Category: Financial Crash
The analysis published under this category are as follows.
Sunday, January 20, 2008
US Stock Markets Crash and Burn Whilst The Fed Fiddles / Stock-Markets / Financial Crash
By: Robert_McHugh_PhD
I hate to bash Fed Chairman Ben Bernanke, but I'm going to for a few pages. Here's the deal. The current economic threat is screaming for an aggressive inflation solution. Inflation comes from the Fed. Forget about the inflation the Fed has caused over the past 90 years, and the doubling of the money supply to goose markets for the past eight. A lot of that was dead wrong, a theft of our children's future, coming at an unnecessary time.Read full article... Read full article...
Thursday, January 17, 2008
Investment Portfolios Face Destruction as Credit Crunch Intensifies / Stock-Markets / Financial Crash
By: Doug_Wakefield
Are The Levees Starting to Break? - “I have often stopped to ponder our human condition – specifically, our uncanny ability to dismiss the seriousness of an event beforehand and to lament our lack of preparation after it has happened. How many New Orleans residents stated, in some form or fashion, that they never expected the storm to break the levees? But, it's easy to see the rational behind their unresponsiveness. They had been through countless storms since the levees were first established and nothing that dire had ever happened.” – September 2006, The Investor's Mind: Too Costly to Bear Read full article... Read full article...
Monday, January 14, 2008
Central Banks Entering Hyper Inflationary Money Supply End Game / Stock-Markets / Financial Crash
By: Captain_Hook
Central banks are now showering the economy with accelerating quantities of fiat digits like never before , which is having the effect of extending the current boom cycle even longer in spite of the natural tendency for system failure. Not too long from now however, and in spite of these efforts then, like a game of musical chairs enough participants will be expelled from the festivities in natural process, which is an eventuality that cannot be avoided no matter how much intervention is exercised. Moreover, it's the fact monetary debasement rates need be accelerated to this point that is the signal we are now in the final rounds of the game (end game dynamics), where like in musical chairs, if you are prepared and with a little luck one might be the one left standing at the end. And while this might sound fine for those prepared people, don't kid yourself, what's coming here is not going to be pleasant for anyone, as the hangover from the credit binge we have been on for some 25-years now will not pass in a day or two, meaning living standards are set to decay rapidly. Read full article... Read full article...
Friday, January 11, 2008
FIRE SALES of US Financial Assets - Fingers of Instability, Part 16 / Stock-Markets / Financial Crash
By: Ty_Andros
In This Issue- 3 Fingers of Instability
- FIRE SALES!
- Nights of the Long Knives!
- Flights to Perceived Safety!
Introduction
Dear readers, I want to thank you all for a gratifying 2007, the support for Tedbits has been nothing short of phenomenal. We are now on many radar screens thanks to your interest in my work. The last month has been tumultuous and I had the mother of all colds/flu in late December and spent several weeks traveling around the globe until just before Christmas. So I rested my body and my brain and I now enter the New Year much rested and ready to rumble. I will be doing a short Tedbits this week and then do the 2008 forecast over a 2 to 4-week timeframe. There's a lot to cover in the forecast as the headlines are quite hysterical. The choir out of Wall Street is predictable BULL****! The big picture is very clear as I will illustrate to you in the 2008 forecast.
Thursday, January 10, 2008
Monetary Inflation to be Joined by Price Inflation Crisis During 2008 / Stock-Markets / Financial Crash
By: Jim_Willie_CB
Unproductive Assets, Wasted Productivity The US system has been the dog led by the financial sector tail, as the tail wags the dog, for over two decades. Systematically, the United States has abandoned manufacturing in favor of financial sector dominance with futile attempts to manage inflation, and money changers pushing to foreign lands the capacity that actually makes things and adds value. Such is the painful costly consequence of chronic monetary inflation. Unfortunately, the nation has invested heavily for decades in unproductive assets like military hardware and recently homes. The entire US Economy was made heavily dependent upon the housing boom and mortgage finance craze. Now that a housing crisis and mortgage debacle seems a nightmare without end, we are treated to utterly moronic opinions that the US Economy will glide through the storm. It will not. Read full article... Read full article...
Friday, January 04, 2008
US Financial Crisis Worsening as Consumer Loan Delinquencies Surge / Stock-Markets / Financial Crash
By: Money_and_Markets
Mike Larson writes: Several weeks ago, I told you we were staring "S&L Crisis II" in the face. I said estimates of losses stemming from the mortgage crisis kept spiraling higher — from $100 billion ... to $250 billion ... to $400 billion and higher.
