The crisis is over?

Just read this article on cnn...

money.cnn.com...

Some investors think that the worst is behind us now.
Can this crisis be resolve so quick...so easily.

I really dont understand what's going on (I know i'm not alone) Last week stock crumble, every day of the week is black!

Then G7 meeting this week-end, european country to buy toxic mortgage.
And monday every country gain 5 to 10% on their indexes?

I really dont understand, can this crisis be over so quicky?

I dont think so. I think that was just the beginning and when the holiday season comes around it will get much worst. Thats my opinion

This is a long-term crisis in my opinion. Just because everything went to hell and comes up a little bit doesn't mean it is over. The bailout is just delaying the inevitable by propping up our already falling system. Once the "prop-up" can't hold it anymore, it will collapse. Maybe early next year, say feb? Just a guess, but this situation is far from over.

I think we are ok now, we made it, go out and continue being a good little consumer. Its ok now.

For a little while maybe today it will be ok, maybe for a week or so, but I have heard a lot of talk of hyperinflation due to the trillions they have pumped into the system. In my opinion I dont think we have seen the worst, and I really dont think it is over by any means.

We tried to fix the balloon from bursting, by putting another balloon around it. Soon it will take the other balloons problems and continue to grow, then it is going to be an explosion on epic scale. You cant fix the problems by doing the exact same thing that got you in trouble in the first place. Unless you are the government, then you can try it, and try it again, and try it again. They are like a little kid that just cant make the connection that when he sticks his finger in that electrical outlet it hurts. But the little kid has mass insulation to him so he may feel it a little bit but the insulation takes the most of it. We are the insulation for the stupid little bastard sticking his finger in the outlet. Hey dummy knock it off!!

reply to post by airlouche


The tsunami is still to come when the QUADTRILLION derivatives market unwinds i'ts ugly head. DEAD CAT BOUNCE at the moment.Here in the uk we have our saviour of the world,Mcbroon,prophesing that all will be ok,when in reality our once great country will become bankrupt.We just a'int got the dough to be bailing out these banks.FIGHT THE NEW WORLD ORDER.

reply to post by airlouche


Why does anyone think that anything happens in a vacuum. This ON-GOING event started with the establishment of the Federal Reserve, and won't stop being a crisis until the FedRes is decommissioned.

What I'm saying is; We're not out of the woods, until we stop acting like children who need a parent. We, America, need to grow up, and be on our own.

The banks are one of the problems in the market.. The banks are closed today.. Lets just give it at least a week before we start with the victory cries. Fool me once, shame on you. Fool me twice, shame on me.

I think the crisis is over provided you forget about the existence of CDS, as well as the impending doom in the $1 Trillion dollar derivatives markets.

Credit and liquidity are not the only issues. Insolvency of major organizations will be playing a huge part in the very near future.

Read an interesting article put forward by Omega on GLP where he suggests we are in fact in a period of biflation. Wikipedia link here

I recall Ron Paul saying this past spring that there was going to be troubles in the financial markets come this fall AND that they would do everything thing possible to keep it afloat until after the election.

The crisis isn't over, but with a market gain in the vicinity of 800+ points, the largest ever, by a long shot, it does indicate that confidence is returning and that the panic might be over.

Eat your heart out, Jim Cramer!

so what just happened ? One day a bazillion dollars evaporates from all the worlds financial markets simultaneously. Financial Markets say " hey world we're out of money now you're broke, and everyone will die if you don't pony up some cash" World searches collective couch for lose change, comes up with another Bazillion to replace lost Bazillion. World Financial Entities does lots of mask switching and puts on fake mustache , "Hi I'm new here ,is that a bazillion dollars in your pocket or are you just glad to see me?" Now everythings okie dokie ? What happened to original bazillion? How does all the money in the world disappear? Reappear? oh and new mustache is old mustache

Can you say Smoke and Mirrors?

My personal opinion which may be rather useless is that as the NYSE stocks go up the dollar will lose ground as seen today. Because of the trillions of magical dollars pumped into the economy, inflation will sky rocket and the implosion of our economy will be ripe for the Amero.

The Fed's paper printing ability coupled with the Government buy out has only staved off the inevitable. As well, we have not been able to see the inflation yet because every other country in the world has pumped hundreds of billions into their economies so the dollar's value has held and even gained as the excessive weight of cooking the books was being shed by the stocks.

As soon as those excess trillions printed out of thin air begin to prop up Stock Market numbers that were declining because they were re-aligning themselves to reflect assets that were never there we are in big trouble.

Essentially we had a market inflated through bad debt as an asset. Now we are exchanging that bad debt with money printed out of thin air. So now instead of a crash, we will have inflation.

Will it get bad enough for the Amero to replace the dollar?

