Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.
Tuesday, September 09, 2008
The Bailout Plain Truth and the Silent Economic Depression / Stock-Markets / Credit Crisis 2008
By: Mike_Stathis
My 2 cents on the BailoutWithout even looking, I’d be willing to guess that 2 out of 3 articles on most financial blogs are on the bailout of the GSEs. I’m willing to bet it will dominate headlines for months to come. Before I move on to more relevant material, I think Americans need to start asking some critical questions. If they were “too big to fail” as Paulson, Bush, Bernanke and other cronies insist, why were they allowed to operate with exemptions from the SEC Acts of 1933 and 1934? If they were “too big to fail” why didn’t Washington take over the GSEs in 2004 after the accounting fraud was detected. If they were “too big to fail” why were they transformed into shareholder firms with virtually no regulation, no accountability, no transparency and allowed to act irresponsibly? The implied backing by the government made it certain that a bailout was eminent. But doesn’t government backing also come with accountability?
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Tuesday, September 09, 2008
BANKRUPT Banks Wiped Out by Tulip Backed Securities, Is China Cheap? / Stock-Markets / Credit Crisis 2008
By: Nadeem_Walayat
The US governments takeover of the bankrupt Fannie Mae and Freddie Mac on Sunday is reminiscent of the UK governments nationalization of Northern Rock Bank, albeit the scale of Sundays takeover is of several orders of magnitude larger. Still the result is the same, total loss of capital for the shareholders. I won't repeat the dynamics of what has transpired on Sunday as the volume of similar articles speak for themselves. Read full article... Read full article...
Tuesday, September 09, 2008
Fannie and Freddie Just the Beginning of the Derivatives Deleveraging Bailout / Stock-Markets / Credit Crisis 2008
By: John_Mauldin
What a momentous weekend. I was pounding the table about the need to move quickly on Fannie and Freddie in my last few letters, and especially this last letter. And then they did it. There are a lot of details that have yet to come out, and it is likely to be far more expensive the Savings and Loan crisis was for the US taxpayer, but it did get done. Hopefully, we can get some real regulation for part of our costs, as well as get rid of the implicit guarantees by US taxpayers so that something like this never happens again. The fact that it did was the fault of the regulatory environment and Congress. They fired the heads of Fannie and Freddie (with multi-million dollar parting gifts), but sadly, the truly responsible parties will be re-elected to perpetrate yet more frauds. Read full article... Read full article...
Monday, September 08, 2008
Paulson Bailout of Freddie, Fannie and PIMCO Translated / Stock-Markets / Government Intervention
By: Mike_Shedlock
Financial Institutions Must Be Allowed To Fail Paulson: "Homeowners should not anticipate a government bail-out. Banks should not expect to be bailed-out by government, despite intervention by the Federal Reserve in the near-collapse of Bear Stearns in March."
Translation: Critical banks and GSEs must not be allowed to fail.
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Monday, September 08, 2008
Soaring Unemployment and Falling Asset Prices / Stock-Markets / Financial Markets
By: Anthony_Cherniawski
The unemployment rate soared to 6.1% in August, the highest rate in almost five years, as the economy took a turn for the worse. The rate has steadily climbed this year from a cycle low of 4.4%. The U.S. Department of Labor reports, “ The unemployment rate rose from 5.7 to 6.1 percent in August, and non- farm payroll employment continued to trend down (-84,000), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. In August, employment fell in manufacturing and employment services, while mining and health care continued to add jobs. Average hourly earnings rose by 7 cents, or 0.4 percent, over the month.” Read full article... Read full article...
Monday, September 08, 2008
Bullish Healthy Sign for S&P 500 Stock Market Index / Stock-Markets / US Stock Markets
By: Mike_Paulenoff
A wicked swoon during the second hour of trading in response to a rumor that United Airlines (UAUA) had filed for bankruptcy. That stock plunged from 12 to nearly 3 and took the overall market with it. The S&P 500 Depository Receipts (AMEX: SPY) plunged to 125.49, which represented nearly a 50% pullback (125.32) of the entire upmove from Friday's "Jobless low" at 122.00 to today's "Fannie Mae (FNM) high" at 128.62. Apart from the drama and vicious intraday action, purely from a technical perspective, the SPYs have corrected -- or partially corrected -- the initial upleg off of Friday's high-volume price low at an important support plateau -- and that is a very healthy sign so far.Read full article... Read full article...
