Plunge Protection Team Bailing Furiously...
RichR
Posts: 3,858 ✭✭✭✭✭
With the Dow "only" down 300+/- points and gold NOT skyrocketing, the only posible reason is that Paulson & Bernake's "non-existant" Plunge Protection Team must be intervening big time to support the broader market indices.
I'll be interesting to see what happens tonight when Asian markets open after a holiday today...if gold doesn't spike then, I'll eat my hat...in a truly free market, with panic in the air, this just doesn't make sense!
I'll be interesting to see what happens tonight when Asian markets open after a holiday today...if gold doesn't spike then, I'll eat my hat...in a truly free market, with panic in the air, this just doesn't make sense!
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"The sky is falling" mentality.
<<"The sky is falling" mentality. >>
Actually, approx. 50,000 unemployed, or soon to be unemployed, Lehman/Merrill/Bear employees would tend to agree with me.
So you might want to remove those rose colored glasses before you get run over.
You can thank me later.
On a normal day, when the market's been known to drop 200-300 points for a disappointing earnings report by a key company, can anyone explain how this type of financial earthquake wouldn't have elicited a more profound drop...not one but TWO major firms essentially going out of business on the same day...short of massive Fed intervention?!?
The sad part about this is that the Japanese government attempted the same type of manipulation back in the 90s and they still hasn't really recovered yet.
It's a shame so many people/employees have to suffer.
"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)
"I only golf on days that end in 'Y'" (DE59)
it's the same old story in this marketplace...for a few more weeks.
panic is running wherever a small profit can be made bying long then selling short or vive versa, even a few times a day.
volume was not that nutty, so many are on the sidelines (like me)
if you want to make it do it when the Asian markets open with long then sell your profiits short after Erin Burnett
day in and day out....do it....(meant for entertainment purposes only...pleae do not try this at home) then you will be rooting for the PPT....and making money!!!
i do hear you, yet you won't see a $75 jump in one day...with no looking back.....
I wonder if there are any newbies at the discount brokerages this morning lining up to open new accounts and buy stocks on this dip. Many newbies seem to continue to buy all the silver they can find after a 50% plunge.
As always, it is rarely ever a good time to make all in or all out type of investment decisions. Fast moving markets are a poor place for newbies to enter or exit.
It could be Black Monday - But it's not gonna be!
The Feds are scrammbling and my sister works for Merrill!
and of course if you hold PMs ...you want the market to hold together because if the market continues down, PMs will almost certainly follow suit, although for some reason most PM bugs just don't get it. Capital destruction is negative to PMs, it is really not that complicated.
Even though LEH was known to be on the ropes, I believe a bankruptcy rather than a purchase took quite a few people by surprise.
And the MER shotgun purchase was just the cherry on top of the sundae!
It'll be interesting to see gold's reaction when the Asian markets return from their holiday tonight. Hard assets are generally more appreciated in that region of the world in times of trouble.
<< <i><<I guess you are one of the few that are panicking ... even the DOW has recouped some of the early losses.>>
<<"The sky is falling" mentality. >>
Actually, approx. 50,000 unemployed, or soon to be unemployed, Lehman/Merrill/Bear employees would tend to agree with me.
So you might want to remove those rose colored glasses before you get run over. >>
Here you go again with your doomsday scenario ... please take your blinders off ... it's unlikely that every employee of the aforementioned firms will loose their jobs. I agree some will, but that's life & life goes on.
<< <i>Even though LEH was known to be on the ropes, I believe a bankruptcy rather than a purchase took quite a few people by surprise.
And the MER shotgun purchase was just the cherry on top of the sundae!
It'll be interesting to see gold's reaction when the Asian markets return from their holiday tonight. Hard assets are generally more appreciated in that region of the world in times of trouble. >>
The surprise bankruptcy is why the stock market is down 3%. The majority thought there would be a token takeover at a small dollar amount such as the Bear Stearns first $2 per share plan. Again, Lehman stock was ALREADY down 95% before the weekend. That last 5% down was the surprise, and a good reason why the stock market reaction is about a 3% hit or 5% in some European markets, and not more like a 30% crash day.
<< <i><<I guess you are one of the few that are panicking ... even the DOW has recouped some of the early losses.>>
<<"The sky is falling" mentality. >>
Actually, approx. 50,000 unemployed, or soon to be unemployed, Lehman/Merrill/Bear employees would tend to agree with me.
So you might want to remove those rose colored glasses before you get run over. >>
Actually, the sky is falling. People should be panicking....with the entire banking system the next thing to collapse. When Citi goes bust, people might then start to get "it."
<< <i>
<< <i><<I guess you are one of the few that are panicking ... even the DOW has recouped some of the early losses.>>
<<"The sky is falling" mentality. >>
Actually, approx. 50,000 unemployed, or soon to be unemployed, Lehman/Merrill/Bear employees would tend to agree with me.
So you might want to remove those rose colored glasses before you get run over. >>
Actually, the sky is falling. People should be panicking....with the entire banking system the next thing to collapse. When Citi goes bust, people might then start to get "it." >>
Go ahead and panic, if it makes you feel any better. I would guess you do not remember the Savings & Loan fiasco of the late 70's & early 80's? Over 800 s&l's went under, but we managed to survive.
<< <i>
Go ahead and panic, if it makes you feel any better. I would guess you do not remember the Savings & Loan fiasco of the late 70's & early 80's? Over 800 s&l's went under, but we managed to survive. >>
Thanks, but I'm not panicking. I'm mostly in cash. Sold out of most of my stocks last November.
You don't have to panic or worry if you don't want to. I remember the savings and loan fiasco very well.
I'm betting thing get much much worse...call it what you like.
"The silver is mine and the gold is mine,' declares the LORD GOD Almighty."
Yes, many of us newbies bought silver in single digits after large corrections. It didn't hurt. Comparing a hard asset like silver that owes no one anything and is just completing a multi-year correction is hardly anything like a broken bank stock that is down 95% and has been technically insolvent for years. All the other major banks are insolvent as well, they just won't publically admit it or show it for fear of what follows.
The reason isn't cooperating with the doomsday crowd, is that no matterhow ugly this is for the short term, the markets are working through the credit quagmire at an accelerated pace now.
So how long does it take to work through $1 QUAD in derivatives at an "accelerated" pace such that fallout is minimal?
and of course if you hold PMs ...you want the market to hold together because if the market continues down, PMs will almost certainly follow suit, although for some reason most PM bugs just don't get it. Capital destruction is negative to PMs, it is really not that complicated.
The simple part of this is that while that capital destruction (deleveraging) of broken paper "assets" is occuring, the FED and company will continue to pay out hundreds of billions in fresh cash to continue the bail out scheme. Fannie and Freddie alone should account for $1 TRILL+ in new credit...and it has to go somewhere (and it won't be in stock mutual funds). If you own gold and have gotten out of stocks, no need to panic whatsover. The bank banks of today probably count for 100 S&L's of the old days. When LTCM went down in 1998 that was only $2 Billion that rocked the system. We're 100-1000x that amount today. Today's uber banks are also leveraged to the hilt on pure junk. Once Citi, Walmu, and Wachovia go under, figure that we've already exceeded the S&L crisis by a substantial margin. Just because BoA has swallowed up the debt of Merrill and Countrywide doesn't mean it's not coming bank to haunt them....and us.
We're all pawns in this game. All we can do is comment on what we say and protect ourselves as individuals as there is no way we can change the final outcome of the banking crisis. No one likes what we are seeing. All you can do is put your own house in order and hope for the best.
roadrunner