Foreign markets getting done dry today.

[StageLeft]

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Stocks sank around the world Monday after investors digested the passage of a $700 billion bank bailout plan in the United States and considered new flare-ups in Europe's banking crisis.

Losses of 4% to 5% were the norm.

And this isn't even including Russia's market, which should just give up.

Oil is also down below $92 right now.

Europe's trying to buy themselves out of this problem like the US. Strangely, when the US rejected it a week back, markets were in disarray, but when it passed it, they were also upset.

 

[JJChicken]

I think market participants are now worrying about the high likelihood of a US led recession, it will affect asian exports (which is Asia is down apparently), and the aftermaths of the US financial crisis on Europe Banks. My figures may be wrong, but I think European banks invested about 30% compared to US banks in sub-prime so they could be hit pretty hard as well. I doubt the Dow will go below 10k today though at close but maybe intra-day. Its been hammered so much already.

 

[Pliablemoose]

Premarket shows a 1074 open, this isn't good.

Gold is getting a nice bump.

Text

 

[sandorski]

US Markets continued to fall after the $700B "bailout" not because the "bailout" had no effect, but because other Economic News was quite bad.

 

[Pliablemoose]

Shit is so highly leveraged, it's going to take a while for things to settle down, buckle your seat belts, and put your trays in an upright position please.

Joe & Jill Sixpack are gonna be seriously pissed by the time this is over, they're already squeezed, and it's going to get a lot worse.

 

[smack Down]

I thought pauslon's 700 billion dollar blank check was supposed to save the markets.

 

[Pliablemoose]

Originally posted by: smack Down
I thought pauslon's 700 billion dollar blank check was supposed to save the markets.

No, that was never the intent, it was to avoid a nuke going off in them, we're so leveraged it's unreal.

I hang out in a gold bug forum, they're talking about where they'd like to live in Canada this morning

 

[chess9]

I don't think the bailout will do a damned thing but help a few banks and investors. Remember, it's the shareholders who lose most initially. Many of the jobs will be lost regardless of what the Treasury does as they are throwing a lifeline to a "man" who drowned 2 months ago!

-Robert

 

[smack Down]

Originally posted by: Pliablemoose

Originally posted by: smack Down
I thought pauslon's 700 billion dollar blank check was supposed to save the markets.

No, that was never the intent, it was to avoid a nuke going off in them, we're so leveraged it's unreal.

I hang out in a gold bug forum, they're talking about where they'd like to live in Canada this morning

No shit it was never the intent, but that sure is how they sold it to the American people after congress did the right thing and stopped it once.

 

[jackace]

Originally posted by: chess9
I don't think the bailout will do a damned thing but help a few banks and investors. Remember, it's the shareholders who lose most initially. Many of the jobs will be lost regardless of what the Treasury does as they are throwing a lifeline to a "man" who drowned 2 months ago!

-Robert

I tend to agree with you. The bail-out is going to help banks (the ones who caused the problem to begin with) and their investors, but it is not going to do a damn thing for those of us who have lost jobs and there is no real outlook for a new one with this crappy economy.

 

[Pliablemoose]

I suspect we'll scrub off 5-7% today & tomorrow.

What's happened is that the rest of the world is realizing how hosed the global economy has become, and that the US's bailout is a symptom on how bad it really is.

TARP or whatever the hell they called it in it's last version is a drop in the bucket for what it would really take, problem is, even if there were unlimited $ with no downside to printing all the money we needed, the previous model with the massive financial leverage was unsustainable.

 

[Craig234]

With all that's happening, there seems to be little consensus whether it's a time to sell or buy.

 

[JJChicken]

Originally posted by: Craig234
With all that's happening, there seems to be little consensus whether it's a time to sell or buy.

I thought it was SELL, SELL, SELL

 

[freegeeks]

I lost 6k euro this morning in the Euro market because of the collapse of Fortis bank. The only think keeping me from going on a murder rampage is our excellent Belgian beer

 

[ponyo]

Originally posted by: Pliablemoose
I suspect we'll scrub off 5-7% today & tomorrow.

What's happened is that the rest of the world is realizing how hosed the global economy has become, and that the US's bailout is a symptom on how bad it really is.

TARP or whatever the hell they called it in it's last version is a drop in the bucket for what it would really take, problem is, even if there were unlimited $ with no downside to printing all the money we needed, the previous model with the massive financial leverage was unsustainable.

If we get 5-7% off today and tomorrow, I'm going all in. With the fear I'm seeing out there, VIX could hit close to 70. I'm going all in for a trade if the VIX approach anything near that. This is playing perfectly to my script and it's time to execute. Hold your nose, close your eyes, and buy on this plunge.

