Re: Watch Out
The global rate cuts dont seem to cut it with the market at the moment. Maybe the market is moaning the death of the extra large and fat bonuses the bankers used to get to bankrupt their banks. :)
Re: Watch Out
ive been in the bussiness since i was 18. and havent been pissed this much lol
Re: Watch Out
I don't understand, markets are around 4 year lows while US$ is rising (at one-year peak yesterday).
Both DJI and Nasdaq down around 2% after another "good" opening, rate cut helped for a few minutes.
Surprisingly no one has made any noises about the utter failure of the regulatory and risk assessment bodies. Where are all these bodies who are suppose to monitor and enforce financial discipline?
hey lets restart arthur andersen, blame it all on them and kill it, worked for enron didn't it?
told folks then, the issue is bigger with corp balance sheet risks.
so then SOX was born, and well, lets just say it didnt quite work eh?
oh yeah its been 6.5 years but I am still bitter about how Arthur Andersen was killed off as a scapegoat.
I don't understand, markets are around 4 year lows while US$ is rising (at one-year peak yesterday).
Both DJI and Nasdaq down around 2% after another "good" opening, rate cut helped for a few minutes.
Clarification: This is true for Euro only, Not against Japanese Yen ...
Bailout plan is a huge plan that covers alot of stuff but its main goal is to provide liquidity to the financial system.
in easy words government is lending money to banks so that the banks can lend it again to ppl like us and other small businesses.
and the $85 billion for AIG u r talking about is already been provided to them last month in the shape of a collateral investment with 11.50% intrest for 2 years.
i hope i made it clear :S lol or atleast tried my best
Thanks for all the replies. I understand that $85 billion is already given to AIG and I think now 37 billion more. I guess what I meant to say is the Fed s giving about $100 billion just to 1 company alone. The US is 50 states, hundreds/thousand companies. Just how many companies can the govt actually rescue with $700 Billion.....that's my confusion.....is it even really worth anything.
Thanks for all the replies. I understand that $85 billion is already given to AIG and I think now 37 billion more. I guess what I meant to say is the Fed s giving about $100 billion just to 1 company alone. The US is 50 states, hundreds/thousand companies. Just how many companies can the govt actually rescue with $700 Billion.....that's my confusion.....is it even really worth anything.
Believe me its worth it sheen.
no country in the face of earth can survive without credit circulation or without liquidity, and as a north american i know that our lives r so much dependent on credit that its scary, it really is. this plan is not gona fix everything but its limit the market only to recession instead of a great deep recession or depression.
another fact that most of the ppl dono is that most of the small and big business dont pay their employees from their own pocket, they pay em using their line of credits, and after two weeks (normally) they pay back the bank, now if the bank wont allow the business to use line of credit, how u and me r gona get paid??
and yeah AIG is been given 37 billion more, i dono details yet just saw the breaking news last night but as i said b4 its not a charity given to AIG, its a colletral investment for 2 years at 11.50% intrest.
and the amount of bailout depends on the size of the company, AIG is the worlds largest insurer, it doesn only covers life and health insurence, it also covers the insurence of all teh airlines in world, the biggest railway companies in the world, huge factories in the world.
Re: Watch Out
Dow closes down 678 points the lowest since 2003. Exactly a year ago it closed today at its highest ever.
Two reasons for the fall:
No one wants to have much open exposure over the weekend , just in case
Rumours flying around about Wells fargo and JP morgan.
GM down 30%
JP Morgan down 25%
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Dow down 39% from its high of a year ago.
Watch Goldman Sachs over the weekend. Around $32bln of guarantees written by Sachs for AIG will come up for maturity and it remains to be seen how many of these guarantees will be exercised. It could have a very adverse effect on Sachman.
Interesting times ahead.
so who is buying in right now?
No one
All 30 stocks in Dow were down heavily.
Re: Watch Out
6 days and over a 20% drop.
No one
All 30 stocks in Dow were down heavily.
Well someone is buying I think :D
Re: Watch Out
if it goes below 8k, I am putting all my bond investments back in stocks.
Re: Watch Out
^ You might get your chance as early as Monday or Tuesday next week.
Re: Watch Out
On a lighter note I heard the following on the radio yesterday:
As some banks are now nationalised and others being rescued by taxpayers money this guy on the radio said "next time you visit your bank and have finished your transaction at the counter just lean forward and ask the clerk on the other other side “Is there something else I can do for you today”. 
Re: Watch Out
FTSE falls 10% in the first few minutes of trading. Massacre going on.