I wish I could say things are getting better. But they're not. In fact, the tally of charges, losses and write-downs across the financial industry continues to rise higher and higher.
Read full article... Read full article...
Thursday, January 03, 2008
2008 - Break of the Financial System as PRIME Mortgages Go BUST / Stock-Markets / Financial Crash
By: Jim_Willie_CB
The year 2008 will be the year that THINGS JUST PLAIN BREAK. It will be a truly deadly year, unavoidably lethal to the USEconomy and especially to the US banking sector. Nothing has been repaired. Some tangible solutions will be offered in the next section, all legitimate in a real world. However, we do NOT live in a real world, but rather in a Fairy Tale world of US Hegemony and Wall Street with a choke hold around the US entire system. Managed inflation is the policy never to be reversed, until total breakdown occurs. Treason is rampant, called simply Power Games. Read full article... Read full article...
Sunday, December 23, 2007
Financial Markets in Denial of Collapsing Credit Markets / Stock-Markets / Financial Crash
By: Christopher_Laird
The ECB just lent out an astounding half $Trillion worth of money to 390 banks in only one day this week. It was to combat the lending freeze in Europe where banks are refusing to lend to each other over concerns about the mortgage losses this year. The demand was so high it caused alarm.
The question that comes to mind is, ‘Hey, we have a first class financial emergency here, when are the stock markets going to react accordingly?'
Read full article... Read full article...
Thursday, December 20, 2007
US Bailout of Bond Insurers to Prevent Collapse of US Banking System / Stock-Markets / Financial Crash
By: Jim_Willie_CB
The hidden bond insurers used by Wall Street firms are in the news, especially ACA Capital and MBIA. Implications are huge, with monumental ripple effects. Financial press reporting of the bond insurers is woefully inadequate. Moodys and Fitch are giving analysis review to nine ‘AAA' rated bond insurers to see if they have sufficient capital to conduct their insurance operations. The list includes ACA Capital, MBIA, Ambac Financial, and Financial Guaranty Insurance. ACA Capital has only $1.1 billion in cash for payout of bond failure claims, but has lost $1 billion in the most recent quarter. More losses are assured. This insurer is very important, since it is widely abused by Wall Street banks to hide cratered bond derivative losses. Read full article... Read full article...
Wednesday, December 19, 2007
Collapse of the Modern Day Banking System - Staring into the Abyss / Stock-Markets / Financial Crash
By: Mike_Whitney
“In past financial crises... the Fed has been able to wave its magic wand and make market turmoil disappear. But this time the magic isn't working. Why not? Because the problem with the markets isn't just a lack of liquidity — there's also a fundamental problem of solvency.” Paul Krugman
Stocks fell sharply last week on news of accelerating inflation which will limit the Federal Reserves ability to continue cutting interest rates. On Tuesday the Dow Jones Industrials tumbled 294 points following the Fed's announcement of a quarter point cut to the Fed Funds rate. On Friday, the Dow dipped another 178 points when government figures showed consumer prices had risen 0.8% last month after a 0.3% gain in October. The stock market is now lurching downward into a “primary bear market”. There has been a steady deterioration in retail sales, commercial real estate, and the transports.
Read full article... Read full article...
Thursday, December 13, 2007
Stock Market Investors Failing to Recognise Inevitable Credit Contraction Collapse / Stock-Markets / Financial Crash
By: Doug_Wakefield
While observing current events through the lens of history over the last few years, there have been times in which the only conclusion I could draw was that we were beginning a bear market that would prove much more severe than the one from 2000 to 2002. As fiat currency and money supplies have exploded the world over, we have seen a proliferation of products, with varying acronyms, as the financial world tries to distance itself from the risky loans it originated. My experiences, as a researcher and investment advisor, suggest that the root of the problem is in investors' thinking. Between the fall of 2002 and the spring of 2003, multiple markets began bull runs. As 2007 comes to a close, the only lesson most investors learned from the 7 trillion dollar loss of those years is to “hang on” when the market declines. Read full article... Read full article...
Thursday, December 06, 2007
End of the US Banking and Financial System / Stock-Markets / Financial Crash
By: Jim_Willie_CB
In the last month a tectonic shift has taken place among central bankers. To be sure, the USDollar is aided if foreign central banks end their march to raise official interest rates. The USDollar has been propped up for over two years in large part from powerful credit market carry trades that used to exploit higher USTreasury bond yields, both the short-term and long-term variety. The US Federal Reserve has been forced kicking and screaming to reduce official Fed Funds rates, all the while denying a grotesque contagion from the bond world to the bank world to the economy on Main Street . The USFed looks bound by the bond market to continue to cut interest rates, much like a large dog is led by a spiked choker around its neck, urged to obey its master's orders via vicious tugs. Read full article... Read full article...
