[PopeGideon]

This is called "attempting to prevent Monday from going down in History as "the St. Patrick's day massacre.""

Flat out panic at the top level of banking . . .

MakeSureYouHaveCashandFood


Note that they STILL haven't acknowledged that we are already in a recession.

$this->bbcode_second_pass_quote('', 'T')he Federal Reserve announced a series of new steps Sunday to help provide relief to a spreading credit crisis that threatens to plunge the economy into recession.

The central bank approved a cut to its lending rate . . .

[PopeGideon]

WatchForeignMarkets

Nikkei is down almost 3% at 9PM.

[careinke]

Gold is soaring.

Kitco

Cliff (Start a rEVOLution, grow a garden)

[Revi]

Great... The price of silver is way up as well:

http://kitco.com/charts/livesilver.html

Is this a precursor to a financial meltdown?

What will happen tomorrow?

[PopeGideon]

I wouldn't say "precursor to the final meltdown".

I'd say we are losing the patient and we've just gone to the shock paddles. Unfortunately, the heart has already been ripped out, so this is just one more impressive looking move by the Fed that can only postpone the moment when he head surgeon looks up and says:

"he's dead Jim."

[americandream]

We have the US government in essence taking in bad non-tradeable assets (mortgages and their derivatives etc) from financial institutions seeking tradeable ones and interim funding whilst they presumably hunker down. All of this presumably assumes that the non-tradeables will be redeemable at some stage.

Can anyone with some understanding of the market possibly detail a turn around scenario?

Will we for example see a rush to buy the underlying mortgages at some stage. Is there likely to be a firesale of the residential market to foreign investors? Is there enough foreign money out there to take up the slack of the failing US consumer?

Thanks.

[PopeGideon]

AD - picture the average J6P that you see in the store.

Would you pick up his ARM 5/25 mortgage that is currently in default?

That's you answer.

Yes, I'm a pornographic doomer, but it's really that simple.

We're all squicked.

[PopeGideon]

This could be a bloodbath . . .

Nikkei down 4.2%.

Where is the floor?

Or, should I ask, where is the ground?

[mmasters]

I have confidence they wont let it get into "chain-reaction" territory. They will sell the JP Morgan acquisition of Bear as a good thing. The market will be up tomorrow.

They will only let the market bomb go off when they have a good political cover (i.e. some left-field major event that shakes up the populace)

[BigTex]

$this->bbcode_second_pass_quote('mmasters', 'T')hey will only let the market bomb go off when they have a good political cover (i.e. some left-field major event that shakes up the populace)

[heroineworshipper]

> a range of collateral will be accepted to back the loans.

Will they take some used golf balls in exchange for a couple billion dollars?

[Cid_Yama]

No, No really! If we all get a teacup and start bailing the Titanic can be saved!

[PopeGideon]

$this->bbcode_second_pass_quote('MM', 'I') have confidence they wont let it get into "chain-reaction" territory. They will sell the JP Morgan acquisition of Bear as a good thing. The market will be up tomorrow.

[Starvid]

Things are looking dark grey to pitch black in the US. Let's pray for decoupling.

[Cid_Yama]

<b>JP Morgan willing to take Bear Stearns off of investors hands for $2 a share</b>

JPMorgan Chase has said it is to buy Wall Street's fifth-largest investment bank, Bear Stearns, for <b>$2.00</b> a share - a fraction of its previous value.

<b>Duh! Since it closed on Friday at $26.85, down 53% of it's value from the day before.</b>

Lets all try to hide the fact that the sky is falling!

http://news.bbc.co.uk/2/hi/business/7299938.stm

[EnergyUnlimited]

$this->bbcode_second_pass_quote('Starvid', 'T')hings are looking dark grey to pitch black in the US. Let's pray for decoupling.

[JohnDenver]

Total meltdown of the U.S. economy imminent...
Oil price rise accelerating...

Got disconnect?

[PopeGideon]

There's no disconnect at all.

A. Oil is running out, so there is supply/demand pressure.

B. The dollar is falling, so oil is a hedge against dollar devaluation.

C. Paper investment garbage is starting to ooze toxic sludge, so oil is a safe haven because it is real, it is necessary, and it can't lose all or even most of its value.

A+B+C=150 by year end. Maybe by the Summer Solstice.

[pedalling_faster]

$this->bbcode_second_pass_quote('mmasters', 'I') have confidence they wont let it get into "chain-reaction" territory. They will sell the JP Morgan acquisition of Bear as a good thing. The market will be up tomorrow.

They will only let the market bomb go off when they have a good political cover (i.e. some left-field major event that shakes up the populace)

[Heineken]

Breaking news headline from Bigcharts:

FED'S GAUGE OF NEW YORK FACTORY ACTIVITY PLUNGES TO RECORD LOW IN MARCH

No link yet.

Let's face it, it's all falling apart before our eyes.

The mess is spreading like octopus ink.

The Fed can't save the world with its printed money.

The system is now so complex no one truly understands it. No one really knows who owns what or how its owned. The drifts of paperwork would take 1 billion accountants 1 billion years to read and collate.

How would the FDIC ever honor millions of claims? That is ultimately what the system rests on, but THE FEDERAL GOVERNMENT IS BANKRUPT. $10 trillion in debt and growing faster than the wheels can spin.