The market seems to be selling-off on the back of limited bad news imo, apart from the dollar that is.

If you can hold your nerve and apart from any short term requirements to offload poor performing stocks, I have a couple!!, my advice would be sit tight. This does not have the feel of the tech(mining!) bubble at all. Difference being there are a lot of good fundamentals, unlike in 2000 when there were a lot of over rated nothing companies.

Just had a Marketwatch Bulletin into the Inbox. The headline reads:

Fed accepts mortgages as collateral in lending $7 billion to banks via 14-day repo
This just gets better and better. The indebted US government now takes on the debt of a bunch of dumb bankers who got in way over their heads in order to prevent a banking collapse, if I translate that correctly. Basically the Fed will do anything to prevent the bust happening sooner rather than later ................. it's gonna happen IMO.

And the highs of 2000 were on the back of a load of dotcoms that had no substance, no real assets, and (as it turned out) no real prospects.

Our current peaks are based on companies with a lot more financial strength, solid prospects, etc, etc, etc

So no real comparison, e t.

Our current peaks are very much on the back of private equity buyers and hedge funds up to thier eyes in debt pushing the market higher, whilst the Fed, at least for the time being, bails out the dickheads who gave them the money in the first place.

;-)))

here here

$14 billion today, md. That'll make a holw in their pocket. Now who's going to buy up that debt? Vicious spiral IMO

US Fed adds 7 bln usd to markets in second move, daily total 14 bln usd UPDATE
AFX


WASHINGTON (Thomson Financial) - The Federal Reserve added another 7 bln usd to the money markets in its second operation Thursday, bringing the total daily liquidity injection to 14 bln usd.

The New York Fed's open market operations desk accepted 1.057 bln usd in Treasuries, 3.00 bln usd in agency debt and 2.943 bln usd in mortgage-backed securities as collateral.

The second operation was for 12-day repurchase agreements. The first was for 14-day repurchase agreements.

tax payer Al , not real money

Mid East and Chinese used to buy a bit, but don't think they'll bail it this time.

Back to the printing press then

they are going to push this to 13450 , the 50ma and downtrendline imho

The Russians are doing the same, so who's following who's example?
"This month Russia's major exchanges plunged and the value of the rouble fell against the dollar, a reverse to an established trend over several years of the rouble gaining in value against the US currency.

The Russian central bank has been pumping billions of dollars in liquidity into the market and has also intervened in the currency market to support the rouble by selling dollars and buying rubles, Melikian said."

Is it a case of The Emperors Clothes, Pack of Cards or Chickens Coming Home to Roost?....take your pick.

Biggus Allus - I'll second that. We have been in a credit.con bubble and the crows are coming home to roost - me included :)

Chickens, Crows.........What's next? Vultures!!!

Possibly HC.

We are but sparrows in the big blue sky, guys. ;-))

You could always use the chicken bones I guess. LOL

Harrycat
I was being ironic. You're not American by any chance - irony is wasted on the Yanks - they tend to go the dry cleaners - bom bom :))

Piss off!

``The BOE is either going to stay on hold or raise rates, but it's definitely not going to cut,''
Read full article here


FTSE 100   to plunge another 10%   as year-long bear market looms
Read full article here


Record numbers face debt meltdown
Read full article here


Markets fear there is more to come
Read full article here


"...it would be naive to think the worst is behind us."
Read full article here


Hedge funds braced for more pain
Read full article here


History says bear market may have begun.
Read full article here



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The last time the FTSE100 reached the heady heights of 2006 was in 2000.
The chart below shows what happened then. It took the best part of 3 years before it finally hit rock bottom.
From this, you may well deduce that this months downturn could well be the beginnings of something that will last a while yet.
My own feeling is that the FTSE100 won't begin to recover again until it has first breached 4800 - sometime next year.

DOW futures currently -32.
Pre-bank holiday sell-off on the cards???
Am tempted to take all profit & see what september brings.

Looks like worse is still not over.


US futures weaken - MoneyAM
US stock futures were weaker amid expectations data will show more trouble in the housing market.

S&P 500 futures fell 5.3 points at 1,461.10 and Nasdaq 100 futures fell 6.75 points at 1,932.75. Dow industrial futures fell 41 points.

U.S. stocks finished Thursday broadly flat after recession warnings from executives at Countrywide Financial and Thornburg Mortgage. The Dow industrials finished a quarter-point weaker, the S&P 500 fell over a point and the Nasdaq Composite shed 11 points.

Friday marks the first release of important economic data since the uproar in financial markets begun.

Sales of new homes are expected to drop about 2% to a seven-year low of 820,000 annualized units in July from 834,000 in June, according to economists.

"Although the monthly changes in homes sales data resemble the path of a yo-yo, the 6-month moving average of the level of sales points out perfectly why homebuilders' sentiment recently hit a 16-year low," said economists at ING, who expect a 4% downturn.

Even a surprise rise in home sales wouldn't likely spur sentiment changes because home prices have dropped as well.