As anyone who's read "Manias, Panics and Crashes" knows too well, at this point in the cycle we always see dis-credit, where lending is rapidly drawn in.
And the resulting credit crunch just speeds up the panic and crash.
U.S. stocks to fall sharply at open as jitters resume
U.S. stocks are expected to open sharply lower on Thursday as nervousness in Asian markets, rumors about distressed lenders and the latest U.S. inflation figures, rekindled the selling pressure that sent the market plunging two days ago.
In addition, rumors that a big lender was in distress were floating around the market, according to research firm Action Economics.
"Investors are worried about the strength in the economy and the Fed's assumption that housing has hit bottom," said Pado.
52 comments:
.
.
.
.
And again, anyone who felt the same thing as I did on Friday last week, when I posted this message, would be sitting pretty today.
Too many pressures. Too much ignorance. Too much disinformation and spin.
The powers that be could lie and distort for only so long. The Great Unwinding is now upon us.
Here's the post from Friday. Damn this was either really lucky or really good.
PEOPLE OF THE WORLD, THE TIME IS NIGH.
THE GREAT HOUSING CRASH IS HERE. DUCK AND COVER. LIGHT FUSE AND GET AWAY. YOU ONLY HAVE DAYS TO PREPARE.
THE EPIC HOUSING CRASH IS UNDERWAY. THE GREAT UNWINDING IS HERE. THE BIGGEST BUBBLE, EL FINANCIAL MANIA GRANDE, IN HUMAN HISTORY HAS BEEN PIERCED.
IT HATH BEEN FORETOLD.
PEACE OUT. GOOD LUCK. FULL STOP.
First bank failure in years happens in Pittsburgh
The streak is over.
After nearly 21/2 years without a bank failure, a small Pennsylvania bank collapsed this month.
Metropolitan Savings Bank of Pittsburgh was closed by its state banking department. About $12 million in deposits were assumed by Allegheny Valley Bank of Pittsburgh.
The Federal Deposit Insurance Corp. said Metropolitan had about $1.2 million in deposits in 70 accounts that could exceed the federal insurance limit.
Guess the market is not buying Bernanke's happy speak yesterday
Margin calls are being made, the cycle begins - lower - more calls - lower - repeat, ouch!
BUY YEN! NOW! JUST DO IT! FXY IS THE ETF!
Get ready for the hedge fund blowups now!
Greenspan Says U.S. Recession Possible, Not Probable
LISTEN TO THE MAN FOLKS EVERYTHING IS OK.
Have another 1500 pounds of food being delivered TODAY.
John McCain announced his candidacy for president during a TV appearance last night - markets down today.....coincidence? I think not.
NYSE imposes trading curbs as stocks fall
Thu Mar 1, 2007 10:00 AM ET
NEW YORK (Reuters) - The New York Stock Exchange said on Thursday it instituted downside trading curbs as U.S. stocks fell sharply in early trading.
The U.S. market's fall followed a sharp sell-off in equities on Tuesday. On Thursday, renewed inflation worries and a rise in the yen stirred concern that investors were being forced to unwind carry trades.
The New York Stock Exchange Composite Index <.NYA>, which is used to determine when to begin trading curbs, was down 159.75 points, or 1.8 percent, at 8964.79.
The trading curbs require that all program buying of S&P 500 stocks must be on an up-tick.
serious question:
now that housing has blown up and the stock market is declining, where will all the excess liquidity go? M3 (total money supply) is still growing and the money has got to go somewhere.
Earlier this week, the Conference Board's index of consumer confidence unexpectedly rose to the highest in more than five years, lifted by rising wages and an expanding job market.
Target Corp., the second-largest U.S. discount chain, this week said fourth-quarter profit got a boost from its biggest revenue gain in at least nine years as shoppers spent more on consumer electronics and groceries.
`Feel Very Good'
``I feel very good about the consumer,'' Federated Department Stores' Chief Executive Officer Terry Lundgren said Feb. 27 in an interview. Bloomingdale's, the company's high-end chain, also is ``doing very well.''
