***** Fed Intervenes For 3rd Time Today in Markets (total of $62B in 24 hours)
- Thread starter dcamp2002
- Start date
RoadRunner
Veteran Member
In the green again up 12:35 pt
Anne in TN
Deceased
Ok, folks, Take a deep breath! It is over for the week and the Dow finished down just 31 points. Can you imagine where the market would have ended up without the interfering Fed!
ChiliPalmer
Inactive
STOCKS RECOVER IN FINAL MINUTES
By CNBC.com | 10 Aug 2007 | 04:04 PM ET Font size: Stocks closed mixed but recovered the bulk of the day's losses in the final half-hour of trading amid continued market volatility.
"The Fed will do whatever is necessary to avoid a credit crisis from happening," said Charles Rotblut, senior market analyst at Zacks.com. "I'm surprised the reaction is relief and I wonder why they did it three times instead of just one.
"Are they seeing something no one else in the market is seeing or did they just underestimate demand?," Rotblut asked. "But there definitely is a positve reaction, people are relieved they are not being hawkish to inflation. This said, I don't think we're out of the woods yet."
For the week, the Dow Jones Industrial Average posted a weekly gain of about 0.5%, the S&P 500 ended the week up 1.6% and the Nasdaq Composite rose 1.4%.
Other analysts also believe the volatility will continue.
"You're going to have choppy couple of weeks here with death by paper cuts," said Jason Trennert, chief investment strategist at Strategas Research Partners. "Ultimately the system is strong, valuations are very reasonable and the ECB and Fed seem to be on top of their game … and are there to support the market if need be. Once the dust settles we think the Fed is going to ease and I think a lot of large cap stocks are on sale here."
The Federal Reserve added a total of $38 billion to the financial system on Friday in three different operations. While the first two injections appeared to calm the markets, the third seemed to rattle investors for awhile.
"What we're seeing is basically a short squeeze on some large institutional players and the volatility deal they been working on for some time," said John Conolly, vice president at Advantage Futures. "They can't find efficient liquidity to get out and the Fed is trying to let them out. The question is if it will; these are very large market participants and they are not just invested in one area."
(cont'd) http://www.cnbc.com/id/20204383
By CNBC.com | 10 Aug 2007 | 04:04 PM ET Font size: Stocks closed mixed but recovered the bulk of the day's losses in the final half-hour of trading amid continued market volatility.
"The Fed will do whatever is necessary to avoid a credit crisis from happening," said Charles Rotblut, senior market analyst at Zacks.com. "I'm surprised the reaction is relief and I wonder why they did it three times instead of just one.
"Are they seeing something no one else in the market is seeing or did they just underestimate demand?," Rotblut asked. "But there definitely is a positve reaction, people are relieved they are not being hawkish to inflation. This said, I don't think we're out of the woods yet."
For the week, the Dow Jones Industrial Average posted a weekly gain of about 0.5%, the S&P 500 ended the week up 1.6% and the Nasdaq Composite rose 1.4%.
Other analysts also believe the volatility will continue.
"You're going to have choppy couple of weeks here with death by paper cuts," said Jason Trennert, chief investment strategist at Strategas Research Partners. "Ultimately the system is strong, valuations are very reasonable and the ECB and Fed seem to be on top of their game … and are there to support the market if need be. Once the dust settles we think the Fed is going to ease and I think a lot of large cap stocks are on sale here."
The Federal Reserve added a total of $38 billion to the financial system on Friday in three different operations. While the first two injections appeared to calm the markets, the third seemed to rattle investors for awhile.
"What we're seeing is basically a short squeeze on some large institutional players and the volatility deal they been working on for some time," said John Conolly, vice president at Advantage Futures. "They can't find efficient liquidity to get out and the Fed is trying to let them out. The question is if it will; these are very large market participants and they are not just invested in one area."
(cont'd) http://www.cnbc.com/id/20204383
No, the Dow is down 400+ points for the week, and was NEARLY down 600+ points. Only the 38 B-B-BILLION $ bailout yesterday and today kept the markets from imploding. Additionally, the market doesn't mean squat. What DOES matter are the LENDERS, and their relative health. Those reports have ALL BEEN BAD AND GETTING WORSE. The stock market is just a "realtime index" of how the moneymen feel about things...
ChiliPalmer
Inactive
Sixty-two billion, Dennis. Today's 38 billion was on top of yesterday's 24 billion.
Why, you're right! Pretty soon we'll be talking about "real money".... 
ChiliPalmer
Inactive
Exactly! The Dow's still above 13000. Well, bully for the Dow. What will this do to the dollar?
Where did you hear the 400 point loss for the Dow this week? Im pretty sure it was positive for the whole week
I read elsewhere the $$ the Feds pumped in this week was in exchange for MTG-BACKED SECURITIES used as collateral!!! the same mtg.-backed securities that cannot be valued due to the fast moving market and therefore, the same securities thattcannot be sold cause there are NO BUYERS! Loverly - the FED will buy them.
Yea - they bought $35b MBS today!
If this isn't communism - what is?
Main Entry: com·mu·nism
Pronunciation: \ˈkäm-yə-ˌni-zəm, -yü-\
Function: noun
Etymology: French communisme, from commun common
Date: 1840
1 a: a theory advocating elimination of private property b: a system in which goods are owned in common and are available to all as needed
2 capitalized a: a doctrine based on revolutionary Marxian socialism and Marxism-Leninism that was the official ideology of the Union of Soviet Socialist Republics b: a totalitarian system of government in which a single authoritarian party controls state-owned means of production c: a final stage of society in Marxist theory in which the state has withered away and economic goods are distributed equitably d: communist systems collectively
cabinboyman
Inactive
CNBC reported Dow up marginally for the week.
