7 replies to this topic

[atlasshrugged]

[ed rader]

what do you mean"if" ?

ed rader

[dcengr]

I think we'll hit the lows, and maybe go a bit below it, on lower volume.. Probably a bear trap. If it punches through and keeps going, god help the bulls.

[ogm]

Not just the bulls.. God help us all pretty much... That will mean that the world financial system has become so unstable that even massive injections of liquidity by the world central banks are unable to hold it anymore. There is still plenty of liquidation going on, but this must hold. And more importantly have a stable close. The world central banks at this point will do everything possible to contain the situation. Or we'll live in the world of cascading debt defaults. Corporates, Munis, Treasuries... all that stuff that is being issued in record numbers with junk rating.... all of it will start spiraling out of control and will bury the world economy. They must stop it now.

Edited by ogm, 10 August 2007 - 12:09 PM.

[dcengr]

Not just the bulls.. God help us all pretty much...

That will mean that the world financial system has become so unstable that even massive injections of liquidity by the world central banks are unable to hold it anymore.


There is still plenty of liquidation going on, but this must hold. And more importantly have a stable close.

The world central banks at this point will do everything possible to contain the situation. Or we'll live in the world of cascading debt defaults.

Corporates, Munis, Treasuries... all that stuff that is being issued in record numbers with junk rating.... all of it will start spiraling out of control and will bury the world economy.

They must stop it now.

No, they'll stop it AFTER those who bought it on the news capitulate. The first reaction buyers will get hosed. It takes some time for them to see what they wanna buy. They're not going to shovel cash into the market right after the news is released. Which is why I think... retest of lows today, rally starts next week.

[relax]

can someone explain to me why ECB are planning to raise rates, when they are currently injecting funds into the market why not just keep rates on hold btw man will inflation data be important next week like previous corrections core inflation data needs to be healthy in order for the market to establish a rising trend

[ogm]

can someone explain to me why ECB are planning to raise rates, when they are currently injecting funds into the market

why not just keep rates on hold

btw man will inflation data be important next week

like previous corrections core inflation data needs to be healthy in order for the market to establish a rising trend

There is no way they will raise rates here. They just injected almost $200 bil in liquidity in the market. Who said they are still planning to raise them ?

[relax]

it isn't more than about a week ago that Trichet indirectly said that rates would be raised in september markets in europe will definitely rally if ECB officially states that rates will not be raised in september