U.S stock exchange is going to be interesting ??

[ebxr8240]

Well ?? IMO if you have been looking to buy real estate ??
NOW is the time!! Generally when stock exchange is down, Super the way it is...
Then housing generally improves...

[JPFS1]

Originally Posted by ebxr8240

Well ?? IMO if you have been looking to buy real estate ??
NOW is the time!! Generally when stock exchange is down, Super the way it is...
Then housing generally improves...

Did a real estate agent give you this advice? ;)

Seriously, this financial meltdown will take no prisoners. This will not be isolated to the stock market.

We are seeing a major change in world credit supply and availability.

The last 10 or so years, what has been a strong BULL run, was caused by the reckless lending of credit, bad credit, to all and sundry! Link this credit to dodgy assets and you get what we are seeing now!

The inflationary pressures are not only on the consumer items we buy on a day to day basis, the easy credit environment inflated share AND property markets!

We are now moving fast into a deflationary credit crisis, where lenders no longer have capital to package, won't be able to package their debts as easily as they used to, and certainly buyers of those packages would be far more cautious.

The global slowdown, and that's what it is because of how globalised the world economies are, will have all sorts of negative affects.

But what's really new? This is what always happens when boom turns to bust. Asset values disappear. And with them, the money supply itself contracts. People spend less freely, they lend less recklessly. More money stays tucked away for longer periods in pockets and bank accounts. Prices fall. Many assets turn out to be worthless and many people go broke.

Lehman's were a 45 BILLION dollar company, now worth almost nothing, literally! That's as massive a collapse as ever i'd imagine. It just got to a point where things were too good to be true for all sorts of asset classes, when that happens, that's a pretty good sign of the top, but it's how we got the top that's causing the damage now!

I believe we will not be immune to the credit squeeze in Aus, i think there is a significant chance that property will be affected also.

For me, tangible assets, ie, most commodities and producers, will be the safe haven against all of this, just not right now, still a way to go possibly.

I'm only 31 and have never experienced a credit crunch like this, let alone the ramifications of it, it's scary to think about.. I have been heavily geared in the stock market for the last 10 years and have done well... lucky I have basically taken the money and run, built my house with manageable debt against it, I consider myslef lucky now.

I expect to see the US enter another war for that financial stimulus that they will need, because it looks like the money printing press will be getting a fair bit of use!

[birdman941]

Greedy bankers and speculators caused this mess.
Investmets are gambles, and investors are gamblers.

[BFZ Wagon]

Originally Posted by birdman941

Greedy bankers and speculators caused this mess.
Investmets are gambles, and investors are gamblers.

I second that Birdman941 !!!

It's all caused by 'manipulation'
It must be fun for these greedy bankers etc with money to be able to do stuff to affect so many people's lives & help stuff economies! I wonder how they sleep at night.. Oh wait...probably very comfortably on their huge piles of money! :angry:
People in this world need to start realising that this sort of stuff doesn't just 'happen'.
I have other views on this sort of thing but I'll keep quiet for the time being.

[gcg2503]

Halifax Bank of Scotland to be taken over by Lloyds TSB

The hits keep on coming.........

Crazy scenes here in London

[Russ]

Originally Posted by SB076

Cost of oil has dropped to below $100 US per barrel (a least thats a positive)

As others have said, it's just a pity the prices at the pumps didn't move down with it. : I think it's so sad that the poor ba$tards (oil companies) are only making a few billion $'s profit each month, how terrible that must be for them, Greedy Pr..ks !! :togo:

[SB076]

Originally Posted by gcg2503

Halifax Bank of Scotland to be taken over by Lloyds TSB

The hits keep on coming.........

Crazy scenes here in London

Not just London, Russian market isnt fairing well (closed last two days) and either Chinese market is dropped too. How far does this mess go?


EDIT: Oil rose to US$97 based on the weakeness of the US currency.

[Fev]

atleast the price of fuel at the pump has now dropped a bit

[Keepleft]

JPFS1 - A pretty solid review, don't just skim past it folk - read. This is far from being played out, its effect will invariably ripple through the economy at large, and is beginning to to so Stateside, now.

