• Please keep all posts on the Rittenhouse verdict here: Rittenhouse Verdict. Note the moderator warnings in the thread. The thread will be heavily moderated with a zero tolerance policy for any baiting, flaming, trolling or other rule breaks. Stick to the topic and not the other posters. Thank you.
  • This is a political forum that is non-biased/non-partisan and treats every person's position on topics equally. This debate forum is not aligned to any political party. In today's politics, many ideas are split between and even within all the political parties. Often we find ourselves agreeing on one platform but some topics break our mold. We are here to discuss them in a civil political debate. If this is your first visit to our political forums, be sure to check out the RULES. Registering for debate politics is necessary before posting. Register today to participate - it's free!

US financial markets may be shut down on Monday

The Giant Noodle

DP Veteran
Joined
Mar 22, 2010
Messages
7,332
Reaction score
2,011
Location
Northern Illinois
Gender
Male
Political Leaning
Independent
(this looks like a blog so I hope I put it in the right area)

It is my collective read that US financial markets may finally be shut down on Monday June 7, 2010, if Fed Desks don't intervene on Sunday night.

We have never been this close to the inevitable outcome.

Every single day, it is becoming more visible to the masses that a large portion of the western civilization is bankrupt with no savings, no production, no growth, no future prospects.

Today Hungary joined the club. Eventually they will take their creditors with them into abyss. Most of the Arab and Iran central banks are now switching from Euro to USD and Gold.

Like Sol said, "Bear Market Rules Apply" but this bear is something you have never seen in your life. Save your wealth, children, family and future. 2008 was just a warm up.

xTrends
 

Z3n

I invented Human Nature
DP Veteran
Joined
Jan 7, 2010
Messages
1,251
Reaction score
287
Gender
Male
Political Leaning
Undisclosed
I'll sleep on this
 

The Giant Noodle

DP Veteran
Joined
Mar 22, 2010
Messages
7,332
Reaction score
2,011
Location
Northern Illinois
Gender
Male
Political Leaning
Independent

oldreliable67

DP Veteran
Joined
Oct 3, 2005
Messages
4,641
Reaction score
1,102
Gender
Male
Political Leaning
Undisclosed
What would you have the Fed to do?

The US markets are not just US markets. There is huge international participation during New York hours. And of course, New York and London overlap by several hours.

With respect to Euro zone, the following is an interesting chart illustrating the flow of funds and "who owes whom and how much" very clearly:

498952-127583924270179-Bret-Jensen_origin.jpg


Source: http://seekingalpha.com/article/208753-the-expanding-european-contagion-is-eshipping-the-new-pigs?source=email

While the flows are interconnected, the amounts are simply not sufficient - yet - for a significant and sudden breakdown. Could they get to that point, eventually? Of course. But there are still measures that can be taken to avoid that situation.

There may come a time when the Fed might find it necessary to intervene. but if so, rather than permitting the markets to simply not open, I would expect the Fed, as it has done on one or two previous occasions (October 1987 comes to mind), to make calls to their necessary counterparts and the larger financial institutions and give them a very short and simple message, "We stand ready to provide whatever liquidity is necessary." That is the message sent to the markets in October 1987.
 
Top Bottom