10k? No … 9k is offered
Market meltdown continues …
Why keeps the market falling?
1. No short sellers have to cover 
2. As long as none of the announcements is implemented … nobody buys …
3. Nationalization of financial companies equals LOWER prices as equity will be diluted …
4. If you “jump out of the window” … you don’t show up to buy your stuff … not even at firesale prices
5. Deleveraging continues … SELL
So … investors still trying to survive … nobody is picking up the pieces yet …
PATIENCE WILL PAY
Tags: meltdown
Oktober 9th, 2008 at 21:07
again, today prices behave very strange… the is NO reaction although the DAX has had a BIG chance too recover … but they denied it heavily and followed the trend… SELLERS are too strong… but where is the panic? … investors / buyers are freezed…
charts look VERY strange… DAX 4.200 – 4.400 is the next level that MUST support… otherwise … straight to 2.300 …
[OLI what about showing the DAX monthly here in this blog???]
DOW JONES yearly chart did not look too bad in 01/2008… there was NO SIGN that this would happen … even in 09/2008 there was NO SIGN for what is going on now … THIS IS STRANGE …
So is it LEHMAN s filing that was a SYSTEMIC FAILURE and a MISTAKE by the FED? If that could happen… everything can happen… I MEAN EVERYTHING … ?!
SAP blocks expenses even for “dienstwagen” …
what happens currently to the industrial orders… it must be a meltdown too…
another thing is, there is NO consumer who does NOT suffer from severe losses in their (pension) funds… => consumption does implode as well in these weeks…just have a look around in the city centres….
Oktober 9th, 2008 at 21:34
THE CONUNDRUM … OF STUPIDITY
German TV reports of countless investors swaping their assets into phyical gold bars !!! NOW!!! isnt that stupid… I mean… what is the value of GOLD???
can you eat it??? Can anybody measure the value of GOLD in the case a currency fails??? Isnt that stupid??? It is just a metal… it is just a commodity usually used for the LUXURY INDUSTRY and some very special industrial applications … experts claim customers line up in queues…
at Stuttgart Exchange… Pfandbriefe are priced at phenomenal disconts… even very very short termed until december … you get an annual yield of 15% ! 15, YES. Just call Stuttgart… there are NO BIDS in the market …
is nt that stupid!!
Oktober 9th, 2008 at 21:42
Thanks for your thoughts Henning …
If you have charts in a JPEG Format and even time to write a comment … I even could put that here as your guest comment
Gold … you can use it to barter … if money gets worthless …
Pfandbrief = real estate = avoid at any cost … what ever the yield is … if you deleverage … you CAN NOT buy ANYTHING!!!
Oktober 9th, 2008 at 21:59
how do you want to barter an ounce… I mean… for buying apples on the market? ok 1 ounce = 1 apple
or do you wanna buy 10.000 apples for your family??? HOW do you get 1/10.000 off an ounce?
)
I say it is USELESS except you have made some glitter jewelry for your wife or yourself
Real estate came down 15 – 30% in the US. OK. 15 -30 (mainly California and Florida) % that is a lot … but it is still ABOVE the level of 2000!!! and that was a high level!!! I agree, 1 out of 6 is underwater with its mortgage … that is really bad… ok… but prices were ridiculous… just ridiculous… I mean 15.000 EUR / qm at London… !!! when i started at London… I paid 1.000 EUR for a flatshare… YES, flatshare!!! 3 people, 75 qm… CRAZZYYY !!!
Stock markets came down 35 – 80% by now ! 35 – 80% !!!
And Pfandbrief are secured (mainly) with GERMAN PROPERTY, say we are in a property baisse since 1991!!! I mean, price dont move down right now…
And the level of securitization of Pfandbriefe is by law max 60% !!!
So what??? The Pfandbrief market is under the eye of the German government… under NO circumstances there will be a failure because this would mean a failure of GERMANY !!!
OK maybe… but then… here at the bottom of the BLACK FOREST … it is nice to live … and here are a lot of cows giving milk… and other farming goods…
See what I mean… it is just STUPIDITY …
Oktober 9th, 2008 at 22:08
yep … and STUPIDITY still RULES
Oktober 12th, 2008 at 14:56
3. Nationalization of financial companies equals LOWER prices as equity will be diluted …
What if nationalisation includes injections of CASH (i.e. by paying high prices for toxic assets, for instance) ?
Equity might still be diluted for existing shareholders; but, their total holding should be (unless i am missing something — and please correct me if i am) more or less the same — smaller % but the shareholder’s equity “cake” is bigger.
Have a nice weekend and take a good rest — we will need our energy for the coming week