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IDS World Markets Fri 10th October 08

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Another day in Bearzville. All Ords -5.9% with Energy getting pummelled, -8.9%, Materials getting mashed, -7.2% and REITs being razed, -6.4%. The "least" drop appears to be Healthcare, -4%.


Nasty day for the big 2: BHP -7.7% and RIO -8.3%. The golds are also dropping: Newcrest -3%, Newmont -0.2% and Lihir -2.7%.


Stupendous losses in the oils: Woodside -9.4%, Santos -14.2% and Caltex -6.4%.

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Not that anyone really cares. The large Calif. based company where my wife works sold a stake to a famous PE group a few years back. My wife's company is unable to make their required quarterly dividend to said group because of the slow-down. Things like this will never make the news because they aren't public companies required to make disclosures, but I'm sure its happening around the globe.

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The wipeout in the market has probably rendered a negative net value in my contact's hedge fund. This means that the bank itself is now on the hook for the $7.5 billion it lent to the fund to leverage it. Take that and multiply it by the hundreds of funds of funds in the world. This is a catastrophe. The world as a whole is insolvent. The value of all stocks in the aggregate is now negative.

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This is a catastrophe. The world as a whole is insolvent. The value of all stocks in the aggregate is now negative.



An aged aunt of mine died at the beginning of the year and being a widow and childless left her estate to her nephews and nieces of which I'm one.


The deal was that once her property was sold the capital would be added to her other assets and divided up. I was assuming the "other assets" were cash in various accounts and it was only recently, to my horror, that I discovered it was in a fund and her investment has already lost $100k since her death. Not only that, but the property has been on the market for at least 7 months without a single offer. My uncle is executor and at the risk of him thinking me a vulture I may just need to have a word before both property and investment fund go to zero...my aunt wouldn't have wanted it and neither do I... :(

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Perth Mint Doubles Gold Output on Haven Buying


Oct. 10 (Bloomberg) -- The Perth Mint, producer of 10 percent of the world's bullion, doubled output in the past six months, joining a global push to boost production as investors seek protection from the credit crisis.


Perth Mint sold so-called Kangaroo and Nugget coins weighing a total of 62,630 ounces in the three months to Sept. 30, compared with 154,501 ounces for the 12 months to June 30, senior manager Bron Suchecki said in an interview from Perth, Australia yesterday, adding there's been a surge in ``moms and dads'' buying over the counter in the past three months.

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Singapore, in Recession, Ends Currency Gain Policy


Oct. 10 (Bloomberg) -- Singapore fell into the first recession since 2002 as manufacturing slumped, prompting the central bank to end a policy favoring gains in its currency in an effort to support the economy.


The Monetary Authority of Singapore, which relies on the currency rather than interest rates as its policy tool, said today it's shifting to a ``zero-percent appreciation'' stance. Gross domestic product contracted an annualized 6.3 percent in the third quarter from the previous three months, after shrinking a revised 5.7 percent between April and June.

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South African Central Bank Leaves Key Rate Unchanged


Oct. 9 (Bloomberg) -- South Africa's central bank left its benchmark interest rate unchanged for a second consecutive meeting, even after inflation reached a record, as the global credit crisis threatened to undermine economic growth.


The repurchase rate will remain at 12 percent, Governor Tito Mboweni said in a televised speech from Pretoria today. The decision was forecast by all 19 economists surveyed by Bloomberg.


Inflation at 13.6 percent, more than double the target, stopped the Reserve Bank from following central banks in the U.S., Europe, Canada and Australia that cut rates this week to ease the impact of the worst financial crisis since the Great Depression. Consumers have already slashed spending on cars and furniture after six interest rate increases since June last year.

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We may just have seen a capitulation move today with huge losses across all sectors. All Ords closed -8.2% and in the sectors, Energy -11.8%, Consumer Staples -10%, REITs -9% and Financials -8.5%. Healthcare dropped the least, -5.2%.


The big miners stabilized: BHP -7%, RIO -6.4%. Golds went lower: Newcrest -4%, Newmont -3.9% and Lihir -5.7%.


Devastation in the oils: Woodside -11.3%, Santos -12.5% and Caltex -9.8%.


Asia getting a good look at the abyss: Honkers -7%, India -6%, Nikkers -9.4%, Singers -6.6% and Sth Korea -4.5%. China not so badly off, -2.6%.



Over to UK/Europe:










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C N B C Europe just had Bill McLaren on the tele...He was modeling our current situation after the 1970 and 1973/1974 markets. He was pointing out that IF he was reading this correct we should rebound in the 780/880 SPX range around Oct 15 plus or minus a couple days. He seemed quite sure.... :rolleyes: They cut him off when he started explaining WHY we were in this mess.... :lol:

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