Category: Financial Crash
The analysis published under this category are as follows.Tuesday, August 28, 2007
Stock Market and Financial Crash Emergency Audio Update! Online NOW! / Stock-Markets / Financial Crash
Martin Weiss writes: The other shoe is about to drop on this mortgage catastrophe — and before it does, I need to get you some urgent help — fast .
So this morning, my team and I have just recorded an Emergency Audio Update .
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Monday, August 27, 2007
Stock and Financial Markets Crash - Final Warning! / Stock-Markets / Financial Crash
Martin Weiss writes: This is your final warning.
The tempest Mike Larson and I have been warning you about is here, and the time for protective action is now.
To see the storm, you no longer need the flat-screen window to the world that you get each day from CNBC or CNN. You don't even require the time telescope we've been giving you in Money and Markets .
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Saturday, August 25, 2007
Stock Market Crash - October 21 Again? / Stock-Markets / Financial Crash
Dear Readers, You saw our article " AUGUST AGAIN ". Needless to say it was prophetically precise.
I am almost scared to put this new chart up there. Nothing in the chart suggests 1987 style crash, but I can not help it... the dates, the the timing, the cycles...
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Thursday, August 23, 2007
Will Credit Crunch Crisis Calm Down Before The Real Stock Market Crash ? / Stock-Markets / Financial Crash
After basically being up on and off 24/7 for two weeks – I am amazed at the speed of the onset of the credit crisis. I also had a feeling last night, thinking about all this chaos, that it is rather bizarre. Weird and eerie is another view. There is no doubt that we have seen real fear like never since 1929 in credit markets. That almost spread to equities, with some scary drops – like 600 and 800 point down days in the Hang Seng and the Nikkei.Read full article... Read full article...
Thursday, August 23, 2007
Dow Theory Stock Market Sell Signal - Into The Breach / Stock-Markets / Financial Crash
The stock market triggered a Dow Theory sell signal Friday, with both the Dow and Transports closing below June lows, and new lows for the move. Now we have confirmation from a very reliable indicator the stock market is in real trouble to go along with our own observations last week. In relation to this, speculators continued to take put / call ratios down on Thursday, which was part of the reason stocks fell Friday. Just how big a factor put / call ratios are right now is uncertain however, because premiums for puts close to the money doubled Friday, showing extreme pessimism readings not seen by this observer in quite some time. What's more, put positions that matter (on the S&P 500) still outnumber calls almost 2 to 1 (when the SPY and SPX series are added together), so in spite of a possible route in the first few days of this week, I am still hoping for a rally back above 1500 at some point believe it or not. But if put / call ratios keep falling like they have been, with the SPX series down to 1.76 as of last Thursday, I'm not likely to get my wish.Read full article... Read full article...
Wednesday, August 22, 2007
Fear in the Streets – A Dress Rehearsal / Stock-Markets / Financial Crash
As we write this article it appears that fear is abating and that the financial markets are getting back to business as usual. Nevertheless, one major piece of bad news could send the markets tumbling once again. So, have we just witnessed the worst of the market decline s or was this just a dress rehearsal for a much more severe and perhaps catastrophic decline ahead ? None of us ha s a crystal ball going forward from here, but we as investors continue to seek opportunities always aware of the potential short term downside risk.
So, we ask the question; what have we learned from the action of the markets as the volatility occurred?
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Sunday, August 19, 2007
How Far Will the Stock Market Crash Go and What Do we Do Now? / Stock-Markets / Financial Crash
The “Crash of 2007-08” is underway
The immediate triggers are being described quite well: the collapse of the U.S. subprime mortgage market; the vulnerability of the rest of the economy to the subprime undertow, due to the “efficiency” of the markets in spreading risk; the worldwide overextension of cheap credit; the failure of large institutional investors and Wall Street brokerages to behave responsibly; and the long-term effects of the U.S. trade and fiscal deficits which are now coming home to roost.
