Monday 17th March: Black monday?

[ratewhore]

Maybe this is what the world needs, let things be reset and strat from scratch.

Nice thought, but bear in mind, while the pikey idiots out there who took on more than they should will be defaulting on their mortgages and loans, the rest of us will still have to pay off what we owe while the system breaks down around us.

Not exactly 'starting from scratch' is it?

[BrilloPad]

Good modeling is worth it's weight in gold...

And even better they carried on facilitating deals while being bears in the market!

[Moscow Mule]

Though the boys at GS saw it coming. Hats off to them.

Good modeling is worth it's weight in gold...

[BrilloPad]

I think that the relevant authorities have been to lax in policing the instruments that have caused (and will cause more) liquidity issues in the market.

I agree.

markets generally work best in the abscence of intervention. what has been an issue is the quality of information available - particularly in how these instruments should be rated. It does not sound like an open market to me.

I also think that the SFA has been more interested in "box ticking" than taking a pragmatic approach. In particular it is clear that some scenarios have not been stress tested (Money Markets drying up).

Though the boys at GS saw it coming. Hats off to them.

[Moscow Mule]

Large amounts of liquidity made available - plus large rate cuts in the states. What more do you want?

I think that the relevant authorities have been to lax in policing the instruments that have caused (and will cause more) liquidity issues in the market.

These measures (liquidity increased/ rate cuts) have more than a slight resemblance to an elastoplast on a severed artery. Unfortunately, I think that's all the central banks may be ABLE to do...

[HRH]

Maybe this is what the world needs, let things be reset and strat from scratch.

[BrilloPad]

It's far too early to be deciding that yet.

Large amounts of liquidity made available - plus large rate cuts in the states. What more do you want?

[DimPrawn]

It's different this time ™

HTH

[Moscow Mule]

This seems, so far, alot better handled than after black Monday(1987).

It's far too early to be deciding that yet.

[BrilloPad]

The big question is can the debt bubble be deflated rather than burst?

This seems, so far, alot better handled than after black Monday(1987).

Personally I am going to concentrate on reducing debt - but then I always have.

[NickFitz]

In a hundred years we'll all be dead and none of it will matter.

That attitude has got me through every recession since the 1980s, and I see no reason to change my ways.

YMMV. Ho hum

[NoddY]

It feels a bit like that moment in Titanic when Jack Dawson & Rose are perched on the stern rails, hearing the ship groaning and wondering what happens next ...

I surprised you got that far, I fell asleep at the end of the opening credits.

Anyway, they should have taken a leaf out of Alistair Darlings/Ben Bernankes book and rearranged the deck chairs.

[AtW]

As long as my BTL goes up it's okay.

Bagpuss.

[OwlHoot]

It feels a bit like that moment in Titanic when Jack Dawson & Rose are perched on the stern rails, hearing the ship groaning and wondering what happens next ...

[NoddY]

Welcome to the Doomfest.

It's only Sunday night and:

the pound is falling like a tank in the far east
gold is up through the roof
US Federal Reserve has cut interest rates to 3.25%.

So is today the big day? Please share your joy by contributing to the poll.