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World Stock Markets Fell Yesterday. Today Fed....

by James Denison / January 21, 2008 9:56 PM PST

...cut the prime lending rate by 75 basis points. That's the biggest single cut yet by Bernanke. They are running scared. I think the FTSE, the British stock market fell the least yesterday, others were down 10% overnight at some points. Hang Seng ended down 8.65%, Nikkei in Japan fell more than 5%. Are we headed for a recession? Seems the rest of the world thinks we are, that's the impetus behind their falling stock markets. Right now, before the American stock markets open, these are the futures on them, "S&P futures vs fair value: -57.3. Nasdaq futures vs fair value: -70.8. ..."

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here is more
by WOODS-HICK / January 21, 2008 10:08 PM PST

from my earlier post. let's continue the discussion with yours. no need for parallel posts.

"emergency fed cut - just annnounced Original post
by WOODS-HICK - 1/22/08 5:36 AM

75 basis points. treasury secretary to have news conference

today's word: wall street

preview:

"Dollar Declines Against Euro on Speculation Fed Will Cut Rate

By Anchalee Worrachate

Jan. 22 (Bloomberg) -- The dollar fell against the euro on speculation a stock-market rout will force the Federal Reserve to make an emergency interest-rate cut today. ...."

http://www.bloomberg.com/apps/news?pid=20601101&sid=aVBV_jZpTR0U&refer=japan

Fed cuts rates 75 basis points in emergency move
By Rex Nutting, MarketWatch
Last update: 8:27 a.m. EST Jan. 22, 2008
Print


"It was the largest rate cut by the Fed since the early 1980s.".."

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Dow down 450 points already before opening.
by James Denison / January 21, 2008 10:24 PM PST
In reply to: here is more

Last update: 9:10 a.m. EST Jan. 22, 2008
PrintPrint Email Subscribe to RSSRSS DisableDisable Live Quotes
NEW YORK (MarketWatch) - U.S. stock futures resumed earlier declines, with an emergency move by the Federal Reserve not enough to calm worries about a slowdown in the global economy. Dow industrial futures were off 452 points at 11,654. S&P 500 futures were down 55.3 points at 1,270.00, while Nasdaq 100 futures dropped 78 points to 1,771.5. End of Story
=====================================================

I was expecting it to close below 12,000 on Friday and it dipped to within 22 points of it. I was hoping since it held above the psychological line of 12K it would bounce some this Tuesday. Overseas markets however seem to have freaked out and now the Fed panicking in effort to help may have the opposite effect of what's hoped for this morning.

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previous forewarning
by WOODS-HICK / January 21, 2008 10:45 PM PST
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bumping--to avoid fracture
by WOODS-HICK / January 21, 2008 10:52 PM PST
In reply to: previous forewarning

until my post is locked as I requested. james and I are posting similar info. thanks

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your thread
by James Denison / January 21, 2008 11:33 PM PST

I looked but somehow missed it before posting mine. Sorry. It has earlier time stamp.

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no big deal--I didn't think it was intentional
by WOODS-HICK / January 21, 2008 11:39 PM PST
In reply to: your thread
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Word du jour.....capitulation?
by JP Bill / January 21, 2008 10:55 PM PST
In reply to: previous forewarning

In the stock market, capitulation is associated with "giving up" any previous gains in stock price as investors sell equities in an effort to get out of the market and into less risky investments. True capitulation involves extremely high volume and sharp declines. It usually is indicated by panic selling.

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merci beaucoups
by WOODS-HICK / January 21, 2008 11:00 PM PST
TY very much Fr.


we will always have paris
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capitulation for better stocks?
by James Denison / January 21, 2008 11:32 PM PST

It's more like they are running for the Treasury or just a cash position for now. Some great dividend stocks like TNH (Terra Nitrogen) are taking an unexpected tumble today. Agricultural stocks are among the strongest right now, so very surprising such a good one has been getting hit so hard recently. I suspect a lot of that are those who are "diversified" are having to sell off good stocks to cover losses in other stocks they were holding on margin.

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Was I prescient ?
by grimgraphix / January 21, 2008 11:34 PM PST
In reply to: previous forewarning

2 years ago, I was talking about the risky lending practices and the likelihood of mass foreclosures effecting the country and home owners. If anything... maybe I was too optimistic ?

Several things to ponder by grimgraphix - 4/4/06 6:22 AM

Remember that we as citizens have also been encouraged to spend our way to a stronger economy for the past 5 years. The housing boom and low interest rates of the past few years has made it posible for many responsible Americans to buy homes. Still, too many people looked at the house market as a way to quick and big profits. Just look at all the home renovation and ''Flip This House'' shows on TV... But just like the stock market dot com bust of the 90's the housing boom was bound to falter sooner or later. Speculation is still speculation...

Folks got so caught up in the rush to purchase a house and loans were given so freely that many people got loans who had no business getting one. The lending institutions are not stupid about this... They knew what would come later and banks (along with credit providers) did things such as push for revision of bankruptcy laws to cover their butts. A lot of folks are now stuck with overvalued homes which they will lose but continue to pay for in perpetuity.

Fair business practices? Legally yes. Ethically? In my opinion no. The savings and loan industry overextended itself and had the government there to bail it out. Millions of moronic americans have overextended themselves but have no federal insurance plan to bail them out. My opinion is that these people should never have been given loans to begin with... if enough go under, we may get stuck with the bill.


At the time, I failed to think big enough. All I anticipated was the leveling off of over-inflated home values and a lot of people in massive debt. I never considered the creation of what essentially became a Junk bond market for mortgages that would be bought up in world trading. I just anticipated a lot of US lending institutions looking to the fed for a safety net.

I was wrong and right at the same time.

Told you so (no you didn't) yes I did (no, you were totally oblivious) don't call me oblivious (look......

Grin I guess it's time for my medication. Grin

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of course
by WOODS-HICK / January 21, 2008 11:44 PM PST
In reply to: Was I prescient ?

I replied........ with caution. Happy

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Not just you.
by James Denison / January 22, 2008 12:27 AM PST
In reply to: Was I prescient ?

run a search on my name and Greenspan. I was back there warning about his policies and the effect it was having too.

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yours was more closely focused on...
by James Denison / January 22, 2008 1:00 AM PST
In reply to: Was I prescient ?

...where the beginning of problems would come from Greenspan's policy of giving away money to the banks.

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India Slammed to the Mat! Closes Market.
by James Denison / January 22, 2008 12:54 AM PST
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RE: I don't know if it opened back up or not.
by JP Bill / January 22, 2008 1:10 AM PST
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Another Surprise Tonight is Apple Computer
by James Denison / January 22, 2008 6:27 AM PST

It's dropped to $139 in After Hours trading today. End of December it was around $200 per share. Stock market is deflating. Housing market is deflating, both prices and rents falling. Money supply is inflating. Gold at highest prices in years. Credit markets have deflated. Almost unnoticed by many, Sallie Mae went broke, so may be fewer students going to colleges and universities this and next year. It's a guess to which force wins out most this coming year.

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