Thread: Are you watching your MONEY?

Global markets are shifting rapidly this week and everyone needs to pay attention! Be sure and specifically investigate these three stories of Friday's breaking news!!!

In the interest of saving space only the links are provided here. The stories are lengthy and will take a few minutes each to read, but the picture they paint may not leave you with a smile...



http://www.newsmax.com/money/archives/a ... .cfm?s=mnh

http://www.newsmax.com/money/archives/a ... .cfm?s=mnh

http://www.newsmax.com/money/archives/a ... .cfm?s=mnh

Global elites playing around with the world wide economy. Don't be surprised if they create a massive global depression.

I don't have any to watch, but I 'm wondering if maybe I should stockpile some food.

You should keep as much food on hand as you can. The Stock Market is only being held up because the banks are dumping huge amounts of cash into the system to hold keep everything from crashing. That means our money will be worth less.

I notice gas has been dropping and that may be another attempt to boost the economy by getting people to spend money on other things.

So that's why gas prices have fallen. The lowest around here is 2.67 a gallon. It was 3.10 a few months ago.

Also, home prices are plummeting in my area. My home is on the market and my realtor is quite depressed. In a normal market, he said my home would have been gone in 3-4 weeks. I' getting offers that are at or below what I paid for the place years ago. Scary times. Don't buy any new homes unless it is an awesome deal.

Originally Posted by jp_48504

You should keep as much food on hand as you can. The Stock Market is only being held up because the banks are dumping huge amounts of cash into the system to hold keep everything from crashing. That means our money will be worth less.

I notice gas has been dropping and that may be another attempt to boost the economy by getting people to spend money on other things.

I agree- always a good idea to have food, water and other essentials on hand. Now so even more than ever.

Yes- I believe the gas prices dropping is an attempt to get people to spend more $$.

I wish they would but people have to have it to spend.

Remember, most working men and women have been seduced into believing the 401K is safe and secure, and they were manipulated into the market by touting HUGE tax savings by using pre-tax income which would pay off in tax savings in later years when they retired and had little income to report. Not only did that maneuver sucker many, many people who normally would have been "savers" into "investing" instead, it also helped to artificially inflate the markets.

One needs to understand that weekly, bi-weekly, or monthly (depending on what one's individual payroll cycle is) huge amounts of collective payroll distributions are plopped into various funds (especially index funds which typically carry very low fund manager charges) as pre-directed by fund participants. To the untrained eye of the small investor, these periodic distributions look like upticks in the market. That of course generates a false sense of security and lends itself to further investing. What actually happens is that the market is artificially being inflated by the very investors who stand to lose when it collapses.

As you can see today, every time investors get a whiff of danger, the Fed steps in and props the market back up while the big investors rake money off the table and into their greedy pockets.

The ultimate loser is going to be all us small investors who foolishly believed that automatically deducted 401K type investments were safe, and bet our entire future on them for security in retirement. Coupled with the eventual and impending insolvency of the Social Security system, I'd say we have certainly stepped into a pile of poop that we should have seen on the sidewalk ahead of us, but of course we were distracted by the melody from the approaching Ice Cream Man and the promise of good things coming our way.

Fed Adds $24 Bln in Temporary Funds as Demand Rises (Update3)

By Ye Xie

Aug. 9 (Bloomberg) -- The Federal Reserve added $24 billion in temporary reserves to the banking system amid an increase in demand for cash from banks roiled by U.S. subprime loan losses.

Federal funds, the U.S. overnight interbank lending rate, traded at 5.5 percent, above the Fed's target rate of 5.25 percent, according to ICAP Plc, the world's largest interdealer broker. The benchmark London interbank offered rate in dollars rose to a six-year high of 5.86 percent today. BNP Paribas SA halted withdrawals from three investment funds today and Dutch investment bank NIBC Holding NV said it had lost at least 137 million euros on subprime investments.

``Demand from European banks is driving Fed funds higher,'' said John Murphy, senior vice-president at Tullett Prebon Plc, the world's second-largest inter-dealer broker, in Jersey City, New Jersey. ``European banks have lack of liquidity in the euro- dollar market which spilled over to the Fed fund market.''

The European Central Bank today loaned 94.8 billion euros ($130.2 billion) to meet banks' cash needs. The ECB said it will provide unlimited funds today at 4 percent, its current benchmark rate, after demand for cash in the European money markets drove interest rates higher. The Bank of Canada today said it will provide liquidity to ``support stability.''

Stocks in the U.S. and Europe fell today. Treasuries rallied.

`Tremendous Anxiety'

``The Treasury Department continues to monitor markets and remains vigilant,'' Jennifer Zuccarelli, a spokeswoman in Washington, said in an interview.

The Fed split the additions into $12 billion in 14-day repurchase agreements and the same amount in overnight repos.

Wrightson, an ICAP research unit specializing in U.S. government finance, had expected the Fed to add a total of $15 billion today. The Fed usually arranges 14-day repos every Thursday in addition to its daily operation.

``We are seeing to a less significant degree something similar to what we saw in Europe,'' said Ward McCarthy, principal at Stone & McCarthy Research in Skillman, New Jersey. ``There is tremendous anxiety over what happens in the markets, especially the money market.''

Fed funds' weighted average was 5.27 percent yesterday, after trading between 5 3/16 percent and 5 3/8 percent, according to the central bank.

Repos

The Fed funds rate will probably drop to trade at the target this afternoon, said William Carey, president at Tullett Prebon in Jersey City.

The Fed added more than they needed ``to calm the market down,'' Carey said. ``They put liquidity in more than needed because they want the rate back to 5 1/4 percent.''

In repos, the Fed buys U.S. Treasury, mortgage-backed and so-called agency debt from its 21 primary dealers for a set period, temporarily raising the amount of money available in the banking system. At maturity, the securities are returned to the dealers and the cash to the Fed.

Repos help maintain enough money in the system to keep overnight interest rates close to the central bank's target. They don't signal a policy change.

For Overnight Repos:
Type of Collateral Submitted Accepted Stop Rate
U.S. Treasuries $23.45 billion $4.1 billion 5.15 percent
Agency $15.6 billion $2.9 billion 5.25 percent
Mortgage-backed $18.5 billion $5 billion 5.28 percent

TOTAL $57.55 billion $12 billion

For 14-Day Repos:
Type of Collateral Submitted Accepted Stop Rate
U.S. Treasuries $34.7 billion $3.999 billion 5.15 percent
Agency $39.95 billion $2.071 billion 5.28 percent
Mortgage-backed $36.5 billion $5.93 billion 5.31 percent

TOTAL $111.15 billion $12 billion

The ``stop'' is the lowest rate accepted by the Fed.

To contact the reporter on this story: Ye Xie in New York at yxie6@bloomberg.net .

http://www.bloomberg.com/apps/news?pid= ... refer=home

The banks are low on money because people do not have any to put in or they are taking it out fast.