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Old 10-13-2008, 06:49 PM   #76
ctophil
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Default Re: Oct6th - Dow jones -500 / -4.60% level 9865.00

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Originally Posted by Steve_A View Post
Hi ctophil,

This rise in the DOW and other main bourses is because the goerments hae just injected trillions of dollars to prop up failing banks and banking system, so for the short term there will naturally be a short term rise in the markets, as, in the short term, the banks situation is 'solved'. Everything that was lost over the last couple of weeks could make someone an awful lot of money, over the short period.

I posted in another thread what I thought about the possible repercussions of nationalizing banks: http://www.projectavalon.net/forum/s...ead.php?t=5195

Sorry to hear about your company.

Best regards,

Steve
Thanks, Steve for the heads up. What's really weird is that all these billions or trillions that the gov't keep printing up are not making the dollar lose much value. In fact, other currencies are falling quicker than the dollar, such as the Aussie and Canadian dollars. Are they trying to prop up the American dollar long enough to buy up all the banks and then crash it? I do expect the markets to fall again once investors find out that this injection of cash is killing the economy into hyperinflation.

-Phillip
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Old 10-13-2008, 09:27 PM   #77
Xhaosis
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Default Re: Oct6th - Dow jones -500 / -4.60% level 9865.00

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Originally Posted by ctophil View Post
Thanks, Steve for the heads up. What's really weird is that all these billions or trillions that the gov't keep printing up are not making the dollar lose much value. In fact, other currencies are falling quicker than the dollar, such as the Aussie and Canadian dollars. Are they trying to prop up the American dollar long enough to buy up all the banks and then crash it? I do expect the markets to fall again once investors find out that this injection of cash is killing the economy into hyperinflation.

-Phillip

Not an expert, nor do I have a degree,

the dollar is staying strong in my opinion, because opec helps out allot, and since oil is traded mainly in dollars, since we are one of their biggest consumers. Not to mention our dollar represents a powerful military, Not really to sure why the dollar is still strong, I am just guessing. the injection is just going to buy us sometime, I think I understand what were facing, I am just not sure how it will change things. My grandpa always told me to let these big things worry about themselves, yet its hard not to feel something. What he meant thou, is not to be scared, take care of yourself, the best you can. etc. etc. The human being can adapt to anything.. Even hell..
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Old 10-13-2008, 11:58 PM   #78
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Default Re: Oct6th - Dow jones -500 / -4.60% level 9865.00

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Originally Posted by Steve_A View Post
Hi ctophil,

This rise in the DOW and other main bourses is because the goerments hae just injected trillions of dollars to prop up failing banks and banking system, so for the short term there will naturally be a short term rise in the markets, as, in the short term, the banks situation is 'solved'. Everything that was lost over the last couple of weeks could make someone an awful lot of money, over the short period.

I posted in another thread what I thought about the possible repercussions of nationalizing banks: http://www.projectavalon.net/forum/s...ead.php?t=5195

Sorry to hear about your company.

Best regards,

Steve
Hi Steve, just wondering, do you think the rise in the Stock Market will only be temporary because of this? I'm asking because I don't know a lot about how the Stock Market works, I'm sure you know much more than me.
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Old 10-14-2008, 09:13 AM   #79
Steve_A
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Default Re: Oct6th - Dow jones -500 / -4.60% level 9865.00

Hi Myra,

I believe it will be temporary as the current situation is still not all that healthy. Once the euphoria is over and everybody can see the woods for the champagne glasses, they will realize that the bailout is only as good as the money that was used. The money is being pumped into the system and the banks will go back to lending, which will take the money back out of the system and we're back to squara one, unless the bank makes credit more difficult (or more expensive) to get. This being the case we would be in a similar situation where we are now where few can get, or afford credit, and the credit market will be much smaller, thus reducing profits etc. etc.

When I was a kid my mother said to me that the lending companies only lend to rich people, those people who don't really need it. It has always been that way in a healthy market. You lend and are guaranteed of your return. If we are to believe what the banks say, the banks lent to all the poor people and got screwed.

I posted : http://www.projectavalon.net/forum/s...ead.php?t=5195

It's my reasoning about nationalizing banks, which basically has just come to pass in Europe. Today George Bush will inform the public what he will do with the first $250 billion of the $700 b. Will it be for his friends' banks? Will it go to AIG who as already received over $1 trillion? Let's wait and see.

