Meltdown in US finance system pummels stock market

[djgandy]

Thing is recessions are nothing to worry about. They will occur forever more. Depressions and whatever this current crisis is are things to worry about.

A recession is a minor adjustment compared to what is going on now. A recession is like the scales balancing. This is like a scales balancing but an object with the mass of Jupiter is sat on one side of the scales.

[Dean]

Originally Posted by BaldEagle

Not bad but I don't think your really putting your heart into it...

Actually the whole issue with oil is it's located too close the edge of the earth and drilling out there might break off a piece.

Well, what I heard was that oil doesn't even exist. It's all part of the cover-up on the earth being flat.


Anyway, this is interesting news. Kind of depressing.

[BaldEagle]

Here we go again.. Seems the FED didn't "get it" yesterday.

U.S. stock indexes plummet as fate of financials questioned - MarketWatch

Shares of Morgan Stanley plunged as much as 40%, and Goldman Sachs & Co. shares were down 23%, as federal regulators rushed to tighten rules against short-selling before another major Wall Street securities firm faces collapse. Gold futures leaped almost $60 an ounce to $840.

"The Fed is trying to provide liquidity as quickly as it can, but there seems to be an endless supply of 'moles' and only one mallet," said Kevin Giddis, managing director, Morgan Keegan & Company Inc. "Credit is seizing as we speak. The banks aren't really lending to each other."

Gee whiz guys! 30 banks DOA this year no wonder why nobody will loan money to them???

Firms scramble to keep money market investors calm - MarketWatch

After money market fund pioneer The Reserve shook the market on Tuesday when it cut the net asset value of its flagship Primary Fund to 97 cents a share, firms including Deutsche Bank, Federated Investors Inc. all took steps to calm investors and prevent a run on their funds.

BROKE THE BUCK!!!!

Not even cash is safe, run for the gold, run for the gold.

[SuperFly03]

*SF takes a long position in gold*

[BaldEagle]

Originally Posted by SuperFly03

*SF takes a long position in gold*

The market is just caving losses day in and day out it's shaved off 10% in the last week.

Looks like we may have hope for tomorrow MS&WB and WM&JPM are going to be hot items. Of course isn't it that stars glow brightest just before they flame out into black holes.

[BaldEagle]

The meltdown is over......

U.S. stock futures leap after financial short-sale ban - MarketWatch

[SuperFly03]

Don't get too excited. This is a massive move... but I'll wait for the full details before I calm down.

[UncleRuthless]

Global Financial Meltdown

[BaldEagle]

Originally Posted by SuperFly03

Don't get too excited. This is a massive move... but I'll wait for the full details before I calm down.

It's back to roughly where it was a week ago therefore "this" meltdown is over. Oh you mean long term... All I can say is the future will make Hoover proud.


Duros Canister Cleaner - Hoover

Powerful suction

[fidgewinkle]

Originally Posted by SuperFly03

So far GDP, which I believe is the metric not GNP, remains in positive territory but only by the width of a human hair.

You are right GDP gets revised and we may be in a recession now (very possible) but I'm just not seeing it go negative yet but I think it will.

Time will tell, not a great answer but really the only one we have.

Q4 2007 just went negative in the latest GDP revision. Q3 2008 also is negative in the initial report for the quarter. Q2 will not end up going negative because of the stimulus checks while Q1 was probably affected by anticipation of the stimulus checks which might keep it from going negative. Also, considering how bad Q4 2007 was, it might be difficult for Q4 2008 to give us that official recession in the first report. It looks like the stimulus checks prevented a recession earlier this year, but weren't able to push us out of this downturn.

[BaldEagle]

Originally Posted by fidgewinkle

Q4 2007 just went negative in the latest GDP revision. Q3 2008 also is negative in the initial report for the quarter. Q2 will not end up going negative because of the stimulus checks while Q1 was probably affected by anticipation of the stimulus checks which might keep it from going negative. Also, considering how bad Q4 2007 was, it might be difficult for Q4 2008 to give us that official recession in the first report. It looks like the stimulus checks prevented a recession earlier this year, but weren't able to push us out of this downturn.

Wow!!! it did make Hoover proud I had to check where it was back when I said it was going to suck big time and it stood at 11,388 and today we're "all the way up to 9,181"....

As for the recession there is no doubt it's here already the only questions that remain about the recession are;
When does Bernake actually use the word?
How severe is it going to get?
When does it end?

The stimulus checks were simply intended to boost the economy and get the politicians through to election time it wasn't going to fix the problem of the banks being under water.

What I don't understand is what was the Fed was trying to do when they stoked inflation all year by continuously lowering rates and then suddenly decided come September as oil was down 30% already "Oh gee lets not lower the rates, and tank the economy, because we might have some inflation". Well they ended up lowering the rates anyway even after they tanked the economy. Had they held rates earlier the banks would have certainly gone under earlier but they were going no matter what was done because real estate had to drop in price. Real estate either had to go down relative to income through inflation or it was going to be through insolvent banks because they were in at 90-100% of purchase prices and in some cases even over 100% before the decline in value. Oil would have peaked at much lower levels and drawn less disposable income from the system making the stimulus checks more effective.