Stocks fall as Fed adds more liquidity
- Thread starter Friday on my mind
- Start date
well, that didn't last long: -80 and falling. keep in mind expiry of options on 21st September:eek:
And who said it (the subprime mess) was just contained to the USA? Not me.
"British subprime specialist Victoria Mortgages became the latest victim of the credit crisis on Monday, as the lender said it had gone into administration and was no longer funding new loans after its costs escalated."
http://investing.reuters.co.uk/news...96349_RTRIDST_0_BRITAIN-SUBPRIME-UPDATE-2.XML
"British subprime specialist Victoria Mortgages became the latest victim of the credit crisis on Monday, as the lender said it had gone into administration and was no longer funding new loans after its costs escalated."
http://investing.reuters.co.uk/news...96349_RTRIDST_0_BRITAIN-SUBPRIME-UPDATE-2.XML
good pullback in the Dow today, but I'm not convinced:2 cents:
This from Bloomberg: It looks like hedge funds are going to try halting redemptions as opposed to just dissolving. That is going to annoy many of the very wealthy investors that have money in these funds. Most hedge funds are only going to have two choices, halt redemptions or dissolve, so we could be looking at some really nasty legal battles:eek:
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aGfQ5jcOrx1Q
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aGfQ5jcOrx1Q
Fed Rate Cut Not a Done Deal:nono:
43% say Ben will NOT cut:
http://finance.yahoo.com/
When the Federal Reserve meets on Tuesday the 18th, what will it do?
Lower interest rates 59%
Hold rates steady 39%
Raise rates 4%
65282 Votes to date
Decent size poll. I would say a cut is not a done deal.
43% say Ben will NOT cut:
http://finance.yahoo.com/
When the Federal Reserve meets on Tuesday the 18th, what will it do?
Lower interest rates 59%
Hold rates steady 39%
Raise rates 4%
65282 Votes to date
Decent size poll. I would say a cut is not a done deal.
Let's all just claim ignorance:
http://bigpicture.typepad.com/photos/uncategorized/2007/08/22/bad_credit_home.jpg
http://bigpicture.typepad.com/photos/uncategorized/2007/08/22/bad_credit_home.jpg
:1orglaugh:rofl:
Like I say, Fed rate cut not a certainty:
Reuters
Greenspan says Bernanke doing excellent job
Thursday September 13, 11:26 am ET
WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke is doing "an excellent job" running the U.S. central bank, former Fed chairman Alan Greenspan told the CBS program "60 Minutes," according to excerpts released on Thursday..../
Greenspan was asked if he would lower interest rates as dramatically and quickly now as he did just ahead of, during, and after the 2001 recession.
"I'm not sure that's true," he told CBS. "We were dealing with an environment back then when inflation was easing. We could have acted without the fear of stoking inflationary pressures. You can't do that any more ... I think (Bernanke) is doing an excellent job."
It - subprime - IS a contagion: In the UK, as you have probably all read, British Mortgage Lender Is Offered Emergency Loan (see link below).
http://www.nytimes.com/2007/09/14/business/worldbusiness/14cnd-bank.html?ref=world
DOW JONES INDUSTRIAL AVERAGE IN (DJI:^DJI)
Index Value: 13,406.51
Trade Time: 3:56PM
Change: 18.37 (0.14%)
Prev Close: 13,424.88
Open: 13,421.39
Day's Range: 13,323.84 - 13,429.27
52wk Range: 11,926.80 - 14,121.00
Volume: 52,108,563
Like I said before -- if a major bank collapses the euphoria could send stocks soaring. We are in that pre-dotcom bust twilight zone again where bad news is a reason to buy.
http://www.nytimes.com/2007/09/14/business/worldbusiness/14cnd-bank.html?ref=world
DOW JONES INDUSTRIAL AVERAGE IN (DJI:^DJI)
Index Value: 13,406.51
Trade Time: 3:56PM
Change: 18.37 (0.14%)
Prev Close: 13,424.88
Open: 13,421.39
Day's Range: 13,323.84 - 13,429.27
52wk Range: 11,926.80 - 14,121.00
Volume: 52,108,563
Like I said before -- if a major bank collapses the euphoria could send stocks soaring. We are in that pre-dotcom bust twilight zone again where bad news is a reason to buy.
...or some new spectacles
Here's what gets me. You can get a $400k loan for only $1875 a month. I haven't bothered to do the math, but a quick calculation on this is it must be a 50 year loan, interest only, or something of the sort, that is exactly what got so many people in foreclosure up to this point in the first place. The belief they could take out a mortgage for so much money at so little per month sent housing prices soaring so that people went ahead and bought at very steeply inflated prices. People were convinced by ads and even society taught, they could live now and pay later. Now they're foreclosing in record numbers and many are barely able to pay off half the debt that remains with what the sale will bring. Meaning they have a $200k noose around their necks, (with nothing to show for it), accumulating interest for the rest of their lives as well as completely wrecking their chances to ever buy a home or anything else ever again.
With a substantial down payment my mortgage is 15% that amount, at close to the record low fixed rate, and is closer to a quarter of that $1875/mo. payment. It is being paid off early because I decided to not buy the pick up to park in the driveway with the wheels that spin around when I stop and the 300watt sound system to impress my friends, but put that free cash into paying down debt rather than using it for a down payment to take on more.
The picture is from Yahoo this morning.
With a substantial down payment my mortgage is 15% that amount, at close to the record low fixed rate, and is closer to a quarter of that $1875/mo. payment. It is being paid off early because I decided to not buy the pick up to park in the driveway with the wheels that spin around when I stop and the 300watt sound system to impress my friends, but put that free cash into paying down debt rather than using it for a down payment to take on more.
The picture is from Yahoo this morning.
Northern Rock's shares down another 150. How on earth does one attach 'fair value' to a company in such a dire state. Approx £2B withdrawn over two days - who can blame such people. I would do the same, wouldn't you??
http://www.bloomberg.com/apps/news?pid=20601087&sid=awZ1VuQi_zyc&refer=home
http://investing.reuters.co.uk/news/articl...OK-RATES-DC.XML
Greenspan warns of higher long-run inflation: report
Sat Sep 15, 2007 4:07 AM BST
WASHINGTON (Reuters) - Former Federal Reserve Chairman Alan Greenspan warns in his memoir that if the Fed is to keep the inflation rate between 1 and 2 percent in coming years it could be required to force interest rates into double digits, according to a report in the Wall Street Journal.
However, Greenspan said he fears the Fed will face "populist resistance from Congress, if not from the White House" to its policy of maintaining price stability.
He said if the Fed succumbs to that pressure, the inflation rate could rise to an average of 4 to 5 percent by 2030, and 10-year Treasury yields will rise to at least 8 percent with the potential to go "significantly higher for brief periods," the newspaper report said.
____________________
Question: will Bernanke ignore this advice?? A hold/cut is more likely than a hike though. Hikes will have to wait until the credit crunch is over...
Kudos to AFA and especially to free4440273 for this thread.
This definitely makes this board much more well rounded in it's topics. Very refreshing.
And I learn from it as well -
thanks McR, that's really kind of you to say so
:thumbsup:yeah, i heard JR on cbsmarketwatch a year ago talking about a major recession being inevitable: the delay is just wishful thinking and 'tinkering' by the Fed and the money markets. Well, the wheel has come full circle now. And as i said before, do not rule out a +500 point rally in the Dow before the eventual slide...Go ahead and cut rates Bernanke...it makes no difference (apart from destroying your credibility).
^Be careful what you wish for Free :tongue:
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