2011 Global Stock Market Collapse Watch

reply to post by surrealist


Again, market internals are absolutely horrible with 50 stocks hitting new highs and 600 at new lows.

Shorts are probably covering in anticipation of further lows.

The market is going totally bananas. A 500-point drop one of these days seems very likely, IMO.

Meanwhile, this sounds sort of ominous:

Shadow Banking Contagion Approaches As European Banks Sign Private Repo Agreements With US Counterparts

In what is probably the riskiest escalation of the second credit crisis to date, IFR has released information that was until now speculated, but not confirmed, namely that European banks not only continue to make a mockery out of LiEbor by posting whatever rates they deem appropriate (for the simple reason they don't use interbank funding), while in the meantime going directly to US banks, using shadow, and hence completely unregulated conduits, in the form of private repo arrangements with "at least three of the five biggest US banks."

www.zerohedge.com... m_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29

This is what Zerohedge is quoting, from

www.ifre.com...

US banks have become the unlikely saviours of their ailing European counterparts, signing private agreements to lend them billions of dollars in recent weeks after an exodus of nervous money market funds left many without ready access to short-term funding.

Agreements worth tens of billions of dollars have been signed in the last month alone, according to bankers directly involved, who added that senior management of firms on both sides of the transactions have been closely involved with hammering out deals.

French lenders are among those using such facilities, say bankers, although deals have also been struck with UK and other European firms. Loans have been made as repo agreements, with banks posting assets such as corporate loans and mortgage portfolios as collateral.

“We were able to use some of our assets to get long-term repos,” said one board member at a French bank. “It was a move we made to monetise some of the assets we had on the balance sheet which were good, quality assets, and also to mitigate the withdrawal of money market funds.”.



Paris-based Societe Generale said that it had struck US dollar repo deals equivalent to €6bn against a portfolio of commercial mortgage-backed securities and collateralised loans with maturities longer than six months. US bankers say other banks have struck similar deals in recent weeks to generate cash.

One source at BNP Paribas with knowledge of the situation said the bank was using US dollar repo markets for fixed income activity, but “not more than usual”, though the bank acknowledged that its use of short-term US money market funds dropped by €10bn to €36bn since the end of July.

“Doing repo means you don’t have to sell and don’t have to take the loss on many of these assets upfront,” said another banker at a US bank, who has signed off on such deals in recent weeks. “You can do it privately, so nobody needs to know, and spread losses over the lifetime of the assets.”.



The fact that US banks are willing to increase their exposure to European firms – even if they insist on significant haircuts and conservative interest rates – demonstrates that they are happy dealing with such counterparties, at least for the moment.

Remember always - the FED is a private institution.

To print money, the Feds need authorisation from the Executive after consultation from the elected legislative body - Congress. with transparency.

Thus,as yet, no news of money was being printed. Money that was hoarded in US gov held and guranteed 'deposit boxes' are accountable by the US gov.

Any funds that are being used to prop up bank bailouts are the PRIVATE responsibilities of international PRIVATE enterprises, shuffling remaing depositors money held in banks that are accruing interests around by central banks to contain the debt contagion. They are the ones who MUST BE held responsible when it all crashes. Govs are not responsible, except those govs such as the italian, england, french, and greek govs whom had supported such unconscionable shuffling of others assets to fool others.

The Sovereign People of nations with their elected representatives will just sit and watch the fall of the banks, and then move in to liquidate its assets piecemeal. The super rich had been warned for decades to SHARE wealth, but they failed to take heed, and had instead continued on enslaving mankind, espacially to our fellow human brothers and sisters of the chinese ethnicities and south american states.

Payback time has come....

reply to post by SeekerofTruth101


Nice picture, but I don´t think so.

I think it´ll be maximum upside for business and maximum downside for taxpayers as usual.

Timmy Geithner is busy bailing out Europe, mainly because US banks are loaded with crap from over there.
And vice versa, I´m sure.

Starting to hear folks mixing metaphors, like

they´ll kick the can so far down the road that it´ll run into the house of cards.

The markets took a battering yesterday. Looks as if this has people fearing the double-dip recession. I think by next March the recession will be officially announced

FTSE prob below 5000 at end of say, big as weekend and psychological number

Sky News Ticker 14.51

Reuters: UK Chancellor Osborne "Not confident there is enough money in Eurozone bailout fund"

Not good

Elf

Things seemed to have stabilized over the past few weeks. Even with the threat of a Greek bankruptcy. I will give these people credit. They sure know how to prevent the inevitable.

It didn't crash in 2011 and the game continues on.