Attn Permabulls: The credit crisis isn't over

Discussion in 'Wall St. News' started by MrDODGE, Nov 28, 2008.

  1. WASHINGTON (AP) - The Federal Reserve boosted its lending to commercial banks and investment firms over the past week, indicating that a severe credit crisis was still squeezing the financial system.

    The Fed released a report Friday saying commercial banks averaged $93.6 billion in daily borrowing for the week ending Wednesday. That was up from an average of $91.6 billion for the week ending Nov. 19.

    The report also said investment firms borrowed an average of $52.4 billion from the Fed's emergency loan program over the week ending Wednesday, up from an average of $50.2 billion the previous week.

    Just thought I would let you know so you don't hold your positions too long.
  2. PortI385


    Nope, I'm holding my longs. See my previous threads - buy GS and the Ultimate bottom.

    Also, how many % have you gained if you went long instead of shorting credible banks like C, GS, MER, and MS at the low?

    How many % loss would you've suffered if you held that stupid ultrashort losers like SRS, SDS, FXP, and SKF?

    In my opinion, it's the best time to GO LONG. I believe that the BOTTOM IS IN. YES!

    Where's the credit crisis? Malls are still packed and people are shopping and dining. People are still driving Hummer, the road isn't empty, and oil is so low at $54, the dollar is very strong against other currencies. Companies can buy raw materials at a very steep discount now.

    By the way, my credit card is still working and I've even been getting new credit card offers literally every week! WHAT CREDIT CRISIS? I call BS.

    Electronic gadgets like ipod and laptop are still selling well. The road isn't empty and there's still traffic jam. Britney Spears still getting paid in millions, GM's CEO still flying in private jets, what kind of recession are you elite traders talking about? This is getting ridiculous and silly. What else do you need?

    Also, since GM and Ford will be bailed out this is a positive thing. I applause the gov't for planning to bail out the auto industry. New bull market has started last week.

    If people can still spend money at the bar while chicken little are calling crash, this isn't a depression. It's a bull party time!! This recession feels phony to me. It's a scare tactic so you sell your shares at the low. I'm a buyer here. Nice gain on GS.
  3. S2007S


    The perma bulls and bulls are jumping for joy this weekend, with the dow up 5 days in a row im sure most think the bottom is in and the markets are now ready to move even higher, these past 2 days the phrase santa clause rally has been said probably 1000 times, I for one take it with a grain of salt, you can thank the $800 Billion thrown at the credit crisis for the bounce in the markets. Aside from that the credit crisis is years away from correcting and new highs in the dow even further away, good luck to anyone who is buying this rally, this is a chance to sell and move on before the next wave of selling drops the dow back below 8000 again.
  4. I'm not a Perma bull, nor a conspiracy theorist. However, this credit crisis has dented the likes of Russia more than USA in some ways, and I am sure the CIA are enjoying watching Russia's feathers being rustled, a little reminder to them who is still the Bull in the pen. Its perfect economic warfare on the likes of Chavez, one more year of this and he will be fighting to stay on his perch.

    How it all pans out in the end, who on a relative basis is left with the most chips; is still to be seen. But i wouldn't bet against the old US of A yet. And I am not American.
  5. S2007S


    Haha where's the credit crisis???

    The recession feels phony to you??

    New bull market started last week...

    I guess you think bailing out every damn worthless company is the way to a solution or quick fix, ha.

    This is a post I have to revisit when unemployment rates are nearing 10%, GDP is at a rate that no would could imagine, credit card defaults are soaring and the bear just running wild on wallstreet.
  6. yes, you already warned when dow was 500 points lower than now. Problem is that knowing where the economy goes and understanding the economic environment and how bad it really is (I believe the unemployment figures next Friday will be awfull) does not make you any money.
    It does not count what YOU think about the economy or stock market, it only counts what the majority thinks about it. THEY move the market.
    And if you look at past bear markets you will see that the chance of a 50% rally from the lows we had is not so bad.
    I think a lot of perma bears here do much worse than some bulls because they simply don't understand why anybody could buy here and they expect the market go down to zero very fast and give them a lot of money without retracements and then sooner or later their shorts get killed in a 40% bear rally.
  7. Excellent post there, Topsurfi.
  8. here you go rookie:

    "The stock market is not operating in the present or reflecting the present; it is operating on what is yet to be the future.

    The market often moves contrary to apparent common sense and world events, as if it had a mind of its own, designed to fool most of the people, most of the time. It is therefore foolish to try and anticipate the movement of the market based on curren economic news and current events.

    The simple fact is , the market always preceeds economic news, it does not react to economic news."

    Jesse Livermore
  9. Please tell me that you are not so naive to think that a market cannot rally based solely on "liquidity" vs lousy economic fundamentals?

    I'm always amazed at a core group of posters on ET that consistently post "cut and paste" articles to "support" their bearishness . . . Yet, they don't seem to understand that the equity markets have a tremendous lack of correlation with the actual fundamentals of the economy.

    My guess is that these posters are relatively "young" in age and market experience. As a result, they don't have much market history under their belt. If they did, they wouldn't be so narrow minded and biased in their view of the equity market.
  10. Agreed 100%.
    #10     Nov 29, 2008