Global Correction

[BlackJack]

say bye bye to the export dependent asian economies.........

Credit-card industry may cut $2 trillion lines: analyst

The credit card is the second key source of consumer liquidity, the first being jobs, the Oppenheimer & Co analyst noted

http://news.yahoo.com/s/nm/20081201/bs_nm/...rch_oppenheimer

talk about slow

Whitney suggested amending the proposal on Unfair and Deceptive Lending Practices that is set to be adopted in 2010, saying restricting lenders' ability to reprice an unsecured loan will cause them to stop lending or to lend less.

[flying]

What grates me about this is not the loss of cards. I have tons as they send them all the time with high limits.

I guess because I have great credit & a business.

But now I get mails saying they are canceling this one or that because I have not used it in 24 months.

Fine but I have also heard that having cards canceled is not great for your credit rating as it never says why they are canceled.

Is it any wonder this system is so messed up?

[Nouf]

Anyone notice Bernankes`s statement, he has pratically admitted that the fed is now buying the long end of the curve, that monster rally in the 30yr T-bills is pretty much imo the fed buying its own debt to keep long term rates down, the fed is a bunch of amatuers, and i dont foresee anything other than a dis-location of the US bond market

you simply can not buy your own debt for ever and expect the world to accept it.

so the fed is printing dollars to buy the 30yr bills to try and keep control of longe term debt artificially trying to keep down mortgage rates

The rally in the US dollar is most certainly winding of hedge funds, you only need to watch the Yen/$ to see what happens when the yen rallies, the T-note auctions will be fun, now we really get to see whose is capable of buying US bebt, and i expect it now to be a failure.

the insane move in the 30yr is most likley a short covering spike and many now feel that is he next bubble to pop

buyers strike yesterday in equities low volume trading for thanking giving a a serious dump and heavy volume and the market bredth was fugly, alot folks wanted out yesterday

anyone noticed the $tnx now thats scary flight to safety with rates likely going below 2% soon and $irx likely going to negative rates soon.

people are that scared that they are willing to get virtually 0% and locked their money in 3 month bills just so they can keep it

once in a lifetime meltdown we are witnessing.

Edited December 2, 2008 by Nouf

[bingobongo]

Anyone notice Bernankes`s statement, he has pratically admitted that the fed is now buying the long end of the curve, that monster rally in the 30yr T-bills is pretty much imo the fed buying its own debt to keep long term rates down, the fed is a bunch of amatuers, and i dont foresee anything other than a dis-location of the US bond market

you simply can not buy your own debt for ever and expect the world to accept it.

so the fed is printing dollars to buy the 30yr bills to try and keep control of longe term debt artificially trying to keep down mortgage rates

The rally in the US dollar is most certainly winding of hedge funds, you only need to watch the Yen/$ to see what happens when the yen rallies, the T-note auctions will be fun, now we really get to see whose is capable of buying US bebt, and i expect it now to be a failure.

the insane move in the 30yr is most likley a short covering spike and many now feel that is he next bubble to pop

buyers strike yesterday in equities low volume trading for thanking giving a a serious dump and heavy volume and the market bredth was fugly, alot folks wanted out yesterday

anyone noticed the $tnx now thats scary flight to safety with rates likely going below 2% soon and $irx likely going to negative rates soon.

people are that scared that they are willing to get virtually 0% and locked their money in 3 month bills just so they can keep it

once in a lifetime meltdown we are witnessing.

good point nouf, the name of the game now is CAPITAL PRESERVATION and no longer RETURN ON CAPITAL

but if bubble boy Bernake lowers fed fund rate to 0% then money market funds will actually lose money for the investor due to maintenance fees etc., which would then cause a run on those same money market funds thereby further tightening the credit screws

Edited December 2, 2008 by bingobongo

[VegasVic]

Anyone notice Bernankes`s statement, he has pratically admitted that the fed is now buying the long end of the curve, that monster rally in the 30yr T-bills is pretty much imo the fed buying its own debt to keep long term rates down, the fed is a bunch of amatuers, and i dont foresee anything other than a dis-location of the US bond market

you simply can not buy your own debt for ever and expect the world to accept it.

so the fed is printing dollars to buy the 30yr bills to try and keep control of longe term debt artificially trying to keep down mortgage rates

The rally in the US dollar is most certainly winding of hedge funds, you only need to watch the Yen/$ to see what happens when the yen rallies, the T-note auctions will be fun, now we really get to see whose is capable of buying US bebt, and i expect it now to be a failure.

the insane move in the 30yr is most likley a short covering spike and many now feel that is he next bubble to pop

buyers strike yesterday in equities low volume trading for thanking giving a a serious dump and heavy volume and the market bredth was fugly, alot folks wanted out yesterday

anyone noticed the $tnx now thats scary flight to safety with rates likely going below 2% soon and $irx likely going to negative rates soon.

people are that scared that they are willing to get virtually 0% and locked their money in 3 month bills just so they can keep it

once in a lifetime meltdown we are witnessing.

"You only need to watch the Yen/$ to see what happens when the Yen rallies" My friend the Yen has already rallied due to the unwinding of the Yen carry trade, you didn't really think that the Yens great resurgence over the past 5-6 months had something to do with a strong Japanese economy did you now? That "insane move" in the 10 and 30 yr might very well continue, much to your chagrin apparently

[Nouf]

"You only need to watch the Yen/$ to see what happens when the Yen rallies" My friend the Yen has already rallied due to the unwinding of the Yen carry trade, you didn't really think that the Yens great resurgence over the past 5-6 months had something to do with a strong Japanese economy did you now? That "insane move" in the 10 and 30 yr might very well continue, much to your chagrin apparently

sure its the carry trade unwinding, same deal as the other yen crosses with sterling and the Euro, but as one of the worlds creditor nations i know where my money would be, well in fact i do hold yen and singapore dollars

i do have a extension targets of 140 & 146 on the 30yr bonds so that is not out of the realms yet, but i expect the 10yr to drop below 2% and the 30yr to be below 3% if these games keep going on.

The fed is trying to put a floor of housing in the US by buying long term debt, infact thats its only real play left, hence the spiking of the bonds, but real mean prices are dictated by ability to pay by the consumer not artifical price games i dont see an evidence of the US consumer finding the resources to fund the ability to pay the credit still out standing

it either comes from job creation and wage growth or credit is surpressed which is what the fed is trying to do.

the DX rally imo still has some way to go so in the short term the dollar should see strength however once this move is over i expect it to remain back on its course of moving down you cant wind down 15 yrs of credit expansion in 13 months

i think most of the asian countries are in better shape to withstand this global correction as creditor nations they have savings to use and dollar reserves to use with japan and china # 1 and 2 buyers of US debt, but in the short term all nations will suffer

its who will emerge stronger, and i would rather be on the side of a creditor than a debiter nation which the US has now become

the US has all but a printing machine, much like alot of europe does, and if china does what it says it will and implement the $600 billion stimilus package then i suspect they will sell treasures, so they are hardly likley to be buying any US t bills soon, hence the next auction will be interesting to see who really wants to step up to the mark and buy US debt

with other countries in a dire mess, i suspect they will look after their own 1st, Obama needs to have a re-think if he thinks the world will continue to buy US debt, that or he switches the ink and printing machine on

Edited December 2, 2008 by Nouf

[BlackJack]

so in short you are saying that the US$ will strengthen a little then fall?

Then its musical chairs as to which currency you buy into.

Or do you care to predict the currency?

[Nouf]

so in short you are saying that the US$ will strengthen a little then fall?

Then its musical chairs as to which currency you buy into.

Or do you care to predict the currency?

hello, yes thats the theory behind what i believe is happening right now, massive deleveraging still going all assets classes still getting smashed,

pretty much any fiat currency can go the same route as the what the US is doing, infact, most countries, are going to the printing presses, it looks like the fed is following the japan route only the one small problem Bernanke fails to acknowledge the US is a consumer led economy, it has a poor manufacturing base unlike its counter parts in Asia, hence they are the creditors of the world, the Saudi`s chinese, japanese etc, the US consumer has no savings and is 70% GDP, the last 5 years has all been on the back offf credit expansion with laxed lending standards

The US has been partying on the back of the Asians cheap credit

the Fed is likely to adopt the Zirp route, in fact i suspect that all CB`s (central banks) will follow suit as economies head into next year i certainly think BOE and ECB will be dropping rates agressively if not this month early next year, they have been behind the curve for way too long, thus ignoring the laxed lending standards of credit, now the central bankers want to look like they want to help the public, however its too late to stop the problems now

regarding currencies and to which one`s are the safest, its my belief to get into creditor nations, the ones that have $ reserves such as the Yen, singapore $ and the RMB, thats not to say they wont be in some pain in the future as everything linked to the US consumer, they are going to feel the pain like everyone else, however i do think once the pain has passed them economies will come out better, i would suggest having some of your portfolio is other currencies etc, once all this deleveraging gets flushed out of the system then i am of the opinion that the $ resumes on its down fall.

the bond market is the market to watch and the auctions to see if the chinese, japanese and saudi`s continue to keep buying treasuries, the fact the US is the reserve currency, is the only reason imo that the games Bernanke is playing hasnt resolved in a possible collapse of the Bond market Yet!!!!!!

