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300 dow down is just a start

Truthmatters

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Truthmatters

Truthmatters

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A 300-point drop? It's just the start
With the credit markets a disaster, buyouts can't continue to drive stock prices higher. That's one reason, of many, I think we're headed for an even bigger fall.

Latest Market Update
July 27, 2007 -- 10:00 ET
[BRIEFING.COM] Equities are still on the defensive, but barely, as a renewed wave of buying interest lifts the indices well off their recent lows. Turnarounds in the Financial and Technology sectors have been the most notable areas of improvement.


For a change, this week I'm going to delve into stock-market machinations (both on the surface and behind the scenes) because I think they suggest we have reached a critical stage in the credit-unwinding process. My focus will be on Thursday's action.

Black cat crosses bulls' path
Before the open, stock-index futures were down about 1%-plus. Why was that important? Because in the last year or so, when we have seen an ugly session (like the one Tuesday), it's typically prompted an immediate rally -- if not the following day, then the day after that.

However, Wednesday's rally was pretty punk. Which is why I (and the bulls) thought there'd be another attempt the next day. The fact that the futures fell out of bed pre-opening was thus an indication that something was potentially very different.

As I checked all of my contacts in credit land, it quickly became clear to me that this was the source of the problem. One friend who watches the high-yield market said: "Credit is an unmitigated disaster this morning. Bonds down 2% to 3% across the board." In addition, the "Lord of the Dark Matter" confirmed that structured credit was really getting thumped, ditto all the leveraged indexes and the ABX credit stack. To quote him: "Mate, there is a massive margin call in structured credit and there are no marginal buyers for it."

http://tinyurl.com/28mf4j
 

lieberalism

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How much time do you waste making tinyurls for links that arent even that long?
 
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Truthmatters

Truthmatters

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How much time do you spend trying to find a way how not to answer the real intention of a post when it rocks your image of the R party?
 

Mr. P

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How much time do you spend trying to find a way how not to answer the real intention of a post when it rocks your image of the R party?

This has nothing to do with the R party. Credit is in such bad shape because they made sooooo many sub-prime loans and now it's biting them in the ass. Simply bad business.
 

BaronVonBigmeat

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This isn't really an indictment of the republican party; the coming economic troubles are an indictment of bad federal reserve policy, which is independent of party.
 

Nevadamedic

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A 300-point drop? It's just the start
With the credit markets a disaster, buyouts can't continue to drive stock prices higher. That's one reason, of many, I think we're headed for an even bigger fall.

Latest Market Update
July 27, 2007 -- 10:00 ET
[BRIEFING.COM] Equities are still on the defensive, but barely, as a renewed wave of buying interest lifts the indices well off their recent lows. Turnarounds in the Financial and Technology sectors have been the most notable areas of improvement.


For a change, this week I'm going to delve into stock-market machinations (both on the surface and behind the scenes) because I think they suggest we have reached a critical stage in the credit-unwinding process. My focus will be on Thursday's action.

Black cat crosses bulls' path
Before the open, stock-index futures were down about 1%-plus. Why was that important? Because in the last year or so, when we have seen an ugly session (like the one Tuesday), it's typically prompted an immediate rally -- if not the following day, then the day after that.

However, Wednesday's rally was pretty punk. Which is why I (and the bulls) thought there'd be another attempt the next day. The fact that the futures fell out of bed pre-opening was thus an indication that something was potentially very different.

As I checked all of my contacts in credit land, it quickly became clear to me that this was the source of the problem. One friend who watches the high-yield market said: "Credit is an unmitigated disaster this morning. Bonds down 2% to 3% across the board." In addition, the "Lord of the Dark Matter" confirmed that structured credit was really getting thumped, ditto all the leveraged indexes and the ABX credit stack. To quote him: "Mate, there is a massive margin call in structured credit and there are no marginal buyers for it."

http://tinyurl.com/28mf4j

It's funny when Clinton crashed the stock market a hell of a lot worse then this you said it wasn't his fault but when it happens under President Bush you bale it on him, can we say hipocrits?
 

Vintij

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I think it was just a one day thing. If you look at the market its already on the rebound. Well not as a whole, but Apple is right back up, google is way up. All the imporant company's are right back up. I might even buy some shares because of all the paranoids out there selling.
 
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Truthmatters

Truthmatters

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It happened bercause the government refused to go after the sub prime market and its preying on the idividual home buyer.


They ignored it because it was keeping Bushs numbers up.
 

heretic

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Truthmatters said:
How much time do you spend trying to find a way how not to answer the real intention of a post when it rocks your image of the R party?

I find it humorous that your image of the D party is so much better than the R party.

They ignored it because it was keeping Bushs numbers up.

Yup, it all dubya's fault.:lol:

This isn't really an indictment of the republican party; the coming economic troubles are an indictment of bad federal reserve policy, which is independent of party.

:eusa_clap:
 
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Truthmatters

Truthmatters

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So is the DOJ remember?
 
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Truthmatters

Truthmatters

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Truthmatters

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http://en.wikipedia.org/wiki/Federal_Reserve


The Federal Reserve System is a quasi-governmental/quasi-private banking system composed of (1) the presidentially-appointed Board of Governors of the Federal Reserve System in Washington, D.C.; (2) the Federal Open Market Committee; (3) 12 regional Federal Reserve Banks located in major cities throughout the nation acting as fiscal agents for the U.S. Treasury, each with their own nine-member board of directors; (4) numerous private U.S. member banks, which subscribe to required amounts of non-transferable stock in their regional Federal Reserve Bank; and (5) various advisory councils.
 

lieberalism

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sniff, according to liberals, bush and cheney control the stock market. every trade is approved by them.
 

ScreamingEagle

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This isn't really an indictment of the republican party; the coming economic troubles are an indictment of bad federal reserve policy, which is independent of party.

Maybe we should return to the gold standard.
 
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Truthmatters

Truthmatters

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The Truth in Lending Act (TILA) of 1968

is an example of how the government has the power to effect lending practices and prices.

We will now pay the cost of these loans with tax dollars to bail out the banks who made these idiotic loans when we could have saved ourselfs this cost by effecting their practices to keep this from happening at all.

It was the realestate market that kept the Bush economy from tanking and now we will all pay a bigger price than it should have cost us.
 
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Truthmatters

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the dow is down 200+ right now
 

manu1959

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have you bothered to track stock market growth over the past 20 years.....
 

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