Category: Financial Crash
The analysis published under this category are as follows.Monday, August 06, 2007
United States Day of Reckoning! / Stock-Markets / Financial Crash
Last week, I sent you a crash alert on Monday and then sent it to you again on Saturday. If you've seen it and you've taken the five protective steps I recommended, you should be in good shape. If not, before you start on this morning's message, I think you should go back and read my crash alert now .
— Martin Weiss
I was born in New York but raised in Brazil.
Elisabeth was born in Brazil but has spent most of her adult life in the U.S.
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Saturday, August 04, 2007
Stock Market Crash Alert: What to Do to Protect Yourselves / Stock-Markets / Financial Crash
Martin Weiss writes: With the Dow down over 280 points yesterday and the dollar sinking fast, I just wanted to make absolutely sure you didn't miss my alert of this past Monday. So here it is again. All our signals are equally valid; all our instructions, equally urgent.
With last week delivering the worst stock market rout in nearly five years, millions of investors are in a state of paralysis.
They're finally beginning to wake up to the enormity of the meltdown in the housing market.
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Friday, August 03, 2007
A Few Thoughts on the Recent Credit Crisis - Half of All Hedge Funds Gone? / Stock-Markets / Financial Crash
In this issue:
Inflation is Baked into the CPI Numbers
The Mortgage Pig in the Python
Housing Starts Look to Stop
A Few Thoughts on the Recent Credit Crisis
Half of All Hedge Funds Gone?
Golf, Weddings, and Europe
With the economy increasingly looking like it will slow down materially in the last half of the year, there is a drum beat for the Federal Reserve to cut rates. But how likely is a rate cut this year? We take a very different look at inflation to see if there is any room for the Fed to give a boost to the economy. We look over our shoulder at Japan and the yen carry trade and ask a heretical question: does the Fed cutting rates make any difference?
Friday, August 03, 2007
Why Financial Stocks Still Look Too Risky ... / Stock-Markets / Financial Crash
Mike Larson writes: I don't want to pull any punches: This is the worst environment for banks, mortgage lenders, and the general U.S. financial industry that I've seen since 1998!
That's when gun-slinging hedge fund Long Term Capital Management bet billions of dollars in bond markets all over the world.
Everything went swimmingly … until Russia defaulted on its outstanding debts. That spooked global bond investors, prompting massive "flight to quality" buying in U.S. Treasuries. LTCM's bets went haywire and more than $4 billion in losses piled up.
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Thursday, August 02, 2007
Hedge Fund Failures is Fire in the Projection Room / Interest-Rates / Financial Crash
Many people in high places continue to assert that problems with hedge funds and subprime lending do not pose a systemic risk to the financial system.
If these important people did think the entire financial system was threatened, do you think they would tell us?
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Monday, July 30, 2007
The Stock Market Crash of 2007 / Stock-Markets / Financial Crash
They say history doesn't repeat it merely rhymes. If that's the case, we may be setting up for a 2007 market crash. Take a look at this 1987 stock market crash picture:
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Monday, July 30, 2007
Stock Market Crash Alert: Five Steps to Take Immediately ... / Stock-Markets / Financial Crash
Martin Weiss writes: With last week delivering the worst stock market rout in nearly five years, millions of investors are in a state of paralysis.
They're finally beginning to wake up to the enormity of the meltdown in the housing market.
They're finally beginning see how it's impacting their stocks.
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Friday, July 27, 2007
Flash Alert: Wall Street Financial Meltdown! / Stock-Markets / Financial Crash
Martin Weiss writes: Wall Street is suffering a meltdown, and in a moment I'll tell you what to do about it.
The big picture: Anyone who thinks the meltdown is limited to a decline in stock prices should wake up and smell the coffee:
- The big money that Wall Street was pouring into mortgages is drying up …
- The big equity deals that were pouring still more money into the economy are bombing …
- The U.S. economy, hooked on all that Wall Street money like a dope addict, is about to suffer one heck of a hangover …
- The dollar is continuing to plunge virtually nonstop, and …
- The worst is yet to come! But …
Friday, July 27, 2007
What's Behind the Dow's Swan Dive ... / Stock-Markets / Financial Crash
Mike Larson writes : Let's not mince words. This week has been simply awful for the Dow. The Industrials plunged 226 points on Tuesday alone, put in an anemic bounce Wednesday, then sank another 311 yesterday. The carnage was even worse in several sectors I've flagged for months — home builders, financials, commercial REITs and more.
What's going on? What's behind this swan dive? Well, investors can be fickle:
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Thursday, July 26, 2007
What To Do As Stocks Go BUST! / Stock-Markets / Financial Crash
Stock prices plunging around the world today, some value investor tips come to mind.
1) Do not short the market . If you are thinking of going short because stocks must fall further, think again. Not only have bears that have waited for a sharp fall before entering the market short since 2003 had their heads handed to them, but as volatility returns to the marketplace put option premiums quickly shoot-up. In other words, trying to time the plunge can be dangerous, especially right after a sharp sell off.
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Thursday, July 26, 2007
Deja' vu, Spike Rally in Japanese Yen Spooks Global Financial Markets / Stock-Markets / Financial Crash
Perhaps the most important market in the world today is the vast network of foreign currencies, where total trading volume, including derivatives and futures, average around $2.9 trillion a day. This is ten times the size of the combined daily turnover on all the world's equity markets. And as world's economies have become increasingly integrated, so have the foreign exchange and global capital markets.
And the size of the foreign exchange market is mushrooming each year. FX trading increased by 38% between April 2005 and April 2006 and has more than doubled since 2001. That's not surprising, since 18 of the top-20 central banks around the world are tolerating double-digit growth of their money supply. Therefore, fluctuations in the foreign exchange market are bound to become more violent.
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Tuesday, July 24, 2007
Currencies Do Not Float, They Sink at Different Rates - The Crack-up Boom Series Part VII / Currencies / Financial Crash
In This Issue
The Crack-up Boom Series, Part VII
Currencies Do Not Float, They Sink at Different Rates.
Foreword - For greater insight into our publication, have a look at the Overview of Tedbits . It helps current and potential subscribers understand our mission in serving you. It also gives a broad description of what's unfolding globally and what you can expect from Tedbits as a regular reader.
The Crack Up Boom series is exploring the unfolding “Indirect Exchange” (as detailed by Ludvig Von Mises), that dollar holders will be using to exit their holdings now and eventually is will be followed by all holders of fiat currency holdings no matter which country is perpetrating the “fraud” of confiscation of wealth through the printing and credit creation process that all such monetary schemes evolve into. The “Crack Up Boom” will drive an inflationary global expansion to inconceivable heights over the coming years.
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Monday, July 23, 2007
US Treasury Secretary Henry Paulson: The Coming Financial Crash Shows Need for Immediate Monetary Reform / Economics / Financial Crash
US Treasury Secretary Henry M. Paulson, Jr., has joined the chorus of those in high places who are warning of a major worldwide economic downturn.
Paulson was quoted at length in a July 23, 2007, article in Fortune by Rik Kirkland entitled, “The Greatest Economic Boom Ever: Enjoy It While It Lasts.” Paulson's remarks came in the context of assessing the ability of the highly-leveraged equity, hedge, and derivative markets to withstand the shocks to come. He told Fortune in an interview:
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Monday, July 23, 2007
Investment Flash: Ah, The Summer of 1929! / Stock-Markets / Financial Crash
“As the advertisements in the Ladies Home Journal declare, “This is a sun-worshipping year….all the world has gone in for sun-tan.” ( Since Yesterday by Fredrick Lewis Allen.) The July 6 th 1929 cover of The Saturday Evening Post would also agree:Read full article... Read full article...
Monday, July 23, 2007
Harry Houdini – Financial Markets Seasonal Patterns -- And Liar's Loans Toxic Waste / Commodities / Financial Crash
Market pundits are coming out of the woodwork prognosticating financial markets are in real trouble now because the subprime mess will spread to other markets, and a ‘ blood bath ' will occur in everything from commercial loans to the stock market. And then select others more conservatively espouse, while they are open to such possibilities given global imbalances / bubbles are undoubtedly stretched, it's not over until the fat lady sings, but that at a minimum we should count on increased volatility in the days ahead.Read full article... Read full article...
Friday, July 20, 2007
Subprime Lenders Fallout - It's all hitting the fan! / Stock-Markets / Financial Crash
Mike Larson writes: It's all hitting the fan — right here, right now! The two Bear Stearns (BSC) hedge funds that Martin told you about in late June have reportedly been all but vaporized. Wiped out!
According to a July 18 New York Times story,
"Bear Stearns told clients in its two battered hedge funds late yesterday that their investments, worth an estimated $1.5 billion at the end of 2006, are almost entirely gone. In phone calls to anxious investors, Bear Stearns brokers reported yesterday that May and June had been devastating months for the portfolios.
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Thursday, July 12, 2007
US Economy Nightmare Warnings! and How to Protect Yourself Now! / Economics / Financial Crash
Larry Edelson writes: I hate to say it, but I believe the next five to six months will harbor nightmares for the U.S. economy so profound that they will impact each and every one of us.
Before I go any further, let me say that I'm not a gloom-and-doomer. Longer term, I am very optimistic about U.S. and global economic growth. I'm even optimistic on the U.S. real estate market. But I'm also a realist …
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Monday, July 09, 2007
The Perfect Financial Storm / Stock-Markets / Financial Crash
Below is an excerpt from a commentary that originally appeared at Treasure Chests for the benefit of subscribers on Tuesday, June 19th , 2007.
Have we finally arrived – arrived at the point where we can say the perfect storm is unfolding before our very eyes? I don't know about you, but in my eyes it appears this may very well prove the case. Certainly one of the more important factors in this regard has got to be the inevitable war with Iran military forces appear to be preparing for that could send oil prices substantially higher . Not much will be getting through the Strait of Hormuz if war breaks out based on the arsenal Iranians are building up at present, where oil could go into triple digits, never mind $75 or $80. And even if war with Iran is averted, it's becoming more apparent every day that simple supply side constraints set against exploding demand will eventually send crude prices skyrocketing anyway. This you can count on, and you can count on it changing the way we live in just a few years from now. That's right, in not so many years from now you will look back on today and think – those were the good old days.
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Sunday, July 08, 2007
US Economy on Life-Support and Global Financial System on Brink of Collapse / Stock-Markets / Financial Crash
Remember when the U.S. was the world's greatest industrial democracy? Barely thirty years ago the output of our producing economy and the skills of our workforce led the world.
What happened? It's hard to believe that in the space of a generation our character and capabilities just collapsed as, for example, did our steel and automobile industries and our family farming. What then are the causes of the decline?
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Tuesday, July 03, 2007
Hedge Funds and CDO Investment Landfills: How professionals dump their toxic waste on you / Stock-Markets / Financial Crash
"...Not sure what happened at Bear Stearns? The root cause might surprise you. You might also find your own investment funds at risk, after being used as a landfill for the same kind of toxic waste..."
THIS IS NOT the idle chatter of permanent bears. The subprime mortgage collapse now hitting Bear Stearns may be just the start.
Serious analysts from big investment firms are talking ominously about "the big one". It will make you angry to learn just how the investment industry has got you involved.
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