Derivatives do not close with the markets. They are still ticking away....
Globally we are over $200 billion injected in the last couple days; possibly more as I didn't see any figures on Japan, Australia, U.K. or Canada. European Union Central Bank I think was somewhere around 85 billion Euros or about $125-130 billion (could be wrong as I have seen a variety of figures but at least in the 85 billion range).
All things considered what would we expect with such injections of credit?
The great question is what exactly do all these Central Bankers know that we don't? What do they see? I do believe it is more than a few panicky investors.
The actions around the globe should get even the calmest to sit up and take notice. This isn't your typical central banker actions. Neither is the Fed when not just once or twice but a full three times in one day, they inject more. And then talk of a rate cut even though it takes 6 months to have a real effect in our system.
There's no calm or rest to those that follow this stuff. Derivatives never sleep....
Josey
Derivatives do not close with the markets. They are still ticking away....
Globally we are over $200 billion injected in the last couple days; possibly more as I didn't see any figures on Japan, Australia, U.K. or Canada. European Union Central Bank I think was somewhere around 85 billion Euros or about $125-130 billion (could be wrong as I have seen a variety of figures but at least in the 85 billion range).
All things considered what would we expect with such injections of credit?
The great question is what exactly do all these Central Bankers know that we don't? What do they see? I do believe it is more than a few panicky investors.
The actions around the globe should get even the calmest to sit up and take notice. This isn't your typical central banker actions. Neither is the Fed when not just once or twice but a full three times in one day, they inject more. And then talk of a rate cut even though it takes 6 months to have a real effect in our system.
There's no calm or rest to those that follow this stuff. Derivatives never sleep....
Josey
Hiding Bear
Inactive
The Fed clearly indicated that only those mortgage securities guaranteed by the US or a US agency (such as Fannie Mae).
When the Fed starts lowering their standards to just mortgages, we will know we are in even more serious trouble.
Sebastian
Sebastian
Hiding Bear
Inactive
Right. I think it is a misconception that the Fed wants to support the stock market. What they want to prevent is a stock market panic or other sudden decline in the stock, bond, etc. markets.
A 300 point Dow Jones decline, or 2%, by itself means almost nothing to the Fed. If it dropped 300 points every day in a week, that's another matter.
Anyway the Fed here is trying to prevent a banking crisis. Ironically perhaps, those companies that benefit from inflation may see the value of their stocks rise as the Fed inflates the money supply - that is after an upcoming period of possible extreme turbulence.
Spirit Of Truth
Inactive
The DJIA was up on the week....so why is there such freaking out?
http://finance.yahoo.com/q/bc?s=^DJI&t=5d&l=on&z=m&q=l&c=
Mass psychology is in turmoil....collective confidence is cracking.
Get out of the way!
http://www.spiritoftruth.org/dow14000.htm
http://finance.yahoo.com/q/bc?s=^DJI&t=5d&l=on&z=m&q=l&c=
Mass psychology is in turmoil....collective confidence is cracking.
Get out of the way!
http://www.spiritoftruth.org/dow14000.htm
Dennis is wrong...CNBC is right...
The DOW, NASDAQ and S&P were UP for the week...
It was just a roller-coaster of a week so it doesn't FEEL like they were up but Friday to Friday...they were definitely UP....just a little bit...
Kris
The DOW, NASDAQ and S&P were UP for the week...
It was just a roller-coaster of a week so it doesn't FEEL like they were up but Friday to Friday...they were definitely UP....just a little bit...
Kris
Spirit Of Truth
Inactive
I think you are right on the mark Josey. Something is going on behind the scenes that is spooking the central banks.
nanna
Devil's Advocate
Well, yeah ...a lot of the major banks are not liquid enough to act as a counterparty.
Spooked, indeed!
nanna
Sparco
Inactive
...slightly off topic - but relevant IMHO -
Ask yourself this question: Where is China in this whole thing, hmmm?
The ECB extends a welcome financial hand, self interest aside at this point, to help stabilize what by all accounts, is an impending global financial crisis.
And while our financial markets, and many around the world, are sweating bullets, the Chinese are watching - silently. Amid the recent statement that the Chinese would be forced to dump USD holdings in the face of US tariffs aimed at leveling the trade deficit, and boosting the value of the yuan, one can only come to one reasonable conclusion.
That the Chinese are our enemy in every respect, at every turn, in every venue. They have made it plain that they desire 1st world status, moreover a position that they would occupy solely at the top. This is another opportunity to witness them in action.
Just remember: China is not our friend - never was - never will be.
cyrhavoc
Ask yourself this question: Where is China in this whole thing, hmmm?
The ECB extends a welcome financial hand, self interest aside at this point, to help stabilize what by all accounts, is an impending global financial crisis.
And while our financial markets, and many around the world, are sweating bullets, the Chinese are watching - silently. Amid the recent statement that the Chinese would be forced to dump USD holdings in the face of US tariffs aimed at leveling the trade deficit, and boosting the value of the yuan, one can only come to one reasonable conclusion.
That the Chinese are our enemy in every respect, at every turn, in every venue. They have made it plain that they desire 1st world status, moreover a position that they would occupy solely at the top. This is another opportunity to witness them in action.
Just remember: China is not our friend - never was - never will be.
cyrhavoc