Monday, January 21, 2008

What Goes Up...

Must come down. And of course its not a recession...pleads the powers that be...it's a correction.......or maybe it's just fortunes fate (being lady luck and her magick number seven).....actually it's worse than either a correction or recession it's pending stagflation.

Toronto Stock market takes biggest one-day plunge in seven years

TSX suffers worst week in seven years

Stock markets sustain even more losses Friday

Where to find a foothold amid downward spiral

Stock markets crash, Sensex tanks 1440 pts
Hindu, India -
Mumbai (PTI): The stock markets went into a downward spiral at mid-session on Monday, with across the board selling pressure that shaved off 1440 points ...

MARKETS CRASH ACROSS EUROPE Experts Warn of Stock Market Hysteria
Spiegel Online, Germany -
The trigger for the market crash was the news from WestLB on Monday morning. Over the weekend, the bank had to admit to a billion-euro capital requirement ...
World Stock Markets Crash
Arab News, Saudi Arabia -
DUBAI/LONDON, 22 January 2008 — Global stock markets plunged yesterday, with Tokyo tumbling to its lowest level in more than two years as US President ...
US Stock Markets Crash and Burn Whilst The Fed Fiddles
US Stock Markets - Near Term Bottom or Waterfall Crash?

Hauntingly Familiar
Here we are once again, suddenly embroiled amid a frenzy of financial crisis, and looming bail-out interventions.

The jury is still out as to whether or not this crisis will turn out to be “the big one” that will take down the entire house of cards.

Inevitably, the day will come when no form of economic stimulus or monetary policy interventions will be sufficient enough to provide remedy to the decades of sub-standard stewardship rendered by our elected officials.

Until such a day of reckoning arrives, we can not discount the possibility that the present cast of self-perceived masters-of-the-universe and their monopoly stronghold, which is rapidly fracturing, will prevail once again.


The 3 Forces Behind a Market Crash
Back in 1934, Benjamin Graham, the creator of securities analysis, wrote that there are three forces behind a market crash.
  1. The manipulation of stocks.
  2. The lending of money to buy stocks.
  3. Excessive optimism.

Let's assess the level of each factor today.

This article was originally published on Feb. 15, 2007. It has been updated.
Post-mortem: Why did the markets crash?

So, what caused this bloodbath? While the first prognosis of the crisis was that fears of recession in the US brought in the market crash in India, some experts hinted that the markets might be entering a phase of consolidation.

Experts point out that the market movements are based on internal, technical parameters. "The current movements have been caused by margin pressure and heavy selling by the FIIs in the face of bad global clues," market analyst Ashwini Gujaral says.

The global cues were very weak over the weekend. The European markets declined quite heavily on Friday, while the US indices underwent a milder fall. Asian markets were down heavily on Monday morning and there was enough indication that another global sell-off was under way.


SEE:

Black Gold

U.S. Economy Entering Twilight Zone



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