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Saturday, August 18, 2007
Panic at the Fed! Collapse in the US Dollar! / Stock-Markets / Financial Crash
The Federal Reserve is so desperate to stop the spreading panic in the credit markets that …
It has just slashed its discount rate by a HALF point!
It has blown away its own rules on how long the banks can borrow! And …
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Saturday, August 18, 2007
The Financial Markets Panic of 2007 / Stock-Markets / Financial Crash
In this issue:
Muddle Through or End of the World?
An Alphabet Soup of Credit
Turning Nuclear Waste Into Gold (and Back Again!)
Mrs. Watanabe and the Hedge Fund Connection
The Rating Agency Blame Game
Where Do We Go From Here?
Hedge Funds to the Rescue!
Warren Buffett Needs to Take Over Moody's
Will a Fed Rate Cut Make a Difference?
Vacation, Europe, and Reading
End of the World or Muddle Through? This week I try to explain in simple terms the very complicated story of how we went from some bad mortgage loan practices in the US to the point of world credit markets freezing up. There is a connection between the retirement plans of Mr. and Mrs. Watanabe in Japan and the subprime problems of Mr. and Mrs. Smith in California. We find the relationship between European banks and problematic hedge funds. And finally, we try and see how we get out of this mess. Oddly, I think it is hedge funds (and maybe Warren Buffett) to the rescue, but not in the way you would think. It is a lot to cover, so let's jump right in. (And there are a lot of charts, so while this will print out long, it is only a little longer than the usual in word length.)
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Saturday, August 18, 2007
Refueling Psychotic-Optimism As Fed Saves Stock and Financial Markets From Near-Meltdown / Stock-Markets / Financial Crash
In light of the Feds clandestine shattering of the discount window in the wee-hours of Friday morning, we really do not have much to add to last weeks rant about Ponzi-Regimes coming to the rescue of grossly mismanaged markets.
Down how much? – And already requiring immediate emergency rescue measures?
Last Thursday, stock markets were off their historic highs by around 10%, and most major metropolitan housing-markets are down anywhere from 5% - 10% at best. Certain regions like Manhattan , have experience little if any downward adjustment to their mega-bloated values - some 200% - 300% above their former 1998 values.
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Friday, August 17, 2007
Financial crisis! What to do ... / Stock-Markets / Financial Crash
Mike Larson writes: We are in the midst of a financial crisis . Not a downturn. Not a slump. Not a blip. This is a full-blown meltdown. The causes?
Too much housing speculation: The Federal Reserve pumped the economy full of easy money after the tech bubble burst. That money found its way into the housing market, fueling a speculative bubble like no other in modern U.S. history. Now that bubble is popping, too … and the fallout is spreading throughout the financial markets.
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Thursday, August 16, 2007
Panic Selling As Stock Markets Crash Towards Bull Market Support Levels / Stock-Markets / Financial Crash
Noon Time Update: We will look at seven charts this Noon time, based on where a number of indexes were at the close yesterday and what the VIX was telling us (last chart).
This first chart is of the DJI and its 200 day moving average. At the close yesterday, it was holding above it, but today it dropped below that support. The DJI is the index that should be the strongest in this down turn, but this morning it dropped below the 200 day moving average. Panic selling levels are high now, and the panic has its own momentum. It will be important to hold the 200 day moving average in the next few days.
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Thursday, August 16, 2007
2007 Stock Market Crash Update II / Stock-Markets / Financial Crash
In late July we published a piece called 2007 crash market stock update wherein we described the inter-market picture as shaping up to be eerily similar to that of the 1987 stock market crash.
In summary: We noted that the stock market had been ignoring a falling bond market for much of 2007 in much the same way as the stock market ignored a falling bond market back in 1987. We further explained that it was not until the Bond market broke below its May lows in September 1987 that all hell broke loose in the stock market and ended up in Black Monday, a one day drop of 22% in the S&P500.
