US financial markets may be shut down on Monday (1 Viewer)

[The Giant Noodle]

(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'll sleep on this

 

[The Giant Noodle]

When you wake up take a look at these :2wave:

Euro:

[link to www.finviz.com]

Futures:
Stock Market Futures of Major World Indexes - Bloomberg

Dollar:
INO.com Markets - Major Futures Price Board for Open Futures - Intraday Prices, Charts, and Quotes for Futures and Commodities Markets

Gold:
www.kitco.com]

Nikkei:
Nikkei.com

 

[oldreliable67]

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:

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.