Almost Armageddon - Markets Were 500 Trades From a Meltdown

[Roadwarrior]

http://www.nypost.com/seven/09212008/business/almost_armageddon_130110.htm

ALMOST ARMAGEDDON
MARKETS WERE 500 TRADES FROM A MELTDOWN
MICHAEL GRAY

The market was 500 trades away from Armageddon on Thursday, traders inside two large custodial banks tell The Post.

Had the Treasury and Fed not quickly stepped into the fray that morning with a quick $105 billion injection of liquidity, the Dow could have collapsed to the 8,300-level - a 22 percent decline! - while the clang of the opening bell was still echoing around the cavernous exchange floor.

According to traders, who spoke on the condition of anonymity, money market funds were inundated with $500 billion in sell orders prior to the opening. The total money-market capitalization was roughly $4 trillion that morning.
The panicked selling was directly linked to the seizing up of the credit markets - including a $52 billion constriction in commercial paper - and the rumors of additional money market funds "breaking the buck," or dropping below $1 net asset value.

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[Dr. Dan]

phew! fright:

but still, we need to be on guard..temporarily stopping shorts will not solve any problems if there is a realy problem.

For the govt to bail out some companies and even own a share in its stock (as long as the company has value) may actually end up helping the govt with adding funds to its deficit thereby preventing as much consideration increasing taxes.

[SavetheWest]

And Michael Savage was complaining about the bailout like a screaming child.  What other choices do they have?  I'm no fan of bailouts and government intervention but sometimes it's necessary to take action like this.  The Clintons and Obama's advisors were the ones pushing for people who can't afford a house, to get one.  The people who got homes were incapable of making sound economic decisions and still these neo-communists wanted them to take on these huge financial responsibilities. 

This mess is far from over and there still are people who got homes in 2003-2005 that are coming up to the end of their adjustable rate mortgages.  The lenders went into overdrive during this time and every snake oil salesman was getting into home loans.  We will see it get worse before it gets better.  It will probably improve in 2011-2012, five years after all the shady ARMs end.

[Zelhar]

Chaim referred to this financial crisis in one of last weeks videos. Thanks to DBN you there is an English subtitled version:
http://jtf.org/forum_english/index.php/topic,26468.0/topicseen.html

[Roadwarrior]

And Michael Savage was complaining about the bailout like a screaming child.  What other choices do they have?  I'm no fan of bailouts and government intervention but sometimes it's necessary to take action like this.  The Clintons and Obama's advisors were the ones pushing for people who can't afford a house, to get one.  The people who got homes were incapable of making sound economic decisions and still these neo-communists wanted them to take on these huge financial responsibilities. 
This mess is far from over and there still are people who got homes in 2003-2005 that are coming up to the end of their adjustable rate mortgages.  The lenders went into overdrive during this time and every snake oil salesman was getting into home loans.  We will see it get worse before it gets better.  It will probably improve in 2011-2012, five years after all the shady ARMs end.

Agreed it was necessary.... I dont know what Savage's problem is.
I heard him rail against Palin when she was announced. Now he doesnt
like this.  His money is probably in Abu Dabi.
I was worried about money markets going under a dollar ..One fund actually
did ....Money markets collapsing would be catastrophic. They were supposed to be invincible ...Meanwhile sounds like more houses will be dumped ....
killing home prices even more.

[Roadwarrior]

Chaim referred to this financial crisis in one of last weeks videos. Thanks to DBN you there is an English subtitled version:
http://jtf.org/forum_english/index.php/topic,26468.0/topicseen.html

Thanks Zelhar !