Wednesday, December 05, 2007
Are the Current Stock and Financial Market Mania's about to Crash ? / Stock-Markets / Financial Crash
By: EWI
Stock Markets tend to periodically rally into dangerous financial manias, the problem that investors have is not in recognising that one is in an financial mania, but when the resulting bubble will burst with a stock market crash.
The recent rally in the global and US financial markets, including the Dow Jones, increasingly has all the hall marks of a financial mania according to Elliott Wave International analyst Peter Kendall. This distinction is important to recognize as the markets rise, because the manias always result in a CRASH that takes them back beneath their original starting point.
Read full article... Read full article...
Tuesday, December 04, 2007
The Money Panic - US Banks Huge Exposures To Credit Risk / Stock-Markets / Financial Crash
By: Money_and_Markets
Martin Weiss writes: With credit markets sinking into deeper turmoil ...
With more severe losses spreading to a wider range of financial institutions ...
And with the Fed's rate cuts thus far failing to stem the crisis ...
Read full article... Read full article...
Saturday, December 01, 2007
Stock Markets Ignoring Subprime Housing Market Crash Fire Alarm / Stock-Markets / Financial Crash
By: John_Mauldin
In this issue:
- The Financial Fire Trucks Are Gathering
- A Thanksgiving Fire Drill
- The Credit Markets Get Tighter
- Pushing on a String - the LIBOR Conundrum
- GDP Funny Business
- Europe, New York, and South Africa
The markets rebounded strongly this week, bouncing off a 10% drop in the previous weeks. Is it a signal of renewed economic vigor? Or is it a dead cat bounce? This week we take a look at problems at the edge of the economy which threaten to derail not only the recent robust growth (at least in the statistics) but also the markets. And we start with a personal story which I think will help us understand the current situation. Stay with me here.
Read full article... Read full article...
Tuesday, November 27, 2007
The Stock Market Crash - Market to Fed: Don’t fight the tape! / Stock-Markets / Financial Crash
By: Greg_Silberman
Well seasoned traders know that for any trade to work, to work big, that trade needs to be in synch with primary trend of the market.
Now clearly the Fed is a not for profit enterprise but their well healed trading houses should have know better. For months we have witnessed an expanding money supply and for months we have seen a strong bid come into the markets at the most opportune times.
Read full article... Read full article...
Monday, November 26, 2007
Countrywide Financial - The Next Big Bankruptcy To Hit the Financial Markets / Companies / Financial Crash
By: Money_and_Markets
Martin Weiss writes: As we warned you here in August ... and as I explained on CNBC a few days later ... America's kingpin of mortgages is on a collision course with bankruptcy.
Its name: Countrywide Financial
If it goes under, the impact on U.S. financial markets will be immediate; the damage to the U.S. economy, long-lasting.
Read full article... Read full article...
Monday, November 26, 2007
Global Stock Markets to Crash in Unison / Stock-Markets / Financial Crash
By: EWI
Susan C. Walker of Elliott Wave International writes: When you're caught in the middle of a bad storm, you don't really care whether it's a tropical depression or a full-strength hurricane. You just know you're hanging on for dear life. The same idea applies to financial markets. When a market is trending up strongly, it's hard to tell whether it's just a bull market or a more dangerous financial mania.Read full article... Read full article...
Friday, November 23, 2007
Financial Sector Crash - Fannie Mae and Freddie Mac The New Savings and Loan Crisis / Stock-Markets / Financial Crash
By: Money_and_Markets
Mike Larson writes: I don't know about you, but I ate enough turkey and trimmings to last me through Christmas. That's okay — I have plenty to be thankful for, so it's worth celebrating with a big feast once a year!
But in the marbled halls of this nation's leading banks ... and the wood-paneled boardrooms of top investment firms ... it's a whole different story. These guys don't have much of anything to celebrate.
Read full article... Read full article...
Thursday, November 22, 2007
The South Sea Bubble and the Northern Rock Bank Bust / Companies / Financial Crash
By: Adrian_Ash
"...Out went the silver sixpences, counted slowly as the angry savers queued up...only to come in again through the back door, fooling the crowd and stalling the crisis..."
DEALING WITH A BANKING CRISIS used to be such a simple affair for the Bank of England – not least when the crisis rolled up at its own front door!
Read full article... Read full article...