Friday, May 21, 2010
Meredith Whitney Sees Bleak Second Half in Stock Market, Small Business Credit Crunch, Double Dip in Housing, Says European Banks in Worse Shape
Stocks are likely to continue their aggressive decline and shed another 20 percent in value as the world economy weakens, economist Nouriel Roubini told CNBC.
As the market slides into correction territory, Roubini said weakness in euro zone countries and a slowdown in the US and other developed countries will make things even more difficult for investors in the months ahead.
"There are some parts of the global economy that are now at the risk of a double-dip recession," said Roubini, head of Roubini Global Economics. "From here on I see things getting worse." (more)
Seven of the investment bank’s nine “recommended top trades for 2010” have been money losers for investors who adopted the New York-based firm’s advice, according to data compiled by Bloomberg from a Goldman Sachs research note sent yesterday. Clients who used the tips lost 14 percent buying the Polish zloty versus the Japanese yen, 9.4 percent buying Chinese stocks in Hong Kong and 9.8 percent trading the British pound against the New Zealand dollar. (more)
Many analysts in the technical community were unsure if the ‘flash trade’ lows were actual prices which should be included in their analysis, or merely a ‘machine’ blip which can be ignored. As the days have progressed, however, it’s become increasingly clear that the flash trade lows registered in the major averages were indeed real prices and are close to being retested.
My opinion has been that the numbers were real and should be included. The charts of the Dow, S&P 500, and NASDAQ below show that even during those infamous 10 minutes of panic, buyers entered the market close to major support levels (the February lows).In all three examples, the February lows held. (more)
First and above all, we express our full and unconditional solidarity with the people who are suffering from an austerity plan without precedent combined with contempt and an arrogance bordering on racism. The strikes and demonstrations are legitimate, and we support them. This is not the crisis of the Greek people, it is the crisis of the world capitalist system. What the Greek people are experiencing is revealing of today’s capitalism. The plan dictated by the European Union and the International Monetary Fund (IMF) rides roughshod over the most elementary rules of democracy. (more)
Pan-European Bank Run Is Now On: Capital Flight From UK To Switzerland, As GBPCHF Intervention Strikes Next
The 376-point drop for the Dow Jones industrial average punctuated what amounts to a slow-motion crash that began in late April. The Dow has now plunged more than 1,000 points in a matter of weeks, marking what is known as a market correction — a sort of mini-bear market characterized by a 10 percent decline in a short period of time. (more)
Sales from state stockpiles reached 960,000 ounces last year, the third-biggest contributor to world supply after mine output from South Africa and Russia, according to Johnson Matthey Plc. The scale of the government’s stockpiles of the metal used in auto catalysts, electronics and jewelry are a state secret. Norilsk is the world’s biggest producer. (more)