banks are using the rate cuts to pad their losses, they have in turn cranked up the rates on credit cards, even those that are in good standing. They have not dropped the rates on cars or homes either.
Now we are making less money on our savings accounts, and paying higher rates on cars, homes, and credit cards while the banks that fucked us to begin with try to stop the flow of blood from their accounts by getting cheap rates and charging the consumers a premium.
Read this....it will clarify what I'm saying.
http://money.cnn.com/2008/03/17/markets/thebuzz/index.htm
Basically the FED is bailing out the banks that have created this situation. If they had 30 billion to bail out Bear Stearns, why didn't they instead use that money to bail out home owners?
Problem I see down the road is we bail out Wall Street but Main Street is going to go down the crapper. And if Main Street consumers like you and I are not out spending money keeping the economy going, then we are in a recession.
I expect a rally today on Wall Street. Good news for the banks and the financial stocks will climb. Watch GS and LEH
Don't forget about the 2 million plus people facing foreclosure this year though..(if the average home is 300k that is 600 billion in losses)...and the value of the dollar continues to slide. And don't forget what drives the economy. Don't be fooled by an advancing market....because these very same stocks that go up today will be blasted in the future when they are sitting on billions of dollars worth of real estate they cannot sell and have to pay taxes on. As the value of that real estate goes down and businesses go bankrupt, more people living in tents needing help grows, we will soon see the bottom.
Let them pat themselves on the back and tell us everything is o.k. because it isn't. Lets enjoy their rally, but do so with caution and an understanding that its all for show.
http://biz.yahoo.com/tm/080317/16878.html?.v=2
| Quote From Source: |
| Prices Up, Housing Contruction Drops Wholesale Prices Rise, Core Inflation Accelerates; Housing Construction Declines WASHINGTON (AP) -- Wholesale prices rose again in February as another hefty increase in energy costs offset falling food prices. Outside of food and energy, prices shot up at the fastest pace in 15 months. In another sign of troubles in housing, construction of new homes fell by a larger-than-expected 0.6 percent in February to an annual rate of 1.065 million units. The Labor Department reported Tuesday that wholesale prices were up 0.3 percent last month, following an even bigger 1 percent jump in January. Outside of food and energy, the rise in inflation was a troubling 0.5 percent, the biggest increase for core inflation since a rise of 0.9 percent in November 2006. |
| Click source url to view entire story. |
Lets see what the reaction is to the FED cut today. And lets see how much they drop the rates......this will be all telling for the days ahead.
Well in the end we may all be marching to the FEMA camps.
reminds me of a 'vision' from many years ago...
actually several things do these days, unfortunately.
Bear Stearns is fighting back.....
http://finance.yahoo.com/q?s=BSC
http://www.bloomberg.com/apps/news?pid=20601087&sid=a2Te79gnTSdk&refer=home
http://biz.yahoo.com/ap/080318/fed_credit_crisis.html
The latest action brought the federal funds rate -- the interest that banks charge each other -- down to 2.25 percent
I have yet to hear an opposing view on this board....I'd like to hear from anybody that thinks we are going to start going up.
Personally, I still feel that we are headed to around 9500 on the Dow by years end. I said it several times on this forum. I said it back in January....and I will say it again even though the market jumped up huge today.
Others feel different....
http://www.bloomberg.com/avp/avp.asxx?clip=mms://media2.bloomberg.com/cache/vwQ_SKw._kZE.asf
Who or what do you believe?
The Fed cut the rate by three quarters of a point to restore confidence. Thats according to a CNN story. Are you kidding me. Rate cut after rate cut sends the exact opposite message. It sends a message of panic.
It sends a message of panic.
| Quote From Source: |
| March 18 (Bloomberg) -- U.S. regulators are investigating whether traders illegally sought to force Bear Stearns Cos. shares into a tailspin last week by spreading false information about the firm's finances, two people familiar with the inquiry said. The Securities and Exchange Commission probe is focusing on whether hedge funds or other investors bet on a drop in the company's shares while disseminating rumors that the New York- based firm was nearing collapse, said the people, who declined to be identified because the inquiry isn't public. The New York Stock Exchange's regulatory arm is also involved in the investigation, the people said. Speculation about a cash shortage spurred customers and lenders to pull money from Bear Stearns last week, driving the shares down 57 percent between March 7 and March 14. Two days later, the fifth-largest U.S. securities firm was acquired by JPMorgan Chase & Co. for $2 a share. The company's decline coincided with a surge in investor bets that the stock price would plunge. The SEC's probe is unusual because most of the regulator's stock-manipulation cases focus on penny stocks. |
| Click source url to view entire story. |
| Quote From Source: |
| Stocks Notch Big Gains As Fed Cuts Rates, But Volume Finishes Surprisingly Lower BY JONAH KERI INVESTOR'S BUSINESS DAILY Posted 3/18/2008 Stocks soared Tuesday, but lukewarm volume and scant action among market leaders tempered the advance. The major indexes got off to a hot start ahead of the Fed's decision to cut the fed funds rate by 75 basis points. Stocks pulled back immediately after the 2:15 p.m. EDT policy statement, then took off again in the session's final hour. The Nasdaq and S&P 500 vaulted to 4.2% gains. The Dow industrials jumped 3.5%, the NYSE composite 4%. The small-cap S&P 600 galloped 4.5%. Riding some of the biggest gains in months and with the news of an interest rate decision, you'd have expected volume to swell. Instead, trading levels disappointed. |
| Click source url to view entire story. |
After today you may as well have said we went up 128 points yesterday instead of 420. Interesting eh?
I think I was wrong about 12750 on the Dow being the resistance point. It is clearly 12500.
Lets see where we go from here. Pretty funny....goon heads on CNBC and Bloomberg were pumping the stocks talking about how we hit bottom and we are all going to go up.
| Quote From Source: |
| arch 19 (Bloomberg) -- Starbucks Corp. Chief Executive Officer Howard Schultz said the U.S. economy is in a ``tailspin'' and the coffee-shop chain will offer discounts and new drinks to lure back customers. Starbucks, the world's largest chain of coffee shops, also said today it would acquire Coffee Equipment Co., the maker of the $11,000 Clover machines that brew one cup of coffee at a time. Financial terms weren't disclosed. ``You have an economy that really is in a tailspin, and many would say the consumer is in a recession,'' Schultz told more than 6,000 shareholders at the company's annual meeting in Seattle. ``We are dealing with things that we haven't seen before in terms of how people are responding to how tough it is.'' |
| Click source url to view entire story. |
I'll be willing to bet anyone we see the market break 10,000 ... and probably before summer
| Quoting Avastar - posted on 3/19/2008 at 16:20 |
I'll be willing to bet anyone we see the market break 10,000 ... and probably before summer |