EVERYONE FEEL GOOD DAMN IT - Your wages are rising - he said so.
richard..
wher are you ordering from?
funny- i read an article that blamed Drudge Report for the 400 pt crash the other day due to his headline --- BWAHAHAHHAHAH
banks are failing.
its over boys and girls.
from the bullnotbull site;
A Warning from Harry Schultz
by Harry Schultz
January 21, 2007
Editor's Note: The following is excerpted with permission from the HSL658 - The International Harry Schultz Life Strategies Letter, January 21, 2007, page 2. My sentiments are much the same, and if you've been sitting on the fence about the issues discussed, perhaps hearing it from someone with the stature of Schultz will help you to clarify your thinking.
Harry Schultz, or 'Uncle Harry,' as he is known to his subscribers, is Editor of the Harry Schultz Life Strategies Letter, now in its 42nd year of publication. This is an accomplishment in and of itself, but HSL was also named newsletter of the year in 2005 by Marketwatch.com. Marketwatch is a mainstream publication, but Uncle Harry's letter is most definintely not. You'll get news and views you won't hear anywhere else, such as what you're about to read below.
The Honorable Ron Paul, US Congressman and 2008 Presidential Candidate, has this to say about the letter: "I wouldn't want to do without HSL. It's a must for global outlook and investing."
Without further ado - a letter from Harry Schultz:
Dear Lambs:
Read our virtual obituary (yours & mine), spoken in 1991 by David Rockefeller, & oh so obvious in 2007:
"We are grateful to the Washington Post, NY Times, Time magazine & other great publications whose directors have attended our meetings & respected their promises of discretion for almost 40 years. It would have been impossible for us to develop our plan for the world if we had been subjected to the lights of publicity during those years. But, the world is now more sophisticated & prepared to march towards a world govt. The supranational sovereignty of an intellectual elite & world bankers is surely preferable to the national auto-determination practiced in past centuries." -- David Rockefeller, Baden-Baden, Germany 1991.
Frankly, dear, dear readers of mine, I fear we've lost the game. The insiders have won. They now control all the levers of power, financial & political. Many good men in public office are prohibited by the system from reforming it. Commercial, media & political power is concentrated in just a few elite hands. I've (& others) warned (loudly) for decades in HSL what was happening & what would occur if nothing was done. People were lulled into lethargy via careful massive brain conditioning, became content to watch TV 7 hours a day, accepted the misdeeds of politicians, the raging moral degradation of society, the creation of media/corp monopolies, the ruin of money worldwide--begun (via careful plan) by Washington/NY insiders.
People blamed inflation for their 50% loss of buying power in last 35 years, not realizing the definition of inflation is an increase in the quantity of money/credit by banks/govt, equally. They cleverly removed gold as currency backing to give them monetary control. There is now no legal restraint on govt. Govt distorts economic data & everyone knows it, but the kept-press is kept silent & thus nobody marches in the street about their life being sacrificed on the altar of globalization--offshoring jobs--the lie called "free trade," which in fact means the opposite, like all govt legislation titles. Eg, Patriot Act is unpatriotic if U still believe the US Constitution has merit & is a lighthouse for other nations. The minority who understand all the above are mostly afraid to make waves-which is also part of the grand scheme, to intimidate or buy-off critics.
When a possible leader or competent critic emerges in the US, he/she is immediately made a member of the CFR, which thereby seals his/her lips. Or else! It's a refinement of a Mafia policy. It's done in a few other countries too, but not as widely or ruthlessly as in the US.
In any case, my point is, we've lost. Individual freedom & civil rights are substantially gone or compromised beyond practical application. In the past I've always said: divide your time/funds, ie, devote say 50% of your effort/ funds to fighting to save &/or restore lost individual rights/liberty/privacy, & 50% to self-preservation (as U may lose with your freedom fighting). In recent times I implied those %'s need modifying, as we're losing ground & one must save one's family/self. Today, with the devilish North American Union being cemented into the US & Canada's future, the sabotage of freedom, both individual & collective, is being completed. So, I regrettably now recom U ratchet down your %'s, maybe to 10% vs 90%. Govts are not looking after your individual freedom (esp in Anglo Saxon nations-UK/Cda/Oz/NZ/US); so if U don't row a boat with your family flag on it (not a nation flag), U may help sink your family & yourself.
