The stock market - Monday the 13th

[DavidS]

I'm starting this early to track European and Asian stocks. Fridays rarely see bottoming out, so I think tomorrow, Monday October 13th, we could see another black Monday. Foreign leaders met at the White House this weekend and instead of announcing a global plan to fix the economy, they came out with a joint statement saying "We'll work on it."

People are going to spend the weekend looking at how bad the week did for them and they're going to sell. Everyone I've seen on the major networks agrees with this, but doesn't see us falling below 8,000.

This will setup a nice bull run on Tuesday. People on Tuesday are going to see how cheap stocks are and there should be a nice rally to get us up to today's levels. We've got inflation reports, earnings reports and a couple of other reports coming out around Wednesday, Thursday, so everyone is saying this volatility should end by then.. unless something else happens.

 

[Paulie]

I'm starting this early to track European and Asian stocks. Fridays rarely see bottoming out, so I think tomorrow, Monday October 13th, we could see another black Monday. Foreign leaders met at the White House this weekend and instead of announcing a global plan to fix the economy, they came out with a joint statement saying "We'll work on it."

People are going to spend the weekend looking at how bad the week did for them and they're going to sell. Everyone I've seen on the major networks agrees with this, but doesn't see us falling below 8,000.

This will setup a nice bull run on Tuesday. People on Tuesday are going to see how cheap stocks are and there should be a nice rally to get us up to today's levels. We've got inflation reports, earnings reports and a couple of other reports coming out around Wednesday, Thursday, so everyone is saying this volatility should end by then.. unless something else happens.

Stop listening to the "major networks". They're polluting your mind.

 

[Toro]

The Dow is up 150 points in the futures market at 10:30pm on Sunday night.

I'd rather see it down 500 points and rally. I'm afraid an up open on Monday will merely encourage the sellers.

 

[Charles_Main]

The people selling are fools, why turn a paper loss into a real one. Stay in for the long run. 5 to 7 years from now the markets will be back to where they were before this all started.

 

[DavidS]

Asian and European stocks are up sharply! Dow futures are up almost 400 points! We could see the best day EVER on Wall St.!

 

[editec]

Hey Rocky! Watch me pull a bull or a bear out of my hat!​

 

[Dr Grump]

Interestingly, the Australian market was up 4.5% as were most Asian markets at the close of play.

I honestly think people are just lemmings. They follow the latest trends.

That aside, my boss - who is a prick, but pretty astute - said any person cashed up would be buying like crazy. So many of these public companies are solid, but people are only selling because they are in panic mode. They don't realise how good some of these companies are....those in the know do, though, and will be richer for it. I wish I had a creidt line...

 

[DavidS]

In about two years from now, we're going to have very cheap real estate and a very cheap stock market. Whomever is elected this time around will most likely be elected next time around as well, the economy is going to be on fire.

 

[editec]

Interestingly, the Australian market was up 4.5% as were most Asian markets at the close of play.

I honestly think people are just lemmings. They follow the latest trends.

That aside, my boss - who is a prick, but pretty astute - said any person cashed up would be buying like crazy. So many of these public companies are solid, but people are only selling because they are in panic mode. They don't realise how good some of these companies are....those in the know do, though, and will be richer for it. I wish I had a creidt line...

The fact that central banks world round are putting money into the system seems like it should mitigate the current liquidity problem.

The more important question for me is will the nations realize that bankers need rules to prevent them from doing this kind of wild speculation, again?

We either need to give our government the responsibility for lending (we take that away from the FED) or we need to seriously regulate what kind of investing our banks are allowed to do.

That, and we really need to punish those bankers and bond ratings companies which LIED to their bond puchasers. At minimum they ought to be stripped of every asset they own and the proceeds ought to go to the people holding those dubious bonds.

THAT needs to happen no matter which course we finally decide to take, methinks.

If we continue to overlook bad business practices like that, and if the villans continue to get away with these sorts of deals scot free and rich off the proceeds of it, then no investor anywhere in the world is safe for another diasterous conspiracy to defraud investors.

 

[DavidS]

Hey Rocky! Watch me pull a bull or a bear out of my hat!​

Hmm... a moose creating a bear... interesting.

 

[Dr Grump]

The more important question for me is will the nations realize that bankers need rules to prevent them from doing this kind of wild speculation, again?.

I don't often cross swords with you Editec, but we might be on this. Having studied the market and after having just finished watching an Australian doco that was a repeat (if first aired 9 months ago) that looked into the sub-prime mortgage fiasco (all interview subjects were Americans with the vast majority picking the current crisis about to occur), I think you need to adjust your question. Instead of nations, you need to say nation (no "s"). Undoubtedly, this crisis is of the United States' making. I just wish you could have seen this doco. The writing on the wall was easily two years ago.

Over the past six months people have asked the question "why don't you foreigners butt out of our business?". Aside from the fact that America has its nose in everybody else's business, the current economic climate is a prime example of why we give a shit. Your impact on the world is obvious...this current economic crisis is a classic example.

The irony of it all is that the main cause is those who have the mindset of neocon conservative whackjobs - ie "greed is good, capitalism is god" - with the end result being quite a few banks might end up being owned by the government. Let it be a lesson to all you capitalist nutters - don't always hope your dreams come true - they might turn around and bite you in the arse!

 

[editec]

It is my understanding, Dr. G, that England and OZ and much of Europe have been suffering massive real estate downturns, too.

It is also my understanding that Spain, and France, and Iceland, and to a lesser degree Germany have all allowed their banks to make dubious loans because they ALSO had too lax monetary policies.

Have I been misinformed?

If not, and if their banks are ALSO now fearful of lending money because of the current situation, then the central banks of the Western industrialized world really do have to act together to deal with this liquidity crises, yes?

 

[Care4all]

they bought mortgage backed securities from our banks too...thus the tie in to our bank failures...

 

[Dr Grump]

You are right in what you say, but as the doco pointed out (as did a couple of Yale economics professors and Joe Average's too who understand the market), it is being driven by Wall St. A tonne of Australian and European superannuation funds are tied to the US economy. They start tanking and it has a roll-on affect.

To put it in simple terms, these problems that Australia and Europe are having are a direct result of the sub-prime problem In other words, the only reason other countries are being affected is due to the US economy - something I have been saying (not so much the current crisis, but the affect the US has on the rest fo the world) for some time now