* Ex US Fed Reserve Chairman Greenspan mentioned the US and world will not have seen an event like this for some 50, possibly 100 years or so.
http://www.bloomberg.com/apps/news?p...taQ&refer=home

U.S. Stocks Plunge as Lending Freezes Up Following AIG Takeover

http://www.bloomberg.com/apps/news?p...mgU&refer=home

$3.6 Trillion Erased

About $3.6 trillion of market value has been erased from global stocks this week, triggered by the largest-ever bankruptcy filing by Lehman Brothers Holdings Inc., once the fourth-largest U.S. securities firm. Russia halted stock trading for a second day and poured $44 billion into its three biggest banks in a bid to halt the worst financial crisis in a decade.

http://www.nytimes.com/2008/09/18/bu...18markets.html

Deutsche Bank Limits Credit Swaps Adding to Bank Risk (Update2) Sept. 17 (Bloomberg) -- Deutsche Bank AG is taking steps to slow credit-default swap trades that expose it to the risk of failure among Wall Street firms, according to three investors told of the policy.

http://www.bloomberg.com/apps/news?p...efer=exclusive


Get rid of debt, now would be a good time, hyperinflation concern.
http://www.rense.com/general82/countdd.htm

[Yellow_Festiva]

Some interesting reads here:

http://money.ninemsn.com.au/article.aspx?id=633305

[blueoval]

Originally Posted by Fev

atleast the price of fuel at the pump has now dropped a bit

Not to the same extent of the price per barrel. If there was a 10c hike overnight in oil per barrel, Id bet my left nut all fuel companies would up the prices overnight to accommodate. But when its the other way around, it takes months for the savings to be passed down to the consumer. Makes me sick.

[SB076]

Originally Posted by gcg2503

Halifax Bank of Scotland to be taken over by Lloyds TSB

Halifax Bank of Scotland own Bankwest (local bank) They are expecting it to be business as usual for Bankwest - more info here

http://money.ninemsn.com.au/article.aspx?id=633358

[charles_wif_xf]

This is just the beginning...

[sandmanls1]

seen how much macquarie bank shares have dropped no more "millionaires factory"

[irlewy86]

So the question remains do I buy up big now or wait for the US recession for some real fire sale bargains?

[sandmanls1]

telstra just announced they are cutting 800 jobs

[Keepleft]

Jim Rogers on the getting rid of the US Federal Reserve, and on Bernanke (Chairman Fed Res). CNBC Interview March 08.

Do watch this. Other similar on page.

http://www.youtube.com/watch?v=lTXEWh2yT_g


RUDD was on TV reminding viewers of Australia's 'solid' financial position, 'though - we are not immune' Zzzzzzz.

[Fev]

Originally Posted by blueoval

Not to the same extent of the price per barrel. If there was a 10c hike overnight in oil per barrel, Id bet my left nut all fuel companies would up the prices overnight to accommodate. But when its the other way around, it takes months for the savings to be passed down to the consumer. Makes me sick.

very true, - although i still cant figure out why the AAC cant figure it out since everyone else can? hmmmmmm

[SB076]

Originally Posted by irlewy86

So the question remains do I buy up big now or wait for the US recession for some real fire sale bargains?

Probably a question best left to the experts - especially as some of them are now out of a job.

My personal views are that I would not be buying in, even though lots of companies seem to offer good value on past measuring methods. I dont beleive we are out of this yet. But it depends on you goals etc, investing in the options market could make you a large amount of money - but it could also loose you a huge amount

[Keepleft]

Originally Posted by SB076

I dont beleive we are out of this yet.

Ohhh, it's very early days - even though this 'event' has been playing out in earnest for some months now . . ..

Most? folk, remain blissfully unaware of what it all means, and what it could really mean down-the-track, jobs, retirement, pensions, security.

TEN News @ 5; $30 billion wiped off the AUS stock market today....

[ebxr8240]

Yep the recession they have to have..
Hmm ?? who said that??
He is right Japan and U.S bought there way out of the early
80's recession..
Socialism for the VERY rich...

[XD 351 Ute]

I watched them yakking on the news tonight about all this.

So what happens to our superannuation?

I realise that they will lose more money, so how does one go about making sure their super balance doesn't lose any more?

It's not as if you can just withdraw it and stuff the money in your mattress, not until 65 at least............

Ed

[ebxr8240]

Originally Posted by XD 351 Ute

I watched them yakking on the news tonight about all this.

So what happens to our superannuation?

I realise that they will lose more money, so how does one go about making sure their super balance doesn't lose any more?

It's not as if you can just withdraw it and stuff the money in your mattress, not until 65 at least............

