Short DAX at 7740
- Thread starter ASusilovic
- Start date
We got some bad news after hours :
Lehman shuts subprime unit. Jobs lost: 1,200; cumulative effect of charges, write-downs: $50 mln.
Mortgage lenders today announced plans to fire 3,700 people as the slump that began in subprime mortgage bonds reaches beyond mortgages to companies seeking money in the corporate debt markets.
No good news. I think FED will to rethink stance on interest rates very soon...
Lehman shuts subprime unit. Jobs lost: 1,200; cumulative effect of charges, write-downs: $50 mln.
Mortgage lenders today announced plans to fire 3,700 people as the slump that began in subprime mortgage bonds reaches beyond mortgages to companies seeking money in the corporate debt markets.
No good news. I think FED will to rethink stance on interest rates very soon...
I don't really understand ins and outs of fundamental analyses. Common sense wise I have a POV which goes something like this -
1. Shit load of people bought properties be it buy to let or personal use purely due to low borrowing rates at the time;
2. Interest rates have been steadily on the up inevitably leading to defaults resulting in repos;
3. Even though economies are strong according to AS (I really haven't got a well researched take on that one) housing market is dependant on interest rates and employment;
4. We all know that first thing large corps revert to when stock markets enter a possible bear phase which inevitably leads to share price decline is exactly what AS just posted, they lay of employees in thousands;
5. That results in those people being unable to meet their financial commitments, which leads to repos and a housing market decline which leads to etc etc etc.
1. Shit load of people bought properties be it buy to let or personal use purely due to low borrowing rates at the time;
2. Interest rates have been steadily on the up inevitably leading to defaults resulting in repos;
3. Even though economies are strong according to AS (I really haven't got a well researched take on that one) housing market is dependant on interest rates and employment;
4. We all know that first thing large corps revert to when stock markets enter a possible bear phase which inevitably leads to share price decline is exactly what AS just posted, they lay of employees in thousands;
5. That results in those people being unable to meet their financial commitments, which leads to repos and a housing market decline which leads to etc etc etc.
Closing some of my long-term FDAX. I don´t see these news as positive as markets suggest.
Laying off people has always been the beginning of economic downturn.
I am looking eagerly for the next payroll numbers !
I see imlications on broader economy ! As long as liquidity is in the market, I swim in tandem with this upward move, but selling into strenght, i.e. closing FDAX positions !
GL+GT
Laying off people has always been the beginning of economic downturn.
I am looking eagerly for the next payroll numbers !
I see imlications on broader economy ! As long as liquidity is in the market, I swim in tandem with this upward move, but selling into strenght, i.e. closing FDAX positions !
GL+GT
As expected today market is falling from highs...may fall even further as - once again : job layoffs no good news ! 