Category: Financial Crash
The analysis published under this category are as follows.
Friday, February 01, 2008
US Banking System Teetering on the Brink of Collapse / Stock-Markets / Financial Crash
By: Mike_Whitney
Somebody goofed. When Fed chairman Ben Bernanke cut interest rates to 3% yesterday, the price of a new mortgage went up. How does that help the flagging housing industry?
About an hour after Bernanke made the announcement that the Fed Funds rate would be cut by 50 basis points the yield on the 30-year Treasury nudged up a tenth of a percent to 4.42%. The same thing happened to the 10 year Treasury which surged from a low of 3.28% to 3.73% in less than a week. That means that mortgages which are priced off long-term government bonds---will be going up, too.
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Thursday, January 31, 2008
PANDEMONIUM! - US Financial Markets in Uproar After Fed Loses All Traction / Stock-Markets / Financial Crash
By: Alex_Wallenwein
From Merriam Webster's Online Dictionary: Pandemonium. noun; Etymology: New Latin, from Greek pan- + daimo-n evil spirit — more at demon . Date: 1667. 1: the capital of Hell in Milton's "Paradise Lost." 2: the infernal regions: hell . 3: not capitalized : a wild uproar : tumult .
On Wednesday January 30, 2008, the last stops to a total collapse of the US financial structure were pulled out. The elevator cable is now cut, with the elevator carriage at the 45th floor of a 50-floor skyscraper. If you believe you can "jump" to avoid getting crushed when the carriage hits the concrete floor below - good luck!
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Monday, January 28, 2008
The Crash of the Bank of United States and the Great Depression / Economics / Financial Crash
By: Professor_Emeritus
Benjamin M. Anderson* - By the fourth quarter of 1930 the trouble with the Bank of United States gave occasion to grave concern. - The Bank of United States was a bank which ought never to have existed, and which certainly ought never to have had the name it had. One leading banker of New York went personally to Albany to protest against the giving of such a name to that bank or to any other bank, and was told that there was a political debt to pay. Read full article... Read full article...
Sunday, January 27, 2008
Stock Market Bounce - SELL The Rallies! / Stock-Markets / Financial Crash
By: Money_and_Markets
While stock investors are celebrating late last weeks surprise rally in the Dow, most bond investors are bracing themselves for a new disaster of unquantifiable dimensions.
Ground zero of the new crisis: Precisely the companies that I said would be at ground zero — collapsing bond insurers like MBIA and Ambac, along with the hundreds of thousands of bonds they cover.
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Sunday, January 27, 2008
Stock Market Crash - Robert Prechter on Bloomberg Youtube Video / Stock-Markets / Financial Crash
By: Nadeem_Walayat
Everyone wants to know, "Is the worst over for stocks?" If you're familiar with Bob Prechter and his work, you won't be surprised that his short answer is "NO." But ... it's his long answer that is much more compelling, including insights into what you should be doing NOW to prepare for what's still to come.Read full article... Read full article...
Saturday, January 26, 2008
Bailout Battle Raging Between US Government and Financial Markets / Stock-Markets / Financial Crash
By: Money_and_Markets
Mike Larson writes: Pardon me, but am I the only one suffering a serious case of whiplash here? I mean, the financial sector developments over the past few days have been amazing ... simply amazing.
Coming into the week, the global markets were in a freefall. While U.S. markets were closed for Martin Luther King Day, stock indexes from Hong Kong to London were collapsing on fears of a bond insurance market meltdown.
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Saturday, January 26, 2008
How to Survive and Prosper During the Financial Markets Crisis / Stock-Markets / Financial Crash
By: Money_and_Markets
Larry Edelson writes: Six months ago I warned you that all hell was about to break loose in the U.S. economy. Tumbling real estate values ... tens of billions of dollars in mortgage debt at risk ... the virtually non-stop decline in the dollar ... an ongoing bull market in gold — all pointed to tough times ahead for our country.
Despite the Federal Reserve slashing interest rates by three-quarters of a point this week, the time of reckoning has arrived.
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Friday, January 25, 2008
Wise Bears Sell US Municipal Bonds And US Treasury Bonds / Interest-Rates / Financial Crash
By: Richard_Gorton
I. Today saw a rally came from the Federal Reserve cutting the central bank interest by 0.75%. My investment motto is: "In a bull market be a bull, and in a bear market be a bear: in a bull market, one buy on dips, and in a bear market, one sells pops and rallies". Special thanks to Stockcharts.com for the free us.eage of charts provided herein; all comments are mine, not theirs, or those of any one else.
