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66481-66500 of 69565
Agree with cashiertan and ipunter on market direction.Sell on strength and wait for October crash.
Buy at year end of 2007.
When buying from a counter, which is better to buy. 1.The ones over bought OR The ones oversold.
In the year 2000, the S&P made a decision that the type of mortgages known as a piggyback were no more likely to default than a standard mortgage. As a result piggyback loans transformed the mortgage market lending into a boom in what would become a subprime mortgages. The piggyback loan is a loan that backs on top of a regular mortgage like a second. Thus 100% housing financing is acheived when someone takes the piggyback loan to pay for the first 20% downpayment.
The next phase came in when the bank starts to allow loan with no-docs or no income verfication. So not only did the banks allow people to buy homes with no money down, they loosened up the lending standards. These allowed the subprime market to mushroom.
As if these were not enough, the lenders also started to play with the interest loan to entice further lending. Lenders created teaser loans where the loans for the first 2 years are fixed a low rate and becomes variable after that. All these were going on during 2004, 2005 and 2006 and it was also the period that Fed began to raise interest rate.
.........(to be continued)
"When Bernanke says the situation is not that bad, it is that BAD." Bernanke's job does not allow him to broadcast the real picture.
just sell on strength. the recent rally is part of the raise before another dip. this time may even break the prev low, thou the govt may step in..
we are a little more settled down with the credit worries in the US markets at the present moment...i am actually monitoring the market situation in the China market now...seeing it climb to such a current height..it has the potential for a correction...and also noticing the Bank of China actually had over US$50 million to be accounted towards potential losses in the recent downfall...
I tend to be on Cashier's side about the market's direction... viz a double bottom formation before a more reliable rally can be expected.
But the market beast is a real beast with a mind of its own, so no one can really predict its next move. And that is why people lose a lot of money in betting.... 
Thanks for your views by cashiertan & popdod
Enjoyed very much your contrary views
I'm very much concur with cashiertan.
This guy gives a nice TA explanation on 24 Aug.
http://www.youtube.com/user/inthemoneystocks
Trade with caution.
i disagree, in fact i am more prepared for a dip again to the level of prev low or abv it. the DOW need to form a W formation else the climb wont be sustainable. at the current look of DOw, it is either forming a V or the 1st half of W formation. Watch it tightly as the market should dip again real soon. next is the volume, it wasnt high volume thus BBs is easily able to manipulate the chart.
Agree that STI is on the way up.
American DOW is champion because they are world leaders and rightly so - seeing they way their market leads the European and Asian markets
Shortist/hedge funds shortists - can find another job as volatility subsides
People are less panicky now
Some shortist or investors yet to invest still try to play up the bad news !!
Too bad, market has come up quite a bit - and will come up more by the weeks ahead
Pure chartists are bullish.
Major indices have broken out on friday.
Week ends on positive note.
Read internetnetnews.com ( comments by Paul Shread. )
NEW YORK (Fortune) -- In a clear sign that the credit crunch is still affecting the nation's largest financial institutions, the Federal Reserve agreed this week to bend key banking regulations to help out
Citigroup (
Charts,
Fortune 500) and
Bank of America (
Charts,
Fortune 500), according to
documents posted Friday on the
Fed's web site.
The Aug. 20 letters from the Fed to Citigroup and Bank of America state that the Fed, which regulates large parts of the U.S. financial system, has agreed to exempt both banks from rules that effectively limit the amount of lending that their federally-insured banks can do with their brokerage affiliates. The exemption, which is temporary, means, for example, that Citigroup's Citibank entity can substantially increase funding to Citigroup Global Markets, its brokerage subsidiary. Citigroup and Bank of America requested the exemptions, according to the letters, to provide liquidity to those holding mortgage loans, mortgage-backed securities, and other securities.
This unusual move by the Fed
shows l
argest Wall Street firms are continuing to have problems funding operations during the current market difficulties, according to banking industry skeptics,
even the biggest brokerages have been caught off guard by the credit crunch and don't have financing to deal with the resulting dislocation in the markets.
Fed has taken this step merely to increase the speed with which the funds recently borrowed at the Fed's discount window can flow through to the bond markets,
where the mortgage mess has caused a drying up of liquidity.
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+6/32
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101 1/32
Yield:4.61%
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5:17:00 PM ET 08/24/2007
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5:09pm: If the Federal Reserve is waiving a fundamental principle in banking regulation, the credit crunch must still be sapping the strength of America's biggest banks. Fortune's Peter Eavis documents an unusual Fed move. (more)
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The money markets are opaque and the DECEPTION is worse than at the race course and Wembly stadium
The amounts of money invoved is in the trillions so insider knowledge is all important not charts and fibonacci numbers or recommedations by your friendly broking houses.
The R word is back-economic expansion based on leveraged debt is good for Wall Street but bad for the world. This is not real business but monkey business.