Best regards,

Steve


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Hi Steve, just wondering, do you think the rise in the Stock Market will only be temporary because of this? I'm asking because I don't know a lot about how the Stock Market works, I'm sure you know much more than me.
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Old 10-14-2008, 09:20 AM   #80
Steve_A
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Default Re: Oct6th - Dow jones -500 / -4.60% level 9865.00

Hi Everybody,

This just in. With first installment of the $700b in hand, President George Bush should announce today that the treasury will buy stakes in Bank of America Corp, Wells Fargo, Citigroup, JPMorgan Chase & Co, Goldman Sachs, Morgan Stanley, Bank of New York Mellon Corp, State Street Corp and Merrill Lynch.

Best regards,

Steve
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Old 10-14-2008, 12:52 PM   #81
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Default Re: Oct6th - Dow jones -500 / -4.60% level 9865.00

The Icelandic Stock Exchange fell by 76% in early trading as it re-opened after closing for two days last week.

The country's economy has almost collapsed, after lending on the money markets dried up.

Iceland has become one of the highest-profile victims of the credit crunch.

Last week, authorities took control of the operations of three major banks, Kaupthing, Landsbanki and Glitnir, in which hundreds of thousands of Britons have savings.

Trading in six financial stocks - Kaupthing, Landsbanki, Glitnir, Straumur-Burdaras, Reykjavik Savings Bank (SPRON) and Exista - remains suspended.

Officials from Iceland are in Moscow for talks on an emergency loan that could be worth billions of euros.

Meanwhile, the UK Government has announced extra help for around 300,000 British firms and individuals with deposits in collapsed internet bank Icesave.

It is to lend the parent company Landsbanki £100m to help depositors get their money back.





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Originally Posted by Steve_A View Post
Hi Everybody,

This just in. With first installment of the $700b in hand, President George Bush should announce today that the treasury will buy stakes in Bank of America Corp, Wells Fargo, Citigroup, JPMorgan Chase & Co, Goldman Sachs, Morgan Stanley, Bank of New York Mellon Corp, State Street Corp and Merrill Lynch.

Best regards,

Steve
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Old 10-14-2008, 01:28 PM   #82
Peer
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Default Re: Oct6th - Dow jones -500 / -4.60% level 9865.00

As money is reduced to 0's and 1's and represents no real value for decades already I don't see the problem.
Maybe because you had some of those 0's and 1's and thought you were a rich man.
Well, wake up: That money didn't exist, not even on paper.

Actually you didn't own anything real (on another thread I already made clear that owning anything at all is impossible) but were you unhappy?
No. You just worried about losing something you didn't really own, something that didn't even exist.

All you have to do now is stop worrying and get a good night sleep.
You had a bad dream, that's all.

When you see mushroomlike clouds on the horizon it is time to get worried.
Anything else is there for you to enjoy for instance:
You could get into a real conversation with your neighbour.
A conversation about things that really matter.
Can't think of anything but money?

Then you are close to ZEN because ZEN is all about nothing.
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Old 10-14-2008, 11:21 PM   #83
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Default Re: Oct6th - Dow jones -500 / -4.60% level 9865.00

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Originally Posted by Xhaosis View Post
Not an expert, nor do I have a degree,

the dollar is staying strong in my opinion, because opec helps out allot, and since oil is traded mainly in dollars, since we are one of their biggest consumers. Not to mention our dollar represents a powerful military, Not really to sure why the dollar is still strong, I am just guessing. the injection is just going to buy us sometime, I think I understand what were facing, I am just not sure how it will change things. My grandpa always told me to let these big things worry about themselves, yet its hard not to feel something. What he meant thou, is not to be scared, take care of yourself, the best you can. etc. etc. The human being can adapt to anything.. Even hell..

Here is one reason the US dollar is still strong - but not for long;
LIBOR = London inter bank offer rate


Chuck Butler, a well known currency analyst and author of a daily letter entitled, “A Pfenning for your thoughts” provided a light-hearted and interesting insight in his letter on Friday.. Following is a direct quote from his letter published before the bailout package was passed.

