WSJ: Friday Pretty Much of a Washout

There's more room for this market to go up. Don't kid yourselves.

We need to take out another level of support in the EUR before anything starts to happen. Big reversal started but it needs to hold. If it does, then it's time to toss on a bigger line, but not right now.
 
"There's more room for this market to go up. Don't kid yourselves."

It will be interesting to see what happens tomorrow. I disagree with you strongly, but only the market will show us who is right.

I believe that we are in a new bubble built on the sand of cheap cash. The engine is revving but the wheels are spinning. If the global economy does get some real traction, as opposed to continuing to rev on cheap cash, the market will pull back.

Staying long now is placing a bet on traction kicking in before all the cheap money has been spent.

Personally, I don't like that bet. But I have been wrong many times before.
 
Quote from Rabbitone:

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.
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I wouldnt call going up 100 points at open tommorrow a rally...just a "correction" from how much we lost on the original dubai debt news. Now that alot of the banks are being covered, we should get "some"of that market drop back.
 
Quote from einai:

"There's more room for this market to go up. Don't kid yourselves."

It will be interesting to see what happens tomorrow. I disagree with you strongly, but only the market will show us who is right.

I believe that we are in a new bubble built on the sand of cheap cash. The engine is revving but the wheels are spinning. If the global economy does get some real traction, as opposed to continuing to rev on cheap cash, the market will pull back.

Staying long now is placing a bet on traction kicking in before all the cheap money has been spent.

Personally, I don't like that bet. But I have been wrong many times before.
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Yup, but gotta dance when the music's playing....no matter what direction it is.

Being biased is a killer
 
Their bonds are down 50%

If these arabs were smart, they would put more pressure and the bonds go down another 50%

Make the offer to buy all outstanding at the current market rate and state a default on those who don't want to sell.

Welcome to modern capitalism.



Quote from 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.
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Quote from Ivanovich:

Dubai news no longer relevant. Market has already forgotten it, and now it's off to new highs.
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So sorry to have wasted all your time...
 
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