[VMarcHart]

$this->bbcode_second_pass_quote('drgoodword', 'T')he most significant driver of the financial crisis is the American housing market crash. This has led to a massive increase in foreclosures...

[VMarcHart]

Just wondering.

After oil eased off its $147/bbl record, part of the consensus was that the price spike was trader's speculation or panic. So I heard on the news.

Could it be this sellout is another trader's panic, and in 2-3 months we're back at 11 or 12,000?

Please comment. Thanks.

[Grifter]

$this->bbcode_second_pass_quote('VMarcHart', '
')
Could it be this sellout is another trader's panic, and in 2-3 months we're back at 11 or 12,000?

[Gebari]

This is bad - TED spread just crashed through a new high, now over 4.4. It was ~2.9 after Lehman went under, and despite all the government interventions to loosen the bank lending market up, it's continuing to freeze up even more. LIBOR is up today too. I expected both to start falling after the interest rate cuts and govt. intervention, but the fact that bank lending is continuing to seize up despite all the interventions is a very bad sign indeed.

$this->bbcode_second_pass_quote('', 'T')he TED spread is an indicator of perceived credit risk in the general economy[1]. This is because T-bills are considered risk-free while LIBOR reflects the credit risk of lending to commercial banks. When the TED spread increases, that is a sign that lenders believe the risk of default on inter-bank loans (also known as counterparty risk) is increasing. Inter-bank lenders therefore demand a higher rate of interest, or accept lower returns on safe investments such as T-bills. When the risk of bank defaults is considered to be decreasing, the TED spread decreases[2].

[drgoodword]

$this->bbcode_second_pass_quote('VMarcHart', 'F')rom two newscasts, the first mentioned "only" 6% of mortgages defaulted/foreclosed, and the second mentioned 5 million illegal immigrants' mortgages defaulted/foreclosed. I have no means to verify if either is correct. Does anyone?

[VMarcHart]

$this->bbcode_second_pass_quote('', '#')1 Altogether, more than 9% of mortgage loans are either delinquent or somewhere in the foreclosure process ...

#2 The delinquency rate was 6.41% of all loans outstanding...

[doomlover666]

$this->bbcode_second_pass_quote('jasonraymondson', '')$this->bbcode_second_pass_quote('Jotapay', '5')500 is the new CEILING.

[ReverseEngineer]

The Dow will stabilize at whatever the Dow is at the day before the last day the Dow is traded and the Market is closed. Which should be sooner rather than later, because this game is just PATHETIC.

Reverse Engineer

[VMarcHart]

$this->bbcode_second_pass_quote('ReverseEngineer', '.')..the last day the Dow is traded...

[Rod_Cloutier]

Is there really any time limit to how long a financial crisis can last? Personally so long as I have access to gasoline, electricity, water and food I can see myself continuing to put my pants on and go to work each morning.

The stock markets represent the fortunes of the well off, the rich and the super rich. As a working class person without two nickels to rub together- The DJIA, S&P, the TSX and all the other indexes could collapse to zero and I wouldn't be directly affected.

I would think we would have to see a collapse of the real world economy, in real terms of food, energy and so forth before this crisis would affect the average 'Joe' on the street.

[nobodypanic]

$this->bbcode_second_pass_quote('Repent', ' ')
The stock markets represent the fortunes of the well off, the rich and the super rich. As a working class person without two nickels to rub together- The DJIA, S&P, the TSX and all the other indexes could collapse to zero and I wouldn't be directly affected.

[Revi]

If the credit crisis continues we'll be feeling it on Main Street very soon. I think within the next few weeks. If small businesses can't get credit they won't be able to make payrolls soon, and when that happens it affects us little people.

The banks aren't taking this too well either. How solvent do you think your local bank really is? They don't have any accounts making money, since about 10% of the money they have loaned out is in bad mortgages right now. They have their problems which could soon become our problems.

I have a feeling that the problems of the upper classes are going to be moved down the line. They have a way of doing that. We are always the ones left holding the bag. This time the bag is full of derivatives and bad mortgages. They tell us that us taxpayers are going to pay for the bailout. Good luck.

[Gebari]

$this->bbcode_second_pass_quote('Repent', '
')The stock markets represent the fortunes of the well off, the rich and the super rich. As a working class person without two nickels to rub together- The DJIA, S&P, the TSX and all the other indexes could collapse to zero and I wouldn't be directly affected.

[RSFB]

$this->bbcode_second_pass_quote('Gebari', '')$this->bbcode_second_pass_quote('Repent', '
')The stock markets represent the fortunes of the well off, the rich and the super rich. As a working class person without two nickels to rub together- The DJIA, S&P, the TSX and all the other indexes could collapse to zero and I wouldn't be directly affected.

[VMarcHart]

$this->bbcode_second_pass_quote('Gebari', 'T')hese indices consist of chemical companies, car companies, aeroplane companies, banks, electrical companies, water companies, drug companies, shops etc etc. If the indexes went to zero then all those companies would cease to exist...

[Zardoz]

$this->bbcode_second_pass_quote('', 'I')s the Financial Crisis Ending?

[Buggy]

Everybody step aside! Please, make room, coming through!!! Yes, that's right, put the smoke machines there, and the mirrors over here.

Now, to remind us all of what this site is about. We were all lamenting the market last week and many doomers had us in smoldering ruins. As the market recovers this week, watch the price of oil. It will be going up. I think the long emergency started in earnest last week. There will now and always be until the decline off the plateau this friction between the markets, the world banks and the price of oil. The price of oil will eventually win. The time will come when no amount of the world's play money will fill the holes.

[Zardoz]

$this->bbcode_second_pass_quote('Buggy', '.')..The time will come when no amount of the world's play money will fill the holes.

[Gebari]

$this->bbcode_second_pass_quote('', 'T')he "system", such as it is, will survive and stagger along. It may be virtually unrecognizable compared to what it was just a few months ago, but it will endure, in spite of the worst fears of the uber-doomers among us.

[Madpaddy]

Gebari wrote,

$this->bbcode_second_pass_quote('', 'A') few days ago the entire global financial system was on the brink of collapse, now just because world governments have typed in a few more zeroes on their budget spreadsheet we're saved... it doesn't work like that.