“Good day… And a Happy Friday to one and all! A Fantastic Friday, I hope! As the blind man said, as he spit into the wind… It’s all coming back to me now… And so it was yesterday morning after I had hit the send button for the Pfennig, a trader friend called to give me some insight, and… After talking to him, it all came back to me now…
What the heck is he talking about now? I hear you asking… Well, recall how I and probably all of you too, have been scratching my head and wondering just how in the world the dollar could be rallying in the face of all that’s going on, and the bad data to boot. Well, here it is folks, sit back and take a sip of coffee…
One of the things we’ve learned this week is that the European banks are not getting to go Ollie, Ollie Oxen Free, on the holding of toxic waste debt… And since they are U.S. issued mortgage bonds, the trader that called tells me that they need to have capital reserved in U.S. dollars.

Well, usually, these banks use LIBOR for this funding… But with the credit crunch going on all over, LIBOR rates have gone through the roof. So… Looking for alternative means of raising capital, the European banks have turned to the euro / dollar swap market… Selling their euro reserves and buying dollars.
SLAP! I could have had a V-8! Now why didn’t I think of that? Anyway… This is what’s going on… One would logically think that when LIBOR gets back to normal, these euro / dollar swaps would be reversed. Now… The next question is… What will it take to get the LIBOR rates to normalize? Well, that would be an unlocking of the credit crunch. And according to our Fed Chairman, U.S. Treasury Sec. and President, the way
to unlock the credit crunch is to pass the Bailout Package! Dang it! I knew it would all get back to that darn Bailout Package!”

Much of the strength in the U.S. Dollar during the past two weeks can be attributed to Euro/Dollar swaps by European banks. Many of these swaps will be reversed as LIBOR rates return to normal. The reverse will not be immediate despite signing of the credit recovery bill on Friday because infrastructure to enact the bill will take several weeks. Traders will watch closely for signs that U.S. treasury bill rates are normalizing (i.e. rising) and the TED spread and LIBOR rates are normalizing (i.e. falling). Technicals on commodities and currencies as of Friday suggest that the normalization process has not started yet. Eventually, normalization will lead to weakness in the U.S. Dollar and strength in commodity prices and other currencies.
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Old 10-14-2008, 11:52 PM   #84
Steve_A
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Default Re: Oct6th - Dow jones -500 / -4.60% level 9865.00

Hi Falco,

I think also that there is a 'political' side to this to keep the dollar up there. It will be interesting what appens when everything pans out as there won't be a 'weakness' in the US$ there will be an absolute collapse, everybody will need to exchange them on the same day, if not, only those who sell during the first moments of the sell off will break even or make a slight profit. The others tat follow will lose a fortune as nobody will want to buy the dollar, knowing that ALL the financial institutions are wanting to get rid of them.

It could well be, as has already been happening in pre-war Iraq, Iran, Libya, Venezuela, Russia, Indonesia and other nations that everybody will deal in Euros.

Best regards,

Steve

Quote:
Originally Posted by Falco View Post
Here is one reason the US dollar is still strong - but not for long;
LIBOR = London inter bank offer rate


The reverse will not be immediate despite signing of the credit recovery bill on Friday because infrastructure to enact the bill will take several weeks. Traders will watch closely for signs that U.S. treasury bill rates are normalizing (i.e. rising) and the TED spread and LIBOR rates are normalizing (i.e. falling). Technicals on commodities and currencies as of Friday suggest that the normalization process has not started yet. Eventually, normalization will lead to weakness in the U.S. Dollar and strength in commodity prices and other currencies.
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Old 10-15-2008, 05:31 AM   #85
Falco
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Default Re: Oct6th - Dow jones -500 / -4.60% level 9865.00

Hi Steve,
Political side, sure - Its all political. It is being set up so that there eventually will be one central world bank.http://www.lastreporter.com/?p=2059
There is no one who knows how things will exactly panout, but I believe, as many do, that the $US will ultimately collapse. Could be sooner rather than later. Is this orchestrated? Certainly looks like it from my perspective. The only way to ameliorate the financial crisis is to introduce an asset backed currency.No fiat currency has survived for long. I wonder if the Amero, if it comes to pass, will be asset backed?

Nice gains on the DOW Monday but unable to holdon Tuesday. What will Wednesday and the week bring? I`m guessing more down. The IMF is saying up to 20% more downside; http://business.timesonline.co.uk/to...cle4926584.ece I excpect that is conservative. Some doom and gloom analysts are predicting a bottom of 7500 for the DOW and others saying it will rise to 12500 in 09.

