Will FED save this market
- Thread starter balda
- Start date
But if they cut.......it will still make no difference. You might get a serious rally, but it will fall apart.
It's to late, the credit situation is far worse and right now, they want to head off deflation.
We could very will have a crash in the coming months.
The chips will fall where they may, not even the Fed can save the world.
E
It's to late, the credit situation is far worse and right now, they want to head off deflation.
We could very will have a crash in the coming months.
The chips will fall where they may, not even the Fed can save the world.
E
FED injected 24bil about 3X normal magnitude
of overnight repos (unusually large).
ECB injected 130Bil
Sentiment indicators are at massive extreme lows.
I wouldn't doubt Paulson has given China some advice as to how to diversify their 1 trillion in cur xchange assets.
Don't discount a unexpected squeeze. My take is this is another way of them inconspicuously bailing out a lot of the financials. Why? When the financials and hedge funds are dumping their assets to meet calls on subprime related derivatives, the same banks are right there sopping them up with liquidity injections.
of overnight repos (unusually large).
ECB injected 130Bil
Sentiment indicators are at massive extreme lows.
I wouldn't doubt Paulson has given China some advice as to how to diversify their 1 trillion in cur xchange assets.
Don't discount a unexpected squeeze. My take is this is another way of them inconspicuously bailing out a lot of the financials. Why? When the financials and hedge funds are dumping their assets to meet calls on subprime related derivatives, the same banks are right there sopping them up with liquidity injections.
This is what spooked me.
Aug. 9 (Bloomberg) -- Countrywide Financial Corp., the biggest U.S. mortgage lender, said ``unprecedented disruptions'' in the nation's home-loan market may curb its ability to lend and erode profit. Shares fell as much as 13 percent in after- hours trading.
http://www.bloomberg.com/apps/news?pid=20601087&sid=au7zSqiNbG0g&refer=home
Aug. 9 (Bloomberg) -- Countrywide Financial Corp., the biggest U.S. mortgage lender, said ``unprecedented disruptions'' in the nation's home-loan market may curb its ability to lend and erode profit. Shares fell as much as 13 percent in after- hours trading.
http://www.bloomberg.com/apps/news?pid=20601087&sid=au7zSqiNbG0g&refer=home
no
IF they cut..the velocity picks up on the downside
how can home prices not crash if there is no loan availability?
What scared me was this sentence
Countrywide said it believes it has "adequate" near-term funding liquidity to combat the market environment, but that the situation "is rapidly evolving and the potential impact on the company is unknown."
The above doesn't give me a lot of confidence in their future prospects.