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Is this a problem?


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#1 OEXCHAOS

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Posted 09 December 2021 - 10:31 AM

https://www.cnn.com/...L-UyFFJQc5YH3r0


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#2 redfoliage2

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Posted 09 December 2021 - 10:52 AM

I see it maybe not for now but it will somehow become a problem for the market upon the Fed meeting early next week .....................


Edited by redfoliage2, 09 December 2021 - 10:56 AM.


#3 gannman

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Posted 09 December 2021 - 11:03 AM

this will be interesting how it is handled. 


feeling mellow with the yellow metal


#4 LMF

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Posted 09 December 2021 - 12:33 PM

Everything translates to Print more Monopoly money. Brrrrrrrrrrr

#5 MikeyG

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Posted 09 December 2021 - 07:31 PM

No, we are about to make new highs.

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#6 Rogerdodger

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Posted 09 December 2021 - 08:30 PM

Fears of default sent shares of Evergrande plummeting 20% on Monday. So far this year, the stock has lost 87%

 

Where there's one roach...
 

1997 Asian currency crisis

 It became increasingly clear that Russia could not maintain the peg to the US dollar. Consequently, on 17 August 1998, Russia devalued the ruble

 

When Russia defaulted on its debt in August 1998, LTCM was holding a significant position in Russian government bonds, known by the acronym GKO. Despite the loss of hundreds of millions of dollars per day, LTCM's computer models recommended that it hold its positions.

 

By August 31, the Dow Jones Industrial Average had dropped by 13%.

Investors sought refuge in Treasury bonds, causing long-term interest rates to fall by more than a full point by September 30, 1998.

Many banks and pension funds had invested in LTCM, its problems threatened to push most of them to near bankruptcy.

In September, Bear Stearns dealt the deathblow.

 The investment bank managed all of LTCM's bond and derivatives settlements. It called in a $500 million payment. Bear Stearns was afraid it would lose all its considerable investments. LTCM had been out of compliance with its banking agreements for three months.

 
Federal Reserve Intervention To save the U.S. banking system, the Federal Reserve Bank of New York President William McDonough convinced 14 banks to bail out LTCM.  They spent $3.5 billion in return for a 90% ownership of the fund.

The Fed started lowering the fed funds rate. It reassured investors that the Fed would do whatever was needed to support the U.S. economy. Without such direct intervention, the entire financial system was threatened with collapse.


 

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Edited by Rogerdodger, 09 December 2021 - 09:36 PM.