posted
I thought so....Oh I cant believe I forgot to put the "big three" on my list. How many plants closed and people did they lay off in the last coiple of years?
Werent they always the backbone of this country? And now Toyota for the first time in history beat out all of them.....
-------------------- "Simplicity is the ultimate sophistication"
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posted
I see what you mean, like a hammer on a candlestick
Yes a hammer looks the same. EXCEPT! What I was taught....a true key reversal was: new 52 week lows or highs followed by the EOD reversal and it should be on very high volume.
-------------------- "Simplicity is the ultimate sophistication"
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posted
I agree, I think it woulda been nice if they did it at the schedualed meeting. But I think the name alone "emergency rate cut" will only fuel the the markets mentality
Fed's Poole says no need for emergency rate cut Thursday August 16, 7:31 am ET
WASHINGTON (Reuters) - St. Louis Federal Reserve Bank President William Poole said on Wednesday financial market turmoil had not undermined the U.S. economy and there was no need for the central bank to ride to the rescue with an emergency rate cut.
"It's premature to say that this upset in the market is changing the course of the economy in any fundamental way," he said in an interview with Bloomberg. "Obviously, there could be an impact, but we have to rely on some real evidence."
Global stock markets have fallen sharply as investors increasingly shy away from risky assets amid signs the troubles in the U.S. subprime mortgage market have resulted in a drying up of credit in broader markets.
Poole said market developments would extend the housing slump, but that it was uncertain how long the downturn would last and how deep it would be.
"The issue for me is whether it's going to spread into business fixed investment and the consumer segment more broadly. I don't see evidence that that's taking place," Poole said.
The St. Louis Fed chief said that barring a "calamity," there was no need for the U.S. central bank to consider cutting interest rates before policy-makers gather for their next regularly scheduled meeting on September 18, Bloomberg said.
Interest rate futures prices show an expectation the Fed will lower borrowing costs by at least a quarter-percentage point at its next meeting on September 18, and a chance it cuts rates sooner.
"If the data confirm the market's view that the economy is sagging, we'll have to decide whether to share that view," Poole said.
Poole, who is among the voter's this year on the Fed's policy-setting panel, said there was little evidence to suggest companies are changing their spending or hiring plans.
"I have not changed fundamentally my outlook," he said. "As I talk to companies, their capital spending plans are intact."
Credit market stresses tied to rising defaults in the U.S. subprime mortgage market led the Fed and other central banks around the globe to pump money into banking systems over the past week in an effort to ward off a credit crunch.
Poole said the Fed was in touch with the markets and would "supply more cash as necessary" to meet short-term demand for funds.
He also said that while U.S. inflation was "moving in the right direction," the "job is not done."
At their last meeting on August 7, Fed policy-makers said tightening credit conditions had increased downside risks to economic growth, but they reaffirmed that their main concern was a risk that inflation would fail to ease.
-------------------- "Simplicity is the ultimate sophistication"
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posted
just as countrywide mortgage draws down 11.5 billion in credit to stave off bankruptcy we learn that the CEO sold over 670 thousand option shares for an average price of 31 bucks pocketing a nice 13 million profit, stock is currently trading at about 18 bucks!!!! tell me he did not see this comming! SWEET!!!!!
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If anybodys bored with watching the market get lambasted. Watch that zeitgeist. Fast forward it to 1:10. its gives a little history lesson on the reponsibilty and function of the fed reserve/central bank.....
quote:Originally posted by rimasco: If anybodys bored with watching the market get lambasted. Watch that zeitgeist. Fast forward it to 1:10. its gives a little history lesson on the reponsibilty and function of the fed reserve/central bank.....
I watched this, unfortunately I believe every word! the fed was created to serve the big money elite at the exspense of the working class.
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quote:Originally posted by rimasco: If anybodys bored with watching the market get lambasted. Watch that zeitgeist. Fast forward it to 1:10. its gives a little history lesson on the reponsibilty and function of the fed reserve/central bank.....