I recommend that one buy gold as it is in a bull market going 'sooner or later much, much higher'.
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Thursday, January 24, 2008
The US Debt and Yen Carry Trade Unwinding Time Bomb is About to Explode! / Stock-Markets / Financial Crash
By: Christopher_Laird
Synthetic Dollar Short - Richard Russell and other gold writers talked about a ‘synthetic dollar short' based on debt in 04/5. The thesis is that overly indebted entities will face a day when their loans are called in, and the demand for dollars will rise dramatically, as assets are liquidated to pay off positions/debt.
The often discussed Yen carry trade has a similar mechanism, where lots of Yen have been borrowed for the last 10 years and invested in various markets that yield more than the half percent Japanese interest rates. Big and small investors have taken advantage of this more or less free money, riding the interest rate bonus with little risk – up to now.
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Tuesday, January 22, 2008
Use Short Bear Funds to Hedge Crashing Stock Markets / Stock-Markets / Financial Crash
By: Donald_W_Dony
With the introduction of the bear fund, analysts and investors have another very valuable tool to review the markets that was not available before. The use of fundamental analysis can provide investors with an inside look at the financial health of a company, its management skills and spot potential difficulties for the organization in the near future. Technical analysis allows the investor to review large numbers of securities, in different time frames, for profit opportunities, but normally only from one perspective; the buy side. The bear fund offers that mirrored image of a security that when used properly, can greatly expands the investors vantage point and provide valuable data that is not available through simple fundamental reviews or only buy-side technical analysis.
Tuesday, January 22, 2008
Five Trillion Wiped off Global Stock Markets - Fed Emergency Interest Rate Cut Rumors / Forecasts / Financial Crash
By: Adrian_Ash
THE GOLD MARKET bounced off a 2.1% slump at the London opening on Tuesday as global stock markets attempted to steady on wild rumors of emergency interest-rate cuts.
Following Monday's torrid action in Asia and Europe , the loss of world equity value for 2008 to date is now put above $5 trillion.
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Sunday, January 20, 2008
US Stock Markets Crash and Burn Whilst The Fed Fiddles / Stock-Markets / Financial Crash
By: Robert_McHugh_PhD
I hate to bash Fed Chairman Ben Bernanke, but I'm going to for a few pages. Here's the deal. The current economic threat is screaming for an aggressive inflation solution. Inflation comes from the Fed. Forget about the inflation the Fed has caused over the past 90 years, and the doubling of the money supply to goose markets for the past eight. A lot of that was dead wrong, a theft of our children's future, coming at an unnecessary time.Read full article... Read full article...
Thursday, January 17, 2008
Investment Portfolios Face Destruction as Credit Crunch Intensifies / Stock-Markets / Financial Crash
By: Doug_Wakefield
Are The Levees Starting to Break? - “I have often stopped to ponder our human condition – specifically, our uncanny ability to dismiss the seriousness of an event beforehand and to lament our lack of preparation after it has happened. How many New Orleans residents stated, in some form or fashion, that they never expected the storm to break the levees? But, it's easy to see the rational behind their unresponsiveness. They had been through countless storms since the levees were first established and nothing that dire had ever happened.” – September 2006, The Investor's Mind: Too Costly to Bear Read full article... Read full article...
Monday, January 14, 2008
Central Banks Entering Hyper Inflationary Money Supply End Game / Stock-Markets / Financial Crash
By: Captain_Hook
Central banks are now showering the economy with accelerating quantities of fiat digits like never before , which is having the effect of extending the current boom cycle even longer in spite of the natural tendency for system failure. Not too long from now however, and in spite of these efforts then, like a game of musical chairs enough participants will be expelled from the festivities in natural process, which is an eventuality that cannot be avoided no matter how much intervention is exercised. Moreover, it's the fact monetary debasement rates need be accelerated to this point that is the signal we are now in the final rounds of the game (end game dynamics), where like in musical chairs, if you are prepared and with a little luck one might be the one left standing at the end. And while this might sound fine for those prepared people, don't kid yourself, what's coming here is not going to be pleasant for anyone, as the hangover from the credit binge we have been on for some 25-years now will not pass in a day or two, meaning living standards are set to decay rapidly. Read full article... Read full article...
