Banksters cross fingers for shocking economic "event."

[readmoreoften]

Stock market "capitulation" needs shock trigger
Thu Feb 26, 2009 7:19am EST Email | Print | Share | Reprints | Single Page <-> Text <+>
By Sitaraman Shankar - Analysis

LONDON (Reuters) - Are global stock markets set for "capitulation" after sliding to six-year lows and wiping out a stuttering recent recovery? One key factor is preventing that sharp, panicky selling of shares that cleans the stables out and heralds an equities rebound: the piecemeal nature of government attempts to rescue banks and the economy. "We need to see an index falling 7 or 8 percent intraday in high volumes and then ending up nearly flat on the day as the buyers come back in," said Philippe Gijsels, strategist at Fortis in Brussels.

<snip>

"We need to see an event that would shock everybody -- a big U.S. bank failure, or a country in Europe going broke," said Mark Bon, fund manager at Canada Life.

Bon said positive factors that would need to be in place for any strong rebound included an improvement in consumer or business confidence indicators, some merger and acquisition activity, successful rights issues and a belief among investors that company profits had bottomed out.


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So before the economy needs to succeed, it needs a disastrous failure. Sounds like healthy thinking to me!!!

http://www.reuters.com/article/newsOne/idUSTRE51P2SJ20090226

[HysteryDiagnosis]

1. Western culture looks to material gains in order to foment a sense

of security and well being. Material things can allow one to have fun... but they can never bring security or a state of well being. Until we understand this in some small measure we will continue to accumulate more than 100 people need in some instances and what perhaps 1000 need to survive and live well in others.

This may sound socialistic but until we actually believe that less is more when it comes to posessions we will continue to have people living somewhat empty lives while trying to fill their needs with material posessions. I wonder what it is like in cultures where people truly believe that less is more and giving is better than recieving. I wonder what it would be like to live in a country where Lifestyles of the Rich and Famous hardly created any ratings at all.

[Democrats_win]

2. The bush way! Old habits are hard to break. They should be ashamed of themselves.

This is the way bush and his conservatives thought. Most Americans want things to get better for everyone. That's why the Republican party and its banksters are no longer running the country.

[paulsby]

3. i'm looking at markts right now

and trading them.

dow futures are dow 55 pts, but off their low.

nikkeis down 250
hang seng s down 500 lol

frigging amazing

the one run that nobody is talking about is the dollar vs. the euro

dollar has gone up SIGNIFICANTLY in value vs. the euro

in December, one euro bought over 1.40 in US dollars

now it buys 1.25

that's a HUGE move in currencies.

[conscious evolution]

5. I noticed that too.

I have a little socked away there from when I worked in Germany so I keep track of the exchange rate.This is the fastest,most continous drop I can recall seeing.
Back in the pre euro days it would jump/drop quite a bit every spring and fall due to beginning and ending of tourist season but that all seemed to end when everyone converted to the Euro.

[paulsby]

6. it's pretty amazing

that over the last few months there has been more supply in the EURO vs. more demand in the USD

considering how #$#$( our economy is , that's frigging telling about europe's bank/currency.

many pundits say it's a false rally in the dollar. could be. i've picked up a little long EUR short USD recently. keeping an eye.

[conscious evolution]

12. I have no clue what you just said.

lol!
I am pretty ignorant when it comes to currency issues.
It was pretty much a fluke that I stumbled upon trading currencys to make a buck.When I told my sister,who has an MBA with a CFA,she was like "well,DUH!!People been doing that,like,forever."

[paulsby]

16. lol

currencies are good to trade and EXCELLENT to hedge, but the #1 downfall of every trader is leverage.

that's my main rule. don't overleverage.

iow, don't trade huge lot size because your broker will let you. overleveraging invariably leads to ruin.

[conscious evolution]

18. No problem

Its just sitting there right now and will do so for a long time to come.
Even when I was playing with it all I was doing was shifting from a bank in one country to one in another twice a year.Nothing fancy.I was just taking advantage of a seasonal fluctuation I had noticed.
I wish I had had more money in it though.I doubled what I started with in five years.Unfortunately it was not all that much that I started with.Oh well.

[maseman]

7. The Asian markets reacting to the Q4

news in the US from Friday. Their markets were closed when we heard the bad news about Q4 and the huge loss of growth.

[paulsby]

10. yup.

that's why they had the gap down. our friday trading is reflected in their monday open

good point

[tucsonlib]

14. The Lighter Side Of Currency Trading

I was at my bank yesterday; there was a short line.

Just one lady in front of me, an Asian lady who was trying to exchange yen for dollars. It was obvious she was a little irritated. . .

She asked the teller, 'Why it change? Yesterday, I get two hunat dolla of yen. Today I only get hunat eighty?

Why it change?'

The teller shrugged his shoulders and said, 'F l u c t u a t i o n s.'


The Asian lady says, 'Fluc you white people too!'

[paulsby]

17. reminds me of the old jp morgan response

person asked jp morgan what the market will do.

"it will fluctuate"

truer words never spoken

[GeorgeGist]

4. If shock therapy doesn't work ...

perhaps lobotomies will.

[sendero]

8. What we NEED..

... is for consumers to become healthy again. Because until they are, this economy and this stock market are going nowhere.

I'm betting on a lot more downside.

[maseman]

9. And a healthy consumer is one who works.

[sendero]

11. And..

.... gets paid fairly. Not in comparison to a third world country.

[GoesTo11]

15. Not just working - you won't spend until you feel your job is safer

As long as 600,000+ people a month are losing jobs, 50 million people are going to worry about losing jobs in the next year or two. So it's bad enough to have all the new unemployed who have to cut way back, but this gets multiplied out to everyone who could be. Plus everyone who's lost what they thought was their wealth in real estate or retirement will cut back further and further too as long as those keep falling.

[OffWithTheirHeads]

13. Sounds a lot like "We need another Pearl Harbor" to me

and we all know what that got us.