Just some thoughts from a regular Joe

Last edited by Falco; 10-15-2008 at 05:57 AM.
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Old 10-15-2008, 07:54 AM   #86
Steve_A
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Default Re: Oct6th - Dow jones -500 / -4.60% level 9865.00

Hi Falco,

I think we could be looking at this from the wrong angle.

It's not that 'they' are orchestrating the crash of the dollar to create a new currency, I think it's the other way round, that they are rushing through the new currency because 'they' know the dollar will crash.

The crash of the dollar will happen. If people are still willing to buy the dollar, all well and good, this staves off the crash a little, gives 'them' more time.

So I think the more heads up people will start to think of the exit strategy of the dollar now, if this means stocking up on Euro, or other hard currency, or on an unoficial currency like the Amero, now that is the question. A lot of people made good money when the Euro was introduced and found it's place in the money markets. There could be two schools of thought. Play it safe and buy the Euro before the collapse, or risk it and buy the Amero for when it is officially introduced, then profit (or lose) whilst it is positioning itself in the monetary market.

Best regards,

Steve


Quote:
Originally Posted by Falco View Post
Hi Steve,
Political side, sure - Its all political. It is being set up so that there eventually will be one central world bank.http://www.lastreporter.com/?p=2059
There is no one who knows how things will exactly panout, but I believe, as many do, that the $US will ultimately collapse. Could be sooner rather than later. Is this orchestrated? Certainly looks like it from my perspective. The only way to ameliorate the financial crisis is to introduce an asset backed currency.No fiat currency has survived for long. I wonder if the Amero, if it comes to pass, will be asset backed?

Nice gains on the DOW Monday but unable to holdon Tuesday. What will Wednesday and the week bring? I`m guessing more down. The IMF is saying up to 20% more downside; http://business.timesonline.co.uk/to...cle4926584.ece I excpect that is conservative. Some doom and gloom analysts are predicting a bottom of 7500 for the DOW and others saying it will rise to 12500 in 09.

Just some thoughts from a regular Joe
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Old 10-15-2008, 09:06 AM   #87
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Default Re: Oct6th - Dow jones -500 / -4.60% level 9865.00

Probably a stupid question, but would it make sense for me to exchange the money I have for other currencies, such as the Euro or possibly the Canadian dollar?

I have no idea how I'm going to get ahold of silver or even gold, should the dollar become absolutely useless.
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Old 10-15-2008, 10:01 AM   #88
Steve_A
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Default Re: Oct6th - Dow jones -500 / -4.60% level 9865.00

Hi End_Times012,

It all depends on your needs. If you have a lot of money in US$ and you can't get hold of 'spot' gold or silver (check out your bank), you could change for more secure currencies, or alternatively buy 'naked' land (farm land to you and me) as that should hold its' value. You could even check out emerging markets for land, but be careful not to get ripped off by unscrupulous dealers.

I would at this time steer clear of the Canadian dollar, as it comes under the Amero umbrella and that geographical area is still unclear as to which direction it will go.

Another scenario, depending on the amount, is that you look for Amero currency (not the comemorative coins) if it officially exists and invest a portion in that - a higher risk but possible higher gains (or loss) and a more secure low risk investment. if you have enough and are wanting to invest, spread it around to secure yourself and possible make a buck or two on the way.

Best regards,

Steve


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Originally Posted by End_Times012 View Post
Probably a stupid question, but would it make sense for me to exchange the money I have for other currencies, such as the Euro or possibly the Canadian dollar?

I have no idea how I'm going to get ahold of silver or even gold, should the dollar become absolutely useless.
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Old 10-15-2008, 08:15 PM   #89
ATYT
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Default Re: Oct6th - Dow jones -500 / -4.60% level 9865.00

another day .. another tripple digit drop ... -733.08 (-7.87%) DOW
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Old 11-12-2008, 10:33 PM   #90
Mori
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Default Re: Dow jones -500 / -4.60% level 9865.00

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Big announcement? Look to a city (spelling) citi?

Patiently twiddles thumbs waiting on the MSM to catch up

Just a guess here...(is guessing even needed at this point with all the facts? Do we have all the facts? Could they pull out another skeleton from the closet?) 1st Cit followed by BoA, then Wells. Gman and J and P will attempt a transition.

I am by no means an "expert", just a financial reader trying to connect some dots.
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