Category: Financial Crash
The analysis published under this category are as follows.
Wednesday, December 19, 2007
Collapse of the Modern Day Banking System - Staring into the Abyss / Stock-Markets / Financial Crash
By: Mike_Whitney
“In past financial crises... the Fed has been able to wave its magic wand and make market turmoil disappear. But this time the magic isn't working. Why not? Because the problem with the markets isn't just a lack of liquidity — there's also a fundamental problem of solvency.” Paul Krugman
Stocks fell sharply last week on news of accelerating inflation which will limit the Federal Reserves ability to continue cutting interest rates. On Tuesday the Dow Jones Industrials tumbled 294 points following the Fed's announcement of a quarter point cut to the Fed Funds rate. On Friday, the Dow dipped another 178 points when government figures showed consumer prices had risen 0.8% last month after a 0.3% gain in October. The stock market is now lurching downward into a “primary bear market”. There has been a steady deterioration in retail sales, commercial real estate, and the transports.
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Thursday, December 13, 2007
Stock Market Investors Failing to Recognise Inevitable Credit Contraction Collapse / Stock-Markets / Financial Crash
By: Doug_Wakefield
While observing current events through the lens of history over the last few years, there have been times in which the only conclusion I could draw was that we were beginning a bear market that would prove much more severe than the one from 2000 to 2002. As fiat currency and money supplies have exploded the world over, we have seen a proliferation of products, with varying acronyms, as the financial world tries to distance itself from the risky loans it originated. My experiences, as a researcher and investment advisor, suggest that the root of the problem is in investors' thinking. Between the fall of 2002 and the spring of 2003, multiple markets began bull runs. As 2007 comes to a close, the only lesson most investors learned from the 7 trillion dollar loss of those years is to “hang on” when the market declines. Read full article... Read full article...
Thursday, December 06, 2007
End of the US Banking and Financial System / Stock-Markets / Financial Crash
By: Jim_Willie_CB
In the last month a tectonic shift has taken place among central bankers. To be sure, the USDollar is aided if foreign central banks end their march to raise official interest rates. The USDollar has been propped up for over two years in large part from powerful credit market carry trades that used to exploit higher USTreasury bond yields, both the short-term and long-term variety. The US Federal Reserve has been forced kicking and screaming to reduce official Fed Funds rates, all the while denying a grotesque contagion from the bond world to the bank world to the economy on Main Street . The USFed looks bound by the bond market to continue to cut interest rates, much like a large dog is led by a spiked choker around its neck, urged to obey its master's orders via vicious tugs. Read full article... Read full article...
Wednesday, December 05, 2007
Are the Current Stock and Financial Market Mania's about to Crash ? / Stock-Markets / Financial Crash
By: EWI
Stock Markets tend to periodically rally into dangerous financial manias, the problem that investors have is not in recognising that one is in an financial mania, but when the resulting bubble will burst with a stock market crash.
The recent rally in the global and US financial markets, including the Dow Jones, increasingly has all the hall marks of a financial mania according to Elliott Wave International analyst Peter Kendall. This distinction is important to recognize as the markets rise, because the manias always result in a CRASH that takes them back beneath their original starting point.
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Tuesday, December 04, 2007
The Money Panic - US Banks Huge Exposures To Credit Risk / Stock-Markets / Financial Crash
By: Money_and_Markets
Martin Weiss writes: With credit markets sinking into deeper turmoil ...
With more severe losses spreading to a wider range of financial institutions ...
And with the Fed's rate cuts thus far failing to stem the crisis ...
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Saturday, December 01, 2007
Stock Markets Ignoring Subprime Housing Market Crash Fire Alarm / Stock-Markets / Financial Crash
By: John_Mauldin
In this issue:
- The Financial Fire Trucks Are Gathering
- A Thanksgiving Fire Drill
- The Credit Markets Get Tighter
- Pushing on a String - the LIBOR Conundrum
- GDP Funny Business
- Europe, New York, and South Africa
The markets rebounded strongly this week, bouncing off a 10% drop in the previous weeks. Is it a signal of renewed economic vigor? Or is it a dead cat bounce? This week we take a look at problems at the edge of the economy which threaten to derail not only the recent robust growth (at least in the statistics) but also the markets. And we start with a personal story which I think will help us understand the current situation. Stay with me here.
