PDA

View Full Version : Futures Rout Accelerates: Emergency Fed Announcement Possible


HardlyPeeved
08-09-2011, 12:15 AM
The last time we had a modestly comparable collapse in overnight trading, a certain futures trader from SocGen whose gimmickry had been uncovered, caused the Fed to lower its Fed Funds rate in an emergency meeting first thing in the morning.

http://www.zerohedge.com/news/futures-rout-accelerates-emergency-fed-announcement-possible

is it time for 24 hour emergency coverage yet? i have seen it twice since 2006....

daily RSI in the 16s now...waterfalls like this in the past have led to immediate Fed intervention, the effects of which have lasted usually 5-6 weeks, but sometimes as short as 3 days (TARP) and as long as 2 years (QE).

If they don't intervene, it seems clear that any bounce is shortable...BAC and DB will be going tits up

Silvercoin
08-09-2011, 02:57 AM
Nikkei 225 seems to have recovered.

Am I the only one who thinks the credit rating downgrade is the first step that will lead to positive steps in addressing the debt situation.

As such I see it as something good rather than bad.

Something bad would have been a debt limit increase without having had any debate.

The market is behaving the opposite of how it should.

HardlyPeeved
08-09-2011, 03:30 AM
Nikkei 225 seems to have recovered.

Am I the only one who thinks the credit rating downgrade is the first step that will lead to positive steps in addressing the debt situation.

As such I see it as something good rather than bad.

Something bad would have been a debt limit increase without having had any debate.

The market is behaving the opposite of how it should.

Debate and discussion is always good. This debate should have occurred 50 years ago...now the debt is too deep. It will take 100 years to (legally) dig out from the debt.

Dr. Marc Faber says the only other way out of this massive debt/deficit is war. If there are no other alternatives...war may be the only "quick fix"...WWII Germany tried it...many others have too over the ages.

The problem is the "debate" will uncover the hidden debts, the unfunded liabilities...and the politicians will really freak out then...Once the politicians are freaked (and have no way to pay)...the politics will probably go berserk. So facing one's issues may normally be healthy...here the issues are so deep and pervasive that its like trying to clear out hell...very nasty job indeed.

We got to this bad indebted place by all previous governments...why does this or the next government all of a sudden do a (quantum) leap and become able to deal with reality ?

Yes...its a first step

"Not everything that is faced can be changed.
But nothing can be changed until it is faced."
James A. Baldwin

I fear we are only becoming aware of the next step....which may be completely fatal (given our precarious state and debts):
http://i859.photobucket.com/albums/ab155/HardlyPeeved/Collapse_2012_end_times/parasites_.jpg