Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.
Saturday, March 22, 2008
Continuation Point for Equities as Credit Markets Continue Deflating / Stock-Markets / Credit Crisis 2008
By: Michael_J_Panzner
For the bulls, the events of the past several days have marked a major turning point for the U.S. equity market.
Share prices staged their first weekly gain in a month. The Federal Reserve pulled out all stops to save the banking system. Financial shares bounced hard. And inflation fears eased as commodity prices fell back to earth.
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Saturday, March 22, 2008
Stock Market Crosscurrents & Miracles / Stock-Markets / Dow Theory
By: Tim_Wood
With the close one week ago on March 14, 2008 , the equity markets were literally sitting on the edge of the abyss. The short-term T-bill rate had collapsed to just over 1% while the Discount rate was sitting at 3.5%. My Fed model suggested that another healthy cut was imminent and with the spread between the 3-month T-bill rate and the Discount rate at over 2% the Fed was forced to take action. On Sunday night, March 16, 2008, as the overseas markets opened they began to plummet, making it obvious that we were indeed sitting on the edge of the abyss. In a surprise, or should I say desperate, meeting on Sunday night the Fed cut .25% and on Monday the equity markets initially sold off sharply, but then recovered and closed the day marginally positive. On Tuesday the Fed cut the Discount rate another .75% and the Dow Jones Industrials closed up 420 points. Read full article... Read full article...
Friday, March 21, 2008
Stock Market Bottoming Process Continues- Good News Ahead / Stock-Markets / US Stock Markets
By: Clif_Droke
Investors have had to endure a tremendous onslaught of horrendous news that has shaken the financial sector to the core. One pundit likened the past few months to flying a hang glider in a hurricane. That's how it has felt to all of us as bad news begat more bad news…which in turn drove the financial markets lower.
The good news is that the winds have now diminished and the dark clouds are on the verge of lifting. It's time now to focus on the positive things to come instead of dwelling on the negatives of yester-year. That's the message the stock market is telling to anyone who will listen.
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Thursday, March 20, 2008
Stocks Bear Market- How Bad Can It Get? / Stock-Markets / Stocks Bear Market
By: Hans_Wagner
To beat the market you need to invest with the trend. The stock market is down and continues to fall almost every day. As of March 19, 2008 the DJIA is down 8.8% for the year, the NASDAQ is down 16.7%, the S&P 500 is down 11.6% and the Russell 2000 is down 13.3%. Most investors are looking at their portfolios and they are very unhappy. The initial problems with the mortgage market started this tumble. Will it continue to get worse and is it spilling over into other parts of the U.S. economy? So how bad can it get? Read full article... Read full article...
Thursday, March 20, 2008
Homebuilders ETF Approaching Resistance / Stock-Markets / Housing Stocks
By: Mike_Paulenoff
I need to give you a heads up on the Homebuilders ETF (AMEX: XHB), which is nearing a confrontation with major resistance between 22.7 and 23.30. Let's notice that the sharply declining 200 DMA at 23.09 is right in the middle of that range and presents a major test of the bottoming/recovery process in the sector. However, based on my near AND intermediate-term technical work, the XHB will hurdle the above-mentioned resistance zone on the way to 25.00.Read full article... Read full article...
Thursday, March 20, 2008
The Story Behind Bear Stearns- Cliff Notes on Financial Maelstrom / Stock-Markets / Credit Crisis 2008
By: Jim_Willie_CB
As the financial markets stare at the abyss, contemplate the cliff, suffering massive falls in selective stocks, a review of ‘Cliff Notes' might be appropriate. The financial maelstrom is gathering force and fury. The Bear Stearns story has a story behind it, as usual in the Grand Manhattan Den, where violent financial battles give false appearances as desperate measures are played out behind the scenes. The drama on Wall Street will make history. These guys are killing each other, while they cooperate with each other. Like crows, they killed and devoured one of their own. Read full article... Read full article...
Thursday, March 20, 2008
Bear Stearns Bailout Proves US Fed is Merely an Extension of the Financial Industry / Stock-Markets / Credit Crisis 2008
By: Mike_Whitney
One picture tells the whole story. It's a photo of five grim looking men in gray suits staring ahead blankly like they were in the dock with Saddam awaiting sentencing. Every one of them looks downcast and dejected; shoulders rounded and jaws set. This is what desperation looks like, which is why the photo was kept off the front pages of our leading newspapers. Read full article... Read full article...
