Wallstreet Sky Rockets! 3/11/08

Wallstreet Sky Rockets! 3/11/08

articles.moneycentral.msn.com

The Fed is taking another step to help the markets.

This morning, the central bank announced further measures to address the liquidity problems facing financial institutions caught up in the mortgage mess. The Fed said it will lend up to $200 billion to securities dealers for periods as long as four weeks, rather than overnight, which is the current policy.

The bank's Open Market Committee also authorized increases in its commitment of dollars to the European Central Bank and the Swiss National Bank. The increases will be $10 billion and $2 billion respectively. That action, too, is designed to combat pressures related to mortgage problems.

(visit the link for the full news article)

Wallstreet at the moment 10:00 is up on just about every front, Dow/Nas/Goo/Apl/S&P all about 4%+. The reporters on MSNBCstock are saying that the american dollar may gain more steam. Hopefully this trail of breadcrums will lead us to something better. Anyones thoughts?

articles.moneycentral.msn.com
(visit the link for the full news article)

I wouldn't count on it, wait until close and see if this holds, this is another FED bailout mini spike, the one's in the know already made BIG money, though if you are day trading you might be able to catch a couple of dips and spikes throughout today.

Another move by the FED to delay the inevitable IMO.

Only short term positive effect IMHO... printing money like crazy is more like defibrillation with a little chance to rescue the patien. The problem is: The US economy is also in stagnation/recession. Means financial instuments like decreasing interest rates only work to a certain degree (if at all). Will get much worse soon...

If anybody has been following the markets since last year they should know the trend, bail out markets spike, for a week, end of week markets down.

What the markets is not getting and neither Banarke is that the housing crash was no a limited and Isolated incident, the repercussions of the crash has spread like a disease in all the areas that the housing was linked too.

Is like a domino effect until the last domino comes falling is not stop to it, you can delay it , make it look better, wait for the stimulus package to come and make a difference but the down fall can not be avoided.

Low employment rates, oil prices to the roof, millions of people losing their home, jobs and becoming homeless is something that no stimulus check is going to fix and the bail out from te fed neither.

I think we may be lucky if this spike lasts till Wednesday's close let alone the whole week.

More delaying of the inevitable. Actually, if I am reading this correctly I think this move may actually expedite the inevitable. If the banks have more liquidity (treasuries for mortgage backed securities) could this not drive up further commodities, decreasing production and increasing prices tipping us into depression?

[edit on 11-3-2008 by Tinhatman]

does anyone else see this as the Preverbal " Prying the main gates open just enuff to get your buddies onboard type thing, then let the gates shut for good "

Are they flooding the market so maybe some people can sell their stocks......
not normal people of course, their selective co op of course....

In any case, what goes up, MUST COME CRASHING DOWN.......

this is seriously concerning.... this is Americans Lively--hood, it will be -150 or greater watch...... by thrusday.... gold in 2001 was 220.00usd a ounce, in 2004 was 424.95usd a ounce but now 2008, gold is 986.00 USD an ounce...

anyone else think the market is being manipulated by certain people for other certain people?

I do. An I think we "normal" people are going to have to pay the piper for these tools to make their money....

ITS ALL RIGGED!

Still about five hours of trading left, and here's the link to the statement from 'the fed reserve':

www.federalreserve.gov...

Release Date: March 11, 2008
Since the coordinated actions taken in December 2007, the G-10 central banks have continued to work together closely and to consult regularly on liquidity pressures in funding markets. Pressures in some of these markets have recently increased again. We all continue to work together and will take appropriate steps to address those liquidity pressures.

To that end, today the Bank of Canada, the Bank of England, the European Central Bank, the Federal Reserve, and the Swiss National Bank are announcing specific measures.

Federal Reserve Actions
The Federal Reserve announced today an expansion of its securities lending program. Under this new Term Securities Lending Facility (TSLF), the Federal Reserve will lend up to $200 billion of Treasury securities to primary dealers secured for a term of 28 days (rather than overnight, as in the existing program) by a pledge of other securities, including federal agency debt, federal agency residential-mortgage-backed securities (MBS), and non-agency AAA/Aaa-rated private-label residential MBS....

[edit on 11-3-2008 by anhinga]

One interesting point to make, look at the volume of trading, is very low, looks to me that a lot of companies will be buying into their own stocks to boost them also.

This was just rumor yesterday.

Mean while the oil is raising steadily probable will top 110 today.

couldnt you buy more gold an raise the rate of the dollar? or is that wrong thinking,

lets go check the junkyards.... motherboards!!!!

lol honestly thoe, why is it so hard to keep a constant steady flow of money into this market, whats the problem here an why isnt it being end, modded or controled? 20 some million people are about go homeless..... i would wager in about a year or two at this rate.

what was forcing them to keep rasing intrest rates an why are they if its just going to have a negitive effect overall?

[edit on 11-3-2008 by Trance Optic]

Google News

After the Fed's announcement, traders pared bets policy makers will cut the benchmark lending rate by three-quarters of a percentage point on March 18. Interest-rate futures on the Chicago Board of Trade showed a 70 percent chance of a 75 basis point cut, compared with 90 percent odds earlier today and 86 percent odds yesterday. The odds of a 1 percentage point cut fell to zero, from 14 percent yesterday.
Source

We're far from being in a recovery. This is just a small boom created by an influx of liquidity. As you can read above, the Fed will most likely cut rates again on or before the March 18th meeting. This move on liquidity might be a way to prop up the markets long enough so the Fed doesn't have to do another emergency cut - which tends to scare people. The last thing the Fed wants to do is put more fear out there.