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Thursday, August 16, 2007
Stock Market Panic In Progress / Stock-Markets / Financial Crash
The market is telling officialdom, and specifically Bernanke, that like in the lead up to the 1929 stock market crash (which was 90%), the true health of the economy is not being interpreted correctly, and that official policy is not sufficiently accommodative. As alluded to during the course of the week, this misread and mishandling of the situation has a great deal to do with the stubborn resilience of Chinese stocks , commodities , and freight rates , which are all barometers of the ‘global economy'.This is why the Fed is now suggesting that only a ‘ calamity ' will cause them to soften official policy, because they must get prices under control soon if traditional Presidential Cycle policy considerations are to be managed successfully. What's more, like Greenspan, Bernanke is a gradualist, but he is a rearview mirror gradualist, meaning he actually manages official policy based on history. Again, like the '29 experience, this is causing a misread of measures currently needed to stave off a real deflation risk, which is why prices are falling in spite of supportive price constraints . In a nutshell, people are panicking, and for this reason Monday could be very interesting.Read full article... Read full article...
Monday, August 13, 2007
Global Financial System in Jeopardy! / Stock-Markets / Financial Crash
Martin Weiss writes : For the first time since 9-11, central banks around the world are pouring massive amounts of fresh new cash into their markets.
On Thursday alone, Japan pumped in $8.4 billion … Australia injected $4.2 billion … the U.S. pumped in $24 billion … and the European Central Bank flooded its banking system with an unprecedented $130 billion! And on Friday, they did it again , opening the money floodgates in similar quantities.
Why?
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Sunday, August 12, 2007
Stock and Financial Market Crash Alert #3! Your Last Chance to Act! / Stock-Markets / Financial Crash
Martin Weiss writes: Two years ago, we began warning you that the housing market was headed for a massive crash and we urged you to dump mortgage lenders, home builders, and other real estate stocks.
If you had listened then, you would have avoided major losses as our warning became reality.
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Friday, August 10, 2007
Surprises Abound - Central Banks Liquidity Flood Fails to Prevent Stock Market Plunge / Stock-Markets / Financial Crash
Just as everyone thought things were getting back to normal. Just as everyone thought that all the bad and ugly stuff had receded into seldom-accessed portions of the subconscious. Just as the bulls were starting to get a little of that swagger back and talk of new records filled the airwaves... BANG! The markets were once again slapped with another dose of reality. The really interesting thing about today was not only what didn't happen, but what DID happen.Read full article... Read full article...
Friday, August 10, 2007
Central Banks Bailout of Financial Markets Backfires / Stock-Markets / Financial Crash
The central bank support that Cramer was crying for last week arrived, and it didn't work
A funny thing happened during today's central bank bailout attempt: the markets plunged. Is it just me, or when central bankers unite and throw money at a problem isn't that problem supposed to go away?
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Monday, August 06, 2007
Subprime Housing Market Financial Sector Crash and Jim Cramer's Sage Rage / Stock-Markets / Financial Crash
In what is quickly becoming one of his most popular television tirades to date (which is saying a lot), Jim Cramer completely lost it last Friday during a discussion on CNBC. Coined a "passionate plea to Federal Reserve Chairman Ben Bernanke to consider cutting interest rates" , the incensed Cramer said: "It is no time to be an academic... open the darn Fed window. He [Bernanke] has no idea how bad it is out there. He has no idea! He has no idea! I have talked to the heads of almost everyone single one of these firms in the last 72-hours and he has no idea what its like out there. None!!!...
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Monday, August 06, 2007
Revenge of Frankenstein Finance / Stock-Markets / Financial Crash
A chimerical force has been rampaging through global markets in recent months, wreaking widespread havoc. Cobbled together from myriad agreements, assumptions, and transactions by academics, financiers, and marketers, this labyrinthine creation was once seen as an unmitigated success of new age financial alchemy.
But now, with changing economic and financial conditions exposing the derivatives-securitization monster to the harsh light of day, the nightmare of Frankenstein finance is coming home to roost.
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