I watched this, unfortunately I believe every word! the fed was created to serve the big money elite at the exspense of the working class.
and the "globalization" of the economy has basically destroyed the ability of the working class to have what little control it has been able to gain over the last 40 years..
if you like the Zeitgeist movie? i also recommend a book called Fingerprints of the Gods by Graham Hancock... it's been around for about 15 years....
he goes into some dead ends on his speculations, but he does some good presentations on how "tied together" many of the religions are...
it all seems to me to point to the likelihood that civilization is much older than currnetly accepted belief...
-------------------- Don't envy the happiness of those who live in a fool's paradise.
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posted
Ya see this is how they screw with us.....was it a reversal? Dow (their showing) closed red. NASD red. But the s&p closed green. Technically on the markets NO
Im sorry, I think theres gonna be some more blood letting. Maybe not to tomorrow with that finish. But my gut is telling me.....its not over
-------------------- "Simplicity is the ultimate sophistication"
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The escape of the enablers When Wall Street fails, it inevitably asks for a handout. Fortune's Allan Sloan says there must be a better way. By Allan Sloan, Fortune senior editor-at-large August 17 2007: 9:39 AM EDT
NEW YORK (Fortune) -- Wall Street loves to talk about letting financial markets weed out the weak. But when the Street itself gets in trouble, it sticks out its little tin cup, asking for help. And gets it.
The subprime-mortgage-market meltdown is a classic example of the way small fry get devoured, but the whales of Wall Street get rescued. Here's the deal: People with crummy credit who took out mortgages are being allowed to fail in record numbers. The mortgage companies that made those loans are being allowed to fail.
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The Street itself? It's bailout city. Even before the Fed made a symbolic half-point cut in the discount rate, it and other central banks from Switzerland to Singapore were trying to rescue the Street by injecting hundreds of billions of dollars into the financial markets and announcing they will put up more, if needed.
Latest casualty on Wall Street: Summer getaways Hello? If you believe in markets - which I do - this rescue is especially galling, because Wall Street enabled this mess in the first place. How so? By happily sucking up hundreds of billions of dollars' worth of suspect mortgages from marginal U.S. borrowers-and begging mortgage makers to create more of them. The Street sliced and diced this financial toxic waste into a variety of esoteric securities, making a nice markup when it sold them and generating a continuing stream of profits when it made markets in them.
Somehow analysts at credit-rating agencies, looking at computerized scenarios rather than at the real world, decided that the bulk of the securities backed by these trashy loans could be rated triple-A.
It's really amazing: Most of the loans to substandard creditors borrowing 100% of the purchase price of homes they couldn't afford were rated the same as GE and the federal government. That makes no sense. But the money rolled in, and Wall Street-by which I mean the world's biggest and most important financial institutions-didn't care about the real world or ask any questions. It was too busy making money, and cashing bonus checks generated by subprime-mortgage profits.
Pink slips hit Wall Street But the world's central banks aren't letting the big guys fail. Think of it as the Escape of the Enablers. The reason this is happening, of course, is the same reason that the Fed orchestrated a bailout of the infamous Long-Term Capital Management hedge fund a decade ago-and about 20 years ago didn't close some of the nation's biggest banks, even though they were effectively insolvent because unrealized losses had wiped out their capital.
It's the "too big to fail" syndrome. In a world in which big players make incredibly large and complex deals with one another - that's what derivatives are - regulators don't dare let a big or important institution fail for fear that the collapse of one would lead to "cascading failures," and other institutions wouldn't be able to collect what the collapsed institution owed them.
The Fed's job, you see, isn't to protect you and me and our retirement portfolios, or even many of the nation's largest companies and biggest employers. The Fed's job is to protect the financial system. That's why it's trying to rescue the gigantic subprime enablers while letting borrowers and mortgage companies go under.