Ed

Like anyone else that takes risks and invests .. In stocks its not like its come out of your pocket! Unless you sell..
I would say and hope our super money is shared over many investments..
Some of this money to help them is a "loan" so they are NOT out of it by any means..
Quite some time back I stopped putting extra into super and bought real estate.. At least that way there's no one driving around in an expensive car at my cost...

[Bent8]

It's the fall of Rome all over again...

Seriously if you have any cash in bonds, stocks or even commodities, sell up now and buy gold...and not just a paper contract, get the real deal in your possession!

Because when it falls, it will be literally every man for himself.

Super funds will all dry up soon if they haven't already. So I'd suggest you get your hard-earned money back anyway you can.

Also if you have large sums of money in your bank, get it out now and buy gold with it because it will always be worth something, even when everything falls apart. Don't wait till people line up at the banks trying withdraw their money only to be turned back by the police.

Don't forget under the fractional reserve banking system, banks are only required to keep 10% of all deposits in their vaults, and even this was recently changed in the US!

Current US debt is now over 9 trillion and climbing fast, this is all by design people, the Banksters are buying real assets with money they create on their computer screens in Wall Street and basically striping the nation and running while trying to set up a militaristic Govt to control the masses when the SHTF!!

We are witnessing their exit strategy from the US but what they don't know is that they won't escape this time around. The game is up for them and they will all face the music one way or another.

Google "The Money Masters" and watch it, it will explain everything in plain english for you.

Batten down the hatches and prepare for the unexpected.

[tempest]

wtf..

[birdman941]

This event is a massive market correction.
Fortunes were made by producing nothing.
Unfortunately, a lot of it has to do with greedy bankers (as mentioned prior)
and certain politicians in the US.
This has been years in the making.
Under a different administration here (BJcigar),
it was made law that mortgages were to be made to poor people.
Simply brilliant.
5 years ago, one of our current Caucasian Presidential candidates
saw it coming, and attempted to sound the alarm,
only to be silenced by the socialists.
He is tough though, and a definite Maverick.
I hope he has the chance to fix it.

[vanman_75]

im pretty happy lots of rich people going down ,to much greed will kick ya hard on the roundabout .

[ebxr8240]

[QUOTE=Bent8]It's the fall of Rome all over again...

Seriously if you have any cash in bonds, stocks or even commodities, sell up now and buy gold...and not just a paper contract, get the real deal in your possession!

Because when it falls, it will be literally every man for himself.

Super funds will all dry up soon if they haven't already. So I'd suggest you get your hard-earned money back anyway you can.

Also if you have large sums of money in your bank, get it out now and buy gold with it because it will always be worth something, even when everything falls apart. Don't wait till people line up at the banks trying withdraw their money only to be turned back by the police.

Don't forget under the fractional reserve banking system, banks are only required to keep 10% of all deposits in their vaults, and even this was recently changed in the US!

Don't panic buying gold now is too late. Why buy when the assets you have are worth less and buy into an inflated one??
The when after things have corrected themselves ?? You could be worse off..

[ebxr8240]

Originally Posted by birdman941

This event is a massive market correction.
Fortunes were made by producing nothing.
Unfortunately, a lot of it has to do with greedy bankers (as mentioned prior)
and certain politicians in the US.
This has been years in the making.
Under a different administration here (BJcigar),
it was made law that mortgages were to be made to poor people.
Simply brilliant.
5 years ago, one of our current Caucasian Presidential candidates
saw it coming, and attempted to sound the alarm,
only to be silenced by the socialists.
He is tough though, and a definite Maverick.
I hope he has the chance to fix it.

I could well argue that it's socialist fix to a capitalist problem ??

Extremes either way is a problem.. Like many other things..

[JPFS1]

The Fed are doing what they need to be doing and they are select in how they act and who they act on. Sure there are negatives in their actions, but the outcomes if they didn't act would be far more catastrophic.

Yes, this was all caused by extremely bad legislation and regulation. It has come to this for them to realise that decisive action had to be taken.

I notice many of the main financial hub cities have announced a ban on naked short selling. this is going to see massive increases now and a much more transparent playing field. The fed are also going to package all that bad debt and package it in a structure off market.

To reiterate... what we are seeing is not a sharemarket related crisis, it's just having a n affect on it. It is simply bad financial policy that enabled very bad credit tools to be created. Unsecured loans in a housing crash with the loans not being able to be serviced is what this is all about.

The fed are acting fast, and it seems to be working for now.

The credit squeeze can't be fixed over night, but confidence and sentiment can take a turn in a positive direction... and for the markets, that's part of what's required for the solution.