Monday, September 08, 2008
Financial Markets Make Stunning Reversals Following Fannie and Freddie Takeover / Stock-Markets / Credit Crisis 2008
By: Mike_Shedlock
I went to bed at 4:00 AM. At the time....
- Treasuries were absolutely getting crucified
- The Dollar was sinking vs. the Euro
- Nasdaq Futures were up 40 points
- S&P Futures were up 38 points
- Gold was soaring
Monday, September 08, 2008
Stock Market at Risk of Significant Decline Until the End of October / Stock-Markets / US Stock Markets
By: Andre_Gratian
Current Position of the Market
Long-term trend - The Dow Jones Industrials may be deviating from their typical decennial pattern in an election year. Important cycles going into the Fall could be the reason for this, but one also has to consider the possibility that the downward pressure from the 120-yr cycle, which is due to make its low in 2012-2014, has begun to take effect and that October 2007 was the top of the bull market. This is not yet confirmed and remains only a possibility.
SPX: Intermediate trend - Last week's action suggests that the intermediate trend correction has not yet run its course.
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Monday, September 08, 2008
How the Credit Disaster Is Now Spreading, Next Dominos to Fall / Stock-Markets / Credit Crisis 2008
By: Money_and_Markets
Martin D. Weiss writes: We are busy preparing for Hurricane Ike. Everyone in Florida knows what to do. And hopefully, it will pass us by.
But the financial pandemic that's spreading to the entire economy is another matter entirely.
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Monday, September 08, 2008
Stock Market Over Valued, Over Bought ETF's and Emerging Market Bargains / Stock-Markets / Global Stock Markets
By: Prieur_du_Plessis
Bill King (The King Report): Albert Edwards – economic and equity market meltdown imminent “Last week saw the publication of Q2 US whole economy profits data. They were shockingly bad. Core measures of profitability are in free-fall and have now reached a tipping point, where corporate activity could easily implode. We have also reached the point where companies give up ‘manipulating' their profits higher and admit they are actually in free-fall. A combination of economic and reported profits slumping will catalyse the next equity downleg.”
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Monday, September 08, 2008
Financial Tsunami Sweeps Across World Economies / Stock-Markets / Credit Crisis 2008
By: Prieur_du_Plessis
Investors not only returned to a shortened trading week after the Labor Day holiday on Monday, but also to a bruising on stock markets, at least for those with long equity positions.
Concerns about the global economic outlook and continued financial duress spooked bourses around the world, with a number of other factors also adding to investors' nervousness. In particular, Pimco's Bill Gross, the manager of the world's largest bond fund, said the US needed to step up and buy assets to avoid a “financial tsunami” (Bill is renowned for talking his book on occasion!), Dwight Anderson's big Ospraie commodity hedge fund closed after suffering large losses, and Russia was selling foreign currency reserves to prop up the rouble after foreign capital fled the country following Russia's invasion of Georgia.
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Sunday, September 07, 2008
The End of Fannie and Freddie Pushes PIMCO into Deep Trouble! / Stock-Markets / Financial Crash
By: Mick_Phoenix
Welcome to the Weekly Report. This week we look at the end of Fannie and Freddie and ponder why PIMCO are screaming for help.
Regular readers may have noticed that the Weekly Report hasn't been available on the excellent Safehaven.com or The Market Oracle since July. Nothing sinister to report, I just thought that subscribers deserved a bit of added value and some excellent TA on the direction of gold.