There comes a time when bond investors get to a point when the yields are so poor that they look to other sources for yield, ie what investors are doing now with Gold etc, but other nations have their problems to worry about and need to be spending in their own countries

having a little exposure to gold is not a bad idea if it can be obtained at a decent price, but the paper and physical price are worlds apart, as is silver as investors still see value in precious metals, i would only hold physical, we are likely to see the futures move lower in the short term perhaps back to $700 ish

Foreign investors have been burnt a few too many times already and have seen the farce the Fed has played

personally i think Paulson and Bernanke have lost respect now, that foreign investors have all but tossed out there statements, he is doing what he said he would and flooding the world with Dollars.

Right now as stated above by another poster Cash is king, return of capital is paramount atm, return on capital is be looked at later, but keeping your capital safe is paramount, however the fed is trying to stoke an inflationary pop to get the consumer spending again by bringing long term rates down

the US consumer is strapped as is it, without getting a cheaper source of credit, "if" mortgage rates do come down then thats the only posistive i see, and thats a big "if" , if the banks want to start lending again

Bernankes plan only works if the banks start leading hence the Fed is overloading the banking system with dollars, but by the same notion the consumer needs to be taking on credit, and i dont see any signs yet of that happening, consumers need to get out of debt not accept more debt

if you have acesss to the DX on a charting package, levels around 90-95 is possibly where this may stall, but we are in historic times and the rules keep getting changed as the Fed keeps trying other ideas

ie if the DX (dollar index) moves higher then $ linked markets with fall, for equities to rally you need the t-notes (10yr) to move higher, and thats not happening, so i dont see any equity rallies lasting untill that changes

Exposure to Asian currencies that have $ reserves is what i am looking at, as some gold "if" i can get a decent price, timing is everything, being right in your thesis dont mean nothing if you cant survive the gyrations, many are shorting the 30 yr bonds but with what the Fed is doing, then you would be crazy to short this market unless you have time and a BIG account to take on the gyrations, as its in a possible blow off stage similar to what oil did as bernanke, has given the green light for the 10 & 30yr to explode higher

Edited December 2, 2008 by Nouf

[lannarebirth]

If you can't get much higher interest rates on savings deposits, what could possibly lure US dollar holders back to European currencies?

[cclub75]

If you can't get much higher interest rates on savings deposits, what could possibly lure US dollar holders back to European currencies?

Maybe a very basic idea : spread the risks.

USA and UE are sick : recession.

But, what would you choose USD and EUR or... GBP for instance ? Or any "small" currency ? I mean if you're convinced that the hurricane is far from over.

I'd say : common sense. Better to keep the cash with the big men, even if they're sick too.

[BlackJack]

look at this http://www.thaivisa.com/forum/post-a70305-...665160.jpg.html

[LaoPo]

1. What grates me about this is not the loss of cards. I have tons as they send them all the time with high limits.

I guess because I have great credit & a business.

But now I get mails saying they are canceling this one or that because I have not used it in 24 months.

Fine but I have also heard that having cards canceled is not great for your credit rating as it never says why they are canceled.

2. Is it any wonder this system is so messed up?

see above please:

1. why do you accept those ''tons'' of credit cards if you don't need them; why not send them back if you didn't ask for them in the first place ?

2. Of course the system is so messed up because America is literally floating on the SYSTEM of carrying and paying with credit cards. The average American carries 7 CC's

That's unheard of in the majority of countries in the Europe. Most people in the Europe* pay either cash (declining percentages) or debit cards. NOT with CC's !!!

* a lot of people never realize(d) that Europe is a LOT larger than the USA; we have 730 million people and 500 Million in -just- the 27-EU countries !

LaoPo

[AlexLah]

From what I understand.

Fed is consortium of private banks.

They consist partly of the banks that are in trouble.

These banks are asking for money to help them pay of the bad debt.

