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DOW seems to be steady steady pon pi pi.
Only drops 40~50 pts.
nOt yet EXECUTED in the MARKET
pharoah88 ( Date: 11-May-2010 09:41) Posted:
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TONIGHT
Look like DOW is going to return at least half of what it got yesterday if not all.
Take Cover. !!!!!!
A $1.34-trillion lifeline
Joint action by Western governments, central banks calms markets
B RU S S E L S
The United States Federal Reserve providing unlimited US dollar funds to Europe’s central banks.
— A humongous €750-billion ($1.34-trillion) emergency loan package. The European Central Bank (ECB) committing to buying public debt in an abrupt Uturn.pharoah88 ( Date: 11-May-2010 08:48) Posted:
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Monday: 10 MAY 2010 CLOSING
dOw +404
BEAR BARE
POOR is HAPPY
HAPPINESS in POORNESS
GOVERNMENT WALK:
HIGHEST GOVERNMENT COMPENSATIONS
HAPPINESS in SELF ENRICHNESS
pharoah88 ( Date: 10-May-2010 08:37) Posted:
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欧元区领袖计划设立一笔700亿欧元（约1250亿新元）的危机储备金，
援助任何受到投机者攻击的成员国，并同意加速推行削减赤字措施，
收紧预算规则。
Bernanke to grads: Money can’t buy happiness
Your parents were right.
Money can't buy you Happiness.
That was the message
from the Federal Reserve chairman to
graduates of the University of South Carolina.
bE pOOr tO bE HAPPY
pharoah88 ( Date: 09-May-2010 11:31) Posted:
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欧元区领袖计划设立一笔700亿欧元（约1250亿新元）的危机储备金，
援助任何受到投机者攻击的成员国，并同意加速推行削减赤字措施，
收紧预算规则。
Freddie horror show goes on
WASHINGTON
Freddie Mac said it would need another US$10.6 billion by June 30.
The company has already received more than US$50 billion in taxpayer funds to cover losses from toxic mortgage assets.
It also warned that even more aid would be needed, saying: “Freddie Mac expects to request additional draws. The size and timing of such draws will be determined by a variety of factors that could adversely affect the company’s net worth.”
In 2008, the US government pledged to ensure that Freddie Mac, and its larger sister organisation Fannie Mae, kept a “positive net worth”.
The deal was designed to prop up the vital US housing market from collapsing totally and pushing the economy over the precipice.
But in a sign that the US housing sector is still in difficulty, Freddie said on Wednesday the percentage of its loans not paid on time or in full rose to 4.13 per cent in the first three months of the year, up from 3.98 per cent in the final quarter of last year.
— Troubled United States government-backed mortgage firm Freddie Mac on Wednesday asked for additional funds from the Treasury Department as it announced a US$6.7-billion ($9.1-billion) loss in the first quarter.AgenciesIt has two big dangers — destabilising and having the potential to bringing the world back into a financial crisis again.
Mr Heiner Flassbeck, chief economist at the UN Conference on Trade and Development
‘Most serious problem in the world’
UN official says carry trade could send global economy into crisis
GENEVA
“If you asked me what is the most serious problem in the world now, I would say it’s the carry trade,” said Mr Heiner Flassbeck, chief economist at the United Nations Conference on Trade and Development.
A carry trade involves the investor borrowing in a currency that levies low interest rates to invest in another that yields higher interest rates, profiting from the difference between the two rates. The gains are often magnified, depending on the degree of leverage used.
With currencies across the developed world — such as the United States dollar and the Japanese yen — priced at low interest rates at the moment, carry traders find it attractive to borrow in these currencies and then selling them to invest in those of emerging economies, such as India, which pay higher interest rates.
# WHY INDiA can Pay HiGH interest rate ? #
“This dramatically destabilises economies, because capital goes from low interest rate countries which are low-inflation countries or deflation countries to high inflation countries and appreciates the currency higher (sic),” said Mr Flassbeck.
“That is clearly a destabilising effect for global trade and has always been a danger of collapse of this trade later,” he added.
“It has two big dangers — destabilising and having the potential to bringing the world back into a financial crisis again,” he warned.