Sunday, September 07, 2008
Gold Boosted by the Greatest Financial Collapse in History / Stock-Markets / Credit Crisis 2008
By: Ned_W_Schmidt
Gold Bugs, this week around the world, will be joining together to celebrate the greatest financial collapse in history, past or future. In bureaucrat-speak, a conservatorship for FNM & FRE is being created. However, Gold Bugs know a duck when they see one. Part of that celebration will be our heartfelt thanks for those at Federal Reserve. In this week's chart we recount the glory of that institution. Read full article... Read full article...
Sunday, September 07, 2008
Paulson Moves to Prevent Financial System Collapse / Stock-Markets / Financial Crash
By: Mike_Shedlock
The GSE deal has been announced. Here is the Statement by Secretary Paulson on Treasury and FHFA Action to Protect Financial Markets and Taxpayers . The title of the statement suggests two things.
1. This agreement will not reduce risk on the financial markets
2. This agreement will not protect the taxpayer
Let's take a look at excerpts to see how long it takes to verify that cynicism.
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Sunday, September 07, 2008
Government Manipulation Vs Market Forces / Stock-Markets / Government Intervention
By: Money_and_Markets
Jack Crooks writes: In America, times like these don't come around often. Usually, Americans are blessed with economic prosperity. Enduring periods of stagnant or shrinking economic growth are exceptions to the rule.
There's a big reason we've been so fortunate ... something often referred to as the market process. Contrary to what the current Federal Reserve or U.S. Treasury might have you believe, it is this naturally occurring progression that keeps the markets functioning the way they ought to function — free of interference.
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Saturday, September 06, 2008
Financial Markets Boyz are Back in Town / Stock-Markets / Futures Trading
By: Dominick
Volume finally started to pick up this week, but it was all downhill for several days after opening Tuesday morning over 1300 on the S&P 500. Though we had some targets for a move higher, we've been skeptical of gap openings in either direction for the past several months and, as usual, looked to see the market set up a trade for us rather than guessing or assuming. The last two updates included important numbers we'd use to gauge price action and plan our trades. Among them were 1306, 1264, and 1292.Read full article... Read full article...
Saturday, September 06, 2008
Institutional Investors Stock Market Core Holdings Warning of Severe Downtrend / Stock-Markets / US Stock Markets
By: Marty_Chenard
You know the reality ... Institutional Investors have the directional control over the markets because they are responsible for 50% to 70%+ of the stock market's volume on any given day.
Below is a chart showing the "top core holdings index" held by the large Institutional Investors. Take a quick look at it ... what do you see?
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Saturday, September 06, 2008
Stock Markets Expected to Rally from Oversold State / Stock-Markets / US Stock Markets
By: Mike_Burk
The good news is: We are close to or at an intermediate term low.
Short Term In the past month NASDAQ upside volume has declined from, close to, the high for the year to, close to, the low for the year.
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Saturday, September 06, 2008
Global Stock Markets, Commodities, and the Economic Downturn / Stock-Markets / Global Stock Markets
By: Tim_Wood
Back in 2006 and 2007 everywhere we turned we heard about China and their enormous consumption of commodities and why the Chinese were largely responsible for fueling the commodity boom. During this same time, we were seeing one of the longest extensions of the 4-year cycle in US stock market history. Then, between July and October of 2007 we began to see a Dow theory non-confirmation occur. By November this non-confirmation had evolved into a full blown orthodox Dow theory bearish trend change. Read full article... Read full article...
Saturday, September 06, 2008
Counter Trend Stock Index Futures Position Trading / Stock-Markets / Futures Trading
By: Joseph_Russo
Semi-Generational Long Haul is Toast: For one reason or another, Fibonacci time intervals of 34-units have maintained an excellent record of accomplishment over the past 150 years in identifying semi-generational peaks and troughs in the major equity indices. 1857-1891, 1932-1966, and 1974-2008 each represent 34-year long-haul bull market runs, all of which ended with 3, 5, or 8 years of bear market declines. If 150-years of pristine history are any guide, the current bear market will (at minimum) continue running its course through 2011, 2013, or 2016 prior to an absolute low marking its eventual bottom.Read full article... Read full article...