Guest Debbie Smythe Posted August 10, 2007 Share Posted August 10, 2007 Re: FANNIE MAE MELTDOWN.......CHINA Bryan Adrian saw it all five years ago..... http://www.angelfire.com/planet/blacklisting_central/ducksunlimited.html Global stock markets extend plunge due to Fannie Mae loans! 43 minutes ago AUGUST 10 2007 FRIDAY LONDON (AFP) - World stock markets dived for a second day running on Friday with European and Asian traders dumping shares on fears of a widening economic crisis caused by the US subprime housing sector. European markets opened about 2.0 percent lower, after Asian markets had closed down by between 2.0 and 4.0 percent. "It's that unnerving effect of the unknown which is spooking investors at the moment," said analyst Henk Potts of Barclays Stockbrokers in London. Economists said investors were alarmed by signs that losses in the US subprime mortgage market -- high-risk property loans to which many US banks and investment funds are exposed -- was spreading to other regions. "Selling pressure was strong as the market fears more funds or financial institutions may disclose problems related to US subprime mortgages," said economist Conita Hung at Delta Asia Securities in Hong Kong. BNP Paribas, France's biggest bank, spooked the market on Thursday when it said it had suspended three investment funds exposed to the US housing market because it was unable to value the assets. That led to heavy falls for banking stocks, which continued into Friday. "Investors don't know which banks have got exposure (to the credit problems) and the extent to those potential losses," said Potts of Barclays Stockbrokers. News that the US, Eurozone, Japanese and other central banks had pumped massive amounts of cash into the banking sector to forestall a lack of liquidity appeared to add to the sense of nervousness on global markets. If the central banks' actions aimed to reassure investors, "they took it the other way ... That is, that the problem is so big that the central banks had to intervene," said Okasan Securities strategist Hirokazu Fujiki. In morning Europe trade, the FTSE 100 in London slumped 1.70 percent to 6,180.70 points, in Frankfurt the DAX was down 1.29 percent at 7,357.58 points and the Paris CAC 40 shed 1.57 percent to 5,5538.30. The overriding fear of investors is that banks will tighten their borrowing terms in response to the subprime crisis to prevent further exposure and cover losses already incurred. If liquidity is limited to such an extent that companies and consumers have inadequate access to credit, then this could drag on overall economic growth. "As private sector banks, in a time of uncertainty, set aside more funds for their own funding needs, we are seeing a shortage of liquidity in the money markets," said Societe Generale's chief Asia economist, Glenn Maguire. This was the reason the European Central Bank pumped a record 94.8 billion euros (130.2 billion dollars) into the eurozone banking sector on Thursday to help lenders shaken by the US subprime mortgage crisis. The ECB announced another injection on Friday of an unspecified sum. The US, Japanese and Australian central banks also provided funds to the financial system in an effort to calm fears about a credit crunch. Meanwhile on Asia's largest market in Tokyo, the benchmark Nikkei-225 index slumped by as much as three percent at one point on Friday before ending down 2.37 percent at 16,764.09 points, the lowest closing level for almost five months. Seoul ended down 4.2 percent, Sydney slumped by 3.7 percent, Hong Kong slid 2.88 percent, Mumbai was down 2.65, Singapore gave up 3.31 percent and Taipei lost 2.74. Wall Street lost nearly three percent overnight. But Chinese share prices edged only 0.10-percent lower Friday, boosted paradoxically by gains to heavyweight banking stocks and after China's main index had closed at record highs during the previous five sessions. Maguire of Societe Generale noted that global stock markets had already been rattled this year after the Shanghai stock market plunged in February. "The falls we've seen on Wall Street and Asia are consistent with what we saw on February 27 when the Asian equity markets plummeted on the back of China (problems) and we have seen markets recover from that," he said. But he added: "We need to see confidence stabilise in the banking sector and the financial markets first before we see things start to improve." The dollar gained Friday as it benefited from its status as a safe haven in times of financial instability, although not against the yen, which was also higher as players unwound risky carry trades funded by selling the Japanese currency. Elsewhere, oil prices continued to drop on the prospect of weaker global demand for energy should the US subprime situation break out into a wider economic crisis. http://www.angelfire.com/planet/blacklisting_central/ducksunlimited.html Quote Link to comment Share on other sites More sharing options...
Guest Lantern Posted August 12, 2007 Share Posted August 12, 2007 debbie Smyth wrote: >>Re: FANNIE MAE MELTDOWN.......CHINA Bryan Adrian saw it all five years ago..... http://www.angelfire.com/planet/blacklisting_central/ducksunlimited.html Global stock markets extend plunge due to Fannie Mae loans! >> I don't think so. Fannie Mae loans are "conforming" loans, not the subprime kind. it is the subprime loans causing the problem. Fannie Mae was in trouble several years ago for something else. Quote Link to comment Share on other sites More sharing options...
Guest The pirate, rogue dick Posted August 12, 2007 Share Posted August 12, 2007 On Aug 11, 5:44 pm, Lantern <lanter...@peoplepc.com> wrote: > debbie Smyth wrote: > >>Re: FANNIE MAE MELTDOWN.......CHINA > > Bryan Adrian saw it all five years ago.....http://www.angelfire.com/planet/blacklisting_central/ducksunlimited.html > > Global stock markets extend plunge due to Fannie Mae loans! >> > > I don't think so. Fannie Mae loans are "conforming" loans, not the > subprime kind. it is the subprime loans causing the problem. Fannie > Mae was in trouble several years ago for something else. Sam wants his greenbacks back. "oh" "you mean ju" "ju?" "ju's on first." Sorry, I love that routine... Quote Link to comment Share on other sites More sharing options...
Guest sinister Posted August 12, 2007 Share Posted August 12, 2007 "Lantern" <lantern01@peoplepc.com> wrote in message news:1186879479.500394.31820@g4g2000hsf.googlegroups.com... > debbie Smyth wrote: > >>>Re: FANNIE MAE MELTDOWN.......CHINA > > Bryan Adrian saw it all five years ago..... > http://www.angelfire.com/planet/blacklisting_central/ducksunlimited.html > > Global stock markets extend plunge due to Fannie Mae loans! >> > > I don't think so. Fannie Mae loans are "conforming" loans, not the > subprime kind. it is the subprime loans causing the problem. Fannie Pretty much, although there's also some problems in the "alt-A" and prime markets. > Mae was in trouble several years ago for something else. > > > Quote Link to comment Share on other sites More sharing options...
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