The reason being given is "valuations are stretched."John wrote:The markets were up slightly until 10:38 am, following a positive ISM
report, then suddenly the Dow fell 150 points in just a few minutes.
What was that all about?
John
Apparently a rumor about a bank failure is given by AP byline story.John wrote:The markets were up slightly until 10:38 am, following a positive ISM
report, then suddenly the Dow fell 150 points in just a few minutes.
What was that all about?
John
Or was it some kind of insider selling which has been reported to be at all time high.The stock market was already on edge going in to Wednesday's session after a big sell-off the day before that took the major indexes down about 2 percent. Rumors of a major bank failure triggered the selling, adding to the growing anxiety on Wall Street that stocks are overvalued considering their run-up of more than 50 percent since March
http://www.zerohedge.com/article/full-b ... ode-comingYet the real issue may be that banks, stuck with record excess reserves, and even more record holdings of toxic real estate paper, will sooner rather than later, realize that they can not rely on the Fed's backing in perpetuity and gradually start offloading the toxicity that currently passes for bank assets, and move into a safer class, especially as leveragability falls off, and banks once again become banks, instead of glorified, backstopped hedge funds, a prime example of which always is Goldman Sachs.
In a few segments over the next 16 weeks, in 4 of those weeks they are to be layoffed being department specific. Housing is not stabalized as conveyed. Incremental pain is witnessed as saving to uncertainty being you are working on and off. Me Included, as value added investment is narrowed. Imagine a cash only Christmas as we have done over the last years.Higgenbotham wrote:I read a story in Reuters that said China's government may have authorized some state owned enterprises who are carrying large losses on derivatives sold to them by US banks to go ahead and default on the contracts.
http://www.reuters.com/article/rbssFina ... 6520090831
My guess is that it's beginning to dawn on the mindless New York herd that this is the spark that could lead to a crash and there's little anyone can do to stop it. This story probably goes hand in hand with the reported rumors of a major bank failure.
Also, the herd may be beginning to realize, as mentioned before, that the Fed can't guarantee any of this mess.
http://www.zerohedge.com/article/full-b ... ode-comingYet the real issue may be that banks, stuck with record excess reserves, and even more record holdings of toxic real estate paper, will sooner rather than later, realize that they can not rely on the Fed's backing in perpetuity and gradually start offloading the toxicity that currently passes for bank assets, and move into a safer class, especially as leveragability falls off, and banks once again become banks, instead of glorified, backstopped hedge funds, a prime example of which always is Goldman Sachs.
That's a very interesting quote. The big question in my mind is whether this process will be gradual. I cannot imagine why it would be.
John wrote:Wow - that graph is really dramatic.
The mood on tv is really dark. They're even starting to admit they
don't know what's going on.
I heard Steve Lieseman this morning say that economists are puzzled
about why jobs are continuing to be lost at the same rate (around
570,000 jobless claims per month). I've never heard him say anything
like that before.
More and more pundits are are talking about a correction. Of course,
that leaves the Pollyannas to say that the fact that everyone expects
a correction means that the market is really going to go up. Don't
you just love these people? Don't laugh -- they make 6 or 7 digit
salaries.
However, one pundit says that there's a lot of nervousness about
Friday's jobs report. If it's "bad," then he expects a quick 10%
correction.
However, what I perceive is that the serenity and complacency that
investors felt just a week ago seems to have evaporated.
Sincerely,
John
That's an interesting story, undoubtedly dictated by the Beijingaedens wrote: > Who is naked in the moon light John:
> http://www.marketwatch.com/story/hong-k ... link=kiosk
> Even if we told them they would ignore us John on the Capital
> Investment Issues. Slowly they are walking out the door as we
> conveyed. Discipline over conviction is at hand and they do not
> get it. Treasury as proxy in relationship to monetized debt ratios
> and tearup's we warned about. Settlements are due in October in
> EU.
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