 

[seemingly random]

Originally posted by: Barack Obama

Originally posted by: Craig234
With all that's happening, there seems to be little consensus whether it's a time to sell or buy.

I thought it was SELL, SELL, SELL

When the general consensus is truly sell, sell, sell, then that is the time to buy.

 

[StageLeft]

Originally posted by: sandorski
US Markets continued to fall after the $700B "bailout" not because the "bailout" had no effect, but because other Economic News was quite bad.

Right, but we are literally talking hours now. Monday last week the bailout fails and the markets are bludgeoned. Friday it looks like it's going to pass, so they are up 300+. It passes and they immediately shed 450 points. What do they want? Bailout or not? It's like it's just poison.

TARP or whatever the hell they called it in it's last version is a drop in the bucket for what it would really take, problem is

That's what I suspected and this based on only a shallow understanding of the economy. I have not bought the idea that a national economy with a GDP of $14 Trillion could be so on the precipice of collapse that a mere $700B would turn the tide.

 

[boomerang]

I feel we're being shielded regarding the severity of our problems. We'll see 7000 before this is over and the upturn is years from now.

Once the Dow dips below 10000, you're going to see panic selling at a level that will be unbelievable.

Edit: Changed 8000 to 7000, added second paragraph.

 

[ponyo]

When will start hear whispering of global rate cut coordinated by all the major nations?

 

[Pliablemoose]

Originally posted by: boomerang
I feel we're being shielded regarding the severity of our problems. We'll see 7000 before this is over and the upturn is years from now.

Once the Dow dips below 10000, you're going to see panic selling at a level that will be unbelievable.

Edit: Changed 8000 to 7000, added second paragraph.

You mean bureaucrats that would allow us to go to war with bad or misleading intel would cook the books and hide economic data from us? (oops, I mean issue revised figures months and years later?)

I call you a liar sir, and smite you in the face with my gentleman's glove in a petulant frenzy.

The fed just injected a shitload of $ to increase liquidity

 

[freegeeks]

Originally posted by: Naustica
When will start hear whispering of global rate cut coordinated by all the major nations?

the ECB only cares about inflation

 

[JJChicken]

Originally posted by: freegeeks

Originally posted by: Naustica
When will start hear whispering of global rate cut coordinated by all the major nations?

the ECB only cares about inflation

I was watching a video on FT.com where a commentor said that there is a chance of a global rate cut. The reason given is that because of falling commodity and oil prices, inflation pressures should be considerably less and accordingly inflation worries should ease up.

Also, from what I just read, the S&P futures is down 25pts, @ ~1000, so possibly there will be a 2.5%-3% drop in the dow. Let's see how it turns out, because a 3% drop will break the 10k barrier. I don't think it will happen today because I believe the European falls were due to a reaction to the US stock market poor showing post-approval of the bailout, the thus, the drops on Friday will factor in some of the European movement. It should definately break 10k by the end of this week.

 

[SP33Demon]

Originally posted by: boomerang
I feel we're being shielded regarding the severity of our problems. We'll see 7000 before this is over and the upturn is years from now.

Once the Dow dips below 10000, you're going to see panic selling at a level that will be unbelievable.

Edit: Changed 8000 to 7000, added second paragraph.

There will be another bailout before 7K ever happens.

 

[boomerang]

Originally posted by: Pliablemoose

Originally posted by: boomerang
I feel we're being shielded regarding the severity of our problems. We'll see 7000 before this is over and the upturn is years from now.

Once the Dow dips below 10000, you're going to see panic selling at a level that will be unbelievable.

Edit: Changed 8000 to 7000, added second paragraph.

You mean bureaucrats that would allow us to go to war with bad or misleading intel would cook the books and hide economic data from us? (oops, I mean issue revised figures months and years later?)

I call you a liar sir, and smite you in the face with my gentleman's glove in a petulant frenzy.

The fed just injected a shitload of $ to increase liquidity

You gave me a good chuckle this morning. Thanks!

It's global and that's what's going to bring us and everyone else down.

To use Ms. Palin's vernacular, when 'Joe six-pack' sees the Dow below 10000, he's going to panic and want out and out right now. I hope not, but I'm thinkin' it's going to happen.

 

[boomerang]

Originally posted by: SP33Demon

Originally posted by: boomerang
I feel we're being shielded regarding the severity of our problems. We'll see 7000 before this is over and the upturn is years from now.

Once the Dow dips below 10000, you're going to see panic selling at a level that will be unbelievable.

Edit: Changed 8000 to 7000, added second paragraph.

There will be another bailout before 7K ever happens.

Where will the money come from? You need to ask yourself where did this money come from. This was a bailout of the financial institutions. There will be no bailout of 'the market". Look at the effects of this bailout. Working pretty well, huh?