Comments on: Trichet Says Worst of Credit Crisis May Lie Ahead http://www.nakedcapitalism.com/2008/05/trichet-says-worst-of-credit-crisis-may.html Sun, 22 Nov 2009 22:11:10 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: ruetheday http://www.nakedcapitalism.com/2008/05/trichet-says-worst-of-credit-crisis-may.html#comment-8285 ruetheday Tue, 20 May 2008 12:19:00 +0000 http://www.nakedcapitalism.com/2008/05/trichet-says-worst-of-credit-crisis-may-lie-ahead/#comment-8285 "while liquidity tensions are easing, the market is entering a second phase of the crisis. Real credit losses are accelerating and many areas of the market have yet to see the worst of the crunch."<br/><br/>Exactly. Kudos to the Fed for not allowing the liquidity crunch to cause 1930's-style bank failures (which I am certain would have happened had they done nothing). However, that's just the beginning. We have a patient riddled with bullet holes. Stopping him from bleeding to death was a necessary first step, but it does not mean we are done or even half done. We still have to extract the bullets and repair the internal organs. The patient is still in critical condition. Let's hold off on the Mission Accomplished banners for now. “while liquidity tensions are easing, the market is entering a second phase of the crisis. Real credit losses are accelerating and many areas of the market have yet to see the worst of the crunch.”

Exactly. Kudos to the Fed for not allowing the liquidity crunch to cause 1930’s-style bank failures (which I am certain would have happened had they done nothing). However, that’s just the beginning. We have a patient riddled with bullet holes. Stopping him from bleeding to death was a necessary first step, but it does not mean we are done or even half done. We still have to extract the bullets and repair the internal organs. The patient is still in critical condition. Let’s hold off on the Mission Accomplished banners for now.

]]> By: eh http://www.nakedcapitalism.com/2008/05/trichet-says-worst-of-credit-crisis-may.html#comment-8281 eh Tue, 20 May 2008 10:35:00 +0000 http://www.nakedcapitalism.com/2008/05/trichet-says-worst-of-credit-crisis-may-lie-ahead/#comment-8281 I think the QQQQ is also rising on little breadth; but it has been this way for some time. I think the QQQQ is also rising on little breadth; but it has been this way for some time.

]]> By: Francois http://www.nakedcapitalism.com/2008/05/trichet-says-worst-of-credit-crisis-may.html#comment-8277 Francois Tue, 20 May 2008 07:47:00 +0000 http://www.nakedcapitalism.com/2008/05/trichet-says-worst-of-credit-crisis-may-lie-ahead/#comment-8277 Investors in the US market do not seem to realize how tenuous the S&P500 "strength" is:<br/>http://bigpicture.typepad.com/comments/2008/05/sp500-ex-energy.html<br/><br/>""Take away Exxon Mobil Corp., Chevron Corp. and ConocoPhillips and profits at U.S. companies are the worst in at least a decade.<br/><br/>Without the $70 billion that oil producers earned in the last two quarters, profits at companies in the Standard & Poor's 500 Index tumbled 26 percent and 30.2 percent, the biggest decreases for any quarter since Bloomberg started compiling data in 1998."<br/><br/>The worst part of this recession is over?<br/><br/>I saw Santa Claus yesterday in Central Park, having a cup of tea with Nefertiti. Investors in the US market do not seem to realize how tenuous the S&P500 “strength” is:
http://bigpicture.typepad.com/comments/2008/05/sp500-ex-energy.html

“”Take away Exxon Mobil Corp., Chevron Corp. and ConocoPhillips and profits at U.S. companies are the worst in at least a decade.

Without the $70 billion that oil producers earned in the last two quarters, profits at companies in the Standard & Poor’s 500 Index tumbled 26 percent and 30.2 percent, the biggest decreases for any quarter since Bloomberg started compiling data in 1998.”

The worst part of this recession is over?

I saw Santa Claus yesterday in Central Park, having a cup of tea with Nefertiti.

]]> By: eh http://www.nakedcapitalism.com/2008/05/trichet-says-worst-of-credit-crisis-may.html#comment-8275 eh Tue, 20 May 2008 05:30:00 +0000 http://www.nakedcapitalism.com/2008/05/trichet-says-worst-of-credit-crisis-may-lie-ahead/#comment-8275 <i>He said however that high inflation "will not last forever."</i><br/><br/>He's really going out on a limb there. He said however that high inflation “will not last forever.”

He’s really going out on a limb there.

]]>