18 replies to this topic

[pdx5]

Highly doubt it. The PPT came AFTER the '87, crashette.

Some day, all the jawboning and money-pumpin' of the PPT won't be effective...when the world has given up on the $USD. Until then, the PPT will backstop every decline before really negative sentiment sets in.

PPT is NOT the one pumping liquidity into the market. Following excerpt
tells you how..

<<<"So it looks like about $15.4 trillion in bank assets and liabilities is being backed up by a minuscule $40.2 billion! That's a microscopic 0.0026%. A quarter of 1%! Hahahaha! Fractional reserve banking at its finest! Hahahaha!"

Total Fed Credit expanded only $2.0 billion last week, taking the total to $861.6 billion. Not much of an increase, and sure enough, Doug Noland says, "Fed Credit has increased $9.4bn y-t-d and $31.9bn over the past year (3.8%)." Almost nothing, considering their record!

So the money to finance the world's bull markets is coming from someplace else. Hmmm! >>>

How about China, Japan, OPEC and others holding humongous US dollars and buying stocks instead
of Treasuries?

Edited by pdx5, 12 October 2007 - 10:58 PM.

[arbman]

we already have 10-15 % correction. Where have you been?

he just came out of hibernation, I guess...

[NAV]

Didn't we already have the Oct crash yesterday ? It's over now. LOL.

[Tor]

LOOKS LIKE YOU GOT THE ANSWER YOU WERE LOOKING FOR - ABSOLUTELY NO ONE AT ALL PREPARED FOR A CRASHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH!

[qqqqtrdr]

we already have 10-15 % correction. Where have you been?

I'm talking about the overall broad market here at this point. Not your portfolio...

Barry

[traderpaul]

[quote name='pdx5' date='Oct 12 2007, 08:55 PM' post='321035'] [quote name='HoseB' post='321002' date='Oct 12 2007, 07:09 PM']


How about China, Japan, OPEC and others holding humongous US dollars and buying stocks instead
of Treasuries? [/quote]
This statement does not make sense.....Why would they buy US stocks if China stocks are going up 100% a year?.....Do you have facts to back this up?

[OEXCHAOS]

The current market dynamics are not even close to being the same as they were 20 years ago, no less, in 1929.
Fib

I agree. The conditions are greatly different from 87. Interest rates are low and the market P/E is in a good area. This was not the case in 87.

Rich

The really scary thing is that after all that decline and Crash in 87, the Dow had something like a 6% gain on the year!

No comparison. None.

Besides, the 50-hour SME will have to be broken befor we can crash...

[milbank]

There doesn't necassarily have to be a "crash" for the ball to start rolling back downhill again. A lot depends on how fast the long term rates rise. If enough start moving out of equities to pursue longer term bonds.... What's that expression about the frogs in a pot of water slowly coming to a boil? I'm just glad this area isn't a part of my trading concerns.

Edited by milbank, 13 October 2007 - 05:45 PM.

[pdx5]

[quote name='traderpaul' date='Oct 13 2007, 11:25 AM' post='321073']
[quote name='pdx5' date='Oct 12 2007, 08:55 PM' post='321035'] [quote name='HoseB' post='321002' date='Oct 12 2007, 07:09 PM']


How about China, Japan, OPEC and others holding humongous US dollars and buying stocks instead
of Treasuries? [/quote]
This statement does not make sense.....Why would they buy US stocks if China stocks are going up 100% a year?.....Do you have facts to back this up?
[/quote]

It was all over the news that China is setting up a multi-Billion outfit
entrusted to invest in foreign equities. The Chinese gov't is well aware
of the bubble in Shanghai market. They are actually trying to reign it
in a little. Also, why would the Chinese invest FOREIGN MONEY RESERVES
in the local market? I think they are just tired of buying Treasuries which pay
back in falling dollar. US equities OTOH go up as dollar falls.