Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Friday, July 11, 2008
Stock Market Plunges on Paulson's Weak Fannie Policy Statement / Stock-Markets / Credit Crisis 2008
Treasury Secretary Paulson has carried his miraculously successful strong dollar policy statements to Fannnie Mae and Freddie Mac with a Statement on Fannie, Freddie .Secretary Henry M. Paulson Jr. made the following comment today on news stories about "contingency planning" at Treasury:
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Friday, July 11, 2008
Trading the Stocks Cyclical Bear Market / Stock-Markets / Stocks Bear Market
Earlier this week, the flagship S&P 500 stock index (SPX) officially entered bear-market territory. As it edged past a 20% loss since its all-time high of October 2007, all debate about whether or not a bear really exists was instantly rendered irrelevant. Beyond any doubt we now sojourn in a full-on bear market!
The fearsome reputations of stock bears are well-deserved. During the legendary bear running between January 1973 and October 1974, the SPX lost a sickening 48.2% of its value. In a much more recent specimen, between March 2000 and October 2002 the SPX shed 49.1%. Cyclical bear markets often tend to cut stock prices in half by the time they fully run their courses!
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Friday, July 11, 2008
Fannie, Freddie 'Insolvent' and Lehman Brothers May be Next Bear Stearns / Stock-Markets / Credit Crisis 2008
Gold finished trading in New York yesterday at $9 40.20 , up $ 13.90 and s ilver was up to $1 8. 24 , up 17 cents . Gold rose again in the New York Globex electronic market before trading sideways in trading in Asia and it has risen sharply again in early European trading to above $950 per ounce .Read full article... Read full article...
Friday, July 11, 2008
Fannie and Freddie Credit Implosions Are Too Big to Bail Out / Stock-Markets / Credit Crisis 2008
It's been a wild ride for Fannie and Freddie recently. Yesterday, James Lockhart, director of the Office of Federal Housing Enterprise, said the GSEs are "well capitalized".William Poole, former Fed governor disagrees. Poole Says "Fannie, Freddie Insolvent" . Read full article... Read full article...
Friday, July 11, 2008
The Real Reasons the US Banking System Lost its Way / Stock-Markets / Credit Crisis 2008
Shah Gilani writes: Unlike Dorothy in " The Wizard of Oz ," the brutalized U.S. banking system will never again return to that comfortable, cozy, and cushy capital place it once happily referred to as "home." But its "Wicked Witch" was its own greed. The curtain has finally been pulled back on the machinery, and the hot air used to pump up the U.S. banking system's version of the Emerald City in the Land of Oz .
For decades, American banks operated on a simple - and nicely profitable - business model: They took in deposits and lent out money.
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Friday, July 11, 2008
Investors Should Stay Clear of Traditional Asset Classes / Stock-Markets / Credit Crisis 2008
Originally published on May 5, 2008 on SeekingAlphaWashington continues to manipulate economic data, as it has for several years. The past few Establishment Survey reports confirm the deception of data, as many more jobs were lost than official numbers indicate. A better gauge of economic weakness, in my opinion, is consumer and mortgage late-payment and default rates, since this data is more difficult to manipulate. This is especially true for late credit card payments.
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Friday, July 11, 2008
All Broad Equity Indices Are Down / Stock-Markets / Global Stock Markets
There is plenty of bad business news out there, including with icons such as GE, AIG, banks of all sorts, municipal bond insurance companies and more.
Consumers are squeezed by energy, food prices, falling home prices and limitations on credit — and municipalities aren't apparently limiting their budget growth (and taxes) in line with their tax payers growth in income.
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Thursday, July 10, 2008
Stock Market Liquidity Contraction Points to Increasing Fear and Capitulation ... / Stock-Markets / US Stock Markets
The reason why Liquidity inflows and outflows is a critical element relative to the market rallying or correcting:
Liquidity inflows and outflows are easily understood by any corporation. When their cash inflows are positive and increasing, they have money to expand and hire. When their cash is outflowing and negative, their businesses contract and they layoff workers.
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Thursday, July 10, 2008
Paulson: Financial Institutions Must Be Allowed To Fail / Stock-Markets / Credit Crisis 2008
The Crypt is reporting Paulson and Bernanke: Economic Melt-Down "Ongoing"Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke told Congress that their agencies need greater regulatory powers to deal with the current economic meltdown in the financial and housing markets.
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Thursday, July 10, 2008
Are Dark Pools Destined to be the Next Financial Black Hole? / Stock-Markets / Market Manipulation
We can almost hear that ominous " Jaws " theme music in the background and can see that huge dorsal fin as it slices threateningly through the water - knowing full well that the real terror is hidden beneath the water's surface.
But this time around, it's not a "Great White" that's sparking our fears; it's a well-capitalized and broadly based series of secret stock exchanges known as " Dark Pools of Liquidity ," "Dark Liquidity," or just "Dark Pools."
