Friday, September 19, 2008

Media reports this morning paint a particularly dire picture of the immediate prospects for the US financial system.

Panic Sweeping Wall Street May Leave No One Standing

Some background here accounting for Paulson's statement. The credit crisis on Wednesday threatened to drag down Wall Street banks Morgan Stanley and Goldman Sachs. The Washington Post reports shares of the firms "tumbled as fears mounted that the two most-vaunted names in investment banking could fall victim to the credit crisis." The New York Times says on its front page, "Even Morgan Stanley and Goldman Sachs, the two last titans left standing on Wall Street, are no longer immune," underscoring "how quickly a sense of fear is spreading through Wall Street."

Posted by malct @ 08:27 AM (750 views)
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6 thoughts on “Media reports this morning paint a particularly dire picture of the immediate prospects for the US financial system.

  • unless I’m mistaken, a talking head on Sky news just said the US tax payers is taking on 1.2 trillion dollars in toxic debt

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  • Maybe I’m alone. But I fail to see how the proposed “ring-fencing” of bad debt into a vehicle can provide stimulus to a market which is effectively bankrupt. The stockmarkets now appear daily to be “pure gambling” with “hurdles” & “enhancements” announced everyday to create negative and positive euphoria. I view the markets as I would Horse Racing, but on a “Grander Scale”.

    I feel you really have to look beyond the current schizophrenic tendency of the markets, whether natural (unlikely) or orchestrated (likely in my opinion), to realise that bigger things are at play here. But to reflect on what we as individuals really need to exist (food, shelter & function). The more I look at the markets, the more I feel that these markets are more and more divorced from reality. The market or financial system has proven itself unreliable in testifying the true value of any material wealth, natural or otherwise.

    I’m now of the belief that we are now in the final throws of a re-arrangement before the final curtain falls. Therefore, one believes that we should look to what we feel would be essential in times of adversity. As the powers of “B” or whoever have clearly lost control of the situation, and my belief is that nothing can now rectify or resolve such an obviously flawed system now. Therefore, whether by design or by accident the powers of “B” will naturally protect themselves initially with an orchestrated action that subdues or misdirects the masses, before a controlled collapse is initiated and the consequential catastrophic impact that will prevail.

    I’m not depressed, suicidal or defficient, it just seems like a logical conclusion.

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  • My brain can’t cope – can someone help… What are the long term implications of this? This all stems from the drop in house prices, right? Well if a dim wit like me saw that house prices were going to drop like a stone, why didn’t the big guns on Wall Street? And if they did, and the long term implications of this bail out aren’t dire, then why has it taken them over a year to come up with this?

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  • timmy t

    this is planned wealth extraction

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  • So what will happen?

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  • Timmy t.. if I had an idea, I would publish the info on HPC, but your guess is as good as mine. I believe Malct has described the process correctly, but then I could be wrong. As for me, I have been collecting gold sovereigns, and recommend to all friends and clients to buy also as well as stocks of food, coffee, etc. Not being too alarmist about it, almost humouring them. Advising them that they can always sell said items on eBay or give to charity if things work out OK! Ultimately Timmy t.. it is really down to your own judgement what you do or how you feel about what is published on HPC, in relation to your own concerns in relation to living costs relative to your mortgage or rent. The fact that you are reading this website is good, because we are all looking for answer & information. I hope this helps?

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