Government then loans from these banks (Fed) and hands out the cash to them.

These banks then either take over other banks and enjoy a nice tax cut or lend out that money to the Fed or do both.

You can see this is happening from several charts on the net.

There is an excess reserve money.

Please correct me if I am wrong, I am happy to learn about this stuff.

Another interesting thing is the price of oil.

From 147 a few months ago to about 50 now.

Yes there will be less demand because people cannot afford riding a car because they have lost their jobs.

Oil producing country's are asking for a 70-80 USD price for a barrel.

Who are they asking you should ask yourself.

Who is really controlling the price of oil?

It ain't the OPEC!

By keeping the price of oil low it will hurt Russia and ME and some others.

So there is a lot happening that just does not make sense.

Something else is in the make.

I think a revaluation of all important currencies and a new exchange rate between them.

Restrictions on the price of Gold, something like that.

A very big catastrophe, earthquake, terror attack, Tsunami with big casualties so that they can create another shock event.

Remember Rumsfeld saying 0n 10-9-01 that a few Trillion was missing from the Pentagon?

So where is it?

You can think, well you know, I still have my 5000 $ a month job, why worry?

Can pay the bill and have food and shelter, kids go to school, I have a dog and two cars, wife is happy she can go shopping with her CC.

No problems here.

Yep, enjoy while you can.

Edited December 2, 2008 by AlexLah

[flying]

1. What grates me about this is not the loss of cards. I have tons as they send them all the time with high limits.

I guess because I have great credit & a business.

But now I get mails saying they are canceling this one or that because I have not used it in 24 months.

Fine but I have also heard that having cards canceled is not great for your credit rating as it never says why they are canceled.

2. Is it any wonder this system is so messed up?

see above please:

1. why do you accept those ''tons'' of credit cards if you don't need them; why not send them back if you didn't ask for them in the first place ?

2. Of course the system is so messed up because America is literally floating on the SYSTEM of carrying and paying with credit cards. The average American carries 7 CC's

That's unheard of in the majority of countries in the Europe. Most people in the Europe* pay either cash (declining percentages) or debit cards. NOT with CC's !!!

* a lot of people never realize(d) that Europe is a LOT larger than the USA; we have 730 million people and 500 Million in -just- the 27-EU countries !

LaoPo

Yes I agree LaoPo

That is why they say due to non use for over 24 months they are cancelling.

I use to call & guess what? Same result they cancel the card.

It is really terrible & there should be a law that does not allow them to send the unrequested cards in the first place.

I carry no credit card debt for more than a finance period ( usually less than 30 days) So I do not pay interest. Yet I charge large amounts for my business & have a high rating so they tell me.

The way things are going I guess I should not even worry about ratings.

[cclub75]

Anyone notice Bernankes`s statement, he has pratically admitted that the fed is now buying the long end of the curve, that monster rally in the 30yr T-bills is pretty much imo the fed buying its own debt to keep long term rates down, the fed is a bunch of amatuers, and i dont foresee anything other than a dis-location of the US bond market

you simply can not buy your own debt for ever and expect the world to accept it.

It's more than a small admission... This is what they are doing.

http://globaleconomicanalysis.blogspot.com...ut-bazooka.html

And I'm not sure if the word "amateurs" is appropriate. I would rather say : lunatics, dangerous, criminal minded, insane etc.

This is going to end very badly.

On this we shall agree.

[bingobongo]

great pain is coming..........and just like with Japan, it is not going to help

‘Bernanke-san’ Signals Policy Shift, Evoking Japan Comparison

http://www.bloomberg.com/apps/news?pid=206...28&refer=us

[BlackJack]

The FED was in part invented by JP MORGAN

CDS were invented by JP MORGAN

Credit default swaps are not standardized instruments. In fact, they technically aren’t true securities in the classic sense of the word in that they’re not transparent, aren’t traded on any exchange, aren’t subject to present securities laws, and aren’t regulated. They are, however, at risk - all $62 trillion (the best guess by the ISDA) of them.

the BEST is yet to come!!!!!!!!!!

read on

[BlackJack]

"the money MUST BE backed up by GOLD and It is not..."

The US has been off of the gold standard for a couple of generations. Welcome to the 21st century.

anyone know more about this

Jersey’s Secret "Gold-Backed" Currency Set to Double

Located just off the coast of Great Britain is a tiny island with the world’s leading "gold-standard" currency. Unlike the plummeting U.S. dollar, this money, the Jersey Note, is fully backed by gold, and will never lose value due to inflation or global chaos. Over the next 18 months, investment expert Peter Schiff expects it to hand investors 70-100% gains… while the dollar sinks further.

