Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
U-Turn or Perfect Storm? Globalization at Crossroads - 22nd Oct 19
Stock Market Indexes Struggle and TRAN suggests a possible top - 22nd Oct 19
Fake Numbers Fueling the Wage War on Wealth - 22nd Oct 19
A Look at Peak Debt - 22nd Oct 19
The Coming Great Global Debt Reset - 22nd Oct 19
GamStop Became Mandatory - 22nd Oct 19
Learn to Spot Reliable Trading Setups: ANY Market, Any Market Time Frame - 21st Oct 19
How To Secure A Debt Consolidation Loan Even If You Have A Bad Credit Rating - 21st Oct 19
Kids Teepee Tent Fun from Amazon by Lavievert Review - 15% Discount! - 21st Oct 19
Stock Market Stalls: Caution Ahead - 21st Oct 19
Stock Market Crash Setup? - 21st Oct 19
More Stock Market Congestion (Distribution) - 21st Oct 19
Revisiting “Black Monday Stock Market Crash October 19 1987 - 21st Oct 19
Land Rover Discovery Sports Out of Warranty Top Money Saving Tips - 21st Oct 19
Investing lessons from the 1987 Stock Market Crash From Who Beat it - 20th Oct 19
Trade Wars: Facts And Fallacies - 20th Oct 19
The Gold Stocks Correction and What Lays Ahead - 19th Oct 19
Gold during Global Monetary Ease - 19th Oct 19
US Treasury Bonds Pause Near Resistance Before The Next Rally - 18th Oct 19
The Biggest Housing Boom in US History Has Just Begun - 18th Oct 19
British Pound Brexit Chaos GBP Trend Forecast - 18th Oct 19
Stocks Don’t Care About Trump Impeachment - 17th Oct 19
Currencies Show A Shift to Safety And Maturity – What Does It Mean? - 17th Oct 19
Stock Market Future Projected Cycles - 17th Oct 19
Weekly SPX & Gold Price Cycle Report - 17th Oct 19
What Makes United Markets Capital Different From Other Online Brokers? - 17th Oct 19
Stock Market Dow Long-term Trend Analysis - 16th Oct 19
This Is Not a Money Printing Press - 16th Oct 19
Online Casino Operator LeoVegas is Optimistic about the Future - 16th Oct 19
Stock Market Dow Elliott Wave Analysis Forecast - Video - 16th Oct 19
$100 Silver Has Come And Gone - 16th Oct 19
Stock Market Roll Over Risk to New highs in S&P 500 - 16th Oct 19
10 Best Trading Schools and Courses for Students - 16th Oct 19
Dow Stock Market Short-term Trend Analysis - 15th Oct 19
The Many Aligning Signals in Gold - 15th Oct 19
Market Action Suggests Downside in Precious Metals - 15th Oct 19
US Major Stock Market Indexes Retest Critical Price Channel Resistance - 15th Oct 19
“Baghad Jerome” Powell Denies the Fed Is Using Financial Crisis Tools - 15th Oct 19
British Pound GBP Trend Analysis - 14th Oct 19
A Guide to Financing Your Next Car - 14th Oct 19
America's Ruling Class - Underestimating Them & Overestimating Us - 14th Oct 19
Stock Market Range Bound - 14th Oct 19
Gold, Silver Bonds - Inflation in the Offing? - 14th Oct 19
East-West Trade War: Never Take a Knife to a Gunfight - 14th Oct 19
Consider Precious Metals for Insurance First, Profit Second... - 14th Oct 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast Oct - Dec 2019 by Nadeem Walayat

Stock Markets in Christmas Wind Down Mode

Stock-Markets / Financial Markets Dec 23, 2008 - 09:58 AM GMT

By: PaddyPowerTrader

Stock-Markets Best Financial Markets Analysis ArticleMarkets are ending this awful year with a whimper as they drift lower in thin volume. Investors are taking some money off the table to buy better (heavily discounted) last minute presents. Sentiment has been further soured by more bad news from the auto sector. The previously immune Toyota have warned on profits for the second time in seven weeks. The market is left to wonder what is the point of spending billions of taxpayer's wedge on basket case Detroit if Toyota can't even win. Then we have the hurdle of all those Madoff redemptions to cope with in early '09.


Today's Market Moving Stories

  • The Hang Seng and Chinese Markets are under pressure despite yesterday's 0.27% rate cut as investors were hoping for a more daring reduction in official rates.
  • So who is next in the never ending bailout queue I hear you ask? Well step forth the US developers . But some people aren't so keen on the idea.
  • In the unkindest cut of all, the debt ratings of the Big Three auto makers were cut by both the leading rating agencies (S&P's and Moody's) yesterday.
  • We learn that UK's HBOS and RBS “were near collapse” in October.
  • News on layoffs Stateside just keeps coming thick and fast. Unisys says that it plans to take “aggressive actions” to reduce costs, which will include laying off about 1,300 workers. It also says that it will forgo 2009 salary increases in most of its markets and seek reductions in third-party expenses and facility consolidations. Caterpillar says that it is cutting white-collar pay by up to 50% and offering buyouts to as many as 25,000 US employees. Textron says it will eliminate 2,200 jobs worldwide.

What Needs To Be Done, According To Germany
Germany's ever chatty finance minister Steinbruck is playing up the role of the state: “in the age of globalisation, we need to find a new balance between financial markets and government.”

He suggests five goals be implemented:

  1. Strengthening of financial market transparency and accountability;
  2. Enhancing regulation;
  3. The protection of investors and the avoidance of conflict of interest;
  4. Reinforcing international cooperation;
  5. Reforming international institutions, for instance the role of the IMF.

Steinbruck ran through the various tax and expenditure measures Germany is using to negotiate through the crisis. But he made the point that extensive debt-financed spending or tax reduction programs were not a suitable means to overcome the economic difficulties (i.e. a dig at the UK there). He said it's not certain they would accelerate the recovery and regardless they would likely leaves the middle classes with a substantial burden in years to come.

Data Today
The US calendar is busy today, though many releases are final estimates and are forecast not to change. Housing data, both existing home sales and new home sales, are expected to fall yet again in November, underlying the dire state of the housing market.

Also of interest will be Core PCE inflation, which is expected to moderate to 1.9%, putting it back into the Fed's “comfort range” for the first time since September 2007. With headline inflation in headlong retreat of late because of base and commodity price effects, the Fed will be trying to make sure that the underlying price level does not come under undue downward pressure. This latest down-tick should not raise too many alarm bells at the Fed, especially with policy-makers committed to leaving rates at “exceptionally low levels” for some time. However, sharp falls towards 1% in the months ahead would be altogether more troubling.

Santa To Bail-Out The Bad People

And Finally… My Pick For The Worst Video Of 2008
An ill judged attempt by some dinosaur bankers to mock reality and pretend that its business as usual. This isn't even ironic but set for cult status methinks.

Disclosures = None

By The Mole
PaddyPowerTrader.com

The Mole is a man in the know. I don’t trade for a living, but instead work for a well-known Irish institution, heading a desk that regularly trades over €100 million a day. I aim to provide top quality, up-to-date and relevant market news and data, so that traders can make more informed decisions”.

© 2008 Copyright PaddyPowerTrader - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

PaddyPowerTrader Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules