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Sub Prime Loan Bubble

they should cut early and damage been done now !

 

  yammay74, the fear guage is an index ^VIX, a measurement of volatility, more explanation below.


CHICAGO, Aug 17 (Reuters) - The Chicago Board Options Exchange Volatility Index (.VIX: Quote, Profile, Research), Wall Street's main barometer of investor fear, dropped 9.28 percent to 27.97 early on Friday as U.S. stocks surged after the Federal Reserve unexpectedly cut the discount rate in a move to soothe investors' concerns about market liquidity.

The VIX, which measures projected stock market volatility based on Standard & Poor's 500 index (.SPX: Quote, Profile, Research) option prices, has been rising as investors bid up options to manage their stock market risk on fears that credit markets may break down and hurt the economy and profits.

below is a chart comparing the ^vix, S&P and DOW, you can see rise of ^VIX are associated with drastic fall on DOW and S&P.


 

 

i think subprime is worst than expect,,,,,,insider sell so heavy must be some big boy going to bailout or bankrupt.....if not why fed res,,, take so many action........im very sure super bad news going to announce akang datang.........if my guess is right.........no more 300 up and dowm......there will be 500 to 1000 point flushing down,down,dump .....die die must selll

 

Dear tiandi,

Whats this fear gauge? Pls enlighten.

 

 

when market open, dow shoot up to 300 point and now drop to 81.12 point, what a volatile event the angmoh is facing tonight. Look like the fear may not be over, need to cut further interest trade to stablized the market, maybe another 1 percentage point.

 

their fear guage dropped about 12% and it is  now 9%.. it will take a long time to dissipate.

 

will the bank reduce the interest with the lender??? if the bank did not reduce the interest rate with lender and lender refrain from making payment, then the problem is resolve temporary.

 

it dip to 196.56 now, the fear may not over yet or the cutting of interest rate came to late. Let keep our finger cross and let the angmoh fight their own battle.

 

sub 200 points...

 

the dow after going up 300 points, it dip to 262, hope it hold or more up further.  

 

I hope the dow,nasdaq and sp in green after closing, this will improve the market sentiment locally.

 

well...more blood to be shed next wk..with margin calls alike....take care :)

 

This interest rate is the FED lending to the BANK rate not the interbank rate.  It was at 6.25 reduced to 5.75.

 

ShareJunction forum is very powerful, after rumbling by some of us, FED wake up and cut interest rate. I think maybe FED official is learning from us.  If you work in FED, how much percentage point will you cut and why???

 

Finally, the FED step in and cut interest rate by half a percentage point. Is it enough to save the market????

 

12:16 US FED: Fed Cuts Discount Rate by 50 bps to Help Liquidity Boston, August 17.

To promote the restoration of orderly conditions in financial markets, the Federal Reserve Board approved temporary changes to its primary credit discount window facility. The Board approved a 50 basis point reduction in the primary credit rate to 5-3/4 percent, to narrow the spread between the primary credit rate and the Federal Open Market Committee's target federal funds rate to 50 basis points. The Board is also announcing a change to the Reserve Banks' usual practices to allow the provision of term financing for as long as 30 days, renewable by the borrower. These changes will remain in place until the Federal Reserve determines that market liquidity has improved materially. These changes are designed to provide depositories with greater assurance about the cost and availability of funding. The Federal Reserve will continue to accept a broad range of collateral for discount window loans, including home mortgages and related assets. Existing collateral margins will be maintained. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of New York and San Francisco.

 

The answer will only be known when too many ppls went Bankrupt or Sucide.....at the end of this month esp is in the Ghost Month......

Blessing all nothing happen......

 

Will it happen Singapore ?