Wednesday, March 19, 2008
Gold and the Plunge Protection Teams Virtual Garden / Stock-Markets / Credit Crisis 2008
By: Alex_Wallenwein
We all knew the world was ending … and then the Fed and the PPT stepped in and made it all okay again.
Bear Stearns, an 80-year investment banking veteran who saw the crash of 1929 and the Great Depression come and go, who weathered the stormy seas of stagflation during the 1970s and the brutal recession under Volcker and Reagan, disintegrates before our eyes, right into the open pockets of JP Morgan Chase - courtesy of the Federal Reserve (which JPM co-owns)..
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Tuesday, March 18, 2008
Stock Market Update: Buying the Bottom, Badda Bing! / Stock-Markets / US Stock Markets
By: Dominick
That was easy!! The markets have given us so much of what we've been expecting lately it's impossible to get it all into a single update, but long story short, badda bing badda boo, the main idea is that we were able to buy the low (again) and took the money at our target, which happened to be the high at the close Tuesday. We haven't been giving away as much lately in these free updates, but that doesn't mean we've stopped taking money from this market.Read full article... Read full article...
Tuesday, March 18, 2008
Fed Facilities Benefiting Financial Institutions Shareholders / Stock-Markets / Credit Crisis 2008
By: Paul_L_Kasriel
There Should Be a Quid Pro Quo between the Fed and Financial Institutions - The Fed's creation of various facilities in recent months - the Term Auction Facility (TAF) for depository institutions, the Term Securities Lending Facility (TSLF) for primary government securities dealers and the Primary Dealers Credit Facility (PDCF) - would be expected to alleviate some institutional liquidity issues that otherwise could metastasize into institutional solvency issues. Commercial and investment banks now can borrow against seemingly credit-worthy collateral with a much smaller "haircut" than otherwise. The Fed has created these new liquidity facilities in order to forestall a systemic failure of the financial system, not to enhance financial institution shareholder value. Read full article... Read full article...
Tuesday, March 18, 2008
Bear Stearns Bailout- Perhaps the Wrong Science? / Stock-Markets / Credit Crisis 2008
By: Paul_Petillo
If you have ever taken the time to watch water swirl around a pier, you have seen turbulence. The fixed object creates eddies that are at first large and then, as the turbulence seems to move around and away, they diminish. The late Robert Kraichman, a physicist saw this type of turbulence and wondered if it happened on a larger scale, would the same large to small changes take place. Read full article... Read full article...
Tuesday, March 18, 2008
Bear Stearns Fire-sale Sends Global Markets and US Dollar Plunging / Stock-Markets / Credit Crisis 2008
By: Mike_Whitney
“It's a snowball and it keeps getting bigger,” Peggy Furusaka, credit specialist at BNP Paribas SA in Tokyo.
Last night, while America slept, investors and dollar-holders around the world held an impromptu election on US stewardship of the global economy. It was a spontaneous referendum triggered by the sudden collapse of Bear Stearns, but it covered many of the issues that have worried investors for the last seven years: the unfunded Bush tax cuts, the $2 trillion war in Iraq, the Federal Reserves low-interest bubble-making policies, the reckless gutting of US industrial base, the $4 trillion increase to the national debt, the multi-billion dollar “no bid” contracts, the opaque deregulated financial system, and the systematic destruction of the world's reserve currency. The ballots are still being counted, but the outcome is certain.
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Tuesday, March 18, 2008
The Bear Stearns Rescue Fiasco / Stock-Markets / Credit Crisis 2008
By: Paul_J_Nolte
Eliot Spitzer and Bear Stearns. Not an unlikely couple in a statement in any given week, as Mr. Spitzer was known to take a swing at any financial company that may be doing wrong. However, last week both were bowed low – Eliot by personal demons, Bear Stearns by what may be called an old fashioned run on the bank. Eliot may wind up on the wrong side of prison bars and Bear Stearns may become nothing more than a historical footnote. The Fed and JP Morgan have come to the temporary rescue of Bear Stearns, however given the very intertwined dealings of financial instruments, investors began to wonder how many others might suffer the same fate in the weeks ahead. Read full article... Read full article...
Tuesday, March 18, 2008
The Real Bear Stearns Story and the Risks of Systemic Collapse / Stock-Markets / Credit Crisis 2008
By: John_Mauldin
This week's Outside the Box is going to be a little different. I am going to write about the extraordinary action by the NY Fed to foster the Bear Stearns deal with JP Morgan, and give you three brief notes from Michael Lewitt of Harch Capital Management and Bob Eisenbeis (former executive vice-president of the Federal Reserve of Atlanta) of Cumberland Advisors.