[lannarebirth]

Comparing Equity Versus Credit

quote below from a Hedge Fund of Funds Manager:

"The worst ever default rate for senior secured loans is about 8% and the

average historical recovery rate in bankruptcy situations is 74%. If you

assume a 35% annual default rate (!) and a 50% recovery rate, at

current prices, the IRR to maturity is 22-23%, using no leverage

whatsoever. John Reid at Deutsche Bank has calculated that the

implied P/E ratio on senior secured loans is now less than one third

that of equities. Either this is the investment opportunity of the

century, or equity markets have seriously underestimated the economic

downturn in which case things will get a whole lot worse for equity

investors."

[VegasVic]

"the money MUST BE backed up by GOLD and It is not..."

The US has been off of the gold standard for a couple of generations. Welcome to the 21st century.

anyone know more about this

Jersey’s Secret "Gold-Backed" Currency Set to Double

Located just off the coast of Great Britain is a tiny island with the world’s leading "gold-standard" currency. Unlike the plummeting U.S. dollar, this money, the Jersey Note, is fully backed by gold, and will never lose value due to inflation or global chaos. Over the next 18 months, investment expert Peter Schiff expects it to hand investors 70-100% gains… while the dollar sinks further.

, OK now that I have managed to stop laughing Let me see if I have this right "the plumetting U.S. Dollar"? Is that the same Dollar that the Pound was trading at $2 less than 5 months ago, or perhaps the same Dollar the the Euro was trading at $1.60 or the same Dollar that the Aussie dollar was nearly at par with just 5-6months ago? BTW JFYI in case you read nothing but gold bug rags, the Pound is now at $1.47/Dollar, the Euro is $1.268/Dollar and the Aussie dollar is at .64/Dollar, Yep that sure looks like the Dollar is falling off a cliff You gold bugs slay me, you just can't seem to get you narrow minds around the fact that there are deflationary forces out there as far as the eye can see, the Dollar is in a bull run and will continue on its upward path for some time to come, Oil is crashing as worldwide demand plumets, the COMEX will not default, Israel will not nuke Iran and FYI your guru Peter Schiff predictred $2000 gold before the end of 2008(nice call petey!). Good luck following Mr. Schiff or the other gold bug prognosticators (they haver all been as wrong as schiff and some more so) like Jimmy Rogers or Marc Faber, then of course there is the King of the goldbugs who has yet to be correct on any of his predictions the almighty Sinclair!

[flying]

the COMEX will not default, Israel will not nuke Iran and FYI your guru Peter Schiff predictred $2000 gold before the end of 2008(nice call petey!).

Hey 2008 is not over yet My interest is still watching & Mr Schiff has a lot of strong points

As for Israel also not true yet

BUT...........Have you noticed how they have spun that India deal into a total Pakistan deal??? Is Pakistan the new Bin Laden? Who would love to see Pakistan gone? All the world's a stage

[VegasVic]

the COMEX will not default, Israel will not nuke Iran and FYI your guru Peter Schiff predictred $2000 gold before the end of 2008(nice call petey!).

Hey 2008 is not over yet My interest is still watching & Mr Schiff has a lot of strong points

As for Israel also not true yet

BUT...........Have you noticed how they have spun that India deal into a total Pakistan deal??? Is Pakistan the new Bin Laden? Who would love to see Pakistan gone? All the world's a stage

Flying, it looks like you are becoming full fledged a gold bug Come back to the light before its too late my friend

[flying]

Flying, it looks like you are becoming full fledged a gold bug Come back to the light before its too late my friend

Hang on I just wanna take a peek

[midas]

, OK now that I have managed to stop laughing Let me see if I have this right "the plumetting U.S. Dollar"? Is that the same Dollar that the Pound was trading at $2 less than 5 months ago, or perhaps the same Dollar the the Euro was trading at $1.60 or the same Dollar that the Aussie dollar was nearly at par with just 5-6months ago? BTW JFYI in case you read nothing but gold bug rags, the Pound is now at $1.47/Dollar, the Euro is $1.268/Dollar and the Aussie dollar is at .64/Dollar, Yep that sure looks like the Dollar is falling off a cliff You gold bugs slay me, you just can't seem to get you narrow minds around the fact that there are deflationary forces out there as far as the eye can see, the Dollar is in a bull run and will continue on its upward path for some time to come, Oil is crashing as worldwide demand plumets, the COMEX will not default, Israel will not nuke Iran and FYI your guru Peter Schiff predictred $2000 gold before the end of 2008(nice call petey!). Good luck following Mr. Schiff or the other gold bug prognosticators (they haver all been as wrong as schiff and some more so) like Jimmy Rogers or Marc Faber, then of course there is the King of the goldbugs who has yet to be correct on any of his predictions the almighty Sinclair!

