Market Meltdown

[Nick1984]

Yea I heard about that major cash injection. Wasn't it like $130b? If they're worried about liquidity then thats not a good sign! 3 years from now is when I'm looking to dip my toes into property, cause our houses here are really over inflated. This is a lot like the Asian financial crisis. We have a lot of unregulated lending to risky debtors, over inflated asset prices, governmental intervention..... thats a bit of a warning sign. Lucky most FX markets are freely (or dirty) floated and not fixed so any meltdown wouldn't be as harsh.

The Bank for International Settlements must be having a lot of late nights trying to stabalise things.

[torero]

The first was 95Bil euros, 2nd days, 59bil. so it around 150bil so far. All other Central Banks are doing the same. A bit nervous aren't they? This is almost screaming panic here. Not sure if the investors and institutions will show their panic in the markets. We'll see. It's just a bit surprising that most indexes are still in their highs, it hasn't really shown deterioration just yet. It's mostly been news driven move. If this news break the support, then technicals will do their thing and confirm the news.

[Nick1984]

Yea fully. To me if they're pumping this much cash into the markets they must be concerned with liquidity, and also trying to prop up their currency.

I wonder if all this is in accord with Basel II? Will be interesting to see if the BIS has anything to say about this.

[notouch]

People were laughing at Cramer at the time but now what he said seems justified.

[torero]

I never take this rants seriously but when his rants are confirmed by the Fed, have to look into his comments seriously. That's when I pay more attention. Even if he didn't rant about it, the Fed action would be a confirmation of a major problem.

[cooter]

Yep, he asked them to open the discount window, and one week later, they did.

[torero]

This is amazing, one or 2 days after the Bernanke said they won't change rates, Cramer ranted, and the Fed injected money. If it's true that Cramer's rant got the Fed to react, then the most powerful man is no longer Bernanke, but Cramer? Go figure!

[amory hill]

but that's not the same thing. injecting money is easy, interest rates have much wider-reaching implications. requiring responsible decision-making.

[james_gsx]

	Quote:	torero
	This is amazing, one or 2 days after the Bernanke said they won't change rates, Cramer ranted, and the Fed injected money. If it's true that Cramer's rant got the Fed to react, then the most powerful man is no longer Bernanke, but Cramer? Go figure!

I think something was already going on when Cramer made his rant.

But it does go to show the man deserves more respect. He brought up something verry litle people knew about, only for it to become mainstream a few days later. Oh well, there will always be the people who think he sucks just go look at ET.

[torero]

	Quote:	amory hill
	but that's not the same thing. injecting money is easy, interest rates have much wider-reaching implications. requiring responsible decision-making.

So what you're saying is the Fed is making a temporary fix to a short-term problem instead of a making a long term solution. Does that mean that there is more long term market problems to come? I'm not sure if Cramer was seeking liquidity solution in the short term (sorry don't remember what he wanted specifically the Fed to do, I thought it was lowering interest rate). If this mortgage turns out to be a tip of the iceberg, more injection?