Friday, January 11, 2008
FIRE SALES of US Financial Assets - Fingers of Instability, Part 16 / Stock-Markets / Financial Crash
By: Ty_Andros
In This Issue- 3 Fingers of Instability
- FIRE SALES!
- Nights of the Long Knives!
- Flights to Perceived Safety!
Introduction
Dear readers, I want to thank you all for a gratifying 2007, the support for Tedbits has been nothing short of phenomenal. We are now on many radar screens thanks to your interest in my work. The last month has been tumultuous and I had the mother of all colds/flu in late December and spent several weeks traveling around the globe until just before Christmas. So I rested my body and my brain and I now enter the New Year much rested and ready to rumble. I will be doing a short Tedbits this week and then do the 2008 forecast over a 2 to 4-week timeframe. There's a lot to cover in the forecast as the headlines are quite hysterical. The choir out of Wall Street is predictable BULL****! The big picture is very clear as I will illustrate to you in the 2008 forecast.
Thursday, January 10, 2008
Monetary Inflation to be Joined by Price Inflation Crisis During 2008 / Stock-Markets / Financial Crash
By: Jim_Willie_CB
Unproductive Assets, Wasted Productivity The US system has been the dog led by the financial sector tail, as the tail wags the dog, for over two decades. Systematically, the United States has abandoned manufacturing in favor of financial sector dominance with futile attempts to manage inflation, and money changers pushing to foreign lands the capacity that actually makes things and adds value. Such is the painful costly consequence of chronic monetary inflation. Unfortunately, the nation has invested heavily for decades in unproductive assets like military hardware and recently homes. The entire US Economy was made heavily dependent upon the housing boom and mortgage finance craze. Now that a housing crisis and mortgage debacle seems a nightmare without end, we are treated to utterly moronic opinions that the US Economy will glide through the storm. It will not. Read full article... Read full article...
Friday, January 04, 2008
US Financial Crisis Worsening as Consumer Loan Delinquencies Surge / Stock-Markets / Financial Crash
By: Money_and_Markets
Mike Larson writes: Several weeks ago, I told you we were staring "S&L Crisis II" in the face. I said estimates of losses stemming from the mortgage crisis kept spiraling higher — from $100 billion ... to $250 billion ... to $400 billion and higher.
I wish I could say things are getting better. But they're not. In fact, the tally of charges, losses and write-downs across the financial industry continues to rise higher and higher.
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Thursday, January 03, 2008
2008 - Break of the Financial System as PRIME Mortgages Go BUST / Stock-Markets / Financial Crash
By: Jim_Willie_CB
The year 2008 will be the year that THINGS JUST PLAIN BREAK. It will be a truly deadly year, unavoidably lethal to the USEconomy and especially to the US banking sector. Nothing has been repaired. Some tangible solutions will be offered in the next section, all legitimate in a real world. However, we do NOT live in a real world, but rather in a Fairy Tale world of US Hegemony and Wall Street with a choke hold around the US entire system. Managed inflation is the policy never to be reversed, until total breakdown occurs. Treason is rampant, called simply Power Games. Read full article... Read full article...
Sunday, December 23, 2007
Financial Markets in Denial of Collapsing Credit Markets / Stock-Markets / Financial Crash
By: Christopher_Laird
The ECB just lent out an astounding half $Trillion worth of money to 390 banks in only one day this week. It was to combat the lending freeze in Europe where banks are refusing to lend to each other over concerns about the mortgage losses this year. The demand was so high it caused alarm.
The question that comes to mind is, ‘Hey, we have a first class financial emergency here, when are the stock markets going to react accordingly?'
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Thursday, December 20, 2007
US Bailout of Bond Insurers to Prevent Collapse of US Banking System / Stock-Markets / Financial Crash
By: Jim_Willie_CB
The hidden bond insurers used by Wall Street firms are in the news, especially ACA Capital and MBIA. Implications are huge, with monumental ripple effects. Financial press reporting of the bond insurers is woefully inadequate. Moodys and Fitch are giving analysis review to nine ‘AAA' rated bond insurers to see if they have sufficient capital to conduct their insurance operations. The list includes ACA Capital, MBIA, Ambac Financial, and Financial Guaranty Insurance. ACA Capital has only $1.1 billion in cash for payout of bond failure claims, but has lost $1 billion in the most recent quarter. More losses are assured. This insurer is very important, since it is widely abused by Wall Street banks to hide cratered bond derivative losses. Read full article... Read full article...