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Tuesday 26. January 2010 19:53 Age: 41 days
Crisis Watch: January 2010
BY: CRISIS TRACKING Selling bad news as good ones
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January is not over yet, but a number of bad news strikes the markets.
- Charles Biderman from Trim Tabs outlined why he believes US markets are “massaged”. We knew about the PPT and the eventual Fed engagement in stock markets for quite a while. Now, there are some more soft facts support for this message.
- China started this week to pull the plug on foreign investments and lose monetary policy. That was necessary, as the housing bubble and credit expansion otherwise would have been a plan for disaster. Nevertheless, investors reacted negatively.
- On top of the above news, it was President Obama who announced a sudden shift in economic policy. One year too late he plans to follow a strategy which will help to break up big banks. The banking sector reacted very sour to this message.
- Ben Bernanke’s re-election and the Audit the Fed program continue to become troublesome to the easy money policies in the US. Easy and cheap money is been threatened by this.
- European central bankers came up with critical market messages. Even the mainstream media now pick up on State bankruptcy and explains already the consequences of a PIIGS failure. The list has been expanded by Italy, recently, and Greece as well as Spain come under increased pressure.
- Companies also announced further lay-offs. Economic growth data from the UK and Japan are disappointing, but investors still sell them as positive. The ECB also announced that rating agencies might start to adjust ratings for some economies.
- Commercial real estate and private mortgages continue to become an issue for the US market. The ARM reset will arrive this year and wipe out any effort been made during the last years to ramp-up banks balance sheets. Unfortunately the easy money went to shareholders and boni.
February will be a crucial month. This will be the time when ratings and CDS spreads might be adjusted and that finally determines the future of all economies.
tags:PPT, Charles Biderman, FED, Obama, crisis, economic crisis, ratings, loans, treasuries, stock markets, stock investing, where to invest, Spain, greece, Italy, PIIGS, bernanke, country default,
Posted in: News, Financial Crisis
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The Truth is first ridiculed, then violently opposed, and lastly accepted as being self-evident.
Thanks for all the great information.
Im Falle der negativen Nachrichten für Griechenland halte ich es für durchaus möglich, dass man damit versucht den Höhenflug des Euro einzudämmen. Wenn etwas derart einschneidendes direkt in den Mainstream geht und dort so breit gestreut wird, dann könnte es sich auch um bewusste Inszenierung handeln. Der Mainstream ist die letzten Jahre nicht gerade mit seinem investigatives Aufklärungspotential aufgefallen....
Eine weitere Option ist die Ablenkung von anderen großen Ereignissen. Ich würde insbesondere UK nicht aus den Augen verlieren wollen, insbesondere da UK rein auf die Verschuldung bezogen deutlich schlechter dasteht als GR. Es riecht nach Sündenböcken für einen Alternativplan.
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Dr. Berningers Antwort:
Das Problem ist nicht so sehr die Verschuldung, sondern das Problem ist die Bereitschaft auch nur einen teil davon zu bezahlen!