finance/mortgages

[Stuart Syvret]

On Saturday I wrote this:

“I don’t know whether the US government will “buy” – i.e. purchase the debt of - Lehmans – but one or more of the putative buyers must – probably by Sunday night.

If that hasn’t happened by the time markets open on Monday morning – and it looks like Lehman’s is going to crash and burn – then hold onto your hats.

I said in the States this week that the world’s economy was heading for a crash – maybe one which could engulf us even in a matter of weeks.

‘Weeks’ is now looking decidedly optimistic.”

As at 10.32 this Monday morning – no mug – err – I mean buyer – having been found for Lehmans – the stock-markets are thus:

FTSE down 3.32%

DAX down 3.32%

Cac down 4.2%

And at time of writing - the markets yet to open on Wall Street.

I told you so.

Mathematical reality has finally caught-up with the whole pixilated, electronic, debt-trading fantasy pyramid selling scheme.

That Second Law of Thermodynamics? It’s a bitch, ain't it?

Stuart.

[Jason the Maverick]

Still makes no difference to the business in my firm though Stuart.  I have been rushed of my feet again this morning.  Multi-million pound contract with UAE.

[Tory Boy]

Its the UK that will take the damage from this.

[en830]

On Saturday I wrote this:

“I don’t know whether the US government will “buy” – i.e. purchase the debt of - Lehmans – but one or more of the putative buyers must – probably by Sunday night.

If that hasn’t happened by the time markets open on Monday morning – and it looks like Lehman’s is going to crash and burn – then hold onto your hats.

I said in the States this week that the world’s economy was heading for a crash – maybe one which could engulf us even in a matter of weeks.

‘Weeks’ is now looking decidedly optimistic.”

As at 10.32 this Monday morning – no mug – err – I mean buyer – having been found for Lehmans – the stock-markets are thus:

FTSE down 3.32%

DAX down 3.32%

Cac down 4.2%

And at time of writing - the markets yet to open on Wall Street.

I told you so.

Mathematical reality has finally caught-up with the whole pixilated, electronic, debt-trading fantasy pyramid selling scheme.

That Second Law of Thermodynamics? It’s a bitch, ain't it?

Stuart.

I'm surprised that a man in your position is gloating at the potential loss of 25,000 jobs worldwide, 5,000 in the UK, considering the social fallout from those losses.

[Stuart Syvret]

Not gloating – just make a plain statement of fact.

Far from feeling any grim satisfaction, I know all too well that at such times it’s the poor who suffer the most.

The point of my comment was that I have been warning of the mathematical inevitability of such market crashes for several years – most recently in the States last week – when my warning that things could unspool very, very quickly, was met with the predictable smug, arrogance and ignorance from many members.

I looked across the Constables’ benches, and observed them chuckling and giggling when I was speaking. They all knew best – of course.

I doubt there is another legislature in the democratic world which positively revels in such arrogant stupidity and ignorance.

Stuart

[Conductor]

People were talking about a recession 18 months ago.  There is no new news here.

[danrok]

The FTSE 100 was actually lower mid July, than it is now.

A low is good news for some, and bad news for others.  The oil barons will be having a good laugh, as they buy stocks at bargain prices, using the vast sums they have scammed out of us.

[verystandrew]

The inevitable collapse of the dollar

http://www.youtube.com/watch?v=4n3g5lUgkWk

[danrok]

The inevitable collapse of the dollar

http://www.youtube.com/watch?v=4n3g5lUgkWk

Someone from the UK told me that when they had to go and work for a few weeks in one of the mighty skyscrapers in New York, that there appeared to be no-one actually doing any work.

Meanwhile we have poor people in China very willingly working like slaves, to create a better future for their children.

It stands to reason, that eventually the wealthy American who has nothing but talk to offer will become redundant.

[Stuart Syvret]

That YouTube film is good.

Short - and correct.

Stuart

[Jersey Spud]

And today we see the biggest bounce since the FTSE was created?

Good to be cautious... yes. All doom and gloom... not just yet.

[boatyboy]

Jersey spud you are right !

You forgot to mention the reason that the bounce has happend is because both the American Gov. and PM Brown have at last stopped (made  Illegal in a matter of hours) a big fiddle called short selling re hedge funds. I am not a finance worker. BBC commentators said this should have been stopped years ago.

This is what gave the stock market confidence, maybe a finance proff. would like to comment as I am not qualified. The question is though does it take a financial meltdown to get fair play from a Government, scared of the city?

[danrok]

Yes, short selling should have been totally banned years ago.

All they've done is banned short selling on financial stocks until 16/01/2009.  Too little too late.

Warren Buffet has said in the past that short-selling is a weapon of mass financial destruction.  He was right of course.