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Tuesday, November 27, 2007
The Stock Market Crash - Market to Fed: Don’t fight the tape! / Stock-Markets / Financial Crash
By: Greg_Silberman
Well seasoned traders know that for any trade to work, to work big, that trade needs to be in synch with primary trend of the market.
Now clearly the Fed is a not for profit enterprise but their well healed trading houses should have know better. For months we have witnessed an expanding money supply and for months we have seen a strong bid come into the markets at the most opportune times.
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Monday, November 26, 2007
Countrywide Financial - The Next Big Bankruptcy To Hit the Financial Markets / Companies / Financial Crash
By: Money_and_Markets
Martin Weiss writes: As we warned you here in August ... and as I explained on CNBC a few days later ... America's kingpin of mortgages is on a collision course with bankruptcy.
Its name: Countrywide Financial
If it goes under, the impact on U.S. financial markets will be immediate; the damage to the U.S. economy, long-lasting.
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Monday, November 26, 2007
Global Stock Markets to Crash in Unison / Stock-Markets / Financial Crash
By: EWI
Susan C. Walker of Elliott Wave International writes: When you're caught in the middle of a bad storm, you don't really care whether it's a tropical depression or a full-strength hurricane. You just know you're hanging on for dear life. The same idea applies to financial markets. When a market is trending up strongly, it's hard to tell whether it's just a bull market or a more dangerous financial mania.Read full article... Read full article...
Friday, November 23, 2007
Financial Sector Crash - Fannie Mae and Freddie Mac The New Savings and Loan Crisis / Stock-Markets / Financial Crash
By: Money_and_Markets
Mike Larson writes: I don't know about you, but I ate enough turkey and trimmings to last me through Christmas. That's okay — I have plenty to be thankful for, so it's worth celebrating with a big feast once a year!
But in the marbled halls of this nation's leading banks ... and the wood-paneled boardrooms of top investment firms ... it's a whole different story. These guys don't have much of anything to celebrate.
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Thursday, November 22, 2007
The South Sea Bubble and the Northern Rock Bank Bust / Companies / Financial Crash
By: Adrian_Ash
"...Out went the silver sixpences, counted slowly as the angry savers queued up...only to come in again through the back door, fooling the crowd and stalling the crisis..."
DEALING WITH A BANKING CRISIS used to be such a simple affair for the Bank of England – not least when the crisis rolled up at its own front door!
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Monday, November 19, 2007
How to Spot a Stock Market Mania Thats Heading For a Crash / Stock-Markets / Financial Crash
By: EWI
Susan C. Walker of Elliott Wave International writes: When you're caught in the middle of a bad storm, you don't really care whether it's a tropical depression or a full-strength hurricane. You just know you're hanging on for dear life. The same idea applies to financial markets. When a market is trending up strongly, it's hard to tell whether it's just a bull market or a more dangerous financial mania.Read full article... Read full article...
Friday, November 16, 2007
US Dollar Mirage in the Desert / Currencies / Financial Crash
By: Money_and_Markets
Jack Crooks writes: I'm in Las Vegas for the Traders' Expo right now, where I'm going to teach a group of investors how to cash in on currencies. Today, I want to share with you what I'm going to tell them here in Sin City ...
It's Five O'Clock in the Morning and the Markets Are Drunk on House Money
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Friday, November 09, 2007
Financial's Burning As CDS and Municipal Bond Markets Explode - Fingers of Instability, Part 12 / Interest-Rates / Financial Crash
By: Ty_Andros
In This Issue – 4 Fingers of Instability
- Broad Fires in Financial's and the Prescriptions You Can Count On
- Next Shoe to Drop, “CDS” and Municipal BOMB Market!
- Generals Retreat!
- Sheer Insanity
Last week was a veritable avalanche of illusions presented to the public as FACTS. Anyone who invests predicated on these HEADLINES is DOOMED. The markets gave clear fingerprints of the true stories as did the internals of the reports provided with the headline numbers. Volatility was and is front and center providing huge opportunities for prepared investors. These moves are in their infancy, as are the financial authorities who are just beginning to understand the enormity of the task in front of them in repairing the credit markets as the dominoes just keep falling. This volatility was extremely destructive to poorly prepared portfolios. Which side of this divide are you on?
