Friday, August 10, 2007 11:57:57 PM
DoubleTop, although there is a lot of similiarity between now and march, but the sentiment kicks in. This sub-prime problem is not just in US. It is causing the problems around the Globe.
The Fed injected $38 billion (largest since 911), following Thursday's $24 billion. The European Central Bank, saying that its "liquidity-providing fine-tuning operation" was aimed at assuring orderly market conditions, added $83.56 billion following the $130 billion it injected to euro-zone markets. The Bank of Japan, meanwhile, put in one trillion yen ($8.46 billion), while central banks in Australia($4.2 billion), Singapore, Canada Norway and Switzerland also pumped money into their markets.
In addition, nobody knows how deep this shit will cause, until one day ones discover they are in deep shit, just like IKB Deutsche Industriebank AG in Germany, it need rescued. The affiliate IKB set up for bond investing five years ago is Rhineland Funding Capital Corp. but Rhineland's short-term borrowings had to be renewed frequently. And when investors realized that their collateral for the borrowings included U.S. subprime mortgages, they shut off the spigot. Suddenly, Rhineland couldn't repay other debt that was coming due. If other German banks hadn't agreed to bail it out a week and a half ago, Fitch Ratings believes IKB "would have defaulted," says a Fitch credit analyst in Frankfurt, Sabine Bauer. IKB is using bailout funds to repay the short-term borrowings, which are known as commercial paper.
From a TA point of view,
1. Red ADX and Aroon are staying high
2. MA13,20 and 34 are crossing down
3. CCI, Full STO and MACD still have room to go down compared with those in March
4. OBV is just crossing MA20 and heading south
The Fed injected $38 billion (largest since 911), following Thursday's $24 billion. The European Central Bank, saying that its "liquidity-providing fine-tuning operation" was aimed at assuring orderly market conditions, added $83.56 billion following the $130 billion it injected to euro-zone markets. The Bank of Japan, meanwhile, put in one trillion yen ($8.46 billion), while central banks in Australia($4.2 billion), Singapore, Canada Norway and Switzerland also pumped money into their markets.
In addition, nobody knows how deep this shit will cause, until one day ones discover they are in deep shit, just like IKB Deutsche Industriebank AG in Germany, it need rescued. The affiliate IKB set up for bond investing five years ago is Rhineland Funding Capital Corp. but Rhineland's short-term borrowings had to be renewed frequently. And when investors realized that their collateral for the borrowings included U.S. subprime mortgages, they shut off the spigot. Suddenly, Rhineland couldn't repay other debt that was coming due. If other German banks hadn't agreed to bail it out a week and a half ago, Fitch Ratings believes IKB "would have defaulted," says a Fitch credit analyst in Frankfurt, Sabine Bauer. IKB is using bailout funds to repay the short-term borrowings, which are known as commercial paper.
From a TA point of view,
1. Red ADX and Aroon are staying high
2. MA13,20 and 34 are crossing down
3. CCI, Full STO and MACD still have room to go down compared with those in March
4. OBV is just crossing MA20 and heading south
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
