Will the Financial Crisis Continue???

I agree Udio, this weekend was a very busy one for the house markets trying to sell what they could.

But who is buying I heard nothing about who where the buyers.

Well the rally from Friday is slowing. Dow & Nasdaq up slightly and SP500 down slightly all on Lowes profits rising!

Meanwhile Treasury yields fell to their lowest since 1987 (Interesting Year) on the flight to government bonds amid the credit crunch!

Bond Yields hit a 20 year low!

European markets were up slightly and Asian markets were up 3 to 5% from Fridays Fed Intervention. Still worry continues in the markets over the credit crunch!

Another Hedge Fund in Trouble!

Ooops, another Fund in Trouble!

I don't think were going to be able to put Humpty Dumpty back together again if this keeps up!

No matter how much worthless money the Fed prints!

Well the next markets open in a few hours in Asia! Stay Tune to the continuing soap opera "As my stomach turns over the financial markets!"

Originally posted by Fifth_Column
The real estate market is crashing faster than anyone had anticipated.

With the lending policies of us banks in regards to subprime mortgages it's amazing that this crash has not happened sooner.

If you lend people up to 120% the value of a house with out checking they have the means to pay it back you can't pretend to be surprised when people start defaulting...
Lots of people default, Lots of houses for sale... person sees cheep house and buy with a shiny new subprime mortgages.

As a result of this the poor companies who buy the bonds issued over the subprime mortgages without considering the risk associated with the high interest loose there money... profits go down... shareholders panic... ect... ect...


In the long run it will be interesting to see if the US keeps their dominant position once people start to realize that the problem is relatively contained (people may start looking more towards china or the eu.. (im not holding my breath)).

(I know in Australia our LoDoc loans are beginning to raise criticism and we love our credit cards to the average debit of $7000 per person. But we have a mining boom at the moment forcing up property prices (the average house price in australia is now $400000) and there is the slim chance that we may learn form the mistakes of the us before it's too late...

In europe a similar problem occurring is unlikely due to the majority of people rent. And i would not have a clue on the situation in china....)

Anyway whatever happens it's going to be a interesting few years...

[edit on 20/8/07 by evilCorgi]

It appears that the amazing thurs afternoon rally was lead by energy sector specs hoping to profit from hurricane Dean, and heavy buying in the financial sector...banking, brokerage, and mortgage stocks. What this says is that someone in the financial markets knew about the pending Fed rate cut the following morning...surprise!

Now who might have begun buying-up the financial sector Thursday on advance knowledge?

It's interesting to note that only two Federal Reserve branches had petitioned Bernanke for a rate cut...San Francisco, and New York. So we have James Dimon, Board of Directors NY Fed (Chairman-Chief Executive Officer with JPMorgan-Chase)...and the Board of Directors of the San Francisco Fed pleading for a rate cut. What brings this scenario into focus is that the nation's largest mortgage lender, Countrywide (based in Calif) was perched on the brink of insolvency precisely when the calls for for help went out...JP Morgan-Chase has serious exposure to Countrywide. It's difficult not to see this rate cut for what it was...a special interest good old boy bailout.

Inspite of Fed market intervention, financials were under pressure again today. Thornburg shares got hammered -10%. After a serious credit downgrade, they're headed to the discount window for financing, or they're out of business. This was AAA paper.

I still expect the major indices to retest Thursdays lows before the end of the month.

Evilc, the problem is that this thing is not contained to the USA because everything has been leverage 10, 20 times its original value to the world market!

It is a real mess!

Australia down slightly, Japan up slightly!

Oh, by the way Wells Fargo maybe in trouble too!

[edit on 8/20/07 by mel1962]

Fed and central banks continue to pump money into the markets!

Meanwhile Mortgage companies continue to go under, yet the markets rally! Who is buying this crap?????

Bad News means a Good News on Wall Street?

Well the feds have help keep the illusion of prosperity alive, while the morgage companies keep trying to survive.

Among all the mess somebody is making money, but at the same time the people that are to lose their houses are just bying time.

Me, I am just waiting for the fix rates to go down to also save some money.

[edit on 22-8-2007 by marg6043]

A lot of folks on here are "chicken littles" and just want to report disaster. Anyone who really follows the market knows that its volatile and i'll leave it at that. Its not going to bring us a one world currency this year or global melt-down or anything like that. Its okay. Really.

reply to post by princeofpeace


I do, and I also see that as long as the fed keep doing transfusions the markets will be able to support the illusion of prosperity.

Lord have mercy so China owns our housing markets!!!!!!!!!!!!

Who owns your morgage!!!!!!!

9 billion dollars of chinas money on our house markets.

You folks need to check this all out:

www.solari.com...

It explains why this is all happening and when the next things will occur and it is provided by a Bush cabinet member..

reply to post by GrndLkNatv


People where mislead to believe that the gains in the wealth being created and shown in the markets was for everybody benefit.

But the wealth was only limited to a few that made this wealth from the debt of others.

Now this fake wealth is coming back to bite the wealth makers in the butt.

The loses are the people in the group of housing foreclosure and small firms that never got to enjoy the wealth.

I'll admit that I'm hardly a financial expert, but I've been reading up on how some of this stuff works, lately. From what I can grasp, I expect things to continue a downward trend for quite awhile. I've been looking at the federal reserve and gold standards and stuff like that, and either the big financial types are complete idiots, or they have a plan that does not include the general financial well being of the average person. It's a total mess.

wow---with the fed pumping billions in smoke and mirrors into the supply every couple days, I'll bet that most would rather just have let the crash occur, because when it finally does catch up, it's gonna be a doozie.

Unless we get another high dollar war to rescue the economy, along with a draft.

Unless we get another high dollar war to rescue the economy, along with a draft.

I hope not with the shape our debts in could we aford another war I mean if so we might find ourselfs out on the battle field shooting blanks in other news the over seas markets are low looks to be another downer on wall street today

Check out the Huge number of Call Options opened today on the S&P at the lowest strike prices.
Unusual Call option on SPY

Also check out the huge number of Put options on the DOW opened today at various levels well below current levels.
Unusual Put volume on the Dow

I'm not sure what this means. I've bought calls before, I stay away from puts.

The only thing I can think of is that one is meant to be a hedge against the other. I do follow the options on both of these ETF's(religiously for past 3 months) and have never seen anything like this.

This news out of Europe is nine days old, but here's another interesting put on the Dow Jones Eurostoxx 50. Maybe it's the short side of a straddle trade, but in any event, put options of this magnitude would indicate that someone with a lot of $ may know something...

Well after some ups and downs it looks like the Chickens are coming home to roost!

I thought the previous job numbers were not correct. -4000 jobs in August, Countrywide to cut 12,000 jobs, dollar drops to all time lows and the bubble heads on idiot vision continue to talk about dow 15K!

Asian stocks are opening lower 2 to 3% on worries over the US economy.

Japan down on news from US and domestic economy

Yen continues to advance against the dollar which may unwind the Yen Carry Trade!

Yen Rises

It looks like we are in for a rough ride, we will have to see what happens in the European Markets next!

If Chinas next move is to buy oil from Iran using the Yen Japan will do very well and so the Yen.

Tomorrow will be an interesting day in the markets.