Will individual/personal freedom & former civil rights come back some day? Maybe. Perhaps the extremity will lead to its destruction. But, if so, we have to get through a worse period before we get there, if we do. And to get through it requires a lot of effort, especially if U live in the US in its present mode; many are leaving the US til it is "safe" to return. Washington has become an imperial govt with the public regarded as peasants, & the laws have been changed to match. Everything is a crime if civil servants wish to use existing laws. Changing presidents doesn't change new laws. Washington is Rome. Caesars come & go, each inheriting & demanding greater powers than his predecessor. (US Pres. Executive Powers now total 12K, upsetting the system's balance of power)
PS: One of my inner circle advised me against running this article, showing so little hope. But my duty is to my subs. If U want sugar coating, see big media. 1. Truth is honourable. 2. Total truth is often helpful, used wisely. 3. U & HSL gain from honesty; it binds us together, & offers a potential path for survival. 4. There are no strategies useable/ available to win against Big Brother govt at this late stage of lightning-fast deterioration of democracy/liberty/ privacy, when the casino is rigged against U. In the past 4 mos that erosion velocity has increased by 80%. 5. While there is no current hope for reform/change or replacing the controlling elite, what little hope there is to simply "survive"-physical, financial, mental-will probably depend on what may be called: deeper-PT. We'll try to simply define it, but not as openly as before, as it now becomes provocative, & risks being declared "illegal" or unpatriotic. U'd better learn to read betwn the lines. Owning physical gold is a minimum essential. I suggest U reread the last 12 HSL's. It's all there. Sauvé qui peut (save who can, or every man for himself, or run for your life).
Harry Schultz
We could all benefit from financial advice from the pros.
another SUBPRIME LENDER in distress ===>
Fremont Delays Report; Shares Tumble
Wednesday February 28, 3:56 pm ET
Fremont General Shares Drop More Than 20 Percent After Company Delays 4Q Earnings Report
NEW YORK (AP) -- Shares of Fremont General Corp. fell sharply Wednesday to hit a new 52-week low after the mortgage lender said late Tuesday it will delay reporting financial results for the fourth quarter.
Fremont, one of the largest providers of mortgage loans through brokers and lenders to people with poor credit histories, saw its shares tank $2.66, or 22.8 percent, to $8.99 in afternoon trading on the New York Stock Exchange. The stock traded as low as $8.95 earlier in the session, far below its previous 52-week low of $11.65.
Fremont also said it will not file its 2006 annual report by the March 1 regulatory deadline.
The company said it would give an explanation for the delay in a regulatory filing. The Securities and Exchange Commission had not received any such filing by mid-afternoon.
A company spokesman was not immediately available for comment.
The "subprime" mortgage industry, or the sector of mortgage banking targeting people with blemished credit, is in upheaval. A handful of companies said more borrowers are missing payments on their mortgages, hurting the value of these companies' loan portfolios.
The slowing housing market has put further pressure on the lenders since the value of the collateral backing the loans is deteriorating at the same time the loans themselves are becoming riskier.
http://biz.yahoo.com/ap/070228/fremont_general_mover
Is Wells Fargo a safe place for my money?
Lender Woes Go Beyond Subprime
http://www.businessweek.com/investor/content/feb2007/pi20070228_778155.htm?campaign_id=yhoo
While the stocks of some subprime players have been battered, even diversified lenders and big banks have their concerns
by Mara Der Hovanesian
Few are feeling the hangover from housing's heyday as much as subprime lenders that cater to risky borrowers. The stocks of such players as New Century Financial Corp. (NEW) and NovaStar (NFI) have been slashed, 50% and 63% respectively, since February (see BusinessWeek.com, 2/21/07, "Fears Reignite for Subprime Lenders"). But even diversified lenders and mainstream banks have headaches. Countrywide Financial (CFC) is off 13%, Washington Mutual (WM) has slipped 6%, and Europe's HSBC (HBC) is down 5% since it revealed that its 2006 charges for bad debts would exceed forecasts by $1.76 billion.
