Monday, September 15, 2008

Black Monday 2008

NOTE: for Black Monday of Sept 29th see here.

Titans of American capitalism are falling. Wall Street developments on Sunday 14 September:
  • Merrill Lynch - sold to Bank of America
  • Lehman Bros - filed for bankruptcy
Firms to watch on Wall Street for 15 September:
  • American International Group (AIG) - seeks $40 billion from Federal Reserve
  • Washington Mutual - believed to be at risk
The NYT reports: "The weekend’s events indicate that top officials at the Federal Reserve and the Treasury are taking a harder line on providing government support of troubled financial institutions." The Fed's harder line stance suggests that investors have every reason to be nervous when the markets open for trading Monday.

So far in Asia Monday, Singapore and Australian markets are down just over 2.2%. Despite the lifting of a state of emergency in Bangkok on Sunday, stocks have fallen in Bangkok. Markets in Tokyo and China are closed due to holidays.


  1. oh, man ! this is bad.

    so, looks like it is coming soon, the promised inevitable collapse of US economy and dollar !

    perhaps you could shed a light on the matter of possible impact of such US economy collapse to Thailand?

    I watched and read some analysis saying that many countries of the world are better prepared than US and perhaps might be less affected.

  2. Gold Confiscation: Will it happen again? March 4, 2005
    “The longer-term outlook for the dollar is unquestionably more bleak than at any time since it assumed its role as the world’s reserve currency.”

    ... unless America changes course there is a “75 percent” chance of an economic crisis in the next five years... America has no better than a 10 percent chance of avoiding “economic Armageddon.”

    VERY interesting this one:

    "Treasury emergency-collapse protocols"

    it shows that actually the whole procedure was already pre-planned since 70-s !

    "In a military scenario, it's like the President of the United States pushing the final red button -- the commit button. The Treasury Secretary of the United States has a similar mechanism. It's called the yellow button, the commit button... By the end of the third day, it would be all over -- a state of martial law...

    By the end of Day Three, effectively, all banks in the world will be shut down, all paper currencies will become valueless. Martial law would be declared. There would be no continuing transactions, at least for a period of time, of commodities. All providers of fuels and foods would be shut down automatically...

    Military control would be necessary when lines begin to form at the banks, people trying to access their money... American people wouldn't get it... since we've always been taught they'll come back, the people would still be buying stocks...

    American people wouldn't realize the full extent of it until the markets were closed on the third day, or until the time when they went down to cash a check and the bank was closed with soldiers out in front. Then they would go down and see the gas station's closed. They see the local supermarket has been shuttered, and there's federal troops in front of it. Then they might begin to catch on...

    We could tell you to go out and buy gold coins and bury them in the coffee can in the back yard and go to your nearest survivalist store, but, frankly, that's useless. In the last analysis, it's a lot of hype. There is very little the average US citizen could do... It's very, very telling that the U.S. Treasury may institute a restriction on the amount of U.S. dollars that can be converted into gold. "

    The Gold Confiscation Of April 5, 1933

    there are a lot of videos on youtube on this matter. there are footages of FEMA jails ready.

  3. last month :

    Blanchard says investor demand for physical gold has caused major shortage of product in the market
    NEW ORLEANS (August 21, 2008)

    ... so much so that the U.S. Mint and gold suppliers cannot provide many products, including one ounce American Eagles, American Buffaloes, and Krugerrands
    ... As of right now, physical bullion from the U.S. Mint and other sources is just not available

  4. Asian markets plunge on Lehman, Merrill woes

    "Today was a bloodbath," said Alex Tang, head of research at Core Pacific-Yamaichi, who noted that trading volume was its highest in months. "This was panic selling ... They are dumping shares, they just want to liquidate their positions."

    On Wall Street Monday, the Dow Jones industrial average fell more than 500 points, or 4.4 percent, to 10,917.51 — its worst point drop since after the September 11, 2001, terror attacks.

    A wilting dollar compounded the heavy sell-off, dragging down major exporters like Toyota Motor Corp., which declined 3.8 percent and home appliance producer Matsushita Electric Industrial Co., which fell 6.18 percent.

    Central Banks Add
    More Liquidity to Markets

    Central banks around the world pumped short-term cash into strained money markets for the second day in a row Tuesday as markets reeled amid a fast-moving crisis that is reshaping the contours of the global financial system.

    With interest rates on the overnight loans banks make to one another rising sharply on market unease, European policy makers boosted the amount of funds on offer. The European Central Bank injected €70 billion ($100.17 billion) in one-day funds into euro-zone money markets, more than double its Monday injection of €30 billion. The Bank of England offered £20 billion ($36.05 billion) in extra ...

    Thai shares down 2.8 per cent on Wall Street crash

    SEC out to calm market
    The Securities and Exchange Commission on Tuesday issued a statement to calm down market jittery...

    The securities watchdog said that the fiasco has no direct impact on Thai business. The Thai market opened 23.45 points or 3.65 per cent lower at the open. It ended the morning session with a 25.46 points or 3.96 per cent loss on turnover of Bt7.6 billion.


    Thai stock index plummets, heading to lowest since 2007

    The SET index started the day with a sharp drop and heded south further to hit the day's low at 617.67 before rebounding slightly to 619.44 points.

    Banking stocks were the biggest losers. Bangkok Bank (BBL) fell 5.45 per cent at Bt104, Kasikornbank (KBANK) was off 3.85 per cent at Bt62.50, Siam Commercial Bank (SCB) was down 6.21 per cent at Bt68 and Bank of Ayudhya (BAY) lost 4.74 per cent at Bt18.10.
    Other stock markets in Asia also caught the cold. Hong Kong's Hang Seng slumped 5.6 per cent, Taiwan stock market sank 4.45 per cent, while other bourses declined in a range of 2-4 per cent.

  5. Bangkok bank worst hit by lehman crisis By The Nation, Bloomberg
    Published on September 17, 2008
    Investment of Bt3.5 billion in collapsed US institution

    Bangkok Bank is saddled with the largest exposure - Bt3.5 billion or US$102 million - to Lehman Brothers, which recently filed for bankruptcy protection in the United States.

  6. Crisis As Bad As Great Depression Or Worse

    Two time Nobel-prize winner and former chief economist of the World Bank, Joseph Stiglitz has warned that the current financial crisis will continue for at least another eighteen months and in many ways represents a worse situation than the one faced by Americans during the great depression of the 1930s.


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