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Tuesday, November 06, 2007
Goldman Sachs in Bearish Digestion / Companies / Financial Crash
By: Mike_Paulenoff
By popular demand, another look at the Goldman Sachs (NYSE: GS) chart-- to provide insights into the plight of the financial sector and its Financial Select Sector SPDR (AMEX: XLF). Let's notice that GS remains under its Aug-Oct support line, which was violated yesterday at 225.00 and which still presents serious resistance to any rally effort.Read full article... Read full article...
Monday, October 22, 2007
Stock Markets Heading Lower Due to Systematic Destruction of the Financial System / Stock-Markets / Financial Crash
By: Captain_Hook
A week ago if you would have told me past a muted quarter end window dressing related ‘jam job' the funds were going to push prices to either new or recovery highs in a multitude of markets I would have said ‘not likely', but that's exactly what happened. But then that's what happens in a surreal world where reality has become stranger than fiction. Moreover, that's what happens when our social elite condones the systematic destruction of our financial system in hyperinflation. That's the fact Jack. And anyone who thinks different should provide a better answer for why gold is going parabolic than the clever buffoons on CNBC last Friday rejoicing the phony inflation numbers that justify another rate cut for complicit fraudsters. Why else is gold going parabolic then – why? Read full article... Read full article...
Friday, October 19, 2007
1987 Stock Market Crash - How a Newbie Beat the Great Crash! - Part 1 / Stock-Markets / Financial Crash
By: Nadeem_Walayat
Today is the 20th anniversary of the 1987 stock market crash which is an apt time to go back to the roots of a 20 year successful trading strategy, one that had me short on the day of the great crash! The REAL secrets of successful trading. Okay so you have heard this one many times before in countless books printed by the skip full, but bare with me a while whilst I take a 20 year step back down memory lane, long before I went through my gannophile phase or saw elliott wave patterns and fibonacci golden ratios in virtually every object that my eyes gazed upon. Read full article... Read full article...
Thursday, October 18, 2007
Sub-Prime Mortgage Collapse Crisis Over? - Part 1 / Stock-Markets / Financial Crash
By: Adrian_Ash
"...Goldman Sachs bucked the trend this summer and made money – pots of money – selling subprime bonds short. Funnily enough, GS also issued what might prove the most toxic of all subprime bonds back in 2006..."
PHEW! THAT WAS close. For a moment there, it looked like the collapse of the subprime mortgage market was going to wipe billions off financial earnings for years to come.
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Tuesday, October 16, 2007
NOLTE NOTES - 20th Anniversary for the 1987' Stock Market Crash / Stock-Markets / Financial Crash
By: Paul_J_Nolte
Friday will mark the 20th anniversary of the crash of '87 (Saturday will mark the 10th anniversary of the crash of '97 – see an issue here?). We are not calling for an anniversary crash, but the media is (and will be throughout the week) playing up the day and noting some of the similarities to that bleak Monday not so long ago. To be sure, there are major differences, key among them is inflation running half of that in '87 and interest rates are not soaring to 10% as they were then. The main linkage between the two periods is the dollar, falling during both periods and well below historical ranges today. Read full article... Read full article...
Monday, October 15, 2007
The Stock Markets October Panic Window Approaches / Stock-Markets / Financial Crash
By: Captain_Hook
Adding to the list of things that can go wrong from our last discussion , things that could cause a possible dislocation in the stock market during the possible panic window opening next month, we have an astute observation by Rick Ackerman. Then you have Gary North out further discussing Fed antics associated with a contracting monetary base , which he is suggesting will topple the equity complex, and possibly the system. Here, you can't blame the Fed for instituting such policy. Again, the idea behind constricting growth in the monetary base is to support the dollar ($) and curb the inflationary effects of easing rate policy. And while I agree with the conclusions of both these gentlemen, as stated in our last commentary the timing associated with when such factors will come home to roost is still very much up in the air however, not imminent by any means. Read full article... Read full article...