Last year underwriters of all stripes loosened their standards despite a weak housing market. Now adjustable-rate mortgages are resetting to higher rates, and homeowners are falling behind on payments. So some big banks and brokerages are exercising their options to sell risky loans back to their originators, usually small, private mortgage brokers and lenders—and plenty of these smaller outfits have gone belly up.
Even so, big banks' loans are souring. Bad loans, so-called nonperforming loans that include mortgages, rose 11% in December, 2006, vs. December, 2005, at banks with more than $10 billion in assets, says SNL Financial. Some are setting more money aside or buying extra insurance to cover losses. Countrywide plans to buy insurance on up to $19 billion in loans, roughly a fourth of its portfolio. Others, like Freddie Mac (FRE), are finding religion by instituting tougher underwriting rules.
Der Hovanesian is Banking editor for BusinessWeek in New York.
MREDepot.com
$51.60 per case MRE ...asked for Steve Cyros...canned meat, cheese, butter, honey, and MREs
also
beprepared.com
for superpails of legumes and grains.
I get my ammo from either walmart or
ammoman.com
cheapest 223 and 12 ga I have seen
There's not much indication at this point that subprime mortgage issues have spread into the broader mortgage market, which still seems to be healthy."
-- Ben Bernanke, Federal Reserve Chairman testifying before Congress.
Just wait until precious metals begin to trade as currency. Then the pussyfooting will be over and Ben Bernanke will be called out for a "High Noon" showdown. Does he have any game? Or is he just the little guy behind the curtain with a size complex?
But don't you see?! Potter's not selling...Potter's buying!
wow a crash that lasted about an hour. ooohhhh scaaary stuff.
S&P is in positive territory right now.
Any more knee jerk reactions today?
Looks like the illegal PPT has things well in hand... for now. Wait 7 days.
I know it's just fake NAR/MSM data and lies, but median Q4 2006 house prices were 5.9% higher than median Q4 2005 prices.
Perosnal income was up 1% last month too.
Yep a Great Depression Part Deux is on its way.
Keep buying that gold and silver and the magic beans.
Cool! I hope this is the beginning. If it is folks, we have got to hold the jews at the federal reserve accountable! Remember, THEY HAVE STOLEN YOUR CHILDRENS FUTURE. Do you care?
Home sold a few blocks away from me in January for $1.055M. It is 3 bedrooms, 3 bathrooms, 2400 sq ft.
Now what was that about a housing crash again?
http://www.zillow.com/HomeDetails.
htm?zprop=7177840
12:31pm EST all indicies are showing red on my monitor
forget the daytrading - long term trend is down down down now, especially the lenders
HAMSTER!!!!
So Poor white trash & Greenspan RockZ
EVERYONE FEEL GOOD DAMN IT - Your wages are rising - he said so.
LISTEN TO THE MAN FOLKS EVERYTHING IS OK.
Guess what Citizens Do NOT HAVE to feel good because they were commanded to!!!
Subjects, on the other hand.........
Perhaps a change of descriptive terminology is in the future of the good ole' USA?!?!?
Home sold a few blocks away from me in January for $1.055M. ... Now what was that about a housing crash again?
Are you sure this isn't a fraudulant transaction?
11:10 PST...everything is up...green across the board...everything but GOLD that is which is down $7...now you were saying HP about the upcoming depression and gold as currency....
It is exactly like watching the 2000 presidential election returns.
My favorite CRASH cartoon from www.cagle.com and my new wallpaper for the day.
enjoy.
aka FMW
http://tinyurl.com/2mhhht
NYSE imposes trading curbs as stocks fall
The New York Stock Exchange said on Thursday it instituted downside trading curbs as U.S. stocks fell sharply in early trading. ...
