Friday, August 24, 2007
"I can't believe when you're having this level of delinquencies — [home] equity is gone, the tide has gone out — that this doesn't have material effect on the psyche of the American people and eventually on their wallets."
The doubt remains if the housing slump will contaminate the stock markets in a decisive way that originates an economical recession. The problem is no longer contained on the mortgage lenders but on the depreciated houses' prices that turn impossible for low income families to continue to meet their mortgage payments, put their homes to sell and few people and for few dollars wants to buy it.
Thursday, August 23, 2007
- Fed Rate: 5,25%.
- ECB: 4,0%. Near a new increase.
- Month after month, new starts in homebuilding decrease.
- Mortgages and foreclosures, rising.
- Investor confidence in Germany, at the lower level from the last 8 months.
- Nikkei performs poor, even with a 0,5% rate of BOJ.
- Volatility is high.
- Bank stocks are decreasing everywhere.
- Commercial paper reduced dramatically.
- What else do you need for a..............
Wednesday, August 22, 2007
"Foreclosures rise in July
Meanwhile, there was more fuel for the mortgage fire this morning: The number of foreclosures jumped 9% in July from June to 179,599, data firm RealtyTrac said.
That number represents a 93% jump from July 2006."
Sunday, August 19, 2007
- Goldman Sachs Group Inc., whose hedge funds lost $3 billion in August after the S&P 500 declined 6.9 percent from a July 19 record, said in a letter to investors last week that a ``significant investment opportunity'' now exists.
- The Fed's actions have been less predictable for investors since Chairman Ben S. Bernanke took over in February 2006 after more than 18 years under Alan Greenspan's leadership.
The problem now is that the financial markets and the "real economy" are, completely and immediately, interconnected and the real economy suffers with its upturns and downturns. I don't ignore the lessons this crisis permits but, for the time being, the priority, for Bernanke and the bunch (and Bill the Butcher also...) is to sustain the market. I think Jim Cramer's alert was fundamental to ignite an answer from the FED.
Wednesday, August 8, 2007
Monday, August 6, 2007
Sunday, August 5, 2007
Friday, August 3, 2007
Tuesday, June 19, 2007
Thursday, June 14, 2007
Gold: the ultimate heaven! Is it? For the Swiss Government, it is time to sell a bunch of gold: The Swiss National Bank said Thursday it will sell 276 US tons of gold reserves over the next two years.
Wednesday, June 6, 2007
Thursday, May 31, 2007
Thursday, May 24, 2007
Thursday, May 17, 2007
The RSI crossed below the fifth line, also a sign of a trend change. A important point now is the 50 Simple Moving Average (SMA) and notice how the price closed almost equal to the value of the 50 SMA. If the price breakdown this support then the odds increase for a strong move down. A obvious stop loss for a short position is placed near the 28.8, i.e., the previous high.