The dangers of the carry trade were raised by China’s deputy central bank chief Zhu Min at the World Economic Forum in Davos in January, when he warned that it would pose a “real risk this year for the economy”.
— Carry trades — a widespread form of speculation on the currency markets — could sink the global economy back into crisis, a top United Nations economist warned yesterday.AgenciesECB resists bond buys, holds key rate
LISBON
“We didn’t discuss the matter,”
ECB president Jean-Claude Trichet said after the bank’s Governing Council left its benchmark interest rate at a record low of 1 per cent — a decision that was widely expected, with investor focus instead on the debt crisis that had been undermining the euro.
The euro yesterday fell below US$1.28 for the first time since March 2009, hitting yet another 14-month low of US$1.2692.
Yesterday’s ECB meeting was widely considered to be one of its most important since the euro was established in 1999, as the central bank’s governors sought to prevent the Greek debt crisis from overwhelming other eurozone countries.
Stressing that Spain and Portugal do not have the same challenges as those faced by Greece, Mr Trichet said yesterday European officials should intensify efforts to cut budget deficits.
One idea that had being openly discussed was that the ECB might introduce a new anti-crisis measure, such as supporting bond prices — and the balance sheets of banks holding them — by buying government bonds, even though the bank’s constitution says it cannot directly bail out profligate governments. But the ECB could, so the reasoning goes, buy them in the secondary market from banks, avoiding a direct loan to governments.
While the ECB did not consider that option at yesterday’s meeting, analysts said the door remained open for such a move, especially after the central bank’s sharp U-turn on Monday, when it said it would accept junk-rated Greek bonds as collateral for loans.
Mr Trichet said yesterday that a default by Athens on its debt is “out of the question”, even with the country barely two weeks away from having to repay €8.5 billion ($15 billion) on bonds maturing on May 19.
The Greek government said in a heated parliamentary debate yesterday that the only hope of avoiding bankruptcy is to accept a joint EU and International
Monetary Fund rescue package worth €110 billion over three years, despite having to impose harsh austerity measures, including slashing salaries and pensions and increasing taxes, to get the funds.
— The European Central Bank yesterday resisted pressure to consider buying government bonds and did not unveil new measures to help relieve the eurozone’s deepening fiscal woes.Agencies-----------------------
WASHINGTON - Spurred by deep election-year voter anger, the United States Senate voted on Wednesday to forbid government-funded bailouts of big banks like those blamed for the global economic meltdown of 2008.
In their first substantive...
do you all really think the trader accidentally triggered the wrong button? This is ridiculous......
Wall St. rollercoaster: Stocks fall nearly 10 pct
Stocks take record tumble, nearly 10 pct, before regaining some; typo may have caused selloff
Traders work on the floor of the New York Stock Exchange, Thursday, May 6, 2010, in New York. It was a painful flashback to the darkest days of 2008: Stocks plunged and the Dow Jones industrials skidded by hundreds of points as traders succumbed to fears that Greece's debt problems would halt the global economic recovery.(AP Photo/Henny Ray Abrams)
NEW YORK (AP) -- A computerized selloff possibly caused by a simple typographical error triggered one of the most turbulent days in Wall Street history Thursday and sent the Dow Jones industrials to a loss of almost 1,000 points, nearly a tenth of their value, in less than half an hour. It was the biggest drop ever during a trading day.
The Dow recovered two-thirds of the loss before the closing bell, but that was still the biggest point loss since February of last year. The lightning-fast plummet temporarily knocked normally stable stocks such as Procter & Gamble to a tiny fraction of their former value and sent chills down investors' spines.
"Today ... caused me to fall out of my chair at one point. It felt like we lost control," said Jack Ablin, chief investment officer at Harris Private Bank in Chicago.
No one was sure what happened, other than automated orders were activated by erroneous trades. One possibilility being investigated was that a trader accidentally placed an order to sell $16 billion, instead of $16 million, worth of futures, and that was enough to trigger sell orders across the market.
No one was taking blame, either. The New York Stock Exchange said there was no problem with the Big Board's systems, and all the markets were on a conference call with the Securities and Exchange Commission.
