Situation:
U.S. Markets: Sold off heavily after Ben Bernanke hinted at up to 500 bln$ losses on subrime related assets. Adding to the pressure were his remarks that he expects weak housing- and equity markets.
Bond Insurers lost around half of their value as Moody’s put outlook to negative, sparking fears of more write offs to come.
After […]

The situation remembers me to the situation in August …
Market in FREEFALL as visibility lacks … this time again … Bernanke tells congress, that up to 50%(!) of housing value could be destroyed … he thinks, that we will see weak housing and weak equity markets. As a add-on we get Philly Fed very LOW. […]

Seemingly, selling interest is BIG. Every recovery attempt is met with more than enough supply. And now we got the “GO AHEAD” from Helicopter Ben. He expects weak markets to continue. The investors say, Ok Ben … if you say so
Merill numbers were not too negative, but market took it still negative as still […]

NY Times has a story, that Merill Lynch will have to take Q4 write offs of around 15(!!!) bln $ … just double of expectations …
AXP takes surprisingly another charge and trades down close to 8% … showing, that subprime really spills over now.
As I mentioned yesterday, the BoA story is NOT positive at first […]

The ECB shows over the last years, that it is really a special centralbank … following the footsteps of the German Bundesbank, now an affiliate of the ECB.
The ECB is now the last “one” standing … the only one on the planet you can trust … what a difference to the BoE or even the […]

And the name of the game is still … FADE THE FED … markets lost faith into Bernanke and his brotherhood … so … they SELL … Lehman figures out … 1st look good … second look … autsch … so stock trades down some 4% …
Easy to trade markets … are different … Let’s […]

I watch the market since I was a little kid, reading the economics section every morning as Sports were on the other side of the newspaper and my father started every morning with the Sports section … and I trade fulltime since 1982 … so I traded the Paul Volcker markets … the whole Greenspan […]

Sometimes … there happen such outlier events … that the only thing, which can help you … is a STOP … cruel, but true …
Even having the view, that the day after the FED very often brings the opposite move and seeing Goldman buying yesterday in the last hour … was not enough to prevent […]