I usually completely ignore what Vegas Vic says primarily because of the bombastic

" I'm always right " attitude and everyone else is wrong that his postings display ( illustrated above ) while most of the rest of

TV members at least acknowledge in their writing style that what they foresee or

expect to happen is by no means certain.

But regarding his extremely naive and wrong assessment about Israel and Iran

-no expert on this matter ( and incidentally Vegas Vic is not an expert on this issue )

that I read about has ever predicted Israel would use nuclear weapons in their

possible attack on Iran. If he had bothered to look into this issue in a little

more depth he will find most experts would expect a first strike against

Iran using conventional weapons.

If he dismisses that there is even a small risk that this can happen bearing in mind

that Iran is now only ONE YEAR away from having its own nuclear bomb

then it's just bullshit because how can Vegas Vic be more accurate or know more

than people who are spending their lives working in this field?

Something has to give and without any likelihood of a meaningful middle East peace plan

I cannot see how conflict can possibly be avoided?

[lannarebirth]

From the "not if, but when" file:

Dubai Speculators Quit as Lending Drought Bursts Desert Bubble

By Glen Carey

Dec. 4 (Bloomberg) -- The classified ads in Dubai read like an obituary for a real-estate market that until a few months ago seemed immune from the global credit crisis.

A Turkish investor, who identified himself as Sebat, took out 10 bright yellow ads in the Nov. 25 edition of Gulf News, the United Arab Emirates’ biggest newspaper, with the headline: “DIRECT FROM OWNER DISTRESS SALE!!!” Sebat said he used to be able to buy four or five properties at a time and sell them the next day for a profit of as much as 5 percent.

“There is panic in the market,” said Sebat, 52, who wouldn’t give his full name because he’s juggling 60 properties.

The property bubble in the desert emirate, home to the world’s tallest building, most expensive hotel suite and largest manmade islands, is bursting as scarce credit and slumping oil prices have international investors scurrying to dump assets. That may shatter Dubai’s goal of creating a sustainable economy by building the Persian Gulf hub for finance and tourism, forcing it to depend on oil-rich neighbor Abu Dhabi for financing.

“Dubai is more precarious than it has ever been,” said Christopher Davidson, author of “Dubai: The Vulnerability of Success” (2008, Columbia University Press). “If the property industry collapses in Dubai, it will be finished. Dubai’s relative autonomy will come to an abrupt end.”

The emirate’s push into luxury property developments and tourist attractions was diversification on “paper sand,” said Davidson, a professor of Middle Eastern affairs at Durham University in the U.K.

http://www.bloomberg.com/apps/news?pid=206...&refer=home

[AlexLah]

Oooooooops!

China Shuns Investments in West’s Finance Sector

By KEITH BRADSHER

Published: December 3, 2008

HONG KONG — The chairman of China’s sovereign wealth fund said on Wednesday that China had no plans for further investments in Western financial institutions, nor did it have any plans to “save” the world through economic policies.

http://www.nytimes.com/2008/12/04/business...f=worldbusiness.

Meanwhile the US (Bankers) have no problems investing overseas...........

Another 10 Billion...........

[lannarebirth]

Planning your retirement? Kids going to college? Well rest easy, because:

Charts Predict: S&P to Rally 15%; Better Odds than Vegas

CNBC.com | 04 Dec 2008 | 05:02 AM ET

The S&P 500 will rally 15 percent in the next few days and has a better risk/reward ratio than you'll find in most casinos, Edward Loef, technical analyst from Theodoor Gilissen Bankiers, told CNBC.

http://www.cnbc.com/id/28046512

[LaoPo]

http://www.nytimes.com/2008/12/04/business...f=worldbusiness.

Another 10 Billion...........