Nasdaq issued a statement two hours after the market closed saying it was canceling trades that were executed between 2:40 p.m. and 3 p.m. that it called clearly erroneous. It did not, however, mention a cause of the plunge.
The NYSE also said it would cancel some trades on its electronic platform.
There were reports that the sudden drop was caused by a trader who mistyped an order to sell a large block of stock. The drop in that stock's price was enough to trigger "sell" orders across the market.
The SEC issued a statement saying regulators are reviewing what happened and "working with the exchanges to take appropriate steps to protect investors."
Whatever started the selloff, automated computer trading intensified the losses. The selling only led to more selling as prices plummeted and traders tried to limit their losses.
"I think the machines just took over. There's not a lot of human interaction," said Charlie Smith, chief investment officer at Fort Pitt Capital Group. "We've known that automated trading can run away from you, and I think that's what we saw happen today."
The market was already wobbly because of fears that Greece's debt crisis will undermine the economic recovery. Traders watched television coverage of protests in the streets of Athens, and the Dow was down 200 when the selloff began less than two hours before the closing bell.
At 2:20 p.m. EDT, the Dow was at 10,460, a loss of 400 points.
It then tumbled 600 points in seven minutes to its low of the day of 9,869, a drop of 9.2 percent.
On the floor of the New York Stock Exchange, stone-faced traders huddled around electronic boards and televisions, silently watching and waiting. Traders' screens were flashing numbers non-stop, with losses shown in solid blocks of red numbers.
Then the market bounced back, about as quickly as it fell. By 3:09 p.m., the Dow had regained 700 points. It then fluctuated sharply until the close. The trading day ended with the Dow down 347.80, or 3.2 percent, at 10,520.
The Dow has lost 631 points, or 5.7 percent, since Tuesday amid worries about Greece. That is the largest three-day percentage drop since March 2009, when the stock market was nearing its bottom following the financial meltdown.
At its lowest Thursday, the Dow was down 998.50 points in its largest point drop ever, eclipsing the 780.87 lost during the course of trading on Oct. 15, 2008, during the height of the financial crisis. The Dow closed that day down 733.08, the biggest closing loss it has ever suffered.
The impact of Thursday's gyrations on some stocks was breathtaking, if brief. Stock in the consulting firm Accenture fell to 4 cents after closing at $42.17 on Wednesday. It recovered to close at $41.09, down just over $1.
Procter & Gamble, generally a stable stock, dropped as much as $23, almost 37 percent, and rallied to close down only $1.41.
Many professional investors and traders use computer program trading to buy and sell orders for large blocks of stocks. The programs use mathematical models that are designed to give a trader the best possible price on shares.
The programs are often set up in advance and allow computers to react instantly to moves in the market. When a stock index drops by a big amount, for example, computers can unleash a torrent of sell orders across the market. They move so fast that prices, and in turn indexes, can plunge at the fast pace seen Thursday.
Even if there were technical issues, concerns about the world economy are running high.
The stock market has had periodic bouts of anxiety about the European economies during the past few months. They have intensified over the past week even as Greece appeared to be moving closer to getting a bailout package from some of its neighbors.
"The market is now realizing that Greece is going to go through a depression over the next couple of years," said Peter Boockvar, equity strategist at Miller Tabak. "Europe is a major trading partner of ours, and this threatens the entire global growth story."
The Standard & Poor's 500 index, the index most closely watched by market pros, fell 37.75, or 3.2 percent, to 1,128.15. The Nasdaq composite index lost 82.65, or 3.4 percent, and closed at 2,319.64.
At the market's lows, all three indexes were showing losses for the year. The Dow now shows a gain of 0.9 percent for 2010, while the S&P is up 1.2 percent and the Nasdaq is up 2.2 percent.
At the close, losses were so widespread that just 173 stocks rose on the NYSE, compared to 3,008 that fell. The major indexes were all down more than 3 percent.
Meanwhile, interest rates on Treasurys soared as traders sought the safety of U.S. government debt. The yield on the benchmark 10-year note, which moves opposite its price, fell to 3.4 percent from late Wednesday's 3.54 percent.