Oh ya, just as a reminder, the Government now owns a lot of banks. =)

if we look past the world-wide bailout...
with central banks & national treasuries taking over the functions that banks once did -->>
(i.e. provide loans & credit to every level of business and trade.)


the euphoria going on will soon reverse itself....
Why?... because the government intervention & behaving like banks...

in providing the maximum 84 day 'short-term' loan packages to every business operating in the particular central banks' country,
will come to an abrupt end.
The G-20/G-7/et al.... are on board for buying all private-commercial paper (debt), for right now.


the reason all the central banks accepted this program, is because they feel that the banking sector will (sometime) start to lend money, to keep the worlds economy going- - and this bailout program is the imputus/'starters pistol' for the banks to actually do what they are supposed to do ---which is: [ to extend credit & make loans]




in several days from now... Tuesday should be another rally as the 'Bond' issues & bond-markets will be addressed, in the same type of (suckers) bailout by the different governments and their central banks.

but after all this misplaced euphoria dissapates... the markets will realize that the central banks & government treasuries have no long term plans to keep bailing out the non-loaning banks...


I expect the banks may reluctantly make loans to the very best customers at something like LIBOR + 5 points,
and there will be no companies or corporations willing to pay those extortion rates to keep a 3% profit business running.
And the central banks/national treasuries will not renew or further extend the bailout program to buy up commercial paper that keeps the system running !



its all down hill

The point is that the economic system is contained within our political system. So if we build a pyramid of coca cola bottles, the political system will have taken care of it, because there is no economic sense to it whatsoever.

Our problem has been that we believed governments were there to bow to markets. It's a bit difficult, because of constitutional pillars, governments should tend to keep out, but not forget that they are boss, the will of the people.

[edit] the point is..... try two...... governments can take control.

[edit on 13-10-2008 by redled]

I think the most sane explanation for today's market surge is that all those people who have been selling like crazy for the past couple of weeks decided that there were a lot of good stock deals, what with stocks being so low and governments worldwide coming together to prop things up, and they went bargain-hunting for a day.

I guess there's a lot of doom and gloom in such a scenario, but I see some hope there, too. It may all crash tomorrow, but somehow I think that things are going to work out and the sky won't fall, after all.

[edit on 2008/10/13 by GradyPhilpott]

probably because they took so much money out of peoples retirement.

the highest i hear was 100,000. from some guy at my work.

i dont know... i think this is all a front. DONT WORRY CITIZENS ITS OVER!! is all they have to say as the media influences everyone by just saying "its ok". we all know this is true as we watch our family members and co workers repeat it that very same day at work...

ugh.

It's far from over. It's barely just begun. We haven't even seen the riots and soup lines yet. My gosh, how can these so-called financial experts be so . . . so . . . so silly? Well, they aren't! What these knuckle brains (or master thieves) did was basically get another line of credit/funny-money in an attempt to keep the party going . . . going until they and their friends can cash in their chips and take the booty and run. They've only made a bad situation worse by compounding the cause. Them gangstas will keep coming back for more. It's bankers welfare.

[edit on 13-10-2008 by Divinorumus]

down 500
down 300
down 400
down 100
down 700
down 200
down 200
down 400
down 500
boing......up 900

i really don't think it's all over, i think the markets are taking a breath so to speak, it has to collapse, it can't not collapse. the fundamental flaws haven't been addressed as yet, the economies are in recession, or approaching recession, jobs will be lost, mortgages will default, banks will lose money and fold and confidence will once again diminish.

the only thing these governments were doing was trying to slow the collapse, there is no way they can actually fix this without buying all the banks and using tax payers cash to prop them up, there's no two ways about it.

It's not over yet, If you chart the last 3 months, and you see a big W then maybe it really is over right now you see the first V of the W. Either way it will drop again severly in the next few days or weeks.

The real question is will it keep dropping or form a W. Very often there is a "dead cat bounce" people who are overly optimistic and greedy, think they can jump in and buy things up as a bargain, and end up getting burned severely.

The market has only been dropping for 1 year, the great depression took two years of dropping. Just consider the possability of the worst being yet to come, where the market is worth 1/10 of a percent what it was worth at the beginning of the year. It is way to early to get excited about a recovery.


Either way we are on the highway to hyper-inflation.
Ordinarily if the market drops money should be expected to be removed from circulation to match the drop. After all those trillions have left the economy. The stocks are not worth as much as they were yesterday.

However the value of our investments has dropped greatly, and they are instead pumping more dollars into the street. There are fewer dollars worth of investments to buy, but more dollars to buy them with.

These more dollars mean that to buy the other things which there still the same amount of like food and homes will take more dollars, they have been watered down, like adding water to wine, there is more wine but it is diluted, more watery. But no one is handing you more dollars, you will be paid the same. So you will not be able to buy as much, only the bankers will be able to buy more. Everything you own and hope to own will be diluted, some of it taken from you and handed to a banker. Many will loose there jobs and no longer get any money. Many already have.
While they have less now, they soon will not be able to buy as much with the little they have left.

This will effect the greedy banks and businesses too. And they will once again start to seize up. Because the cause of the problem, their greed and untrustworthyness have not been addressed, it has been rewarded.

The bankers and executives will dive in for one last round at the great banquet, before it closes forever.

Credit is powered by trust, and they are so greedy and untrustworthy that they no longer trust one another. This recovery is based on an appeal to their greed, and therefore doomed to escalate the damage.




[edit on 14-10-2008 by Cyberbian]

[edit on 14-10-2008 by Cyberbian]

We have only seen the start of what is about to come,just because the market has jumped up again don't mean we are out of the woods VERY far from it IMO.