Dow futures down 193, Europe set to open 2.5% lower, and the Asians down 5-7%

[galileoreloaded]

Wow. That sucks.

[gravity]

1. When is it going to stop?

This is just insane.

[nadinbrzezinski]

2. Hope soon, today the fed said they were about to trade commercial

paper, aka commercial loans... LIBOR did not move higher tonight

So we may see this credit untickng and find a floor

The markets are a rough estimate of the rest of the economy and until liquidity comes back...

This was a component of the 1929 crisis, for the same reasons

[gravity]

3. I don't think the sell off has to do with fundamentals

The latest moves seem more like panic than anything.

The credit markets shouldn't send the market down this much, this fast if the government is willing to do what it takes to get them going again.

[nadinbrzezinski]

5. We are... the brits are JUST starting to talk the same way

and so is the EU


If this is panic.. hang on

But it has many fundamentals of the 1929 crash, including the fear factor and lack of loaning between banks

[gravity]

10. The EU is more worrying

The ECB doesn't seem like it is on top of the crisis like the Fed in the US. They definitely need to cut rates now

[nadinbrzezinski]

14. Here are the futures

INDEX VALUE CHANGE OPEN HIGH LOW TIME
DJ EURO STOXX 50 2,878.00 3.00 2,910.00 2,966.00 2,763.00 10/07
FTSE 100 4,633.50 8.50 4,687.00 4,773.00 4,431.50 10/07
CAC 40 10 EURO 3,738.50 -3.00 3,772.00 3,862.50 3,577.00 10/07
DAX 5,389.50 -31.00 5,511.00 5,554.50 5,207.50 10/07
IBEX 35 10,852.50 165.00 10,920.00 11,129.00 10,630.00 10/07
S&P/MIB 23,755.00 -240.00 24,480.00 24,555.00 23,395.00 10/07
AMSTERDAM 302.50 -3.50 311.95 314.80 299.35 10/07
OMXS30 716.50 -7.00 731.25 750.00 705.75 10/07
SWISS MARKET 6,451.00 -64.00 6,620.00 6,639.00 6,420.00 10/07

[galileoreloaded]

4. Libor shouldn't move for about an hour. London not open yet......n/t

let me say as well that while we don't always agree Nadin, I really enjoy your posts and welcome the dialog.
Thanks for being so well informed!!

[nadinbrzezinski]

6. Shoot, forgot the time differential

for reference, here is today's

This week Month ago Year ago
Bond Buyer's 20 bond index 5.36 4.62 4.42
FNMA 30 yr Mtg Com del 60 days 5.84 5.60 6.35
1 Month LIBOR Rate 3.93 2.49 5.12
3 Month LIBOR Rate 4.05 2.81 5.25
6 Month LIBOR Rate 3.98 3.10 5.21
Call Money 3.75 3.75 6.50
1 Year LIBOR Rate 4.06 3.13 4.99


So lets see what happens when they open

Oh and you welcome

I do hope it budges from 3.93

[galileoreloaded]

8. If i get to make predictions....

LIBOR jumps 2-3 full points, Dow hits breakers, and Fed calls bank holiday in 12-36 hours.

Hate to be right, and hope I am not.

[nadinbrzezinski]

9. I am HOPING that the Fed's plan to do direct loans

will at least keep it stable...

for all our sakes

That said, you and I are in the we told you so crowd

I have been expecting this for so long... that it scares me and I do hope this does not cascade

If it does... all bets are off.. no pun

[Horse with no Name]

16. I called that the other day

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4179285&mesg_id=4179354

I figured it would be yesterday though.

[anakie]

7. down 5% and change

in Australia at close.


Peace

[TheWatcher]

11. Nikkei Now Down 979

Almost 10%.

Now Priced LOWER than the Dow.

This is getting very bad, very quickly.

[nadinbrzezinski]

12. I hope they start reacting soon

or the chain reaction will be BAD for all of us

On the bright side, yes there is one

This is the end of globalization, any way you slice it

[Oregone]

19. "This is the end of globalization"

How do you figure? Honestly now? Even so, will it not rear its ugly head in 25 years?

[aint_no_life_nowhere]

13. Breaking on CNN - Asian markets in panic sell mode

Nikkei down 10%. Jakarta down more than 10%. They're saying it's Japan's worst crash in 20 years.

[nadinbrzezinski]

15. and they have no more rates to cut

[aint_no_life_nowhere]

17. Surely now this isn't the result of Fannie Mae and Freddie Mac

I think Obama wanted to rebut McCain's suggestion that this financial crisis was all caused by Fannie Mae and Freddie Mac and people taking out more loans than they could afford, but Brokaw wouldn't give him more time. This is a systemic problem involving extremely over-leveraged financial instruments that has spread its tentacles throughout the banks and investment institutions of the world.

[galileoreloaded]

18. Well, actually......

there is a good case to be made that the CDS's of Fannie/Freddie did initiate the Chimera. Not the fault of the company per say, but the virus really started with that "credit event trigger", ie the placement into conservatorship. Actually, the more you look at the timeline, it's almost certain.

[Oregone]

20. Its clearly Obama's and ACORN's fault

They hate Europe and Asia for their freedoms

[Selatius]

21. At this point, no amount of rate cutting will curb that kind of panic.

It's a force of nature at this point.

[bemildred]

22. "I keep pulling the levers, but nothing happens."

Yep, once the herd is spooked, it will run until it gets exhausted. If the soi disant masters-of-the-universe were as smart as they think they are, they would work harder at not spooking the herd. But they are uniformly shallow and greedy, so their time is done. Time for some new guys to take up the reins, time for a "New Deal".