Your collapse or mine wouldn't bother Fed chairman Ben Bernanke or the world's other central bankers. But if, say, a big German institution loaded to the eyeballs with subprime securities croaked, Bernanke and his fellow central bankers would care a lot.
Sure, we know that Ben and the boys will always bail out the biggies. And none of us - I think, anyway - wants the world's financial system to implode. But I'd feel a lot better if the Street had to pay a serious price to its rescuers--say, having to fork over a big equity stake and pay a loan-shark interest rate. That way taxpayers, who are picking up the tab for the rescue, would get paid bigtime for taking on bigtime risk.
After all, that's the Wall Street way.
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posted
this "rate cut" is a non-event! just a market mind game crafted to give false hope! dow will close red today. my prediction is the dow will be under 11000 by the end of september. the worst is yet to come!! sequence of events, rate cut/rally/dollar collapse/sell-off.
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posted
I agree, I think it woulda been nice if they did it at the schedualed meeting. But I think the name alone "emergency rate cut" will only fuel the the markets mentality
I agree madmoney, back in the late 90s they did some of these surpirse cuts....to no avail...I think they were better off waiting till sept. They should have just stuck with "the economy is still healthy". and continued to lie out their asses.
My cousin asked me how I felt about the market and I told him. "I dont know why people are flipping out this market was never supposed to be up that high" as a matter of fact I was probably more nervous watching this market rally through 13k then 14k....feeling in my gut that the SHlT was gonna hit the fan. People gotta learn that those insane rallies are just as unhealty for the market...when the smoke clears. Ill tell you guys like I told him. I'll be nervous if the dow goes through 10,000.
the market will find its place....
-------------------- "Simplicity is the ultimate sophistication"
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posted
[The Fed] cut a symbolic rate that no one uses and the stock market is predicted to have its biggest up-day in history. This underscores how psychological this selloff has been. Sometimes it is better to make statements than to actually do anything. –Bianco Research The Fed’s discount rate cut this morning was a meaningless gesture. The discount rate was at one time the means by which the Fed set policy, but those days are long gone. Today it is little more than an emergency funding mechanism for banks that due to weakened condition, do not have access to the Fed Funds market, which by the way traded at 5% last night. So the discount rate “cut” keeps the discount window .75% above the current market. Big freaking deal, huh? … All in all, the Fed’s action this morning seems like a mean, stupid, and futile gesture, worthy of Animal House for its humor and theatrical impact. –Lee Adler, Wall Street Examiner We can only speculate about this, but the decision to move the primary discount rate rather than the Fed funds rate may indicate that the Fed anticipates some institutional failure as soon as today, probably not a bank, but rather an institution that has substantial bank liabilities that may not be able to clear. Markets should not be calmed by this tactic. Unlike the Fed funds rate — which affects all banks’ cost of funds — a discount rate cut only lowers the cost of emergency borrowing by institutions in distress. This move is not going to provide any relief to the overall economy. However, we believe that the Fed’s action and statement today raise the odds of a reduction in the Fed funds rate at the September FOMC meeting, or perhaps even before.. –High Frequency Economics August 17, 2007, 9:46 am Explaining the Discount Window The discount window is a channel for banks and thrifts to borrow directly from the Fed rather than in the markets. Until a few years ago, the discount rate was set below the fed funds rate and loans were subject to numerous conditions. Banks were reluctant to access the window because it was associated with a stigma usually reserved for distressed banks. A few years ago the Fed overhauled the discount window to try and alleviate that stigma; the rate was then set one percentage point above the funds rate and subject to far fewer conditions. In spite of that, discount window borrowing has remained paltry. Discount lending averaged just $11 million in the week ended Aug. 15. Although that was up from $1 million in the prior week it was puny compared to the billions of dollars the Fed has regularly injected into the financial system through open market operations.
