On the one hand, I was mystified that the stock market was up in the morning session given that the money market seize up was not at all improved and several key measures had worsened overnight. I was wiling to accept the view that we might have an oversold bounce and saw several bloggers indicate […]
Read more...Oh boy, will give you details when they show up in the media. Here is the screenshot courtesy reader Rob (click to enlarge): Update 2:00AM. From Bloomberg: Indonesia’s stock exchange halted share-market trading for the first time in eight years after a 10 percent plunge in the benchmark index. Trading will remain suspended until further […]
Read more...Mr. Market is in a very bad mood. From Bloomberg: Asian stocks fell, sending Hong Kong’s Hang Seng Index below 16,000 for the first time in two years, on concern the credit crisis will topple more banks and slowing growth will cut demand for the region’s exports… “Investors are liquidating their stock positions because they […]
Read more...There was a remote chance of a rebound rally (and I don’t mean anything jazzy) but the news that Bank of America, heretofore regarded as a sound institution (how with its credit card exposures and acquisition of Countrywide is beyond me) will cut its dividend by 50% and raise $10 billion to bolster its balance […]
Read more...So much for the idea that the bailout bill would produce a relief rally. Overseas equity markets are taking a beating. No word yet on how the credit markets are faring. Investors are finally waking up to the notion that it isn’t just the US financial system that is in trouble, but that pretty much […]
Read more...We have a certain fondness for Marc Faber: he knows financial history, he is refreshingly direct, not attached to conventional thinking, and has a record of generally good investment calls (and admits to his mistakes). Reader Dean provided us his latest newsletter, plus a story covering recent interviews (no, Dean is not his PR agent, […]
Read more...Markets continue to be roiled by the upset of the effort to pass the touted Paulson bailout bill. As of this writing, the FTSE and Dj Stoxx 50 are up slightly, but money markets took a beating, the reaction worsened by end-of-quarter factors. From Bloomberg: The cost of borrowing in dollars overnight surged the most […]
Read more...Conventional wisdom has been that Treasuries have been the yet another bubble as cash exited equities and other risky investments, first feeding a commodities spike, then seeking a better home in Treasuries. But Merrill’s David Rosenberg, who was in a decided minority in seeing deflation as the likely outcome for the US (he has for […]
Read more...Nouriel Roubini predicted that hedge funds closures would be the next leg of the financial crisis. Large scale redemptions force hedge funds to sell assets at a time not of their choosing. More assets being dumped at a time of risk aversion is likely to lead to distressed prices, putting pressure on other players, since […]
Read more...Swiss investor Marc Faber, known for a long track record of good calls (he was a commodities bull until late this spring, for instance, when he reversed his view) and a fine grasp of financial markets history, confirms the estimate earlier in the week by Ken Ohmae that the US needs a salvage operation much […]
Read more...The latest sightings: Money market rates doubled overnight: despite considerable central bank intervention: The cost of borrowing in dollars overnight more than doubled as banks hoarded cash amid speculation more financial institutions will fail. The overnight dollar rate soared 333 basis points to 6.44 percent today, its biggest jump, according to the British Bankers’ Association. […]
Read more...The action overnight has been dramatic. The number for equity markets overseas seems to be four or more, as in declines of 4%-5%, with developing nation instruments suffering more.. The theme was a flight from risk and worries about further economic slowing The dollar fell, particularly versus the yen the preferred vehicle of the carry […]
Read more...Reader Vijay pointed us to an op-ed today in the Washington Post by Don Luskin, “Quit Doling Out That Bad-Economy Line.” Some of its priceless wisdom: Things today just aren’t that bad. Sure, there are trouble spots in the economy, as the government takeover of mortgage giants Fannie Mae and Freddie Mac, and jitters about […]
Read more...This tidbit from the Wall Street Examiner came via reader Scott: Once upon a time, when faced with a market meltdown the Fed would have pumped a wad of cash nto the market and it would have been good for a rally of a couple or three hundred points. Today the Fed added a whopping […]
Read more...From the Nattering Naybob: Shares in the S&P 500 have climbed to an average 25.8X reported profits…. The last time that happened in 2001, the S&P 500 fell 38%. As they like to say, past performance is no guide to future return, but be warned.
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