Let's Get Real About Bear Stearns
I already have a slew of emails from people upset about what they see as a bailout of a big bank, decrying the lack of "moral hazard." And I can understand the sentiment, as it appears that tax-payer money may have been used to bail out a big Wall Street bank that acted recklessly in the subprime mortgage markets.
Monday, March 17, 2008
Financial System Crisis Met by Wall of Central Bank Money Leading to Hyperinflation / Stock-Markets / Stagflation
By: Ty_Andros
BEWARE: The Ides of March, aka FIRESTORM! Part II As confidence in US financial institutions and its balance sheets DISSAPEARS so have the investors in them. Liquidity from the private sector has stopped dead in its tracks. As I have outlined in the past, there is no lack of liquidity, only a lack of confidence to deploy as questions of Solvency are now of primary importance. So, now the financial systems' parents at the G10 central banks and the government's fire trucks are on the scene of the 5-alarm blaze pouring liquidity into the fires raging in the financial sector that is Wall Street, Lombard Street and the G7 banking system. Last week's RUN ON THE BANK and the subsequent rescue of Bear Stearns de-marks the latest commitment of Helicopter Ben Bernanke and G10 central bankers to deliver on their recent promises to do “whatever it takes” to combat DEFLATION and protect the banking system within the various nations financial and asset markets.
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Monday, March 17, 2008
US Fed Panic Measures to Avert Financial Meltdown on Bear Stearns Failure / Stock-Markets / Credit Crisis 2008
By: Money_and_Markets
Martin D. Weiss writes: Last night, when Ben Bernanke cut the discount rate ... made a loan of $30 billion to cement the Bear Stearns buy-out ... and flung open the Fed's coffers to the next major investment banks that may be on the brink of failure ... he must have thought that investors around the world would applaud his actions.
Not quite!
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Monday, March 17, 2008
Bear Stearns Collapses Into Arms of JP Morgan / Stock-Markets / Credit Crisis 2008
By: Nadeem_Walayat
The ongoing deleveraging of the $500 trillion derivatives markets claimed its biggest scalp on Sunday - Bear Stearns, formerly one of the worlds top investment banks and now taken over by JP Morgan to prevent a global financial panic, with the aid of funding and guarantees from the US Fed amounting to $30 billion which was reminiscent of the UK Governments bailout of Northern Rock Bank.Read full article... Read full article...
Monday, March 17, 2008
Derivatives Dominos Start Falling Threatening Collapse of the Shadow Banking System / Stock-Markets / Credit Crisis 2008
By: Mike_Whitney
On Friday, Bear Stearns blew up. It was the worst possible news at the worst possible time. A day earlier, the politically-connected Carlyle Capital hedge fund defaulted on $16.6 billion of its debt. Carlyle boasted a $21.7 billion portfolio of AAA-rated residential mortgage-backed securities, but was unable to make a margin call of just $400 million. (Where did the $21.7 billion go?) The news on Bear was the last straw. The stock market started reeling immediately; shedding 300 points in less than an hour. Then, miraculously, the tide shifted and the market began to rebound. If there was ever a time for Paulson's Plunge Protection Team to come to the rescue; this was it.
Monday, March 17, 2008
Bankrupt Bear Stearns Given Away to JP Morgan to Prevent Market Panic / Stock-Markets / Credit Crisis 2008
By: Chris_Ciovacco
I have been on Wall Street for fifteen years, and fully appreciate how the market will read the "purchase" of Bear Stearns for $2 per share is anybody's guess. As a manager of risk, I see the following:
- It is obvious Bear Stearns was bankrupt and could not have continued as a viable entity.
- Rather than have them declare bankruptcy, the Fed engineered a plan to have JP Morgan "buy" Bear Sterns for $2 per share. A price of $2 per share means the market was too optimistic in the last 14 months when Bear's stock fell from $169.33 in January 2007 to $30 per share as of Friday's close.
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Monday, March 17, 2008
Gold: The Leading Indicator of Systemic Financial Collapse / Stock-Markets / Financial Crash
By: Darryl_R_Schoon
Falling Dominoes Rising Gold - The failure of Windows Vista to improve upon Microsoft's accepted standard is an indication that an era is ending. Another indication—just as obvious and far more significant— US central bank credit is no longer automatically able to create economic expansion. Suddenly, cheap credit does not produce growth. An era is over.Read full article... Read full article...