The trading curbs require that all program buying of S&P 500 stocks must be on an up-tick.
http://today.reuters.com/news/articlenews.aspx?type=businessNews&storyid=2007-03-01T150038Z_01_N01358739_RTRUKOC_0_US-MARKETS-NYSE-CURBS.xml&src=rss&rpc=23
What are the ramifications of this? Institutional investors would be unable to exit out of positions during an equity index free-fall?
Here's today's report on savings for January 2007. It seems that the hamsters are in full gear ahead, buying crap from China, paying upside down car leases, huge plasma TVs, etc. HARDER HOMEDEBTOR- HAMSTERS, SPIN FASTER, FASTER!
"The savings rate in the report, which compares consumer spending to after-tax income, was negative once again, as it has been since April 2005. The rate was -1.2 percent, which means the typical American is spending $101.20 for every $100 of income after taxes."
You people have become the polar opposite of the NAR.....That means reality is somewhere in the middle. Every little wobble in the market and you are creating a new post. "Dow Drops 200" See I told you, haha! It's over, we're all gonna die!
What is that? Are you really serious! Grow up and come back to reality.
Anyone want to bet on Black Monday happening next week?
"Anyone want to bet on Black Monday happening next week?
My QID is locked and loaded.
"Every little wobble in the market and you are creating a new post."
Hey troll, I think that you should continue to watch your masters of deception Kudlow & Cramer. Also, if you are so committed to the market and to the strength of this economy, go ahead and put all your money on the DOW right now, and buy a McMansion in a bubble area with an I/O. Go ahead...what, you don't have the cajones?
The rate was -1.2 percent, which means the typical American is spending $101.20 for every $100 of income after taxes."
Except that number doesn't account for IRAs or 401ks. So if someone puts in $10 of that $100 to an IRA and spends 91.20, your gubermint stat will show a net savings rate of -$1.20.
"The rate was -1.2 percent, which means the typical American is spending $101.20 for every $100 of income after taxes."
"Except that number doesn't account for IRAs or 401ks. So if someone puts in $10 of that $100 to an IRA and spends 91.20, your gubermint stat will show a net savings rate of -$1.20.""
I wonder how those IRA accounts have been doing. I sure hope that they all invested in things that will only go up up up.
to the moon alice!
"Hey troll, I think that you should continue to watch your masters of deception Kudlow & Cramer. Also, if you are so committed to the market and to the strength of this economy, go ahead and put all your money on the DOW right now, and buy a McMansion in a bubble area with an I/O. Go ahead...what, you don't have the cajones?"
Listen. I work in the Finance world myself, I am a renter. I save money and have very little debt. I agree that this market is BS built on top of BS. I live in Tampa, I see it everyday. I won't buy a house until the market bottoms out in '08 sometime.
I am no fool. I suppose trying to preach moderation to the doom and gloom crowd is a losing prospect but you people need to come back down to earth. Yes, the market will correct by probably 40%. Yes, there is MORE THAN ONE bubble (housing, stocks, etc.) BUT and a very BIG BUT; the U.S. is NOT about to dissolve, we are not about to become slaves to the Chinese. Get over it, people will fall on very hard times but it WILL NOT end the U.S. and capitalism the way we know it.
You really must be smarter than this. Seriously, some other people really need to inject some reality back into this site.
Wrong. The savings rate DOES include current income, saved, and put into IRA's and 401k's.
It does not include capital gains from existing IRA's & investments and HOUSES going up in value. Which is as it ought to be.
What is happening is that they think their house value, and hence net worth has gone up by X% and so they consider that as "additional income" and spend some of it.
The point is that whatever increase in value of an existing home or investment is not income.
why is this so hard to understand? You can't spend your 401k until your 59.5 years old. How does that help you when you lose your job next week? SAVINGS are liquid accounts, quickly accessed in an emergency....and all people should have SAVINGS. Money in the bank. Emergency funds. not credit cards....actual money put aside for a rainy day.
