Federal Reserve finally realizes the problem – the discount rate cut is just a temporary relief
Sam Adelton
Aug. 17, 2007

The credit crunch is much deeper than any one can think. The futures market literally collapsed due to lack of liquidity. The Panicked Fed cut discount rate by 05% but that will halt the route for a few days or perhaps a week before the meltdown starts again.

The liquidity is evaporating as we writer here minute by minute. Three bubbles collapsed simultaneously. The stock market bubble, the real estate bubble, and the mortgage/loan bubble imploded at the same time.

Federal Reserve was wrong three years back. They are totally wrong today. They created these bubbles and are now firefighting with a little hose.

The Dow Jones Industrial Average after a very brief upswing is headed for 11,000 by end of the year and below 8000 by end of 2008.

The home prices will fall 30% from here by end of 2008.

Federal Reserve finally realizes the problem – the discount rate cut is just a temporary relief
Sam Adelton
The futures market literally collapsed due to lack of liquidity. The Panicked Fed cut discount rate by 05% but that will halt the route for a few days or perhaps a week before the meltdown starts again.
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Dow makes stunning comeback
Media Release
Major gauges erase most of the day's losses, as investors recover from mortgage, credit fears; Dow, Nasdaq, S&P 500 stabilize after falling 10% from 2007 highs.
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Identity theft ring targeted Forbes 400 - prosecutors
Media Release
The five men charged face 25 years in prison if convicted.
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Venezuela is creating its own oil-field services company to reduce dependence on foreign contractors
Media Release
Oil Minister Rafael Ramirez said the state-run oil company Petroleos de Venezuela SA, or PDVSA, is starting its own version of Houston-based Halliburton Co to provide services within the oil-producing country.
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The Producer Price Index report shows the inflation is slowly changing to disinflation – Fed rate cut is near
John Mendolsa
The drop in PPI from earlier months is very significant. Normally before a recession hits the major economies, the PPI falls apart from its highs. This is exactly what has happened now.
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Stagnation in German economy is the first sign the stagflation has reached the heart of EU – time to buy dollar index?
Kara Zeilig
German economic growth is slowing very fast due to a failed boom in construction market. This has severe effects on the Euro Zone economies. German economy is faltering very fast.
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The hedge funds never paid taxes on their profits from lending money – no wonder they are all in a quagmire of sub prime scandal and fiasco
Fred Day
Many of the hedge funds lend money like banks, but unlike traditional lenders, often don't pay U.S. taxes on the profits. The US Congress is investigating such money laundering practices by these tax evading hedge funds.
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