Deleveraging goes on …
Still selling … no buyers …
Emerging market domino goes on … Hungary was hardest hit today.
The real problem is … IMHO … so far a lot of words, but not much action implemented by Governments and Fed.
And as everybody knows, that tougher regulation will govern the markets …
they have to sell … sell … sell …
Bounces are sharp, but rare … take care …
Tags: deleveraging, Hungary, regulation
Oktober 23rd, 2008 at 00:26
Oli,
When Bush spoke – he clearly mentioned that there will be no Nationalization of Banks under his watch. BIG mistake. If he doesnt = the market will take down the insolvent banks. Look at Wachovia’s 23B of writedowns today. 23B (bigger than the GDP of Iceland)! And they’re not yet done with their losses. What we should be doing right now is declaring a 1 week bank holiday, going into the systematically important banks and determining who is solvent and who isnt. The insolvents need to be flushed out and nationalized – make the shareholders and bondholders suffer. Until we do that the market will keep trying to make the “next shoe” to drop and stock market losses will keep mounting and economy will keep worsening (wealth effect related to market losses). If all the major money center banks are insolvent – then so be it – Nationalize all of them. But ofcourse we wont – because that would be the smart thing to do. So we now have “partial” nationalization. Such BS.
Oktober 23rd, 2008 at 08:40
Sounds good