Markets doing the “Roubini” …
Markets … AFTER!!! a nice U.S. reversal …
just fall out of bed … starting with Asia, now followed by Europe … around 10% down … was the rule of thumb …
U.S. equity futures locked LIMIT DOWN on Globex …
Reason is … how ridiculous it might sound …
Mr. Roubini’s remarks yesterday on a hedge fund conference …
He said:
- Hundreds of hedge funds will fail and policy makers may need to shut financial markets for a week or more as the crisis forces investors to dump assets.
- We’ve reached a situation of sheer panic.
-There will be massive dumping of assets and hundreds of hedge funds are going to go bust.
- Systemic risk has become bigger and bigger.
- Don’t be surprised if policy makers need to close down markets for a week or two in coming days.
- Things are getting very ugly also in the emerging markets.
- The usual saying is when the U.S. sneezes, the rest of the world catches a cold. Unfortunately, this time around the U.S. is not just sneezing, it has a severe case of chronic and persistent pneumonia. It’s becoming a mess in emerging markets.
- There are about a dozen emerging markets that are now in severe financial trouble, even a small country can have a systemic effect on the global economy. There is not going to be enough IMF money to support them.
- This is the worst financial crisis in the U.S., Europe and now emerging markets that we’ve seen in a long time. Things will get much worse before they get better. I fear the worst is ahead of us.
Especially the word about the possible CLOSURE of markets made people panic …
Let’s see, what the day brings …
Take care and don’t get hurt!!!
Tags: deleveraging, Hedge Funds, panic, Roubini
Oktober 24th, 2008 at 14:53
Et voila,
Now we know, thanks for your insight! So THAT is the cause.
Not an unnecessary war, not huge tax cuts for the rich, not free credit for years, not the idiotic policies of the George W administration.
We should muzzle this Roubini guy before he does more harm. Send the troops now!
Oktober 24th, 2008 at 15:06
Chien de Rue, I thought this whole thing started with the U.S. mortgage crisis when people who, for the most part, weren’t contributing enough to society to earn a house, had to steal one from the American taxpayer. Thank you Barney Franks and Chris Dodd. Your legacy will be etched in stone.
Oktober 24th, 2008 at 17:02
Danke schön Oli, for adding words by Roubini. He is well worth listening to (for those who are brave and want some truth!). More from Roubini can be found here:
http://www.rgemonitor.com/blog/roubini