Do that many people read this little news page? Suddenly, investors are very shy about handing their money to strangers. I wonder why. The stench of the dying three headed hell hounds evidently reached skunk levels. But hark! I hear Japanese workers overturning the dictatorship of the LDP in Japan! This, my friends, is why so many monetarists are screaming and dying like vampires at sunrise. And what if Asian workers cease eating inflation? And Saudi Arabia cannot pump more oil? And of course, you can't squeeze blood from subprime bankrupts. All that fine money created with the wave of a wand, gone! Poof. Magical. Dow is dropping to the cellar it seems and it isn't even October yet.
NEW YORK (MarketWatch) - Stocks plunged Thursday as anxiety about shaky credit markets and the troubled housing sector swept Wall Street, pushing the Dow Jones Industrial Average down nearly 400 points.
"We're seeing panic in the market today - you can almost cut the level of fear with a knife," said Al Goldman, chief market strategist at AG Edwards.
The Dow Jones industrials ($INDU :13,419.76, -365.31, -2.7% ) fell 395 points to 13,392, with 29 of its 30 components trading lower, just off the days' low of 13,462. The Dow was on track to post its biggest plunge since February.
"But there's nothing new. It's everything the market has been living with, and living beyond, for five months," said Goldman, who chalked up Thursday's slide to a "very normal and nasty pause to reflect" on the recent run-up, which drove the Dow up over 14,000. "
No new news? Are you kidding me or what? The news that China is now #3 in the world's economies, is news. And the fact that the Japanese workers are committing terrorist attacks against nuclear power stations in Japan as well as the worst terror of them all, they are going to vote the corrupt, evil LDP out of power at last: this is all very big news! Not that the average American sees this coming!
The key, all along, is the Bank of Japan and the government of Japan supressing human resource costs in order to have this fake depression whereby they could give Toyota and other high-value exporters super-cheap money so they could use a super-cheap yen to undercut coemptition---THIS IS ALL ENDING. As I predicted.
Japan cannot follow this course any longer. They are at a terminus point. Starving the Japanese workers to death isn't an option. Forcing them into labor similar to under Mao in China is unacceptable. Rebellion is in the air. The new government of Japan will, next month, put in new bank officers at the Bank of Japan and I suppose they won't tar and feather the fascists who ran it before but I would suggest this is a good idea.
In China, the Chinese government is pulling on the reins and they want to cut trade with the US and re-direct it to Africa and South America. On top of this, both Japan and China will now be using their vast FOREX reserves to buy up interesting stuff like working with Russian oil and Putin, just for example.
I will suggest that the status quo is breaking. And a new one is rising. And it isn't one that will feed us endless loans and hold yet another two trillion in trade dollars!
Oil-price increases over the past several years were comparable to those of 1970's but didn't derail the economy because the market has been able to adjust, St. Louis Fed president William Poole said Tuesday.
"Market adjustments have been the hero in preventing energy price increases over the past four years from disrupting economic growth," said Poole in a speech prepared for delivery in Wilmington, Del.
While the higher gas prices have put a strain on consumers, "there is not energy crisis and households and firms are adjusting in a sensible way to price increases," Poole said.
Poole estimated that actual spending on energy in 2006 was $150 billion higher than it otherwise would have been because of higher prices. This amounts to 1.6% of disposable personal income.
"From these numbers, I conclude that the impact of energy price increases on consumers has been far less than headlines would lead readers and TV viewers to believe," Poole said.
The 'Market adjustment hero' is code for 'cheap Chinese labor.' I'll explain to Mr. Poole how I 'adjusted' to all this high energy cost: I chop wood all winter long. I have a forest, fortunately, In the earlier oil crisis of 1974, I used to take a Victorian baby buggy into the parks in New York City and with a bow saw, cut up firewood which I burned in my Victorian fireplace. We also wore coats indoors. And this is happening again! Each oil crisis, people adapt by burning the furniture. But this oil crisis isn't just due to Bush's neo nazi wars, this is probably the beginning of It: the Hubbert Oil Peak.
The effects of It will be awful. Stocks will rise only if there is some human labor and human energy to be exploited. Japan just did this by reducing the lives of their workers to the barest minimum. Workers are now throwing themselves out of windows after murdering their children! I hope the stupid Emperor is happy with this. Banzai.