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Thursday, July 10, 2008
Stocks Bear Market Generates Inane Mainstream Commentary / Stock-Markets / Stocks Bear Market
I am amazed at the absolutely inane commentary from the media about how great it is that we're having a bear market, as if they saw it coming ahead of time. Now they're talking gibberish about all the buying opportunities out there and how after we've reached the 20% decline level it's time to back up the truck and load up on stocks.Read full article... Read full article...
Wednesday, July 09, 2008
USAGOLD's Annual Survey of Investment Performance- 12Months to June 2008 / Stock-Markets / Investing
Gold up 43% - Outshines Wall Street, Main St. Gold continues to shine as one of the best performing asset classes through the first half of 2008, according to the USAGOLD Annual Survey of Investments. Only the CRB index, which of course includes a gold component, outperformed gold itself over the past year. Arguably it was the latest surge in oil prices that allowed the broad measure of commodities to supplant gold from the number one position over the last month of the second quarter.
Wednesday, July 09, 2008
The Decade of Zero Investment Returns, Part I / Stock-Markets / Stock Market Valuations
"...Ten years here, a decade there, and pretty soon you're losing real wealth hand over fist..."
WHAT A DIFFERENCE a decade can make! Over the last 10 years of the 20th century, anyone buying and holding US stocks made a total return approaching 18% per year.
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Wednesday, July 09, 2008
All Eyes on Crude Oil … As Usual / Stock-Markets / Volatility
All those investors on and off Wall Street whose focus is on buying stocks must have sweat through a closet full of shirts by now. The outlook for the stock market is not pretty. And when second quarter earnings season arrives, well, things could get even uglier…they say.
It’s a tough job playing cheerleader for a losing team and waiting for a turnaround, even when Tout TV is on your side. Just ask those die-hard Cubs fans about that if you’re wondering. Unfortunately, it seems to us like it could be a while before this turnaround in stocks materializes.
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Wednesday, July 09, 2008
Emerging Markets Infrastructure Spending Boom for Next Three Years / Stock-Markets / Emerging Markets
Merrill Lynch & Co. Inc. ( MER ) has raised its annual infrastructure-spending estimate for emerging markets by 80%, as developing countries try to keep pace with fast-growing economies and large cash reserves, BusinessWeek reported.
Investment in infrastructure, which the firm sees as the long-term solution to inflation, will rise from $1.25 trillion to $2.25 trillion annually over the next three years. And China, the Middle East, and Russia will account for 70% of infrastructure spending.
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Wednesday, July 09, 2008
Three Ways to Protect Your Portfolio Against Stock Market Drops / Stock-Markets / Stocks Bear Market
Nilus Mattive: June wasn't kind to the stock market. In fact, the S&P 500 had its worst month since September 2002 and its worst June since 1930.
So far, July hasn't been much better.
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Wednesday, July 09, 2008
Financial Stocks Meltdown: A Picture Worth 1,000 Words / Stock-Markets / Banking Stocks
Who a few years ago would have thought FNM and FRE would lose 70+% and 80+% of their market value?
This chart comparing the S&P 500 (SPY), the S&P Financial Sector (XLE), the KBW Large Bank Index (KBE) with FRE and FNM is breathtaking.
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Tuesday, July 08, 2008
Brazil Stock Market ETF Suffers Serious Technical Damage / Stock-Markets / Brazil
Without a doubt, anything commodity-related is getting hammered today -- moreso if it is tied to oil and grains, like Brazil, which has just discovered a huge oil deposit and is a major grain exporter. Let's notice that today's weakness in the iShares Brazil ETF (AMEX: EWZ) has violated key intermediate-term support at 83.00-82.00, which represent both the August 07-July 08 trendline and the sharply rising 200 DMA. Indeed, serious technical damage has been sustained by the EWZ, which projects next into the 75.40/00 target zone.Read full article... Read full article...
Tuesday, July 08, 2008
Bernanke, Paulson, FDIC Eye Taxpayer Bailouts, More Power / Stock-Markets / Credit Crisis 2008
Even as PDCF use is waning, Bernanke Says Fed May Continue Lending Into Next Year ."The Federal Reserve is strongly committed" to financial stability and is "considering several options, including extending the duration of our facilities for primary dealers beyond year-end," Bernanke said in a speech to a conference in Arlington, Virginia.
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Monday, July 07, 2008
BIS Plan to Save the Western World By Ending Free Markets / Stock-Markets / Credit Crisis 2008
Welcome to the weekly report. This week we look at the Bank for International Settlements (BIS) latest utterances and look at the chart of a hedge Fund showing unusual price action. We start with a look at some "suggestions" made by the BIS in its 78th annual report. This is probably the most important global macro-economic pointer you will see this year that shows the way ahead:Read full article... Read full article...