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Bailout has been approved... where to now?

Discussion in 'Business, Investment and Economics' started by Tysonboss1, Oct 4, 2008.

  1. Tysonboss1

    Tysonboss1

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    Well the US congress has Approved the amended Bail out package,

    Where happens from here,... Will the ASX rally on Tuesday,...
     
  2. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Re: Bailout Has been approved,... where to now.

    Probably depends on what happens Monday night in the US. SPI futures are closed at 4704 now.

    Cheers,


    CanOz
     
  3. Aussiejeff

    Aussiejeff

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    Re: Bailout Has been approved,... where to now.

    Well, if the the last 3 hour plummet of a whopping [size=+2]-500 pts [/size]for the DJIA - after George used his "invisible ink" pen to sign the Bailout Bill into legislation - is any indication, it won't be pretty.... even less so with the DOW futures now sitting at -193 pts!
     

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  4. Nyden

    Nyden G.E. Money Genie

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    Re: Bailout Has been approved,... where to now.

    Why would anyone really expect gains from this though? It was widely, almost unanimously expected to pass by the markets. Folk were just trying to make money into the lead up; now that it's eventuated ... well ... :goodnight
     
  5. Tysonboss1

    Tysonboss1

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    Re: Bailout Has been approved,... where to now.

    well atleast we have a public holiday on monday so there is still a full day of trading in the US to settle any jitters before we open on tuesday.
     
  6. Aussiejeff

    Aussiejeff

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    Re: Bailout Has been approved,... where to now.

    Admit it, Nyden, you've been "dying" to use that smilie for a while now.... :couch


    :)
     
  7. Nyden

    Nyden G.E. Money Genie

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    Re: Bailout Has been approved,... where to now.

    Unless the US falls hard on Monday :) Then we'll need to cram 2 days of losses into 1! :D

    ... People can get very anxious over a long weekend; especially when there are losses globally. Might just have a lot of people with their finger on the trigger come Tuesday
     
  8. Aussiejeff

    Aussiejeff

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    Re: Bailout Has been approved,... where to now.

    I think the ASX still opens on Monday. Only a public holiday in NSW, ACT and SA. The only change is that no share settlements will take place on Monday. So, no shelter in the dugout AFAIK.


    Cheers,

    aj


    ASX Trading calendar - 2008

    Non-business and non-trading days for 2008

    The following table sets out the days when ASX is closed for business and/or settlement. Please read in conjunction with the footnotes. Information on trading hours is also available.

    Public Holiday Date Applies to the following States Trading Day1 Settlement Activity

    Labour Day Monday 6 October NSW / SA / ACT Open No Settlement
     
  9. psychic

    psychic

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  10. Prospector

    Prospector Not a scaredy cat anymore

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  11. Aussiejeff

    Aussiejeff

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    Re: Bailout Has been approved,... where to now.

    Euro markets were closing when the DOW was still way up with signing about to take place. It was the three hours following the "invisible ink" that did the damage (while Europe was zzzzzz-ing). I suspect Euromarkets will follow suit on Monday...
     
  12. Prospector

    Prospector Not a scaredy cat anymore

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    Re: Bailout Has been approved,... where to now.


    So why did the article use this as the reason for the rise:
    EUROPEAN stock markets closed sharply higher overnight as hopes the US Congress would pass a multi-billion-dollar bank rescue package offset a much weaker-than-expected US employment report.

    I wonder what the market would have done if the bailout wasn't approved. I know, plummet! So what was the point of the bailout then?
     
  13. white_goodman

    white_goodman BOC

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    Re: Bailout Has been approved,... where to now.

    i reckon there will be another upmove on Monday, but until they fix the libor rate and eliminate banks that cant be saved, itll be going down down down
     
  14. Porper

    Porper Ralph Nelson Elliott

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    Re: Bailout Has been approved,... where to now.


    Well, the bail out wasn't to stabalize wall street or world stock markets.

    Some thought the agreement would do this and I know Bush and his impressive advisors were using this as one of their selling points.All of the rescue tactics have caused a very brief rally followed by large sell downs, hard to see this latest ploy changing that trend.

    At least it is out of the way now and the markets can find the direction of least resistance.

    A nice long wave 3 down hopefully :)
     
  15. tech/a

    tech/a No Ordinary Duck

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    Re: Bailout Has been approved,... where to now.

    To stop the knock on effect of bank bankruptcies.

    Just imagine one of our banks simply shuts the doors.
    (1) Businesses go bankrupt.
    (2) Houses foreclose in multiples as clients are now without cash.
    (3) There would be runs on every other bank --people grabbing every cent they could get.
    (4) Hysteria---food and fuel stockpiling and very quickly----- un availablilty
    (5) Lawlessness.

    The list just goes on and on.
    There had to be a bail out.

    BUT
    This just makes the situation worse and the markets are realising this.
    Debt upon Debt just doesn't foster growth.

    Inflation is just no longer a possibility.
    A recession and a prolonged one in the US and elsewhere is in my view all that is left.
    The massive gash has to be allowed to bleed out.The pressure of band-aid measures has simply built to such a point that even the biggest bandage of all (The bailout) ISNT stopping the hemorrhaging.

    The effects will be felt world wide as US demand (Lack of) takes it toll on all of us in particular the emerging markets.
    My feeling is that there will be a quick realisation and markets will fall quickly at first. But there will be no boom to follow more so a drifting of rather aimless market conditions while the whole bleeding process comes to a grinding end.

    Having the ability to trade short is an important aspect for survival in these times and I suspect that trading of Futures and indices will be the best way to churn a $.
    To trade shares will continue to see traders bleeding their own death.
     
  16. korrupt_1

    korrupt_1

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    well... how about that?

    bailout rejected... DOW goes down
    bailout accepted... DOW goes down

    it's like a coin with 2 heads on it... toss a head and the DOW goes down....

    you're damned if you do,... damned if you don't...

    i wonder what the carnage would have been if they rejected it a second time around... :eek:
     
  17. tech/a

    tech/a No Ordinary Duck

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    The problem or bleeding lies here.
    The US has to balance its debt ratio.

    As one commentator put it.

    The canary in the mine shaft has died many times and now they think there is a defect in canaries!
     

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  18. Aussiejeff

    Aussiejeff

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    Re: Bailout Has been approved,... where to now.

    [size=+2]IS THERE A DOCTOR IN THE HOUSE.....????[/size]

    :eek:
     
  19. 2020hindsight

    2020hindsight

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    Tyson
    Where to now? - First thing I'm gonna do is enjoy a few deep breaths, lol ...

    :topic just an anecdote - bit of bs if you prefer .... I just remember once - had a motorbike - one New Year's Night I went for a ride (under the grip of several grapes) - a girl on the back - no helmets - winding narrow gravelly road - almost went over a cliff on a curve - no crashrail - rocks and the Pacific below about 20 feet ...

    Next day I went back and spent several moments looking at the skidmark - noticing how the curve came to within a few inches of the edge :eek:

    But you're right, in general I agree that we can't always be looking backwards ..

    just that "praps it could be worse" :2twocents
     
  20. theasxgorilla

    theasxgorilla Problem solved... next bubble.

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    Re: Bailout Has been approved,... where to now.

    We have one on the mod team...calling DoctorJ! :D
     
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