Fed officials hope that reducing the penalty rate associated with the window and lengthening the term of loans to 30 days from one further lifts the stigma and gives it a tool to supplement open market operations for reliquefying markets. Open market operations, under which the Fed buys and sells securities to adjust the supply of bank reserves and keep the federal funds rate on target, primarily operate through a network of primary dealers, some of whom are large banks. Thus, they have only indirect impact as a supply of funds for the thousands of banks that are not active in the money market. The discount window however is available to any bank or thrift, and the terms are easier than for fed funds loans. For example, banks may submit mortgage loans, including subprime loans that aren’t impaired, as collateral, and many probably will.
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[The Fed] cut a symbolic rate that no one uses and the stock market is predicted to have its biggest up-day in history. This underscores how psychological this selloff has been. Sometimes it is better to make statements than to actually do anything. –Bianco Research
LMAO! Wow I came up with that on my own! Who the hell is getting paid for this and how do I?
-------------------- "Simplicity is the ultimate sophistication"
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Perhaps the Fed was trying to provide liquidity to CFC.
From the LA Times: Worried about the stability of mortgage giant Countrywide Financial, depositors crowd branches.
Anxious customers jammed the phone lines and website of Countrywide Bank and crowded its branch offices to pull out their savings because of concerns about the financial problems of the mortgage lender that owns the bank. ... At Countrywide Bank offices, in a scene rare since the U.S. savings-and-loan crisis ended in the early '90s, so many people showed up to take out some or all of their money that in some cases they had to leave their names. ------------ IT`S GONNA GET UGLY!!!
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quote:Originally posted by madmoney: Aug.17,Bank Run on CFC
Perhaps the Fed was trying to provide liquidity to CFC.
From the LA Times: Worried about the stability of mortgage giant Countrywide Financial, depositors crowd branches.
Anxious customers jammed the phone lines and website of Countrywide Bank and crowded its branch offices to pull out their savings because of concerns about the financial problems of the mortgage lender that owns the bank. ... At Countrywide Bank offices, in a scene rare since the U.S. savings-and-loan crisis ended in the early '90s, so many people showed up to take out some or all of their money that in some cases they had to leave their names. ------------ IT`S GONNA GET UGLY!!!
yes, it could get ugly...
some of us were very disturbed when this legislation was passed,
Congress OKs melding banks, insurers and brokerages; Main provisions Milwaukee Journal Sentinel, The, Nov 5, 1999 by MARCY GORDON, Douglas Armstrong
Congress on Thursday sent President Clinton a sweeping bill for reshaping the financial landscape by tearing down the Depression-era barriers between banks, insurance companies and investment firms.
The vote in the Senate was an overwhelming 90-8, with seven Democrats and one Republican saying no. The House vote several hours later was 362-57, with Republicans in solid support and Democrats split.
President Clinton said he was eager to sign the bill, despite warnings from Democratic critics that it could lead to price-gouging of consumers and to financial conglomerates that are simply too big and powerful. Consumer groups and liberal lawmakers have bitterly opposed the legislation, which has been around for more than two decades, on grounds it would jeopardize consumers' financial privacy. The measure will bring "the concentration of more and more economic power in the hands of fewer and fewer people," liberal Sen. Paul Wellstone (D- Minn.) said during Senate debate.
Across the Capitol, Rep. David Obey (D-Wis.) called the bill "consumer fraud masquerading as financial reform."
But Clinton said Thursday that the bill "will help the American financial services system play a leading role in propelling our economy into the 21st century." For Wisconsin residents, bankers and analysts foresee little immediate change in the financial services landscape. The legislation could, however, "boost the movement toward convergence" of banks, brokerages and insurance companies, one analyst said. http://findarticles.com/p/articles/mi_qn4196/is_19991105/ai_n10557102
strangely enough? the reasons i was unhappy were NOT for liberal reasons..
as a matter of act? it was just the opposite...
it does put too much power in too few hands, and when they make bad choices? we all pay...
they've always made bad decisions, but now the whole system is even more interdependant...
-------------------- Don't envy the happiness of those who live in a fool's paradise.
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