The same thing is happening here; they want to force all of us to eat inflation for corporate America. And this is unacceptable and this is why the financiers are in a panic. How can they make profits if workers once again are on the march? Hell, we could see bigger spasms like in 1790 or 1918.
The euro's increase and rising oil prices are threatening to cool the German economy, which last year powered the 13-nation euro area's fastest economic expansion since 2000. Growth in the region's manufacturing and service industries slowed in July, and Italian business confidence fell to the lowest in 17 months.
``We've crossed the high point in growth and we'll now see a slight slowdown, but nothing dramatic,'' said Matthias Rubisch, an economist at Commerzbank AG in Frankfurt. ``The strong euro, energy prices and rising interest rates were negative influences.''
They all hope it will be slight. A little bump in the petro/chemical road. A slight adjustment with the workers doing all the adjusting. But the energy is flowing the other way: workers in Germany are getting somewhat annoyed. Imagine if they wanted to have children! The concept of having children is fading all over the place as the Great Powers forced workers to eat all the oil inflation.
THE HAGUE - A majority in Dutch parliament backs a return of so-called golden shares held by the government to protect strategic industries against foreign takeovers.
Although the Dutch parliament is in recess, a roundup by the ANP news agency of the most important parties showed a majority supports the idea of giving the Dutch government special golden shares.
The measure would give the holder veto rights in certain circumstances and can be used to protect a company from possible takeover.
Like the Japanese, the Dutch are worried about take overs. This might be a last gasp. The take overs are being overtaken by events: if the Chinese use a trillion $ to take over stuff, do they want everything? Or just a portion? I would suggest a portion. They want to have say, have control, without the headache of owning. The Japanese are bemused. They would love to control but if you lose control of your BASE you either get your head chopped off or you go into exile and fade away. As my ancestors said, 'Keep the peasants happy or they will make you very unhappy.'
Deutsche Bank AG, JPMorgan Chase & Co. and six more banks are stuck with 5 billion pounds ($10 billion) of loans for Kohlberg Kravis Roberts & Co.'s purchase of Alliance Boots Plc.
The banks will keep the senior loans after failing to find investors to buy them, said four people with direct knowledge of the deal, who declined to be identified because the information is private. The banks will sell 1.75 billion pounds of junior ranking loans, after increasing the interest rate and using their underwriting fees to discount the price by as much as 5 percent.
I hope they enjoy eating shit. They made us eat it all the time and told us, it was good for us. This is another reason stocks are collapsing. These monsters hate eating shit so they tried to eat...their investors! HAHAHA. No way they can do this for more than a month. The assurances that the collapse of the hedge doggies many trachey CDOs would have zero effect is all a lie. HAHAHA. And more: all the investors were told that Bear Strearns would be paid FIRST in the collapse of their poorly built dog house and the investors would get the dog's left overs which is, ta-da: a bone!
Mother Hubbard would be proud.
Not a peep about imports! Not a peep about our trade deficits with both Mexico and Canada and how much of that is oil and gas related! Such levels of insanity makes me itch to get out a straight jacket and go visit the Treasury Department as well as Condi in her high heel super-power bitch boots. Are they guys looney? HAHAHA. Gads.
Absolute Capital Group Ltd., an Australian hedge fund that invests in collateralized debt obligations, suspended withdrawals from two of its funds after forecasting losses amid a rout in U.S. subprime mortgages.
The firm froze its Yield Strategies Fund and Yield Strategies Fund NZD, which together have about A$200 million ($177 million) under management, Chief Investment Officer Bill Entwistle said in an interview today. The Sydney-based company is 50 percent owned by ABN Amro Holding NV's Australian unit
Absolute Capital, which says it doesn't invest in the riskiest portion of CDOs, is suffering from the widening impact of delinquencies on U.S. home loans to people with poor credit. Basis Capital Fund Management Ltd., another Australian hedge fund battered in the North American market, has hired Blackstone Group LP to negotiate with bankers to help it limit losses.
The howls of the dying dogs at the Gates of Death echo in the canyons of lower Manhattan and the portals to the Bank of Japan. It is all getting terribly unhinged. All the investors in these funds wanted to get super-rich without breaking a sweat! Now they are pissing in their pants.