DOW closed - 142.99
We should see a bullish coming Monday...
cheers
11:44am: Scammers are taking advantage of mortgage holders at their most vulnerable: when they're about to lose their homes. ( more)
10:35am: Drivable concept versions of General Motors cars that use efficient new engines with HCCI technology revealed Friday. ( more)
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| Dow Jones Industrial Average |
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| 13,344.65 |
+108.77 / +0.82%
Aug 24 2:58pm ET ?
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| 13,231.78 |
| 13,344.81 |
| 13,208.65 |
| 7.07% |
| 119,661,260.00 |
| 13,235.88 |
| 11,260.28 - 14,021.95 |
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Just my tot,
Many is thinking to sweep sub-prime woes into & under the carpet as doe nothing has happened.
Victorf,
Any comment on below report from CNNMoney.com. Again October ???.
==========================================================
LONDON (CNNMoney.com) -- Investors are expected to hit hedge funds with a
flood of redemption requests this fall, but those who try to withdraw
their money may be in for an unpleasant surprise.
Most hedge funds have "lock-ups," a minimum period of time during which
investors agree to tie up their money and not make any withdrawals.
Once that period ends, investors generally can redeem their stakes as long
as they give advance notice, usually 45 to 90 days before the quarter end.
Although that cut-off has passed for many funds for the current quarter,
investors can still put in requests to get their money out by year-end.
But hedge funds also can slow withdrawals, or suspend them altogether.
While they're usually loath to do this, since it can signal that a fund is
on the verge of collapse, current conditions may result in more funds not
letting investors take their money out - at least not immediately.
Risk returns with a vengeance
Hedge funds have been hard hit by the recent turmoil in the market. Two
Bear Stearns hedge funds heavily invested in securities backed by subprime
mortgages blew up in June. Ensuing volatility claimed funds at Sowood
Capital Management and led to big losses at so-called quantitative funds,
including some run by Goldman Sachs (Charts, Fortune 500) and others.
The losses sparked panic in the market, as well as worries that more
problems will surface at other funds. That's raised expectations that
hedge-fund investors, which include institutions like university
endowments and pension funds, will try to rush to get their money out
before losing more. That, in turn, can unleash a vicious cycle: As hedge
funds lose cash, they're left with less money to invest, which can make it
difficult for the funds to recover and hasten a downward spiral.
To avoid that scenario, hedge funds can make it tougher for nervous
investors to bail out. For example, they can slow redemptions by imposing
a "gate," which allows them to cap the amount investors withdraw during a
given period - usually at 20 percent of the fund's net asset value,
according to David Nissenbaum of law firm Schulte Roth & Zabel, whose
hedge-fund practice dominates the industry.
They can also block withdrawals completely, for instance when they can't
accurately value the fund's assets or don't have the money to meet
requests, legal experts say. Bear Stearns (Charts, Fortune 500) froze
withdrawals on a third fund this month, although the reason for the
suspension was unclear. Bear Stearns did not return calls seeking comment.
Markets have stabilized recently, which is helping some funds. Leonard
Chazen of law firm Covington & Burling said recent signs that merger
activity hasn't completely stalled has helped ease redemption pressure
among the funds he works with, which invest in buyout deals.
But there's still uncertainty over how long the calm will last. "The trend
in the area I work in is positive, but we could have a whole new set of
events tomorrow," Chazen said.
Lining up to cash out
And that unease is fueling expectations for investors to keep cashing out.
Credit funds and those exposed to subprime mortgages are the most at risk,
analysts say, but amid the liquidity squeeze, some investors who need cash
are even unwinding positions in funds that are performing well.
Of the more than 9,000 hedge funds that currently exist, at least 2,000
are vulnerable to "runs on the bank" by investors, according to a memo law
firm Morrison & Foerster recently issued to its clients.
Pension funds are especially likely to be pressured to pull their money in
volatile times, said Evan Flaschen, a bankruptcy specialist at law firm
Bracewell & Giuliani who represents many hedge funds.
"There will continue to be redemptions because so much money invested in
hedge funds is from pension funds and state trust funds who assumed
returns were always going to go up," Flaschen said.
It's unclear how many investors will end up fleeing hedge funds, but
pressure is expected to mount as the end of the year nears. The problems
at quantitative funds didn't surface until this month, which means nervous
investors in funds requiring a 60- or 90-day advance notice weren't able
to make withdrawal requests for the third quarter ending in September.
They may rush to the exits at the first opportunity in October.
"There is a growing concern that we could be looking at substantial
redemptions in the fourth quarter," Nissenbaum said, which could pose a
big challenge for the hedge-fund industry.
If funds take the extraordinary actions of using the "gate" or suspending
redemptions, "this will be a real test to see whether investors can
forgive and forget or if this will remain a black mark on the record of
fund managers," he said.
The Dow is showing signs of a bearish wedge forming...
but if it closes very high above the wedge, it may be a sign of bullishness returning...
It's really hard to predict anything!!!... 
The market is so quiet today! Less than 1 billion shares traded. Almost unheard of.....
One good thing out of this is that it brings the free falling to a screeching halt.
hmmm....currently the Euro markets all are in slight dips of red....