Mentioned already here; the ''news'' was published on the day Citigroup dropped 22%...losing more Billions of it's market value...

http://www.thaivisa.com/forum/Global-Corre...50#entry2375150

That China isn't investing in the West at the moment is logical from their point of view; clean your own kitchen first I would say. That's why the buying of a Spanish Highway Operating company for $ 10.2 Billion is rather odd, softly spoken.

LaoPo

[AlexLah]

http://www.nytimes.com/2008/12/04/business...f=worldbusiness.

Another 10 Billion...........

Mentioned already here; the ''news'' was published on the day Citigroup dropped 22%...losing more Billions of it's market value...

http://www.thaivisa.com/forum/Global-Corre...50#entry2375150

That China isn't investing in the West at the moment is logical from their point of view; clean your own kitchen first I would say. That's why the buying of a Spanish Highway Operating company for $ 10.2 Billion is rather odd, softly spoken.

LaoPo

Sorry, missed that.

[midas]

Vegas Vic ..............what is your response to this ?

As usual no doubt.............it will not happen because Vegas Vic is

correct and The Times of Londion is wrong ?

Israel 'prepared to attack' Iran nuclear plants

The Times

December 4, 2008

Israel is drawing up plans to attack Iran's nuclear facilities and is prepared to launch a strike without backing from the US, it has been reported.

Officials in the Israeli Defence Ministry told the Jerusalem Post that while they prefer to act in consultation with the US, they were preparing plans that would allow them to act in isolation.

"It is always better to coordinate," a senior Defence Ministry official told the newspaper. "But we are also preparing options that do not include coordination."

However defence officials played down the reports today, telling The Times that an attack by Israeli forces alone would probably fail to take out all of Iran’s nuclear facilities, which experts say are scattered across several sites, some deep underground.

Related Links

* Israel fears US will dither while Iran goes nuclear

* Iran 'has enough uranium to build a bomb'

“We could not risk an operation which would only partially succeed," one defence official told The Times.

"That would leave us open to a nuclear attack from Iran’s remaining weapons stock. Israel would likely need the support, the backing, of forces from a Western ally to successfully carry out the operation,” he said.

A senior Israeli official quotes in the Jerusalem Post said that while it would be difficult, it would not be impossible to launch a strike against Iran without permission from the US.

"There are a wide range of risks one takes when embarking on such an operation," a senior Israeli official was quoted as saying.

The US Airforce controls the Iraqi airspace Israel's jets would have to cross on a bombing mission and access to codes from the Americans, would “significantly improve” Israel’s chances of a successful strike on Iran, an official told The Times.

He added that because the Iranians have been moving the bunkers deep underground, sophisticated weaponry would be needed to successfully destroy the facilities.

Responding to reports that Israel would use low-yield nuclear “bunker-busters”, the official said the method was largely speculative and unreliable.

Ehud Olmert, the Israeli prime minister, has reportedly asked the US for a green light to attack Iranian facilities as recently as May.

According to Israeli officials, the US denied the request, although it outfitted Israel with the X-band radar system which would shave several crucial minutes off Israel’s reaction time to an Iranian missile launch, and allow the United States to oversee Israel’s airspace.

“There is always the option of Israel going it alone. It just does not seem like a good option at present time,” an Israeli MP told the Times.

There are three central locations where experts believe Iranian facilities are producing goods for nuclear weapons.

Israeli officials named these sites as: Natanz, where thousands of centrifuges produce enriched uranium; Isfahan, where 250 tons of gas are stores in tunnels; and Arak, where a heavy water reactor produces plutonium.

Israeli officials said they were heartened that international sanctions on Iran were having an effect, but did not feel they were enough to stop Tehran’s nuclear ambitions.

The most recent Israeli intelligence reports estimate that Iran will have enough enriched uranium for a nuclear weapon in late 2009, barring any interruptions in its programme.

"There is still time and there is no need to rush into an operation right now," another Israeli official said. "The regime there is already falling apart and will likely no longer be in power 10 years from now."

On Monday, Teheran dismissed the possibility of an Israeli strike, saying it didn't take Israel seriously.

"We think that regional and international developments and the complicated situation faced by Israel itself will not allow it to launch military strikes against other countries," Iranian Foreign Ministry spokesman Hassan Qashqavi told reporters in Teheran, adding that "Israel makes threats to promote its psychological and media warfare.

Some Israeli security officials fear that the Iranian retaliation for a strike on its facilities could include a large-scale missile attack on Israel from several Iranian allies, disruption of oil supplies to the West, and terror attacks against Jewish targets around the world.