I don't know a LOT about how all this works, but it's my humble opinion that none of this is good for our economy and only delays whatever is yet to come. What will happen is up to the people holding our nation's debt.

Well wallstreet has closed today, and the Dow finished up +400. The largest gain in the stock market since '02. I'm starting to think that alot of posters here will be eating their words.

[edit on 11-3-2008 by Lokey13]

articles.moneycentral.msn.com...

The article on the subject.

reply to post by pacificwind


I will be doing great too if the Fed bail me out with a million, just a million but the same names that did great today in the markets are the sames ones that benefited from the latest bail out of billions, while up to yeasterday they were on the do-do list.

reply to post by Lokey13


I wouldnt be so quick there.

This will be the third attempt of 'drastic' means to save a faltering economy.
400pts+

thats massive...

But it can be undone in 1 week., maybe a few days at the rate things are going.

bottom line, this will not fix the underlying problems of CREDIT, that has been injected into the economy to fund this war!

I agree this will not take away the fact that the housing crisis that started all this is getting better and that is not going to keep rolling down the hill as the domino effect is affecting everything and everyone link to it.

Like you said is still a credit crunch and is still more write outs to come out.

But I guess the pushing here is to make it last until the stimulus checks hit the consumers and boost consumer spending long enough to save election days for the Republicans.

I think that this little rally won't last the week. It's been consistently down for the past 2 months. I forecast it dropping by a total of 500 points by the close on Friday.

Now, let's watch and see if I'm not right.

TheBorg

oh dear, it didnt even last 24hrs, let alone a week

The rally on Wall Street ran out of gas Wednesday as oil prices jumped past $110 a barrel and enthusiasm for the Federal Reserve's liquidity plan faded.

The S&P 500 index lost nearly 1 percent, while the Dow Jones Industrial Average and Nasdaq lost about half a percent. All three major indexes have declined in four of the past five sessions.

www.cnbc.com...

The economies in serious trouble.

how many more last minute, Hundred billion dollar injections can we create until we get to that point where its useless.

Being too much American cash in the world is causing the problem, i cant see how injecting billions more is going to help.

'' Back in the era of Heir Bush, in the year 2008, the American governments biggest mistake was continually trying to bail out the economy with hundred billion dollar schemes. History will show this was the main reason it collapsed so quickly. ''

The IRAQ War true cost is skyrocketing into the trillions, you cant have that sort of outlay and not bring about significant problems.

This economic crash was a governemnt enduced virus, and I believe the panic and worry is very, very real!

[edit on 12-3-2008 by Agit8dChop]

reply to post by Agit8dChop


Hmm..

Never heard that one before..

Serious question because I am curious as to how you tie it in:

How does the Iraq war effect the Credit markets, the Housing markets, and predatory lending?

And.. what does it have to do with anything aside from national debt?

THE Iraq war has cost the US 50-60 times more than the Bush administration predicted and was a central cause of the sub-prime banking crisis threatening the world economy, according to Nobel Prize-winning economist Joseph Stiglitz.

The former World Bank vice-president yesterday said the war had, so far, cost the US something like $US3trillion ($3.3 trillion) compared with the $US50-$US60-billion predicted in 2003.

The spending on Iraq was a hidden cause of the current credit crunch because the US central bank responded to the massive financial drain of the war by flooding the American economy with cheap credit.

"The regulators were looking the other way and money was being lent to anybody this side of a life-support system," he said.

That led to a housing bubble and a consumption boom, and the fallout was plunging the US economy into recession and saddling the next US president with the biggest budget deficit in history, he said.

www.theaustralian.news.com.au...

Because as soon as the US went to war, the government pushed to make credit EASILY available, thus propping up the markets that were cash strapped.

More people jumped into debt, more people willingly took 2nd mortgages, massive loans etc etc.

This funded the economy, but once the war dragged on longer than the predicted months to a year time frame, expenses massively outweighed revenue.

We weren’t making money from Iraqi oil in time to fund the Iraq war, and to date we still aren’t.

As soon as we started PUMPING hundreds of billions into the world, our money DEVALUED!

OIL became more expensive too, because it took MORE of our dollars to buy a barrel.

This hits the economy all over.

Also, you do not, I say again DO NOT institute TAX CUTS During a war.
You need to FUND this war, and handing more money to the people doesn’t work.

Check out some sites:
findarticles.com...

ONE OF BRITAIN'S largest unions condemned as "obscene" yesterday a report by business leaders which claimed the economy would benefit from a short war with Iraq.
John Edmonds, general secretary of the giant GMB union, attacked the study by the Institute of Directors (IoD), which said a short war would end damaging uncertainty in the stock markets.

But the report warned that a prolonged conflict, cuts in oil production and diplomatic crises for the West would have severe economic consequences.

Just imagine, what those TRILLIONS could of done for economic prosperity had it been spent INSIDE the United States?

World stock markets run on confidence, and the world has lost its confidence in the United states.

I used to admire, love and crave going to the United States in my teens, i dreamt of it.. Walking through NYC, standing in Washington.. Because of the morals and the history you had.

Sadly, all that respect meant nothing, to the corporate entities in the Whitehouse.





[edit on 12-3-2008 by Agit8dChop]