Oh...but that's old fashioned....and I'm a tin foil hat nutter for suggesting that you should be able to cover your own ass in a pinch.
Get in the soup line now.....and beg for food until you become rich at 59.5....moron!!!
"Home sold a few blocks away from me in January for $1.055M. It is 3 bedrooms, 3 bathrooms, 2400 sq ft.
Now what was that about a housing crash again?"
HPs think that you should go out there and buy a McMansion right now in a bubble area and lease an expensive Mercedes that costs 80k +. Also, put all your 401(k) on the DOW. What, don't you have cajones for that?
This stock market crash is really some hedge funds liquidating to cover losses. Just check the volume!
"Except that number doesn't account for IRAs or 401ks. So if someone puts in $10 of that $100 to an IRA and spends 91.20, your gubermint stat will show a net savings rate of -$1.20."
If you are a disinformation agent who posted that, you have to open your eyes and stop believing in Kudlow, Cramer, Tony Snow, Bill O'Reily, Wall Street, etc. Here's a recent study from the nonprofit Employee Benefit Research Institute:
"With pensions in peril and middle-class families squeezed by flat wages and rising costs, the savings rate has declined from 10 percent in 1980 to just 1 percent in 2004. (Now it's negative, BTW)
Only half of U.S. workers participate in employer-sponsored retirement plans, and 80 percent of small business employees have no plan at all. Nearly 40 percent of all households have no retirement savings accounts of any kind beyond Social Security. Half of the households headed by a worker aged 55 to 59 have $10,000 or less in a 401(k) or in an IRA. Of that age group, 36 percent have no 401(k) or IRA savings.
For single women, the problem is even worse. Only 38 percent have 401(k) plans from a past or current job, with a median balance of just $8,000, as opposed to married females, who participate at a 54 percent rate with a median balance of $27,000."
Another study shows that 70% of Americans live paycheck to paycheck, while 67% own homes. We don't need to contact professors at MIT to see that Americans who own homes are spending like crazy or bought homes they can't afford. Don't believe it? Check these staggering graphs that depict the current situation:
http://tinyurl.com/2quby2
"Every little wobble in the market and you are creating a new post. "Dow Drops 200" See I told you, haha! It's over, we're all gonna die!"
Every informed investor knows that China told the state owned companies to buy Chinese stocks for the market to go up, otherwise the crash would continue. Let's see how long that deception will last. Hey, maybe Bernanke gave them a call and asked for that.
"we are not about to become slaves to the Chinese."
We are already their slaves since the Chinese holds most of our debt. How can you be tough on trade, human rights, environment, or anything else for that matter, if the Chinese are our bankers and we are their consumption bitches? Do you see the implications of this huge deficit? Wal-Mart, Target, K-Mart, Home Depot, etc, forced American mfrs to transfer their factories to China in order to make bigger profits. How can American jobs survive that? On top of that, tech jobs are being outsourced or lots of H1B visas are issued so corporations can imported cheap labor from China and India, which depresses all American wages. Then you have an open border with Mexico to fill odd jobs in the US. African Americans used to do most roofing service at $18 / hour. Now the illegal workers from Mexicans, who usually share housing expenses with 20 other illegals, put them out of business by accepting $8 / hour for the same servive, in cash, no taxes paid. Contractors and builders never passed those savings to us, end consumers. Even jobs at ski resorts are being filled by so called, "student exchange workers", from all over the world, who replace American jobs during the ski (including ski instruction) season for peanuts, supposedly to learn English. There are agencies in most third world countries selling these ski season job positions to young students for about $4k. Corporations, the government and its cronies are selling this country cheap. I tell you what, look back 20 years and see if your life is getting cheaper or better. I bet it's not. Longer commutes, crowded places, expensive insurance, flat salaries, longer work hours, less savings, expensive housing, etc. American life is not getting better no matter how you sugar coat it, unless you are wealthy.
Post a Comment