Quotes on stock market crash
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Quotes About Stock Market (40 quotes)
Important events and analysis by e-mail including our Market Updates. USAGOLD's Top 25 Quotes on the Credit Crisis of 'O7. The financial market globally is up to its elbows in one of the strangest and most complicated credit crises in history. Events have come in rapid succession with mind-numbing effect. No sooner does the dust settle in one part of the market than it is kicked up in another. Through it all, the reactions on the part of the participants have been the stuff of a good financial thriller.
We thought it would be interesting to catalog some of that reaction for you on one web page.
Famous Quotes: Before And After The Crash | This Week on Wall Street
So here they are - from the witty and profound to the scary and downright silly - our Top 25 Quotes on the Credit Crisis of ' In one way, I'm sympathetic to the institutional reluctance to face the music. I'd give a lot to mark my weight to 'model' rather than to 'market. The Federal Reserve was not founded to bail out Bear Stearns or a few hedge funds. It was founded to keep a stable currency and maintain its value.
For the second time in seven years, the bursting of a major-asset bubble has inflicted great damage on world financial markets. In both cases--the equity bubble in and the credit bubble in central banks were asleep at the switch. The lack of monetary discipline has become a hallmark of unfettered globalization.
Central banks have failed to provide a stable underpinning to world financial markets and to an increasingly asset-dependent global economy. There is a lot of pain still to be had in the equity markets, particularly aimed at the risky end of the spectrum. We think the fair value on the market is about a third lower in the U. Suddenly, the world is realizing that gold is still a safe haven asset. We've seen pretty substantial losses in equity markets.
I think this is genuine safe-haven buying. I think Greenspan would have cut rates already. So I do think things are beginning to look different at the Fed. At this juncture, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. While he hasn't seen such spreading yet, "I expect to. This is not a rescue. This is a sort of preemptive rescue. When you're in a pit, the first thing to do is to stop digging.
The US financial system is teetering. Its USDollar currency is losing global support, with some outright revolts in crucial territories. The chief private sector export from the US financial sector has been fraud-ridden asset-backed bonds and their toxic credit derivatives.
What should anyone expect?
For years an institutional dishonesty within all things financial in the United States has been engrained, spreading, and become integrated with high levels of the USGovt. The Wall Street hucksters exported fraud. The backlash might be more severe than the soft soap gurus anticipate. Look for an international boycott. The shock waves in the US financial markets are preliminary symptoms of bigger events soon to come. Stability identified is nothing but quiet between tremors.
The German banks' situation is not uncritical. After all, in a credit crunch, cash is deemed to be king. In which case, gold owned outright has just been crowned emperor. US sub-prime is just the leading edge of a financial hurricane. When the music stops in terms of liquidity, things will get complicated. But as long as the music is playing, you've got to get up and dance. So perhaps the most worrying single remark made by a responsible banking official during the current crisis came from Jochen Sanio, the head of Germany's banking regulator BaFin.
He warned on Aug. Angelo Mozilo, chief executive of Countrywide Financial Corp, which is one of the chief victims of the sub-prime home loan debacle, said the housing crisis was the result of "one of the greatest panics I have ever seen". When asked if housing would lead the US into a recession, he said: As calamitous as the sub-prime blowup seems, it is only the beginning. The credit bubble spawned abuses throughout the system. Sub-prime lending just happened to be the most egregious of the lot, and thus the first to have the cockroaches scurrying out in plain view.
The housing market will collapse. New-home construction will collapse. Consumer pocketbooks will be pinched.
The consumer spending binge will be over. America has become shackled by an immovable mountain of debt that endangers its prosperity and threatens to bring the rest of the world economy crashing down with it. The ongoing sub-prime mortgage crisis, a result of irresponsible lending policies designed to generate commissions for unscrupulous brokers, presages far deeper problems in a U.
And this has not been lost on the rest of the world. It's a crisis if everybody calls it a crisis. It's inappropriate [for money market funds to invest in credit derivatives].
It doesn't have a place in money market funds. When I created the first money market fund, I said you have to have immediate liquidity, safety and a reasonable rate of return. You also have to have a situation where you're not giving people headline risk. The crisis in the US sub-prime mortgage market could bolster the gold price not only because gold provides a safe investment haven.
The crisis is expected to slow GDP growth, spurring lower real interest rates and a weaker US dollar that will boost gold investment demand.
Gold's traditional role as a safe haven asset in times of financial turbulence and instability is enforced in the current market as the metal recouped the majority of losses which occurred in a flight to cash in the beginning of August.
Supporting this view is the fact that gold recovered despite a rise in the US dollar caused by a European Central bank intervention that boosted liquidity in Europe.
Peter Richardson, Craton Capital. While compiling the quotes for this article, I could not help but note an irony: The most severe test of the Federal Reserve in the modern era dates almost years to the day from the Panic of - the credit crisis that instigated the Fed's founding.
The Panic of was characterized by bank runs and a stock market crash as investors fled the financial system. The current crisis, though it has produced similar results, is a much more complex and wilder breed of cat. Market commentator Henry K. Liu, offers a keen insight: Such massive injection would mean immediate and sharp inflation. Worse yet, it would cause a collapse of the dollar.
How to Protect and Build Your Wealth with Gold , and numerous magazine and internet articles and essays. He is frequently interviewed in the financial press and is well-known for his on-going commentary on the gold market and its economic, political and financial underpinnings. Box Denver, Colorado Wednesday June 21 website support: How to Buy Gold. Serving gold investors since USAGOLD's Top 25 Quotes on the Credit Crisis of 'O7 The financial market globally is up to its elbows in one of the strangest and most complicated credit crises in history.
Peter Richardson, Craton Capital Final Word While compiling the quotes for this article, I could not help but note an irony: