WSJ: Friday Pretty Much of a Washout

[einai]

http://online.wsj.com/article/SB100...=rss_Today's_Most_Popular#articleTabs=article

If they can't put some good spin on the weekend numbers before Monday morning, we are going down.

Question is: If the market goes down, does that set off a cycle of consumer insecurity leading to lower spending in the holiday season, leading to markets moving lower.

My opinion: Yes. Be eager to hear yours.

 

[niceneasy]

I dont remember this ever being the case - but seems to me like everyone is already on x-mas holidays mentally... and nobody is paying attention to bad news anymore anyways... volumes are anemic.

i saw the pictures of kids crawling around on the floor of the stock exchange or take your kids to work day... on the day dubai defaulted... nobody seems that fussed to me...

 

[Rabbitone]

When the news comes out on some future day that companies are hiring for real again, the fear of job loss will be over. Then consumers who are now savers will open their wallets and markets will act normal. Otherwise it can be taken negatively.

 

[peilthetraveler]

We will open up at least 100 points or more on monday. Dubai got a bailout.

http://finance.yahoo.com/news/UAE-t...1.html?x=0&sec=topStories&pos=2&asset=&ccode=

 

[einai]

That's certainly a good thing, although I'm not sure that this bailout is unexpected. Going to check the UK papers to see what they have to say.

 

[Pension_Admin]

Quote from peilthetraveler:

We will open up at least 100 points or more on monday. Dubai got a bailout.

http://finance.yahoo.com/news/UAE-t...1.html?x=0&sec=topStories&pos=2&asset=&ccode=

Good news! The question I have now is, how are the creditors of Dubai World gonna get a repayment from this?

 

[einai]

Good article here:

http://www.ft.com/cms/s/0/e9334100-dca8-11de-ad60-00144feabdc0.html

 

[Rabbitone]

Quote from peilthetraveler:

We will open up at least 100 points or more on monday. Dubai got a bailout.

http://finance.yahoo.com/news/UAE-t...1.html?x=0&sec=topStories&pos=2&asset=&ccode=

The article said the UAE would back the “in-country” banks foreign and domestic that have branches in Dubai from all of this bad debt of Dubai World. However, there are some “out-of-country” banks with no branches in Dubai that have still not been addressed even though they do not have as high a stake. But, this will temporarily keep bank stability from toppling the apple cart.

I’m not sure the market will rally just because the banks have been covered. The net affect of this Dubai default may be more disastrous. Many European banks had been jumping over each other to give third world countries loans. Dubai’s default may shut this loan pipeline down just as the world is recovering.

 

[ddefina]

Dubai will put the screws to the debt holders now. This was all planned. It does shine a light on the health of the worldwide debt markets though.

 

[Pension_Admin]

This sends a clear signal that Dubai World is not going to get the full support, creditors will have to take a loss, and that the loss will have a major impact on the creditors and their respective countries.