US stock market on the verge of crash

yuvrajjj · #1 8th September 2007, 12:03 AM

Fri Sep 7, 1:38 AM ET
NEW YORK (Reuters) - Former Federal Reserve Chairman Alan Greenspan said the current market turmoil is "identical" in many ways to that which occurred in 1987 and 1998, the Wall Street Journal reported in its online edition on Friday.

"The behavior in what we are observing in the last seven weeks is identical in many respects to what we saw in 1998, what we saw in the stock-market crash of 1987," Greenspan was quoted by the newspaper as saying.

He made the comment on Thursday at an event in Washington organized by the Brookings Papers on Economic Activity, an academic journal, the report said.

Greenspan, now a consultant but who was Fed chairman from 1987 to 2005, said business expansions are driven by euphoria and contractions by fear, the report said.

While economists tend to think the same factors drive expansions and contractions, "the expansion phase of the economy is quite different, and fear as a driver, which is going on today, is far more potent than euphoria," the report said.

Hedge fund Long-Term Capital Management controlled $100 billion of assets in 1998 but collapsed in the wake of a Russian debt crisis, wreaking havoc in many derivatives markets.

GUYS SHOULD WE EXIT FROM ANY LONG POSITIONS ?

supaTrade · #2 8th September 2007, 02:57 AM

Place firm trailing stop losses.

I was discussing with a TA in the afternoon and he too suggested that the stock market bubble in the US is just ready to burst.

ivanboesky · #3 8th September 2007, 04:26 PM

In this kind of a market, prices can go way below stop loss limits without a single bid being found. So, the stop loss principle would be good only in theory, not practice.

johnbest · #4 8th September 2007, 05:21 PM

Quote:

Originally Posted by yuvrajjj

Fri Sep 7, 1:38 AM ET
NEW YORK (Reuters) - Former Federal Reserve Chairman Alan Greenspan said the current market turmoil is "identical" in many ways to that which occurred in 1987 and 1998, the Wall Street Journal reported in its online edition on Friday.

"The behavior in what we are observing in the last seven weeks is identical in many respects to what we saw in 1998, what we saw in the stock-market crash of 1987," Greenspan was quoted by the newspaper as saying.
.........

dear friends

In one of his book (The Right Stock At Right Time) , Larry Williams had said that the year ending with digit 7 have a bearish effect on the US market......

have a nice day
JB

rahul_trader · #5 8th September 2007, 05:42 PM

Those people we see in News papers TV and financial conferences organised by Big funds and financial global firms talk about overstreching of growth valuation, market all time high...stocks have gone beyond there point market dangerously overbought.....Subprime monsters in short (These foolish hedge funds credit lenders subprime mortgages play gamble with mass wealth they collect and borrow. When there money goes for a hit they see valuations overstreched market dangerously overbought positions going all time high up......who they talking to....!!!small investors naaa whom they are talking to..........??? The world....!! bullshit....First these guys are given free hand to drive like a wizard of oz or some kinda a Phantoem or Mandrake.....who talk about wealth creation and value growth..... future funds..@@ like some kuber ka khazana they see in future so time to exit for the sake of future wealth....then there pockets can't take more..!! they start crying like a wolf....... According to one of my Uncle who's a vetren investor "Markets never go over the counter its the greed of the gambler which breaks the table in the end" Casinos never loose gambler with a fat cigar never loose only the gathering crowd go home empty.

My take ( when the wolf start crying and howling (wolf..These big fund houses and market rating big shots) That means its time for them to book profit and when Wolfs start emerging from the jungle because they are too hungry time to pick up these fallen stocks.....

All the best guys...Pray to God and the Intelligence
God has given us to save us at the right time.

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