Short DAX at 7740

Quote from ASusilovic:

Oh I am already in the story ! Bought some Northern Rock shares ! Think somebody will buy them. Don´t know who will be, but Northern is pretty interesting company for some European players. Credit Suisse by the way mentioned today kind of buyout analysis...:p
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"...global liquidity crisis..." sounds worrying. Is that so AS IYO? If customers continue withdrawing funds at the rate registered last week, then there won't be much left of the bank's rep left, who would want it without BOE's support?

http://www.northernrock.co.uk/
 
Last trade went -4

then re-entered long, scaled out 2 +12.5

3rd still holding for now, but 3 minute chart's histogram looks bearish now ImO, ready to reverse for short
 
Quote from JSSPMK:

"...global liquidity crisis..." sounds worrying. Is that so AS IYO? If customers continue withdrawing funds at the rate registered last week, then there won't be much left of the bank's rep left, who would want it without BOE's support?

http://www.northernrock.co.uk/
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You have to read this to understand =>

Two banks, one being Lloyds TSB, are said to have been ready to take Northern Rock over, but only on the condition that the Bank would keep its financing guarantee in place — which it said it wouldn’t.

Those discussions are assumed to have taken place on Thursday, explaining the acceleration of the crisis that day, which culminated in the Bank’s Council of Directors being called to an emergency session at 9.30 that evening.

Friday was a wipe-out as far as the authorities were concerned. But the weekend provided time for the truth to dawn: in a financial crisis the line between solvency and commercial viability becomes blurred; by avoiding moral hazard in not extending the financing guarantee, the Bank was instead guaranteeing that Northern Rock grew from a potential one-bank-collapse to a systemic threat as public confidence in the banking system collapsed.

By Monday the Bank of England had hurriedly reversed its ruling on Rock’s independence; any bank ready to help the authorities can now expect the Bank of England to reciprocate.

Personally, I think it is the arrogance of Bank of England whichled to the crisis...:mad:
 
Quote from ASusilovic:

You have to read this to understand =>

Two banks, one being Lloyds TSB, are said to have been ready to take Northern Rock over, but only on the condition that the Bank would keep its financing guarantee in place — which it said it wouldn’t.

Those discussions are assumed to have taken place on Thursday, explaining the acceleration of the crisis that day, which culminated in the Bank’s Council of Directors being called to an emergency session at 9.30 that evening.

Friday was a wipe-out as far as the authorities were concerned. But the weekend provided time for the truth to dawn: in a financial crisis the line between solvency and commercial viability becomes blurred; by avoiding moral hazard in not extending the financing guarantee, the Bank was instead guaranteeing that Northern Rock grew from a potential one-bank-collapse to a systemic threat as public confidence in the banking system collapsed.

By Monday the Bank of England had hurriedly reversed its ruling on Rock’s independence; any bank ready to help the authorities can now expect the Bank of England to reciprocate.

Personally, I think it is the arrogance of Bank of England whichled to the crisis...:mad:
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Yes, I've seen that. I would be cautious holding that stock AS, once customers leave a bank, they do not return, such is Brit mentality, there are plenty of others to stick cash into. I am just very concerned that it might start small and effect other banks.

BOE made it clear that they will not "save" a bank that failed to show caution when giving out credit, I think they referred to it as binge credit attitude. But things might change, it's so hard to see where this might lead to, I know one thing buy lo & sell hi has been driving the world since the stone ages and things are priced hi now ImO, they have to go down to entice interest, maybe this is THE call for stock and housing markets to start a bearish phase.

In the UK it takes 12 moths now to clear bankruptcy and according to Citizens bureau reports there are untold amounts of people considering and already declaring bankruptcy. One worker from the CB has told me that there are teenagers coming in with £10-15k debts that they can't clear, when I was a teenager it was near impossible to get credit that easy, and it wasn't THAT long ago. Things have gotten out of hand.
 
Quote from JSSPMK:

Yes, I've seen that. I would be cautious holding that stock AS, once customers leave a bank, they do not return, such is Brit mentality, there are plenty of others to stick cash into. I am just very concerned that it might start small and effect other banks.

BOE made it clear that they will not "save" a bank that failed to show caution when giving out credit, I think they referred to it as binge credit attitude. But things might change, it's so hard to see where this might lead to, I know one thing buy lo & sell hi has been driving the world since the stone ages and things are priced hi now ImO, they have to go down to entice interest, maybe this is THE call for stock and housing markets to start a bearish phase.

In the UK it takes 12 moths now to clear bankruptcy and according to Citizens bureau reports there are untold amounts of people considering and already declaring bankruptcy. One worker from the CB has told me that there are teenagers coming in with £10-15k debts that they can't clear, when I was a teenager it was near impossible to get credit that easy, and it wasn't THAT long ago. Things have gotten out of hand.
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Yeah, crazy how easy it is to get credit in U.K. and U.S. The other day one of the US central bankers appealed to higher savings rates ! But you can´t change peoples mentality overnight !
 
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